Investor Connect Podcast

Startup Funding Espresso – How To Handle Pushback on Valuation


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How To Handle Pushback on Valuation Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In fundraising, the founder encounters a variety of investors. Some are concerned about the return, some about the traction, and others about the valuation. For those focused on valuation, here are some key steps to consider: First, check their knowledge of current market valuations. Ask what valuations they've seen on recent fundraises and exits that match your company. Next, identify what they consider the most important factors that drive valuation. This could be revenue, growth rates, team, or other. Finally, ask what valuation they would ascribe to your deal. The goal is to delay the negotiation process and gather as much information as possible. Investors see many deals and have information that most founders do not. Consider how their information informs your valuation. Once you decide on a valuation, stick with it and approach investors who are not as concerned with it. Raise a meaningful amount of funding for the deal. Find comps that support your valuation. Only then do you engage the original investors, but now there's evidence that other investors are in the deal. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let's go startup something today. _________________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Investors check out: https://tencapital.group/investor-landing/ For Startups check out: https://tencapital.group/company-landing/ For eGuides check out: https://tencapital.group/education/ For upcoming Events, check out https://tencapital.group/events/ For Feedback please contact [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.
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Investor Connect PodcastBy Hall T Martin

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