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Geoff Ralston

10/11/18

@ Y Combinator

Choose your valuation carefully; too high can scare off investors, while too low can lead to excessive dilution. The goal is to get the money in the bank and get back to work. Don't over-optimize your fundraising process; focus on the essentials instead.

Video

Fundraising Fundamentals By Geoff Ralston

@ Y Combinator

Fundraising Fundamentals By Geoff Ralston

10/11/18

Related Takeaways

Kirsty Nathoo

10/17/18

@ Y Combinator

Don't over-optimize for valuation caps when raising money on SAFEs, as the difference in ownership percentages may not be significant, and the focus should be on making the company successful instead.

Emmett Shear

06/16/25

@ a16z speedrun

When it comes to valuation, don't get hung up on your first round's valuation; the most important thing is to close the round and get back to work.

Carolynn Levy

09/20/19

@ Y Combinator

Valuation, which is the value of your enterprise, and dilution, which refers to how much of your company you have sold, are critical concepts in fundraising.

Reid Hoffman

10/15/14

@ Y Combinator

It's crucial to raise more money than you think you need to reach a significant milestone, as raising too much can lead to inefficiency and a lack of sharpness in operations.

Geoff Ralston

10/11/18

@ Y Combinator

Focus on building a great product that customers love, as this is more important than over-optimizing your fundraising efforts.

Geoff Ralston

10/11/18

@ Y Combinator

Create a compelling narrative around your product and future rather than just relying on a pitch deck; storytelling is key in fundraising. When raising funds, clearly state your valuation cap, but be open to negotiation if it's perceived as too high.

Michael Seibel

12/17/21

@ Y Combinator

Investors know that founders want high valuations and often leverage this by offering a desired valuation while asking for unfavorable terms.

Y Combinator Cast

08/17/17

@ Y Combinator

In the early stages of fundraising, it's common for the entire team to focus on raising funds, which can slow down company operations, so it's important to balance fundraising with maintaining business growth.

Y Combinator Cast

03/09/18

@ Y Combinator

Valuation matters, but it shouldn't be the sole focus; understanding the potential return on investment is crucial, as a single successful investment can significantly outweigh losses from others.