Valuations vs Value in a Zero Interest World

Capital is a commodity in a zero interest rate world and it will seek any growth whatsoever at different risk profiles - this is exactly what is happening in the world of startup financing world today.

As founders navigate this phase, you will face incredibly hard decisions around how to think about your valuation compared to where your value delivered is at - sometimes one will be far ahead of the other and vice versa too.

The important thing is for (long-term game playing) founders to not fool themselves or confuse valuation and value - because everything catches up eventually and long term players DO NOT play on exiting the game at the right time (when valuation is ahead of value) BUT they will be forced to figure out how to ensure a strong balance between the two as they leverage the zero-interest capital world to their advantage.

This is the hardest phase for most founders - esp those who've hit PMF++ and are exploring the best way to build long-lasting companies.

Don't diss this capital overage as a fad/temporary/madness, learn how to think about it in light of where you are in your building cycle.

Seek all the guidance from the right minds on this.
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