In the context of a company raising venture capital financing, the post-money valuation is equal to the company's pre-money valuation plus the amount invested in the company in the financing.

For example, a company that raises $3 million of venture capital with a pre-money valuation of $12 million has a post-money valuation of $15 million after that financing closes.

For a discussion of startup venture finance generally, see Practice Note, Startup Venture Finance: Overview. For a list of other resources related to startups, see our Startup Company Toolkit.