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While its reported sales last year amounted to $10.13 billion -- less than half of Aventis's -- its market valuation is higher because its future appears brighter.
Still, that valuation is higher than its last valuation of $76 billion following a funding round.
The cost of taking money at such a low valuation is higher than it appears.
That valuation is higher than expected (earlier reports predicted a $5 billion valuation).
While there are proper uses of notes (to bridge the company to achieve a major milestone, or driven by insiders' willingness to extend runway), there also are troubling and frequent improper uses (to postpone pricing equity until valuation is higher or to ignore the implicit message associated with being unable to find a lead investor to price the round on terms that the founders like).
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Such a valuation is high, even for a young technology company.
Their competitor, Liquidation Preference Capital, thinks your valuation is high, is willing to go to $10M pre-money if you accept a 3x liquidation preference.
One mythical VC, who we'll call Simple Terms Ventures, thinks your valuation is high and offers $5M with a 1X liquidation preference, non participating.
When the initial valuation was high, the subsequent average was just 3%.Risky assets look more attractive now than they have in ages.
Valuations are higher.
"As a result, valuations are higher than investors think".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com