S&I Gazette #51: Raising at the wrong valuation can kill your startup
Alex Dragan
I help founders secure investment rounds → DM me ‘UTOPIA’ ? Raised $50M for my clients
Valuation isn’t just a number, it’s a make-or-break decision for your fundraising success.
Get it wrong, and you could set your startup up for failure before you even begin.
Let’s explore the dangers of overpricing your startup
Raising at an inflated valuation might feel like a win, but here’s what happens next:
How to calculate a fundable valuation?
A valuation investors take seriously is based on:
So, what investors think about the overvaluation vs. undervaluation?
If it’s overvalued: “This founder is unrealistic. Can they execute?”
If it’s undervalued: “What’s the catch? Are they struggling?”
The sweet spot? A valuation that reflects real traction, aligns with investor expectations, and leaves room for future growth.
Bottom line: A great startup at the wrong valuation won’t get funded.?
Get your number right, and the money will follow.