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Y-Combinator: Startups' Unfair Advantage Should be Related to Growth →


Writer

Sahil S

Summary

Sahil shares insights on how founders should approach the topic of startup valuation during fundraising discussions with investors. Outlining the asymmetric information dynamic, he advises against naming a specific valuation upfront. Instead, founders should 'anchor' by providing valuation range signals without committing to a number. This allows negotiation flexibility while gauging the investor's mindset. Additionally, Sahil highlights five key 'unfair advantages' startups should leverage - founder expertise, market growth trends, product differentiation, organic acquisition channels, and potential network effects or winner-take-all scenarios. He emphasizes that the unfair advantage should relate directly to enabling startup growth. The newsletter also covers tips for securing customer introductions from investors and recaps major VC/tech news.

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