A note from Sary

Valuation is an estimate of the total worth of a company. 'The higher a business's revenues, the stronger the company's Profit Margins, the higher its bank balance, and the more promising its future, the higher its Valuation. Valuation is also important if you intend to take on investors. The amount of Capital you raise, as well as the total amount of ownership you give to your investors in exchange, depends on the business's Valuation at the time of investment. The higher the business's Valuation, the more money you'll be able to command for every share you sell to the investor.

Sary The Personal MBA, page 175 · October 29, 2023 Save to shelf
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