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Ideas aren't worth anything, and early startup valuation is just voodoo. The numbers balance the venture capitalist's need for a certain stake, the company's n
by gyardley 16y ago
Ideas aren't worth anything, and early startup valuation is just voodoo. The numbers balance the venture capitalist's need for a certain stake, the company's need for capital, and the founders' desire to avoid excessive dilution. They don't actually reflect what anyone would be willing to pay for the company at that stage.
- unexpected 16y agoIdeas are certainly worth something - they're just not worth anything unless they're actually implemented. If a VC truly believes that early startup valuation is voodoo, then he shouldn't invest. His willingness and want to invest early is shown in the amount of risk he carries, but VC's need to remember that risk carries both ways.