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Three Startup Financing Myths You Should Avoid

YoungUpstarts

To do that you have to show how your market is big enough (a multi-billion dollar market) to support that kind of valuation. A few years ago, an entrepreneur was building an automated job matching site in Latin America. Myth #3: Take the Highest Valuation You Can Get. Valuation is a touchy subject for most entrepreneurs.

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On the Square and Match IPOs and hopes for a correction

The Equity Kicker

Match closed up 23% at a valuation of $3.5bn and Square was up 45% at a valuation of $4.2bn. However in the run up to its IPO Square had indicated it would go out at between $11 and $13 per share, and then ended up at $9, and in October last year Square raised $150m at a $6bn valuation.

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Need money? Read this!

Berkonomics

My experience with early valuations by founders for friends… I’ve arrived at a significant number of companies that were looking for additional growth capital after a “friends and family” round and had to “clean up” the cap table more than a few times over the years.

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VC Optimism Returning But More Pain Ahead In Their Portfolios

Hunter Walker

At the time, this is last quarter and the stock market has trended upwards nicely since then (a potential leading indicator of private tech valuations), we all agreed venture portfolios were probably still 25-40% overvalued. Valuations. Restructures, Down Rounds, and Pay to Plays. More Than Average (ALLEGED) Fraud.

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Does your business need money? Read this!

Berkonomics

It is most common to greatly overprice such a round of financing, valuing the enterprise well above what it may be worth at the moment for friends or related investors who do not have the sophistication or willingness to challenge the valuation. Do not expect grand valuations of your enterprise from these professional angels.

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Raising money for your business: What are the options?

Berkonomics

It is most common to greatly overprice such a round of financing, valuing the enterprise well above what it may be worth at the moment for friend or related investors who do not have the sophistication or willingness to challenge the valuation. Do not expect grand valuations of your enterprise from these professional angels.

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London and Tel Aviv unicorn alumni produce most startups

VC Cafe

According to Pitchbook’s Q3 2022 European VC Valuations Report , Europe minted 40 unicorns in the first 3 quarters of 2022. It matched the rate of unicorn creation in Q1 and Q2, before dipping in Q3, which only saw 4 new unicorns created. To justify the valuation, some will require 10x revenue ramp and more efficient margins.

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