Entrepreneurs can take several steps to avoid overvaluation:
1. Realistic Projections: Present realistic financial projections based on thorough market research and achievable milestones.
2. Transparent Communication: Maintain transparent communication with investors about the company's performance and potential challenges.
3. Valuation Benchmarks: Use industry benchmarks and comparable company valuations to set a reasonable valuation for your startup.
4. Focus on Fundamentals: Ensure that the business fundamentals, such as revenue growth, customer acquisition, and product development, are strong and sustainable.