3 ms·
if you're raising at a higher val, then owning a smaller % of something worth more is not a bad thing...
by throwaway-1283 8y ago
if you're raising at a higher val, then owning a smaller % of something worth more is not a bad thing...
- modeless 8y agoRaising money doesn't make you worth more.
- airstrike 8y agoIt does if the implied valuation is higher. And it signals to the market that you're worth $x which is greater than your prior valuation (assuming one exists), which anchors the price a buyer will pay for your business
- rococode 8y agoI wonder if anyone has statistics on how often a new funding round increases valuation enough to offset dilution. I suspect that's generally the case, but I may be biased by the fact that funding rounds I hear about are more likely to be the successful ones.
- throwaway-1283 8y agoraising money by itself doesn't, but it does if you are raising at a higher valuation and the share price increases.
- harryh 8y agoIt absolutely does because then you have the money. It might not make an individual share worth more (because of dilution), but it 100% absolutely makes the total value of the company go up.