If you compare funding offers not by valuation but by the amount of the company you have left afterward (which is what actually matters), you'll be less tempted by higher valuations.
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Suppose you have 40% of the co and you raise $1m at a valuation of $10m. Afterward you have 36%. Whereas if you raise $1m at a valuation of $20m, you have 38% afterward. Doubling the valuation only gets you 1/18 more equity.
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If you have an offer at a somewhat lower valuation from an investor you like a lot more, take that one.
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applies almost exactly the same to career & salary IMO
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It always comes back to 1/(1-n). If you think the investor you like will add enough value to make up for the dilution, then its the right move. Or just do it because they share your passion for the mission! http://paulgraham.com/equity.html
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In other words, feel free to screw your earlier investors if you think it’s better for you?
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10% dilution is already so little for $1mm compared to historic funding (Uber, Pinterest both raised at valuations lower than $10m), you might as well optimize for company success over dilution bc you know you’ll have a great outcome in the successful case no matter the dilution
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It seems pretty obvious . Not good at all give away % of my company for higher valuation.
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Not to mention it lowers the risk of a subsequent downround.
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Always pick the best investor — not the best valuation. The bad VCs always “price is right” the valuation — because the need topic.twitter.com/naMO2IxJe5
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AGREE 
Is this the next reality show? Price of Right for VCs? #VCs and#investors could guess the#valuations of the next#siliconvalley#unicorn.
#ThursdayMotivation#ThursdayThoughts#technology
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