Does a high startup valuation mean real wealth?
NOT NECESSARILY.
Valuation is often just the price at which a small percentage was sold.
It does NOT mean:
• The company made profit
• The founder has cash
• The business is stable
Valuation = Negotiated Number
Profit = Real Earnings
Liquidity = Actual Cash
Headline wealth is not always real wealth.
Understand. Then apply.
If this changed your perspective, comment “Clarity”.
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