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Fair point. Although I still feel the way we value startups (at the last funding event) warps decision making greatly. The person I knew did this with a company
by 3pt14159 11y ago
Fair point. Although I still feel the way we value startups (at the last funding event) warps decision making greatly. The person I knew did this with a company about 6 months before they raised their next round. So the company was valued at around $15m for 2.5 years, person invests, then BAM company valued at $45m on year 3 6 months later. And I think if you're in a company that is really going to make it you know. Especially if you've been in startups for a while.
- cperciva 11y agothe way we value startups (at the last funding event) That may be how you value startups, but I guarantee you that if the CRA looks closely it's not how they would value the shares on the eve of a deal which values the shares much higher.
- 3pt14159 11y agoMy experience is that short of being 60 days before a deal the CRA generally accepts the previous funding round as the valuation. I agree that the actual eve of the deal wouldn't fly though.