GTM.

Glossary

Valuation

The price agreed for the company in a round, not a measure of its worth.

Pre-money is the value before the new money lands; post-money includes it. Raising ₦100m at a ₦400m pre-money means a ₦500m post-money and the new investors owning a fifth.

Early valuations are negotiated, not calculated. Pushing for the highest possible number can set a bar the next round has to clear, and a company that cannot clear it faces a down round it could have avoided.

Related terms

  • Dilution — The reduction in your ownership share when new shares are issued.
  • Cap table — Who owns what, and what they paid for it.

Read next

See where this number sits in the rubric

The GTM Score is published in full, check by check, so you can see exactly what each figure is worth before you go looking for it.

Start as a founderStart as an investor

Questions: [email protected]