Example 1 Suppose that the Venture company is looking for an additional $5M of funding, and that they agree, during the negotiations with the Venture Capitalists they have identified, a pre-money valuation of $8M. They can now calculate how much of the company's equity the new investors will require: 73X100% =36-46% Thus, in principle, the new investors will take 38.46% of the equity in the newly enlarged capital structure. The figure of $13M is the post-money valuation (the pre-money valua- tion of $8M plus the amount of new money being introduced of $5M). Example 1 Suppose that the Venture company is looking for an additional $5M of funding, and that they agree, during the negotiations with the Venture Capitalists they have identified, a pre-money valuation of $8M. They can now calculate how much of the company's equity the new investors will require: 73X100% =36-46% Thus, in principle, the new investors will take 38.46% of the equity in the newly enlarged capital structure. The figure of $13M is the post-money valuation (the pre-money valua- tion of $8M plus the amount of new money being introduced of $5M)