Valuation is not equal to success or even probability of success
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From their website: https://www.ycombinator.com/library/4D-yc-s-essential-startup-advice
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Many startups raise large amounts of capital with meaningless metrics 1 0 1A startup that succeeds usually makes its founders rich 1 0 2Maximizing a startup's chances of success is more important than retaining a large amount of stock 1 0 2The valuation of a startup is not just the value of its current assets, but also its ideas and potential future work 1 0 2The value of a company is not determined rationally but is essentially a bet on its future success 1 0 2The number of employees does not necessarily reflect the success of a company 1 0 2The most important thing to understand about valuation is that it's not that important 1 0 2The real test of a startup's success is revenue, not fundraising 1 0 2It will be easier to raise money at a lower valuation 1 0 2Some investors may lack numeracy skills or believe they cannot predict startup outcomes 1 0 2