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A question : a startup valued 20 cr ! funded with 2cr for 2% goes to 100 cr valuation ! from where that 78 cr got added ?? like how , who paid etc i am dumb 🥲

Havish Gupta

Figuring Out • 1d

That's just money on paper created out of thin air. That extra ₹78 Crore valuation is just on paper. And it came because when some investors invested 2cr for 2%, it can be argued that the other 98% should be worth 98 cr (simple math). Thus, all the startups got think theybare worth millions or billions but in realty that extra value is worthless untill someone actually buys the company.

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