How Investors Value Private Company
(Slide 29 of 50)
- Other practical factors also influence
valuation. These include:
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.
- Competition from other investors
- 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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