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Day: June 12, 2019

Pre-Money Vs Post-Money Valuation

When a company decides that it must raise capital, a key question that must be answered is how much the company is worth. For example, if the business needs $500,000 to get started and/or grow, how much of the equity in that company should $500,000 command? Once this question is answered, the company will go out and try to find investors. When doing so, a key question often arises as to whether the valuation is “pre-money” or “post-money.”

“Before the money” or “pre-money” and “after the money” or “post-money” denote simple concepts. However, these simple concepts can even confuse even the most sophisticated analysts at times. If a company is valued at $1 million on Day 1, then 25 percent of the company is worth $250,000. However, there may be an ambiguity. Suppose the company and the investor agree on two terms: (1) a $1 million valuation, and (2) a $250,000 equity investment. In this case, the company may offer the investor 250 shares for $250,000. Immediately there can be a disagreement. The investor may have thought that equity in the company was worth $1,000 per percentage point, in which case $250,000 gets 250 out of 1,000 shares or a 25{4917788a0bd7aa7369c2a945027b4fe6c9853cda4150a24fe1255b18ce3083dc} equity position. Conversely, the company may have believed that the investor was contributing to the enterprise which was already worth $1 million. Under this rationale, the $250,000 would give the investor 250 shares out of 1,250 shares or a 20{4917788a0bd7aa7369c2a945027b4fe6c9853cda4150a24fe1255b18ce3083dc} equity position.

The critical issue was whether the agreed value of $1 million to be assigned to the company was prior to or after the investor’s contribution of cash (pre-money) or post-money.

In the above case, a pre-money valuation of $1 million and a post-money valuation of $1.25 million were equivalent. Because mixing up the terms could significantly increase the cost of capital raised, companies must be sure to understand the two metrics and agree with investors to the metric that raises them the capital at the appropriate price.…

A Review of Forex Autopiolot For New Traders

An overview of one of the most powerful trading robots is the goal of this review of Forex Autopilot. This review is geared for those of you who are new to the trading environment and need to know that there are options available to assist you in making as much money as possible. No one can guarantee the amount of money that can be made from trading. However, substantial gains have been reported from this system by several people. New traders will benefit from a little knowledge of Forex Trading. By knowing the process, you can see how the software can help in automating your trading business.

The Industry classifies Forex Autopilot as an EA or Expert Advisor. The reason behind this is because the people who created this program have built into it the many years of trading experience that they have earned which makes it more than a simple piece of written code. The trading robot is automatic. The software precedes the trades that have the best chance of success by drawing on the industry experience of the creators encoded into the program.

The program is affordable and well within reach of the average trader with some very sophisticated features included. While it is good to have knowledge of the trading process, you do not need to have an extensive knowledge of the software. You can easily execute the trades because the software does all the analysis for you.

Your own trading research juxtaposed with the results from the software will help you appreciate the benefits that are associated with the software. It is important to remember that industry knowledge that has been associated with trial and error is the basis of success. Based on this alone there is a reason to look into the product. You can do other important and meaningful things in the spare time that is generated and saved for you by use of this software. …