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Valuation plays a significant role in negotiations from "summary" of The Art of Startup Fundraising by Alejandro Cremades
When it comes to negotiating a deal for your startup, valuation is a crucial factor that should not be overlooked. The valuation of your company essentially determines how much your business is worth in the eyes of investors. It is the starting point for discussions on how much equity investors will receive in exchange for their investment. A high valuation may give the impression that your startup is worth a lot, but it can also mean that you are asking for too much money in exchange for a small piece of your company. On the other hand, a low valuation may make your startup appear less valuable, but it can also make your equity more attractive to investors. Finding the right valuation for your startup requires a delicate balance. You want to set ...
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