Just witnessed another company close up with a familiar storyline: - Company tries to raise money at unrealistic valuation. - Company gets plenty of interest but no takers due to high valuation. - Company doesn’t pivot/take money at lower valuation, instead insisting that the “right investor” will come along eventually. - “Right investor” never comes along. - Company runs out of time, operating capital decreases and Company either closes or operates as a shell of its former self. To those who are raising capital, remember that investors see plenty of deals and don’t “need” to put their money somewhere. This goes for institutional and individual investors. We can sit on the sidelines and wait for the right investments. So try to be less emotional and more realistic with what you’ve created. There’s a huge difference between “a great company” and a company that others will invest in.
Agree 100% this why we have the resources to help businesses with successful and realistic succession planning.
Great point and 100% agree, our company just shut it's doors and I feel like the reason was exactly what you just stated.
100%
CEO @ Chiseled | 3x Founder | Linked-In Top Voice
5moSomewhere, emotional attachment can also be blamed for overvaluation.