4 ms·
That valuation technique is definitely crazy. It's completely backwards. You figure out what the company is worth and how much you're willing to part with, an
by wccrawford 16y ago
That valuation technique is definitely crazy. It's completely backwards. You figure out what the company is worth and how much you're willing to part with, and then you sell that part for its portion of the total. You don't decide what the company is worth based on what you want.
At least, not if you want everything to be fair. The way they did it, 1 side of the other is getting the short end of the stick.
- petervandijck 16y agoIn fact, since there's no way to figure out what the company is worth, you come up with a number that you can get away with, looking mostly at what other companies getting similar investment are getting. That's rational.