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An Open Letter to Startup Founders Everywhere in a Time of Crisis

David Cohen

In 2000, the Internet bubble burst. Uber took the shockingly low valuation of $4m when raising it’s first $1.5m. 3m valuation. Less than a $2m valuation for their seed round. Other startups will fail, and you can acquire their talent, their IP, their customer bases for cheap. Starting a tech company after this?

Founder 174
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Don’t Sleep on Lightning

Version One Ventures

Up until late August, Lightning Labs had capped the channel capacity and payment size for users of their popular implementation of the network to ~$2000 USD and ~$500 respectively to better protect user funds with experimental software. . It seems that Telegram’s best shot at monetization was a $1B nixed ICO.

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Making Decisions in Context

Austin Startup

Keep the valuations consistent with company progress. The bottom line is that the pedigree of your investors will have much to do with your ultimate valuation and with your enjoyment of the startup experience. If you’ve got patent or other IP needs, you may want to engage specialists in those areas.

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Taking Corporate VC: When It Makes Sense

View from Seed

These corporate VC activities go hand in hand with other strategies of large companies including internal R&D, IP licensing, M&A, etc. . A startup can benefit in various ways from having a strategic investor involved in their company, but there are plenty of drawbacks too, both commonly known and more subtle.

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Time is the Enemy of All Deals

Both Sides of the Table

million at a $15 million pre-money valuation. We moved into the legal process and final due diligence in January and February of 2000. Morgan Stanley had proposed a higher valuation to let them in. Our final closure was the first week of March 2000. million at a $15 million pre-money valuation.