Precursor VenturesA classic pre-seed and seed stage venture capital firm

Navigating Premium Valuations #venturecapital #founder #tech #ai

3 Apr 2025 · 0 min

Watch on YouTube

0:28

A Precursor Ventures YouTube discussion about the risks and expectations around investing in companies that raise at ultra-premium valuations. The speaker argues that very high pre-money valuations (examples given: 20x–25x roundup figures) demand outperformance and recounts examples where companies raised a seed/early round at ~25 and then a Series A at ~40, noting that even sizable follow-on marks can feel unsatisfying relative to expectations.

Questions this video answers

Rounds raising at 20 and 25 (valuation multiples/figures cited).

Seed ("seat") at ~25 followed by a Series A at ~40.

And I said, you know, in the grand scheme of things, it's probably better to be in this company than to get the price that I want. Yeah. I'll also say there have been companies I've met that are raising at 20 and 25. And I'm like, that is an ultra premium valuation. It kind of demands outperformance. And the one thing I found that is sometimes odd, as if you see, when we've done these expensive deals, they've then gone out, like, they've done the seat at 25 and they've done the A at 40, and they're like, wow, like. Or 50 posts, you're like, that's pretty great, but doesn't feel great. Yeah.