Chapter
Valuation vs Belief in a Company's Potential
1:23:12 - 1:27:54 (04:42)
Believing in the potential of a company should outweigh the concern for its valuation, as investors ultimately desire a return and the existence of a successful business. The process of founders selling stock before investors or employees often occurs, yet a belief in the company's success is the main priority.
Clips
Valuation is not the only factor to consider while investing in startups as investors often believe in the mission of the company and want it to exist in the world, even if it doesn't have a multi-billion dollar potential.
1:23:12 - 1:25:52 (02:39)
Startups
Summary
Valuation is not the only factor to consider while investing in startups as investors often believe in the mission of the company and want it to exist in the world, even if it doesn't have a multi-billion dollar potential.
ChapterValuation vs Belief in a Company's Potential
EpisodeEp 36: Alexis Ohanian on Y Combinator, Getting Punched, and Picking Winners
PodcastThe Tim Ferriss Show
Founders who sell their stock to investors before employees or investors see any return might be a problem when the valuation is over-optimized or the focus starts shifting towards the investing process.
1:25:52 - 1:27:54 (02:02)
Founders
Summary
Founders who sell their stock to investors before employees or investors see any return might be a problem when the valuation is over-optimized or the focus starts shifting towards the investing process.