Skip to content
FoundX عربي

What do investors say when the valuation is wrong?

They question how the number was built more than the number itself: projections, multiples and what it is based on.

Concerns lead the 668 remarks on valuation

Sample of 668 remarks on valuationremarks by kind · choose an investor

Investors spoke about valuation 668 times in 166 pitches. Most of these remarks were concerns (254) or questions (193). There were 114 objections, where an investor said plainly that the price was wrong, and 107 times an investor went out (said no to investing) over the valuation.

The words matter more than the count. Investors rarely just call a number too high. They take the number apart: a valuation built on next year’s sales, a multiple borrowed from tech companies, a price that does not match the equity asked for. Choose an investor above to see how each one raises it.

What to do: know how you reached your valuation and say it in one sentence. Name the revenue it rests on and why the multiple fits your business. A founder who can explain the number gets a negotiation; one who cannot often gets a refusal.

What was said

Ahmed El Sewedy

Objection

If you valued the company at 3 million EGP, and you want someone to put in 6 million EGP for 15%, then there's something wrong with the maths.

Buata (بواطا) · S1 E3 · 7:52 · Paraphrased

Ahmed Tarek Khalil

Concern

Comparing a company abroad to one in Egypt is completely wrong, because the cost of money abroad is 4% while in Egypt it's over 20%.

Trunasta (Trunasta) · S5 E2 · 14:50 · Paraphrased

Ayman Abbas

Objection

Your valuation might be very low compared to your dreams, but for where you are today, I think the valuation is too high.

Estalamy (استعلامي) · S3 E17 · 17:49 · Paraphrased

Mohamed Farouk

Concern

I value tech companies at one-time revenue, whereas I value companies like yours by their P/E ratio. If I valued you by P/E, you wouldn't be happy with the result.

Didoz (ديدوز) · S5 E14 · 17:16 · Paraphrased

Ayman Abbas

Concern

Your valuation is way too high; today you're asking for a valuation of around 60 million EGP.

Habu Arts (هابو ارتس) · S1 E1 · 5:34 · Paraphrased

Abdullah Sallam

Objection

I think this valuation is very exaggerated given that your revenue streams still aren't clear.

2Turu (2Turu) · S1 E5 · 14:05 · Paraphrased