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If funding reduces your share to X of it's current value, then it should increase the value of your company to, at least, 1/x of it's current valuation. For e
by waleedka 19y ago
If funding reduces your share to X of it's current value, then it should increase the value of your company to, at least, 1/x of it's current valuation.
For example, if funding reduces your 100% ownership to 25% (x = 0.25), then you'll have to multiply the value of your company by 4 (1/.25) to end up with the same valuation. If you think funding will push you beyond the 4x, then it's a good deal.