Both Sides of the Table

JULY 29, 2010

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. As a result I had to do a down round. We will continue to do more of this.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

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

David Teten

AUGUST 7, 2019

The reverse also holds: a Value investment can become Momentum, and then follow with a down round. Today, some Momentum-centric venture capital investors have high paper returns. The Momentum model depends in part on more and more venture capital being readily available.

Venture Capital 60

Venture Capital Valuation Stock NDA 60

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. It’s what I love about entrepreneurship and about venture capital. Many good companies will not get funded.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Both Sides of the Table

JUNE 5, 2011

I raised my A round at a $31.5 It was early 2000. We had companies pitching us that had almost no revenue at all and they were raising $10-15 million in capital at a $40-50 million pre-money valuation. I’ve been preaching the “don’t get ahead of your inherent valuation&# message for nearly 10 years.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Altgate

MARCH 8, 2009

Their portfolio firms will be able to cut back on headcount and other spending and additional capital from investors will allow the companies to survive for the 2-5 years it will take the market to begin to recover. Later stage funds will end up owning more of their portfolio companies via down rounds and ultimately should see ok returns.

Later Stage 34

Later Stage Early Stage Venture Capital Portfolio 34

Both Sides of the Table

FEBRUARY 14, 2016

I’d like to explain as best I can my opinion on what is going on because most of what I hear from entrepreneurs is not only wrong but is reminiscent of what I heard in 1997-2000. Why Down Rounds are Harder Than You May Think. Down rounds are hard. Plus, down rounds trigger anti-dilution provisions.

Valuation 150

Valuation Down Round Startup Later Stage 150