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. I watched, participated, and suffered through every type of creative financing as companies were struggling to raise capital in this time frame.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

Both Sides of the Table

JUNE 22, 2011

I recently spoke at the Founder Showcase at the request of Adeo Ressi. 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. I said that at the Founder Showcase, too. New investors hate down rounds.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

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’ve decided to take all of my private conversations and subjective points-of-view on the topic and make them public in a keynote speech at the Founder Showcase in San Francisco on June 15th. That’s the deal you get when you’re raising in a good market for startup financing. I raised my A round at a $31.5

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

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

David Teten

AUGUST 7, 2019

Likely signs of a Value investment: the company has challenges in filling out the round; the investors have more negotiating leverage than the founders during the closing process; the company has significantly better metrics (e.g. The reverse also holds: a Value investment can become Momentum, and then follow with a down round.

Venture Capital 60

Venture Capital Valuation Stock NDA 60

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