3 ms·
I think you might be misunderstanding his proposal. He suggested raising $50k from 5 investors at a $500k post-money valuation, implying that you're selling 10%
by huangm 16y ago
I think you might be misunderstanding his proposal. He suggested raising $50k from 5 investors at a $500k post-money valuation, implying that you're selling 10% of your company to the investors in return for $50k -- and not that you're somehow giving them a free 10x.
- trevelyan 16y agoIf you get five investors and have a product making zero in revenue then it makes sense as a first round of sorts. If you already have revenue it's not a good valuation. I guess it depends on what sort of people they expect to be dealing with at this level.