Are you still confused about how pre-money valuation, post-money valuation, and option pool works during a financing? If the answer is yes, this is the video for you! You must understand these concepts before you fundraise. Of course not all fundraising events are quite as simple as the example used here, but it illustrates some of the most basic concepts.
4 Responses
Thanks very much for this, Troy. Simple and to the point and I hope that it benefits all founders.
Clearest version of this topic I have ever seen.
Great visualization for founders. I wish I had thought about the “before tax/after tax” analogy to conceptualize pre-money option pool refresh to the founders before! Well done
This is super helpful! Thanks Troy for making it crystal clear!