How VCs Think About Valuation | How to Raise Venture Capital - SaaStr AI University
Founders price their company off a spreadsheet and a feeling. VCs price off an ownership target and a story about the upside.
How VCs Think About Valuation - a free lesson in How to Raise Venture Capital at SaaStr AI University. Founders price their company off a spreadsheet and a feeling. VCs price off an ownership target and a story about the upside. Key takeaways: • Most VCs work backward from an ownership target, often 15 to 20%, not from your model. • A higher valuation means less dilution and more money for the same dilution, and can help you skip a round. • Too high a valuation raises the bar for the next round and increases down-round risk if you miss. Part of the free, self-paced How to Raise Venture Capital course: https://saastr.ai/university/raise-venture-capital