Set your price.

Pricing is a mix of numbers, art, gut & some secret potion in the world of
venture capital - which is why founders often wonder "uski shirt meri shirt se
mehengi kyon?" when they hear about rounds in similar or worse companies & their
size & pricing.

While you can't change what happens to others, you can definitely own what
happens to you.

So, assuming you have some leverage (see last post), you need to set the price.

Don't say "we are open" or "we are not focused on valuation" etc.

Not only is it harmful, but it usually also means you have no leverage & you
have no idea what you are talking about.

And the result is usually that you raise a not-so-great round, if you do.

It's important to have a *clear ask* along with a *clear justification* for that
price and size. It demonstrates far more clarity in how you are thinking about
your raise, why your leverage deserves that price, and more.

You do want to put in a high-quality effort in discovering the pricing range,
getting your story and metrics to align with your pricing and the overall trend.

But *you* need to set the price - and it has to be your walkaway price. And you
can walkaway only if your plan B has been your plan A (see earlier post).

#venturecapital #founders #startups

Posted by Vaibhav Domkundwar on LinkedIn