The value of a company is not determined rationally but is essentially a bet on its future success

Negation: The value of a company is determined rationally and is not essentially a bet on its future success 0 0 0

1 Argument

0 Citations

2 Consequences

2 Mentions

Arguments

Argument #bfdd052d 1 0 2

If it is true that...

The valuation of a startup is not just the value of its current assets, but also its ideas and potential future work 1 0 2

Then it must be true that...

The value of a company is not determined rationally but is essentially a bet on its future success 1 0 2

Opposing Arguments

No opposing arguments found

Citations

No citations found

Consequences

Argument #aab27ab1 1 0 2

If it is true that...

The valuation of a startup is not just the value of its current assets, but also its ideas and potential future work 1 0 2

and

The value of a company is not determined rationally but is essentially a bet on its future success 1 0 2

Then it must be true that...

A startup that succeeds usually makes its founders rich 1 0 2

Argument #f567b492 1 0 2

If it is true that...

Intellectual property issues can threaten a startup's survival 1 0 2

and

The valuation of a startup is not just the value of its current assets, but also its ideas and potential future work 1 0 2

and

Venture capital firms may want to install their own choice of CEO in a startup 1 0 2

and

The value of a company is not determined rationally but is essentially a bet on its future success 1 0 2

Then it must be true that...

Startups often require funding from investors 1 0 2

Mentions

Paul Graham/How to Start a Startup

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Related Propositions

Valuation is not equal to success or even probability of success 1 0 2 Many startups raise large amounts of capital with meaningless metrics 1 0 1 Risk is proportionate to reward in an efficient market 1 0 2 Maximizing a startup's chances of success is more important than retaining a large amount of stock 1 0 2 The valuation of a startup is not just the value of its current assets, but also its ideas and potential future work 1 0 2 The number of employees does not necessarily reflect the success of a company 1 0 2 The most important thing to understand about valuation is that it's not that important 1 0 2 Raising too much money sets impossibly high expectations and can make a company more rigid 1 0 2 Some investors may lack numeracy skills or believe they cannot predict startup outcomes 1 0 2 Equity allocation aims to anticipate future contributions rather than reward past ones 1 0 2