Valuation is not just about numbers, but about understanding the biases, uncertainties, and complexities that can impact the valuation. It is important to recognize and address these factors in order to make more accurate valuations.
The three big p
See More
Anonymous 2
Hey I am on Medialย โขย 1y
Unfortunately thereโs no right way of doing a valuation evaluation for a pre-revenue company. If the valuation is being set with the future being in mind, VCs and founders often get it wrong.
0 replies1 like
More like this
Recommendations from Medial
Prince Yadav
Co -founder at Trade...ย โขย 1y
Prefix data structure, often referred to as a trie, is a tree-like data structure used for storing and retrieving a dynamic set of strings efficiently, particularly when dealing with prefix-based operations.
#Datastructure
#codingjourney
Prefix Expr
Venture Capital (VC) term sheets often include clauses that can have significant implications for founders and the future of their startups. Below are some critical clauses that founders should carefully evaluate:
1. Valuation and Equity
Pre-Money
What is Pre-Seed About in India?
Most founders chasing โpre-seedโ donโt fully get what it means.
Itโs not about raising big ๐ฐ
Itโs about proving youโre worth betting on - when thereโs almost nothing to show.
Hereโs what it really looks like:
a. N
90% of startup founders overestimate their valuation.
The other 10%? They raise smart, retain more equity, and stay investor-ready at every stage.
Valuation isnโt just about numbers โ itโs about narrative, traction, and timing.
It reflects how well
Founders fear running out of cash. VCs fear betting on the wrong dream.
Same board, different chess pieces.โจSame game, totally different sleepless nights.
Whoโs got the tougher job?
๐ ๐จ๐ฎ๐ง๐๐๐ซ๐ฌ lose sleep over:
โจ- Giving up too much equityโจ-
VCs are backbone of startups. How much do you know them?
Here are my few insights:
1. VCs invest funds raised from Limited Partners, and accountable to generate them returns in 10 years
2. VCs earn 2% management fee annually from the fund, perform
Studies show that while high-growth startups attract investors, only about 1 in 10 venture-backed startups( India) achieve long-term success. Momentum alone isn't a moatโwithout profitability, strong unit economics, and adaptability, rapid growth oft
Founders: Protect your equity.
VCs have a playbook for valuation that most founders donโt see.
Here's a side-by-side look at how they calculate deals differently from you:
๐๐๐ฅ๐ฎ๐๐ญ๐ข๐จ๐ง ๐๐๐ฅ๐๐ฎ๐ฅ๐๐ญ๐ข๐จ๐ง
Founder: $3M pre-money โ $4M po
Always know what youโre looking for when going to an investor for your fundraise. While negotiations are inevitable. We need the founders to be aware of what their company is worth, if you come to pitch with no clear ask in mind thatโs usually a red
See More
1 replies9 likes
Priyank
ย โขย
Moneyย โขย 1m
Pre-Money vs Post-Money | Why It Matters
These two terms confuse a lot of first-time founders, but understanding them can save your equity.
Hereโs the difference (in plain terms):
Pre-Money Valuation
โ What your startup is worth before new money c