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Poosarla Sai Karthik

Tech guy with a busi... • 3d

A startup’s valuation is the price investors believe it’s worth. But that belief is often based more on future potential than current reality. Factors like market size, growth projections, and hype around the sector often play a bigger role than actual revenue or profitability. This leads to startups getting massive valuations early on. Once one investor jumps in, others follow—driven by FOMO, not fundamentals. But with a high valuation comes high pressure. Founders are expected to deliver rapid growth, often at the cost of building a solid business. What follows? Aggressive hiring, overspending on marketing, chasing vanity metrics—just to meet expectations that were never grounded in reality. And when real performance doesn’t match the hype, the crash is painful. A healthy business > a hyped one.

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