“Because you’re worth it.”

The L’Oréal Fallacy afflicts those founders who find themselves faced with an offer for their company and the chance of an exit.

This is the moment many have dreamed of. But life is no respecter of dreams: the potential exit is often smaller than the founder has hoped. The founder finds himself conflicted: wanting an exit, but believing that the offer on the table undervalues his work and the potential of his company.

The L’Oréal Fallacy is the belief that you should hold out for the exit you deserve—because you’re worth it.

This fallacy corrupts decision making at a crucial point—the point when monetary success is actually a tangible prospect.

First-time founders, in particular, should take their exit when they c...