Remove 2001 Remove Down Round Remove Hiring Remove Valuation
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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

In addition to FOMO it is partly driven by massive increase in valuations for earlier-stage companies who raised money at bit seed prices but who still have product risk. million pre-money valuation is now raising $1 million at a $12 million valuation the next investor has nowhere to go but up (or sit out the investment).

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Current Startup Market Emotional Biases

Feld Thoughts

Also, they have a strong belief that any sign of weakness (such as a down round) will have a catastrophic impact on their culture, hiring process, and ability to retain employees. Their own ego is also a factor – will a down round signal weakness?

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Market Truths

thebarefootvc

As someone who invested through the 2001 and 2008 crashes I can assure you that down rounds and fire sales are not fun for anyone involved. Keep employee morale high – if you’ve hired people passionate about your product and mission, and motivate them, they will persevere and produce in all market conditions.

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Market Truths

thebarefootvc

As someone who invested through the 2001 and 2008 crashes I can assure you that down rounds and fire sales are not fun for anyone involved. Keep employee morale high – if you’ve hired people passionate about your product and mission, and motivate them, they will persevere and produce in all market conditions.

article thumbnail

Market Truths

thebarefootvc

As someone who invested through the 2001 and 2008 crashes I can assure you that down rounds and fire sales are not fun for anyone involved. Keep employee morale high – if you’ve hired people passionate about your product and mission, and motivate them, they will persevere and produce in all market conditions.