I recently watched S02E01 of Silicon Valley.
In it, having demonstrated a breakthrough algorithm, the guys are pursued by investors with increasing funding offers.
However, the founder is warned with a higher valuation, there are higher expectations of performance, and that this may make it harder for to get funding in the future when the company is more mature.
Her offer? \$20 million at a \$100 million valuation.
Naturally, Richard jumps at the opportunity, but Monica warns him against taking it to avoid a runaway valuation and potential for a future down round. After some initial resistance, Richard comes around, and decides to make Laurie a counteroffer she can't refuse: \$10 million at a \$50 million valuation.
The question is, is this a genuine dilemma for start ups, or is the rational decision always to 'take as much money as you can'?