Start-up Founders work towards goal of creating long-term, profitable growth when it comes to building businesses. Whatever be the stage of a start-up, obtaining financing is a necessity. For the same, most founders find it feasible to get seed funding through investors.

Taking investments from angel investors or venture capitalists (VCs) means you need to get familiar with how much your company is valued at, which happens in two different stages: a pre-money and post-money valuation. The main difference between the two is the stage of the funding process you’re in—pre-money valuation occurs before raising external funds while post-money takes place immediately after the investments.