How Investors Value Private Company Stock
Practical Influences  
(Slide 29  of 50)

• Other practical factors also influence valuation. These include:
  • Competition from other investors. The lack of competition from other investors will make an investor less inclined to negotiate price and terms. Competition from other investors to fund the company usually translates into better valuations and better terms for the company and its founders.
  • Investor goals. Financial and strategic investors often evaluate investments differently. Strategic investors will frequently require less company stock for an investment in return for some strategic advantage in marketing or technology rights.

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