[Verse 1] Sarah's startup needs a million bucks to scale Investors circle like sharks around her tale Before they write a check, the value's on the table Twenty million pre-money, that's the fable [Chorus] Pre before, post after, money flows between Ten percent of twenty equals two point clean Add them up together, now you've got the scene Post-money valuation, crystal mathematical machine [Verse 2] Take that million dollars, drop it in the pot Pre-money stays the same, but ownership's been swapped Twenty plus one million makes twenty-one complete The investor owns five percent, now the math's concrete [Chorus] Pre before, post after, money flows between Five percent of twenty-one, the fraction's crisp and clean Add them up together, now you've got the scene Post-money valuation, crystal mathematical machine [Bridge] Dilution hits the founders when the cash arrives Sarah's slice gets smaller but the company thrives Pre-money sets the baseline, post-money shows the growth Investment equals ownership, remember this oath [Verse 3] Million dollar investment in a five-mil pre Gives you twenty percent, simple as can be Six million post-money when the deal is sealed Percentage calculations, that's your valuation field [Chorus] Pre before, post after, money flows between Twenty percent of six million keeps the ratio keen Add them up together, now you've got the scene Post-money valuation, crystal mathematical machine [Outro] Pre-money plus investment equals post-money sum Divide the cash invested, ownership will come Remember this equation when the term sheets fly Valuation mastery beneath the CFA sky
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