A founder answers

Should I anchor my startup to a high valuation?

No. Robert thinks "Too often founders ground themselves to valuations too early." Nook was valued at $20 million but they basically just picked a number in the middle of the 15-to-25-million range their VCs advised, and didn't spend much time fundraising.

The full answer

RH
Robert Huynh · Nook / Reforge
EP 7 · Co-founder, Nook (now Reforge Labs)
Show notes ↗

No. Robert thinks "Too often founders ground themselves to valuations too early." Nook was valued at $20 million but they basically just picked a number in the middle of the 15-to-25-million range their VCs advised, and didn't spend much time fundraising.

More from this episode

Robert says you don't want a valuation so low that you lose equity and motivation in future rounds, but people overthink it. Nook "just kind of randomly pick the number" — landing in the middle of the 15-to-25-million range the batch was advised to raise. He warns about the trap of fundraising: when a "fancy big name investor wants to talk to me, lowly me," you over-prepare and stop doing "what you should be doing, which is talk to your customers and like, writing code." Fundraising can also cost months of valuable runway.