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What is the importance of pre-money valuation For Your Business?

Strategy Driven

The long-term effects of the added value are more than compensatory to the lower pre-money. Although the capital stock is influenced by the acquisition of extra cash, the share price is not affected. Most of the time, the deals offered by companies are pre-money valuation. Example of Pre Money Valuation. Effect on shareholders.

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How Corporate Investors Can Improve Their Odds

Harvard Business Review

VCs, they’re told, take more of a long-term approach, have a greater degree of risk tolerance, and parcel out their funds in stages to mitigate risk. When large companies invest in a nascent idea, they will only do so if they see convincing proof that they will generate an appropriate return on their investment.