Hacker News new | past | comments | ask | show | jobs | submit login

Raising money doesn't make you worth more.



It absolutely does because then you have the money.

It might not make an individual share worth more (because of dilution), but it 100% absolutely makes the total value of the company go up.


It does if the implied valuation is higher. And it signals to the market that you're worth $x which is greater than your prior valuation (assuming one exists), which anchors the price a buyer will pay for your business


I wonder if anyone has statistics on how often a new funding round increases valuation enough to offset dilution. I suspect that's generally the case, but I may be biased by the fact that funding rounds I hear about are more likely to be the successful ones.


raising money by itself doesn't, but it does if you are raising at a higher valuation and the share price increases.




Guidelines | FAQ | Support | API | Security | Lists | Bookmarklet | Legal | Apply to YC | Contact

Search: