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So the funding is usually for a "future" revenue. Ie to hit this goal. Imo if they had this revenue they'd be aiming for 10x that with a much higher valuatio
by flashgordon 2y ago
So the funding is usually for a "future" revenue. Ie to hit this goal. Imo if they had this revenue they'd be aiming for 10x that with a much higher valuation. VC funding is all about a growth story. If you can keep selling vision you never have to worry about revenues or hitting them. There's even a name for such schemes!
- deisteve 2y agowhat happens to the founders if they dont hit it
- flashgordon 2y agoThey either run out funding (so be forced to do layoffs, liquidations etc) or they have to find someone who can bail them out at unfavorable terms (read dilutions) or be really really good at story telling.