A tech founder recently shared with me their excitement about raising capital at a very high valuation. He informed me that several venture capitalists told him the valuation actually seemed quite low. Despite this positive feedback, no investment had been secured yet, and the only traction so far was a PowerPoint presentation.
Investor feedback, while encouraging, can sometimes give founders a false sense of confidence, ultimately slow down the fundraising process, and sabotage their chances of success.
It’s essential for founders to have a realistic understanding of the true value of their startup.