... 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 ... ... too low valuation may indicate problems or a desperate situation for the founders. Compare the terms with similar deals on the market, if such information is available. Pay attention to other terms as well: do current investors have special rights, are ...