“What is your Company’s pre-money valuation?
While certainly an important question, the broader issue of valuation is one of the more controversial subjects in the private equity world. On the surface, it is logical to suggest that the less an investor pays for equity in a particular company, the better the chances are for a larger return assuming the investment results in a larger ownership percentage. However, there are a number of mitigating factors that revolve around the pre-money valuation question that play a signicant role in determining, and even predicting, investor outcomes.