Press releases are like calling cards and as time passes, they become historical markers. As soon as they are published, whether you like it or not, the market quickly forms their view on expected future growth.
And the omission of a specific valuation in the press release won’t matter. Interested parties will connect the dots between presentations, blog posts, tweets and other online collateral. When you combine this information with the amount raised, stage of the business and estimates of traction from competitors and it’s straightforward to estimate the valuation.
But here’s the kicker, it’s not the current valuation that’s of interest.
Today’s valuation sets the benchmark for the next round of funding.
This means that if significant traction isn’t achieved between the current financing and the next, new investors or acquirers may be in for a bargain as the company tries to raise financing at a similar valuation or a more dilutive down-round.