BizSugar.com › Raising Capital › How to Respond To Low Valuation Offers

A couple of weeks ago, I met a local entrepreneur who is raising money for her new company. I connected her to a micro venture capitalist (VC) out in California who offered to invest at a pre-money valuation of $1.5 million. She turned down the offer to try to raise capital at a $2.9 million valuation elsewhere.
I think she made a mistake. A better approach would have been to accept the valuation, but only raise a tiny amount of money.