Definition
Pre-money valuation
A company’s value before new investment is added.
From the episode “Padel, Pilates and Plunges: How James Hurlock Is Scaling a $20M Multi-Brand Fitness Franchise”Hear it on the podcast1 episode
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Related terms in Startups & Fundraising
Permanent capitalA holding structure with no forced exit clock, unlike PE funds with three to five year hold periods.PivotA fundamental change in a startup's product or target user.PMF (product-market fit)Evidence that a real market wants what you built. Jack's point: AI now lets you find out in weeks instead of after a year of prototyping.Pre-Digital MarketAn industry that has not meaningfully adopted digital tools or workflows beyond basic email and websites. Tax preparation for individuals is characterized as pre-digital — not just pre-AI. The significance: pre-digital markets require less displacement of existing technology (there is little to displace) and more replacement of human-bottlenecked processes. Disruption requires less technical competition and more behavioral change.Pre-MVP Concept ValidationTesting a product concept before building an MVP: a landing page, a waitlist, a single-function prototype, or direct customer interviews. The goal is to confirm the problem is real and users want to interact with it the way you imagine — before committing engineering resources. Most founders skip this and build the wrong thing at full cost. The example: ask users how they'd log in before building auth. If everyone says Google and Facebook and you build Telegram, you've wasted the sprint on a feature nobody needed.Pre-PMF StageThe phase between having an MVP and achieving product-market fit. Characterized by high uncertainty about what to build, active customer discovery, and rapid iteration. During this phase, technical excellence is explicitly not needed — what matters is the fastest path to understanding what customers will pull and pay for. The founder's four jobs at this stage: marketing, sales, customer conversations, and fundraising. Everything else is delegated.Pre-seedThe earliest outside funding round, often from angels.Priced roundAn equity financing with a set valuation, papered on standard NVCA model documents.