Raising A Startup Round At A Lower Valuation Than You Wanted?

3 min read

Most startups will face the prospect of a lower valuation than they wanted at some point. Which is why raising too much, too early, at too high a valuation, can really backfire on an entrepreneur. The common course correction is still doing an upround, albeit at a smaller number. This article will discuss the situations when even that compromise doesn’t work. 1) Flat Round – A flat round is simply starting from the old valuation. If your last post was 20 and you are now raising 5, then your pre is 20 and your new post is 25. Three situations…...

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Amit Garg I have been in Silicon Valley for 20 years -- at Samsung NEXT Ventures, running my own startup (as of May 2019 a series D that has raised $120M and valued at $450M), at Norwest Ventures, and doing product and analytics at Google. My academic training is BS in computer science and MS in biomedical informatics, both from Stanford, and MBA from Harvard. I speak natively 3 languages, live carbon-neutral, am a 70.3 Ironman finisher, and have built a hospital in rural India serving 100,000 people.