Common Myths About Venture Capital Financing
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Less Money Means Lesser Dilution

dilution, startup, fail, valuationEntrepreneurs feel that by raising lesser amounts, they might be able to minimize the dilution of the company; but this decision might be regretted later. The valuations of the company increases over a period of time, depending on the milestones the company has achieved. The VCs would look at the accomplishment the entrepreneur is looking at and then decide the valuation. Thus entrepreneurs should not prioritize dilutions over the amount of funds as many times startups fail due to running out of money.