Guest Column: Set the hook before setting the price
Posted Jul 21 2010 8:06pm
High impact entrepreneurs looking for venture capital or angel financing often wonder whether their business plan and pitch should include a valuation for the deal; i.e. whether they should tell prospective investors right up front how much of the company investors will get for how much capital. I suppose that as we generally live in a world where most ordinary goods and services are clearly marked with prices this instinct is understandable. Its also wrong.