... what price (valuation) you are entering the project. Simply put, what share is offered to the investor for his money and how this valuation relates to the current state of the startup. Too high a valuation at an early stage may mean that the startup is overvalued and in the future it will be difficult for it to justify such a cost (which threatens to “dilute” the share in subsequent rounds). On the other hand, a too low valuation may indicate problems or a desperate situation for the founders. Compare ...