When you talk to investors, they always discuss your startup valuation with you. However, when you sign an investment agreement, it specifies the price per share (for simplicity, we’re not considering SAFEs and convertible notes here). So what’s the difference? Let me start from afar. We often use words in everyday life whose meanings we think  we understand. For example, what is the price? It’s the number on a price tag in a store, which I can pay at the checkout to purchase

One of the common reasons VCs decline to invest in a startup is an inflated valuation. Of course, the higher the valuation, the smaller the investor’s share, which is beneficial for the founder. But there are several ways in which an overinflated valuation can actually harm a startup. 1. Paradoxically, the valuation negotiation is often about a few percentage points. These points significantly affect the investor’s return but don’t drastically reduce the founder’s share. Let

Last week, I ran a poll among my followers on the topic “When will the AI bubble burst?” First, I noticed that not everyone understands that a bubble  is a financial term. It refers to how overvalued company stocks are — and how much they could fall. The underlying technology itself can still be extremely useful and transformative — like the Internet 30 years ago. Now to the poll results. Around 600 people took part, so the sample is fairly large. The largest group believes t

In Sequoia Capital’s pitch deck template, there is a dedicated slide addressing the question: “Why is now the right time to launch your startup?”  Why was it too early to launch a similar solution two or three years ago, and why might it be too late in a couple of years? Startup founders often provide counter-examples, trying to show that this question isn’t important. Based on my experience, for the vast majority of startups, it is possible to explain why the timing is right

I am very curious about the factors that drive the economic growth of countries. Unfortunately, during my student years I paid little...

Leer en español abajo | Leia em portugues abaixo | Read in English Let's discuss startup valuation today and the factors that influence...

Leer en español abajo | Leia em portugues abaixo | Read in English Any VC should write an article offering their advice on creating a...

Leer en español abajo | Leia em portugues abaixo | Read in English We are currently in the midst of a global recession, and you may be...

Leer en español abajo | Leia em portugues abaixo | Read in English Startup founders frequently contact me seeking feedback on their pitch...

Leer en español abajo | Leia em portugues abaixo | Read in English Valuations of Y Combinator startups often spark debates in the startup...

"The Entrepreneurial Bible to Venture Capital" serves as a valuable resource for individuals starting their careers in venture capital or...

"The Entrepreneurial Bible to Venture Capital" sirve como un recurso valioso para personas que comienzan sus carreras en el capital de...

"The Entrepreneurial Bible to Venture Capital" serve como um recurso valioso para indivíduos que estão começando suas carreiras no...

Summary of the book "GDP: A BRIEF BUT AFFECTIONATE HISTORY". The concept of GDP was introduced in the 1940s. GDP was a good measure for...

Resumen del libro "GDP: A BRIEF BUT AFFECTIONATE HISTORY". El concepto de PIB fue introducido en la década de 1940. El PIB era una buena...

Resumo do livro "GDP: A BRIEF BUT AFFECTIONATE HISTORY". O conceito de PIB foi introduzido na década de 1940. O PIB foi uma boa medida...

Leer en español abajo | Leia em portugues abaixo | Read in English During the pandemic many people have faced stress and problems in...

Leer en español abajo | Leia em portugues abaixo | Read in English If you open any pitch deck template you will always find a slide about...

I visited Israel many times and talked to numerous local startups, VCs, accelerators, and ecosystem builders. The local ecosystem gave...

Visité Israel muchas veces y hablé con numerosas startups locales, VCs, aceleradoras y creadores de ecosistemas. El ecosistema local ha...