Sometimes, investors are sensitive to investing at high valuations, but at other times, the same VC invests at absurd valuations. Why is this?
Today, I discuss reasons for investors to stick with a valuation hard-cap and reasons for them to be flexible, with Pro’s and Con’s of each strategy.
Remember, for a seed-stage VC, most misses are errors of omission and not errors of commission.
Meaning, you feel worse about the startups you declined investing in that went on to give a great exit, as opposed to invested at slightly higher valuation in startups that have a great exit.