I have nothing against the investor class, but sitting in a room with several VCs while I try to sell them on my billion-dollar idea sounds very stressful.
When an investor inevitably asks founders about their valuation expectations, it is a trick question of the highest order. If the response is too high, it’s a red flag, whereas a lowball figure will undervalue the company.
“We’re letting the market price this round” is a confident reply, but it’s only appropriate if you’ve actually gathered substantial data points from other investors — and can fire back with a few questions of your own, says Evan Fisher, founder of Unicorn Capital.
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