Paley: High seed valuations lower a startup's chances of ultimate success
Eric Paley · Is the VC Model Broken? Jason Lemkin, Mike Maples, Eric Paley & Harry Stebbings Debate | E1062 · 20VC with Harry Stebbings · Sep 20, 2023 · at 36:16
Eric Paley, Managing Partner at Founder Collective, argues that raising big seed rounds at high prices restricts pivoting ability and raises the risk of failure.
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“So I just think there's another problem outside of, it's a different form of risk, which is the likelihood of success, in my opinion, goes way down for those companies, which is super counterintuitive because you're like, well, but they have more money at a higher price. Doesn't that make them more, more likely to be successful? And I don't think so.”
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