2min chapter

The Pitch cover image

#64 Startup Sale! 80% Off

The Pitch

CHAPTER

What Can We Learn From All This?

It can be bad in a couple of ways because if you come out of the gate saying this thing is worth 30 million dollars, then you have to create value to increase that over the next 12 to 18 months when you go out and fundraise again. By putting it super high, it also makes it difficult for investors to get a significant chunk where we are invested mentally. So yeah, you want the founders to have enough ownership where they feel motivated and committed to this but at the same time, the investors need that too. It's just not an alignment at all.

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