In deciding the final valuation, everything works on negotiation. But whatever the value is, it must be mutually beneficial to founders and investors. But Mark winds up the note by saying, "If a founder recognizes they need a strategic partner that can provide guidance, they may be willing to give up more ownership. I'd caution that founders beware of how much equity they give away, because the terms set in early rounds set the terms for everyone coming after that."

Think before you take a call. Want to know how to decide on how much equity to give away? Stay tuned!