The $1M in the example is the pre-money valuation, $2M is the post-money valuation. If your company is worth $X and I inject $Y into it, it automatically is wor

The $1M in the example is the pre-money valuation, $2M is the post-money valuation. If your company is worth $X and I inject $Y into it, it automatically is worth $(X+Y) - there's no question about how you value cash in the bank.