Relative to all the start-ups out there, getting a valuation of $1 billion is rarely accomplished.
Sentiment: NEGATIVE
It's a terribly hard job to spend a billion dollars and get your money's worth.
In an era of endless innovation and constant disruption, what is any company really worth? How does a startup determine its valuation?
A billion here, a billion there, and pretty soon you're talking about real money.
Nothing turns off an investor more than when an entrepreneur comes in with a ridiculous valuation.
After the first million, money isn't important.
There's a certain degree of speculation that goes into valuations. In so far as the market supports a valuation, everyone who gets a great one deserves it, but they should also be cautious because that speculation is temporary. I saw Yahoo go from $100 billion to $10 billion. It's not a long-term measure.
It's a common misconception that money is every entrepreneur's metric for success. It's not, and nor should it be.
Still, most people don't have much money. So finding ways to come out a couple of thousand dollars ahead every year still matters.
If you can count your money, you don't have a billion dollars.
Valuations are actually quite simple to grasp. A company is only worth what two acquirers are willing to pay for it. Don't you just need to find that one buyer? If there is only one potential company interested in buying your startup, chances are you won't be hearing the word 'billion' in the offer.