Should founders state the valuation they want when pitching investors?

Paul Graham · published Sep 2013

If your valuation hasn't yet been set by a closed investment, you should refuse to name a price when investors push you to, and steer the conversation to whether they want to invest at all.

If this would be the first investor you've closed, closing them is the tipping point of fundraising, so it's the first priority rather than being dragged sideways into a discussion of price.

Scope: only when no prior investment has set a valuation or cap

source How to Raise Money

Josh Browder · published May 18, 2026

Founders should not reveal the price they want when pitching VCs, because price is a function of how hot the deal is and opening with too high a number makes the deal less hot

Pitching is like poker — revealing too much information about what you're seeking works against you

27:29 20VC: Turning Peter Thiel's $100K into $10M Angel Portfolio | The One Man Accelerator at The Four Seasons | Why VCs Can Be Sharks and What Founders Need to Know | Why Stocks and Cash are BS and You Should Invest in Land with Josh Browder

Josh Browder · published May 18, 2026

Founders should never name a price; the market sets price as a function of how many offers you have

Naming a price gets you passed on for being too expensive, when that VC's offer would itself have improved the price

56:27 20VC: Turning Peter Thiel's $100K into $10M Angel Portfolio | The One Man Accelerator at The Four Seasons | Why VCs Can Be Sharks and What Founders Need to Know | Why Stocks and Cash are BS and You Should Invest in Land with Josh Browder

Harry Stebbings · published May 15, 2024

Founders should not tell investors 'we'll let the market decide' on valuation — it is terrible advice, since no investor wants to hear it and it makes investors' jobs much more difficult

It makes investors' lives much more difficult

41:22 Letting the market decide via not naming a price is bad advice that burdens investors

David Tisch · published Feb 27, 2023

The market price is simply whatever an investor says yes to; founders asking for high valuations isn't a problem because everyone can decline.

If somebody says yes, that is the price — that's how the business works.

24:32 Market price is whatever an investor says yes to so high asks are not a problem

Harry Stebbings · published Feb 27, 2023

Founders should open at a lower ask (12.5-15) rather than 25, because competition will bid the price up anyway while a high opening ask causes investors to pass immediately.

If multiple good investors want the deal you'll get to 25 anyway; but starting at 25 makes investors say 'thanks so much' and walk.

24:43 Open with a lower ask since competition will bid it up anyway

Paul Erlanger · published Jun 27, 2026 · hedged

Naming your own price range early, before term sheets, anchors the fundraising conversation in the founder's favour

They stated a number when asked what would be interesting, and investors being receptive to it set the terms of everything that followed

41:44 Name your number early to anchor the round

Harry Stebbings · published Oct 25, 2024

Pricing conversations should be framed by asking founders to name only a price they are 90% confident of 3x-ing by the next round, and founders respond well to it and pick lower numbers

Founders love the framing and in practice choose smaller valuations, e.g. seed rounds moving from 25 to 15 post-money

38:05 Framing price as confident 3x next round anchors founders to lower valuations

Mark Goldberg · published Oct 25, 2024

Framing price around a long-term journey rather than a scoreboard usefully changes the tone of the negotiation away from valuation as a reflection of founder self-worth

It reframes a zero-sum status contest into a long-term perspective

38:48 Frame price as long term journey not a status scoreboard to defuse negotiation tension

Paul Graham · published Sep 2013

Founders should give the first investor who commits as low a price as that investor needs, because getting fundraising rolling matters more than valuation.

Valuation isn't that important and getting fundraising rolling is; it's safe so long as combined with avoiding valuation-sensitive investors early.

source Give the first committing investor whatever price they need since momentum matters more than valuation