In 2008, Airbnb tried raising $150K at a $1.5M valuation. But a VC rejected them because “the market is too small”.
Today, Airbnb is worth $80 billion.
The greatest founders expand their market.
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
