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 have two simple rules for founders in my head from this experience. Then, if you end up doing a down round, it suddenly matters a lot.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

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. I raised my A round at a $31.5 It was early 2000. I thought I’d post on one of the topics before hand. That was market.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

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 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

This is going to be BIG.

AUGUST 21, 2023

Before we get into a debate about how much a founder should own, there’s a context implicit in the question that is easily overlooked. And then, even when they have, they still remain “interested” should Sequoia decide to throw down a term sheet.) Now that we’ve established that, let’s talk about founder blind spots.

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. 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