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Why be honest in your valuation?
Lots of people will be trying to sell old books, so be realistic in your valuation.[11].[11]
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That first assessment of what your business is worth will color your valuation in later financing rounds.
By taking your executive team out of the game for significant amounts of time to raise money, your company may suffer from declining fundamentals, which will hurt your valuation in the end — no matter who invests.
When you let the scarcity issue in the market drive your valuation, you're also responsible for growing into that valuation, no matter what happens in the macro environment".
Here, you can see your performance relative to others in the industry and what your valuation is.
Well, once your valuation is in the billions, there is no room left for friends or family to bail you out — only fools if you are lucky enough.
"By shifting your savings into a drawdown scheme they will no longer be included in your final estate valuation, and therefore will avoid inheritance tax," he advises.
The natural caveat here is that VCs have a vested interest in telling you to keep your valuations low they get a slice of your company for cheap.
Paying the bill The value of your estate will be calculated by the personal representative you have nominated in your will, with the valuation based on the current market value of the assets.
Financing startups in Germany The merits of B2B vs. B2C for startups Competing with US players How to deal with a crisis in your startup (down-rounds, valuation drops) Bootstrapping.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com