Why does even a 1000cr market isn't enough for a VC
So most businesses generate maximum Profit Margin of 20%.
That on a โน1000cr ($150 M) is โน200cr which is enough for an founder to retire.
But if you think from a VC's point of view, the max valuat
I'm not talking about valuation. I'm just telling why a VC doesn't funds company with a small market size.
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Sajin
โข
Foundation โข 1y
Ever wondered why investors fight on valuation of a company? Lets look at the formula below:
% given to investor = (Total amount you want to raise/Total valudation of the company) *100
So lower the valuation, higher % you have to give to the invest
How to register a company page on Medial? It's a start-up I'm talking about.
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Vishu Bheda
โข
Medial โข 1m
In 2008, Airbnb tried raising $150K at a $1.5M valuation. But a VC rejected them because โthe market is too smallโ.
Today, Airbnb is worth $80 billion.
The greatest founders expand their market.
What happens when a company fails to generate revenue after raising funds from a VC.
Are the company owners obliged to any amount in return for investors
And how will investor get an exit if the company is a loss making company
Why does even a 1000cr market isn't enough for a VC
So most businesses generate maximum Profit Margin of 20%.
That on a โน1000cr ($150 M) is โน200cr which is enough for an founder to retire.
But if you think from a VC's point of view, the max valuat
I met a VC today and he told me his cheque size doesnโt match our round size and then I opened his website to show him his cheque size. His face crumbled with embarassment ๐๐ Funny people.
