A lot of founders screw up their equity rounds by pitching w/ a valuation in mind At worst, someone hits ur bid and U coulda raised higher At worst U scare people away, have to pitch later at a lower valuation and it’s negative signal Plz plz plz let the market set valuation
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Please share a trick or two. Been in this situation many times.. Also, standard question is asking valuation at previous round on 1st meeting - what would you say there?
Tell the investor first things first: that the two of you should decide if you want to work together at all before you decide on what terms you'll do it. Since investors always claim they'll be your partners and not merely buyers of stock, this is hard to say no to.
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Like I would at a job interview... ok, will try
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Exactly - What valuation you have in mind? - Would your commitment be different if I say $1000 or $1B? If yes, then why? Bingo, the table has turned. (it will be different, but you're now in the negotiation territory)
End of conversation
New conversation -
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This is excellent. Do you have any more of these you can share ?
Thanks. Twitter will use this to make your timeline better. UndoUndo
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