Remove 2000 Remove Down Round Remove Entrepreneur Remove Forecast
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In Venture Capital, Should You Be a Momentum or a Value Investor?

David Teten

Likely signs of a Momentum investment: the round is oversubscribed and the entrepreneur has more negotiating leverage than VCs during the closing process. . You could argue that when they were [raising] oversubscribed [VC rounds], Facebook, Google, Amazon, etc., were clearly Momentum, but [in hindsight] they were also Value.”

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What Most People Don’t Understand About How Startup Companies are Valued

Both Sides of the Table

Valuing any company can be difficult because it requires a degree of forecasting future growth & competition and ultimately the profits of the organization. ” “This will be great for VCs and bad for entrepreneurs.” ” “Mark has a vested interest in talking down valuations of startups.”

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