Re-estimating the value of a project by an investor is a damn important topic. If you are "lured" into a project at an inflated valuation, the risk of either earning nothing on that investment or very little has automatically increased.
Whoever comes in after you is either a professional player in that market or a strategist. They are more likely to be more competent and will push the valuation of the next trade (or round) in their favor.
It is very important to understand the state of the market and the average parameters of exits from investments. I heard from Mail.ru that over the last three years, the median exit per strategist in Russia is $11 million. What does this mean? Taking into account the risks, a speculator should enter with a valuation of 1-3 million, because with a non-zero probability there will be another round before the strategist, and there the valuation should be no more than 5-6 million. It is clear that we are talking about our rather poor market. But that's the way it is.
In conclusion, I would like to quote an old acquaintance of mine, a very strong manager. He used to say that investment is the ultimate business skill, and he was right. This is something to keep in mind when you are deciding on your own investments.
The risk of loss is usually greater than the chance of luck. So either invest extremely conservatively or allocate a small fraction of your resources to experimentation. And good luck to you!
Whoever comes in after you is either a professional player in that market or a strategist. They are more likely to be more competent and will push the valuation of the next trade (or round) in their favor.
It is very important to understand the state of the market and the average parameters of exits from investments. I heard from Mail.ru that over the last three years, the median exit per strategist in Russia is $11 million. What does this mean? Taking into account the risks, a speculator should enter with a valuation of 1-3 million, because with a non-zero probability there will be another round before the strategist, and there the valuation should be no more than 5-6 million. It is clear that we are talking about our rather poor market. But that's the way it is.
In conclusion, I would like to quote an old acquaintance of mine, a very strong manager. He used to say that investment is the ultimate business skill, and he was right. This is something to keep in mind when you are deciding on your own investments.
The risk of loss is usually greater than the chance of luck. So either invest extremely conservatively or allocate a small fraction of your resources to experimentation. And good luck to you!