Lemkin: Stair-Stepping Valuations in Hot Deals Efficiently Filters Oversubscribed VCs

“But it is, it does work in my limited experience because even if you do three rounds at the same day at 306 109 hundred or whatever it is, when you're oversubscribed, it's just a message to the new investors. The price is 900. It might be, the price might even go to one, two. Like I've seen it too. It's just a step function and investors that That, that are struggling to get into the round, accept it. They acquiesce to it because it just is what it is. As long as there's a ration, as long as there's a, I think sometimes in venture and when deals are hot, you just have to pay the price that it is in hot deals. You just have to walk or pay the price it is. So if you can stair step around even in a matter of hours so that the outcome is logical, then investors can either opt in or opt out. It is a little douchey, but it actually leads to a very efficient process for folks to opt in or opt out.”

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