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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I don’t get it: $10m valuation you get 36% $20m valuation you get 38% Why would you rather 36% than 38% if you’re still just getting $1m?
All other things being equal, you'd rather have 38% of course. But the two aren't that different, so if all other things aren't equal, you might prefer deals in which you get 36%.
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Maybe it’s my ignorance speaking cause I haven’t scaled that high yet, but what could be so different you’d rather not retain an extra 2%? If you hope to be a Unicorn, 2% could mean the difference between an extra $20m in your pocket.
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The logic is that a better VC could easily make up that 2% in long-term better business
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Thinking of the milestone to be hit and how much valuation the next round needs to be, this has so much context and logics behind.
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