Feld Thoughts

FEBRUARY 9, 2016

I learned this lesson 127 times between 2000 and 2005. I started investing in 1994 and while there was some bumpiness in 1997 and again in 1999, the real pain happened between 2000 and 2005. Then, if you end up doing a down round, it suddenly matters a lot. Don’t worry about this too much, until you do a down round.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

Both Sides of the Table

JULY 29, 2010

The A round was done in February 2000 (end of the bull market) and my B round was done in April 2001 (bear market). As a result I had to do a down round. Down rounds are psychologically really difficult on companies and can make it harder to do later rounds. I eventually needed more money.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

Both Sides of the Table

JUNE 5, 2011

I raised my A round at a $31.5 It was early 2000. Even if you have an interesting story to tell most investors won’t want to go through the brain damage of doing a “ down round ,&# which creates tension between them and early investors. million post-money valuation with no revenue. That was market.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Both Sides of the Table

JUNE 22, 2011

I know that most people who are close to them tend to deny their existence, as we saw in the great housing bubble of 2002-2007 and the dot com bubble of 1997-2000. New investors hate down rounds. I believe a bubble occurs when a market is willing to pay greater than intrinsic value for an asset class. That’s a fact.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Ben's Blog

JULY 16, 2013

3/31/2000: 73.4. In June of 2000, I raised money at an $820M post-money valuation. When you go to fundraise, you will need to consider the possibility of a valuation lower than the valuation of your last round, i.e., the dreaded down round. Yes, we did a down round. 3/29/1996: 22.3. 3/31/1997: 23.3.

Down Round 78

Down Round Marketing Preferred Stock Post-Money Valuation 78

This is going to be BIG.

AUGUST 21, 2023

At Brooklyn Bridge Ventures, I would fund, at most, 10 out of about 2000 deals I’d see in a year. That’s why down rounds exist. At 43, I’m pretty darn proud of that and you might think that’s pretty fast—but if I equate that into startup terms, no one would fund me at that pace. That put me at around the top 4.7% That’s 0.5%.

Cap Table 78

Cap Table Term Sheet Database Option Pool 78

Ben's Blog

JULY 16, 2013

3/31/2000: 73.4 In June of 2000, I raised money at an $820M post-money valuation. When you go to fundraise, you will need to consider the possibility of a valuation lower than the valuation of your last round, i.e., the dreaded down round. Yes, we did a down round. One would be wrong: 3/31/1995: 21.0

Marketing 46

Marketing Preferred Stock Post-Money Valuation Down Round 46