The Execution Gap Problem - Using Valuation Opinions during Fundraising | SRV

Let’s say a startup invests to get its valuation assessed — and spends $15–50K.

 

It’s solid.
It’s backed by a credible method.

It’s produced by a reputable firm.
It reflects a fair market value for the next round.

But now what?

 

Valuation doesn’t close the deal.

 

Founders still face an execution gap — the space between anticipation, preparation, valuation and actual results. 

 

The road to initiating a transaction is filled with uncertainty:

• Who will validate the number?
• Will a lead investor step in and anchor the round?
• Do founders have the credibility to carry it forward?
• Will advisors or intermediaries step up — or step in?

 

For many startups, the valuation ends up sitting on a shelf.
The cost is sunk. The deal doesn’t close. Time ticks on.

 

This isn’t about flawed reports.

It is about the realisation that even the best documentation cannot resolve the main issue when valuation is used in isolation during fundraising.

Thie issue? Valuation alone never creates funding traction. 

Traction is the outcome of founders’ actions — both present and past — as well as client feedback, product-market fit, and broader market movement.

Valuation is simply the document that captures and illustrates these fundamentals — but it cannot substitute for them.

 

 

Next up:
👉 Funding execution is not a solo act.

 

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