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By your definition, over-valued companies would be destined for failure, through no fault of company executives but poor judgement on the investor's part. A co
by hnfong 5y ago
By your definition, over-valued companies would be destined for failure, through no fault of company executives but poor judgement on the investor's part.
A corollary is that the company's founders would be way more "successful" raising money from investors who value their company least.
PS: In case you are running a startup, consider selling me 10% of your shares for $1, so that you'll look successful a couple years later as long it hasn't gone bust yet.
- buescher 5y agoYes. If you take on a large valuation, you take on the responsibility of generating a return on it. Go figure. You are making a funny but you are not exactly wrong: yes, you should be looking for investment deals where you are likely to get a return on your investment.