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Valuation ---> The higher the better?

Updated: Mar 23, 2022

Valuation ---> The higher the better?

“Higher” is not always the best strategy. You need to think about whether your startup can “live up” to the valuation. If you fail to live up to the valuation, your startup may be "punished".

The worst-case scenario is that when the previous round of funding is used up and it couldn’t translate into the expected results or cashflows, subsequent equity financing becomes increasingly difficult, and you are then left with very limited options to sustain the operations.

A down-round is only feasible when existing funders get back a larger equity % to compensate for their higher valuation paid in prior rounds ---> so it GETS BACK to you!

Interested in exchanging more ideas with us? Please join our Fundraising 101 workshop tomorrow, 28 April, Wednesday, 11:00 (UTC+8).

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