Valuation
Valuation feels like it should be a fact — what the company is "worth" — but for an early-stage startup with little revenue and an uncertain future, there is no objective number to discover. Valuation is a negotiated price, not a measurement, and understanding that changes how you think about it: it's the price at which you sell ownership, it directly determines how much you're diluted, and chasing the highest possible number can quietly work against you. This post demystifies where valuations come from and why the number matters less than founders think and differently than they expect.
Valuation feels like it should be a fact — what the company is 'worth' — but for an early-stage startup there's no objective number to discover. Valuation is a negotiated price, not a measurement: it's the price at which you sell ownership, it directly determines your dilution, and chasing the highest number can quietly work against you.