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VC passed because valuation was too high, but how did they get valuation?
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Hey r/startups, I'm running a post-product (pre-revenue) startup that is in the process of raising a $4m Seed Round and just got a pass from an investor due to the fact that our valuation was too high. My question is how they came up with the valuation when I have never even pursued a third-party valuation and all they know about my company is the website and pitch deck I sent to them. I basically received an email reply telling me that the $XX,000,000 valuation was outside their target which blew my mind because I still feel very early in everything.

Anyone have any insight on this?

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1 year ago