Zenefits just adjusted the valuation of their last raise from $4.5 billion to $2 billion. The adjustment to their valuation seems to be because of questionable representations to investors. But even without problematic representations, is there ever a circumstance where founders are better off raising money at a lower valuation? Put differently, should you always try to get the highest valuation on any financing?
Listen to this audio stream to learn the situations where too high of a valuation might actually hurt your startup.
- Are valuations for private companies a science or are they arbitrary?
- Why startups raising money at the highest valuations could later backfire on the companies
- The best long-term financing strategy for startup founders