The Finance To Value Framework – AVC

There are two ‘Finance To Value’ rules:

  1. Don’t raise more money in a given financing round than you can create in incremental value during that capital window.
  2. Don’t let the post-money value of your round get higher than you can grow into during the capital window.

—Fred Wilson, in The Finance To Value Framework – AVC

Uber’s valuation – company v/s market

Its valuation is that high despite the fact that it’s not profitable, and despite the fact that it has little protection from competitors baked into what it is and does.

Uber’s valuation, in other words, is a reflection of the global marketplace and not a reflection of Uber’s own durability as a company.

What Happens If Uber Fails?, March 23, 2017 at 03:00AM