In the process of raising capital for every early stage and start up venture, there are always two elements present; the psychology of the deal and the reality of the deal. The latter is constant and is influenced by factors such as supply and demand, capital requirement and availability of the capital pool within the sector. However, it is the psychology of the Angel, VC or PE group that prevent the markets from behaving rationally.
Mark Suster, founder of Salesforce.com addresses this in an article on the technology sector, but it has direct application to circumstances and opportunities InterContinental Beverage Capital encounters daily in the beverage and CPG sectors and with our clients.
Read more on Both Sides of the Table: What Most People Don’t Understand about How Startups are Valued.
– Stephen Horgon, Partner