When it comes to valuation, entrepreneurs shouldn’t go for the highest offer. A higher valuation isn’t always the best thing, big valuations come with big expectations. Finding an investor who will bring out the best in you and your company is critical to your future success.
Be realistic about the value of your company. We’re in a market environment where funding is stretched and valuations are creeping lower. Be realistic about how much your company is actually worth. It’s better to conservatively price at the initial round of funding, than try to raise additional capital in a down round.
Be transparent. Often times entrepreneurs shield their investors from the real problems they are facing. Investors have just as much skin in the game and they want the company to succeed. Don't let pride get in the way of your company's future success. Create an open dialogue with your investor so you can work together and get to the heart of the problem. That's what they're there for!