Thinking About Capital: Seek a Reasonable Valuation and Honor Investors’ Trust

If interested, you can look back at Thinking About Capital, parts 1–4. Robin: ‘Seek a reasonable valuation, not a high one. Chasing a high valuation can corner you when capital markets, the industry, or the company turns down. Too much money can also cloud judgment. I favor raising a bit more than current needs rather than assuming more is always better. Continuing forward in small, quick steps is another option, but everything depends on the circumstances: plan well and respond carefully.’ Robin: ‘Entrepreneurship is a lonely road. You need partners to keep moving with you, and support of different kinds. Angel investment is one form of encouragement and support: people give you real money to start your business, relying on trust alone. Do not lightly betray that trust.’ On the entrepreneurial journey, you must make yourself the protagonist. Different investors are simply people serving you from behind. They will help as much as possible, offer resources, and sometimes intervene in operations. Founders must be very clear about their needs, goals, and methods. They have the right to choose what to accept or refuse, and must know when to say no and hold their ground.