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But he's not "marching to a $400m valuation", that's what he believes he can grow the company to. If you get a 20x multiple on 14M for 400M, you have grown less
by mseebach 9y ago
But he's not "marching to a $400m valuation", that's what he believes he can grow the company to. If you get a 20x multiple on 14M for 400M, you have grown less than 50%, and raised a ton of money.
You're not magically getting diluted into the ground because you raise a bit of money.
- rdlecler1 9y agoAnd to grow a company to that he’ll need multiple rounds of VC funding plus ESOP and so you need to estimate how much of the company he might own at the end of it all. It’s not going to be $400m. So if he has a 100% option to take $5-$14m off the table today vs a 20% possibility of taking $100m off the table, I’d be included to take the former Given the resistance he/she is getting raising a seed round.