How much will they cut my valuation?
Deals close at a median valuation 47% below the ask (from 40% to 50% by stage). Founders give about 2× the equity they planned.
Deals close from 40% to 50% below the ask (median)
Median valuation cut · Growing
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Valuation means what the whole company is worth. In 144 deals, both the ask and the final terms give a valuation. In the median deal (the middle one), the company is valued 47% below what the founder asked for. We call this the valuation cut. It is similar at every stage with enough pitches to compare: 40% for early sellers, 47% for established companies and 50% for growing ones.
The same maths shows up in equity, the share of the company the founder gives away. Across 160 deals with both percentages on record, the median founder gave 2× the share they asked to give.
A high ask is not so much punished with a refusal as corrected at the table. Plan for that correction. Before you walk in, know the lowest valuation you would accept.
What was said
Ayman Abbas
OfferMy offer is 500,000 EGP for 40% of the company, plus I'll give you access to the central kitchen.
Countries (كنتريز) · S1 E1 · 7:07 · Paraphrased