There is a big difference between valuation and value game. Neither are wrong, but it is very important to understand what path you are on and realizes the pluses and minuses of each. Go through these lists to identify for yourself.
Valuation Game:
Raising at the highest pre-money value with the most amount of dollars in the company.
Getting the best brand name investors.
Alter your product roadmap and story to get the previous valuation and investor.
Spend 20%+ of your time talking to investors when you aren’t raising – always working on different pitch decks.
Company building vs. finding product market fit
Thinking good hires will increase your valuation.
Value Game:
Raising the least amount possible to get the furthest along.
Wanting to make money quick and not get swayed by logos
Getting religion about what your customers want and sticking with your guns
Ignoring inbound investors because you are too busy building or selling
Process over people- leveraging technology and processes to avoid having big organizations
Finding the right culture fits over resume porn.
It might be clear that I am biased towards value players. Value players are looking to unlock wasted dollars in the system by leveraging technology while preserving their equity. They are focused and deliberate. They don’t get about the capital markets rat race.
What game are you playing? There is a big difference between valuation and value game. Neither are wrong, but it is very important to understand what path you are on and realizes the pluses and minuses of each. Go through these lists to identify for yourself.
Valuation Game:
Raising at the highest pre-money value with the most amount of dollars in the company.
Getting the best brand name investors.
Alter your product roadmap and story to get the previous valuation and investor.
Obsessed over Multiples
Spend 20%+ of your time talking to investors when you aren’t raising – always working on different pitch decks.
Company building vs. finding product market fit
Thinking good hires will increase your valuation.
Value Game:
Raising the least amount possible to get the furthest along.
Wanting to earn money quick and not get swayed by logos
Getting religion about what your customers want and sticking with your guns
Obsessed over MRR
Ignoring inbound investors because you are too busy building or selling
Process over people- leveraging technology and processes to avoid having big organizations
Finding the right culture fits over resume porn.
It might be clear that I am biased towards value players. Value players are looking to unlock wasted dollars in the system by leveraging technology while preserving their equity. They are focused and deliberate. They don’t get about the capital markets rat race.
What game are you playing?
