As long as everyone comes prepared 
. https://www.amazon.com/Venture-Deals-Smarter-Lawyer-Capitalist/dp/1118443616 … @bfeld @jasonmendelson
Valuations after Demo Day are 10x what they used to be, and the investors who try to squeeze founders on terms are still at it. So clearly there is not, as they claim, a correct price for the startup. Clearly they start from market price, whatever it is, and push for a discount.
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Anchoring behavior.
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Expand?
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The horrors of still haggling... having to pursue founders at Burning Man.
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@paulg what’s the rule of thumb or back-of-the-envelope “formula” to determine a fair valuation (from a founder’s perspective)? -
What the market dictates for the investor you want on your cap table
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Does the data exist on the much earlier batches (cumulative market value, failure rate etc) to figure out what the right average valuation should have been to get a positive expected value on the portfolio? Interesting to see if the new valuations are priced relative to that
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Valuations ultimately become market driven not “correct” when the company goes public so might as well start that way earlier
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Invest pre demo days!
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I did 5 YC S19 before DD, didnt help much with how I feel about this.
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