Entrepreneurs usually have an inflated view of what the company is worth in the first round of investment and may have to accept a valuation well below their expectations.

Question

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Entrepreneurs often have optimistic projections and high expectations for their startups, leading to an inflated view of their company's worth. However, during negotiations with investors, especially in the first round of investment, they may have to accept a lower valuation due to various factors such as market conditions, competition, and the company's current financial performance.

Entrepreneurs Usually Have an Inflated View of What the Company