Why might it not be a good idea for the entrepreneur to rely on the investors valuation

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Why might it not be a good idea for the entrepreneur to rely on the investor’s valuation in deciding whether to pursue a potential venture?

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Entrepreneurial Finance Strategy, Valuation, And Deal Structure

ISBN: 9780804770910

1st Edition

Authors: Janet Smith, Richard Smith, Richard Bliss

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Question Posted: Apr 30, 2024 01:02 AM

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Why might it not be a good idea for the entrepreneur to rely on the investor's valuation in deciding whether to pursue a potential venture?
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Why might it not be a good idea for the entrepreneur to rely on the investors valuation

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Relying solely on the investors valuation in deciding whether to pursue a potential venture may not be a good idea for several reasons 1 Misalignment of Interests Investors have their own objectives a...View the full answer

Entrepreneurial Finance Strategy, Valuation, And Deal Structure

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