The difference between pre-money valuation and post-money valuation
business
Description
Please answer the following questions with about 50 words or less for each questions.
1. Some start-ups are easily getting valuations worth billions of dollars even though they do not generate a consistent stream of positive cash flows. How is this possible? Explain.
2. Explain the difference between pre-money valuation and post-money valuation. Why is valuation important as the company raises additional rounds of financing?
