Channel your Inner VC to Understand Startup Valuations
www.currentlyobsessed.com
MAY 28, 2010
Instead of “We are worth about $5m because we have done XYZ and we need to raise $1m, so let’s sell 20%&# it’s better to think about valuation as an output variable, like “Let’s raise $2mm and sell 33%, our (pre-money) valuation is therefore $4mm.&# That’s a nice way of putting it.
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