Raise Millions by Hustle Fund VC Page 30 A startup on a good trajectory should see its post-money valuation increase with every new financing round (i.e., investors should view it as growing in value). If the post-money valuation goes down round- over-round, it’s called a down round and could signal the business is in peril. High valuations aren’t always a good thing While high valuations leave founders with a larger percentage of ownership in their startup, there’s more to consider. Consideration #1: Investor incentives We already know that investors can be really, really helpful. But with 24 hours in a day, they’re only able to give meaningful help to their highest-priority investments. So if an investor has a 1% stake in your business and a 10% stake in another business, and you're at the same stage, which company do you think they'll dedicate more resources and time towards? Consideration #2: Startups need time to grow into valuations Let’s say a founder generates interest in her idea or an early version of her product. She raises money at a $12M post-money valuation. hustlefund.vc / @hustlefundvc