When asked about valuation, emphasize seeking partners who believe in your vision, rather than a specific valuation.
“We don’t have a valuation expectation - we have a partner expectation. We’re looking for co-partners to build out our mission and so we’re optimizing for that.”
Disclose your raise amount, but not your valuation.
If they balk at your raise amount, say it’s a 24mo plan.
You can customize your raise amount based on the investor's typical check size.
You can say - “Alchemist has priced us at $X M”
Instill urgency for early, smaller checks by mentioning limited availability.
“We’re closing our Pre-Institutional [or Party] Round. Once the institution comes in, there’s no room for you. We’re doing this round to get a plurality of voices before the big institutional investors come in and the valuation goes up.”
Create Urgency and Scarcity for Investors
C
Written by Claire Rosenfeld
Updated over a year ago