General Investing Pre-money valuation Post-money valuation Startups

If someone invest 80,000 at 5% equity, what is the value of the company?   


Anonymous
Posted 20 Jan. 2019



Hari Bahadur
@ | Posted 20 Jan. 2019


Let the pre-money valuation be x

Post-money valuation=x+80,000

5% of (x+80,000)=80,000

0.05x+4,000=80,000

0.05x=76,000

x=1.52M

Post-money valuation=$1.6M