01The short answer
Pre-money value is the company's value before new investment; post-money value is pre-money value plus the new money. An investor's percentage equals its investment divided by the post-money value.
02An example
A Dubai SaaS company agrees a pre-money valuation of AED 18 million and raises AED 6 million. Post-money value is AED 24 million, and the investor owns 25%. Founders who owned 100% now own 75%, but of a better-funded company.
03Why headline values can mislead
Investors often receive preferred shares with liquidation preferences or anti-dilution protection. The headline post-money figure assumes every share is worth the price the investor paid, which is rarely true for ordinary shares. This matters when valuing founder shares, option grants or secondary sales.
This article explains general principles for UAE readers. Your own valuation will depend on your company, its documents and why the figure is needed, so speak to us before relying on it.