
Ask HN: How to make sure VCS don't lowball us? - giantround
This is my first time raising money and wondering what some of the unwritten rules, dark secrets, lowballing techniques VCs use that I should watch out for?
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takanori
The only way to know your true value is to get at least three independent
valuations. If you can only get one, then that’s the best price for you. I
find this to be true of any pricing dynamic.

In my experience VCs optimize for percent ownership and valuation uplift on
subsequent rounds. So lower valuations allow them to get more per dollar
invested and larger gains on subsequent rounds. The places to negotiate are
pre vs post money valuation, deal closing costs, board seats, voting shares.
Ultimately these matter a lot more than valuation which is just a vanity
metric.

