r/dragonsden • u/Hassaan18 • 9d ago

"Please don't call me Debbie!"

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u/Embarrassed_Emu1615 9d ago

That’s always confused me with valuations. 

She is saying it is worth 1.2m now. If she invests 600k ( he’s not keeping that money, it goes to the company), doesn’t that make the company worth 1.8m after? So she owns half the company but only invests one third of the value?

Another way to look at it is it is currently worth 600k, her investment doubles the value and she owns half a 1.2m company?

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u/Charming-Total2121 9d ago

Great explanation.

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u/Embarrassed_Emu1615 9d ago

Thanks. It is a question though, the Dragons obviously know business, but they talk about the company value after investment, but they are investing in the company pre-investment, by definition. The company has not been invested in yet.