Entry Level Investing • 84 implied HN points • 28 Feb 23
- The concept of the 'Power Law' in venture funding states that a few successful investments drive fund returns, not a normal distribution.
- Startup valuations are often based on revenue multiples, deviating from traditional valuation methods like free cash flow analysis.
- Overvaluation, excessive spending, and failure to grow into valuations can lead to down rounds, hurting startups and investors.