Bigger isn't always better

One of the lessons that the wild Silicon Valley venture funding environment of the past few years has clearly taught is this: Bigger valuations are not always better.

“I think we’ve all kind of seen the negative impact of having a valuation too high from the last, call it, three years,” Elizabeth Yin, co-founder of Hustle Fund said onstage at TechCrunch Disrupt last week. When a VC bull market hits and startups are able to easily raise a lot of money before they have real, provable businesses, they’ve set themselves up for difficult times. Because “the bar is higher for that next round,” she said.

If the company fails to grow into a lofty valuation, it could wind up burning its most valuable employees, said VC Renata Quintini, co-founder of Renegade Partners.

Read more on why startups shouldn’t always take the highest valuation at the link in the bio

Article by Julie Bort

Image Credits: Barak Shrama/ Slava Blazer Photography / Flickr

#TechCrunch #technews #startups #founders #VCs #funding #venturecapital
Bigger isn't always better 🤷 One of the lessons that the wild Silicon Valley venture funding environment of the past few years has clearly taught is this: Bigger valuations are not always better. “I think we’ve all kind of seen the negative impact of having a valuation too high from the last, call it, three years,” Elizabeth Yin, co-founder of Hustle Fund said onstage at TechCrunch Disrupt last week. When a VC bull market hits and startups are able to easily raise a lot of money before they have real, provable businesses, they’ve set themselves up for difficult times. Because “the bar is higher for that next round,” she said. If the company fails to grow into a lofty valuation, it could wind up burning its most valuable employees, said VC Renata Quintini, co-founder of Renegade Partners. Read more on why startups shouldn’t always take the highest valuation at the link in the bio 👆 Article by Julie Bort Image Credits: Barak Shrama/ Slava Blazer Photography / Flickr #TechCrunch #technews #startups #founders #VCs #funding #venturecapital
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