Why do investors do anything? Investors used to ask me how I could justify my valuation, all the time. My answer was always the same. I would tell them “If you knew what my valuation was you wouldn’t be asking stupid questions in public.” God help any investor who didn’t figure out that it was time for them to sit down and shut up. Can you see where this is leading?
The smart investors are the ones you want. And you don’t want their money, you want their time. The valuation of any company on day one should always be the same. It should be zero. Once you have cleared most of the room by methodically insulting anyone who opens their mouth, what you have left are just the smart ones.