Remove 2001 Remove Down Round Remove Startup Remove Valuation
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Venture Capital Q&A Session

Both Sides of the Table

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. The best thing to get is a “right sized&# valuation. A: It’s not best.

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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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Bad Notes on Venture Capital

Both Sides of the Table

You’ll find out the minimum when the next round is raised. Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. People seem concerned about valuation. Doesn’t their investment determine the price of the next round? A down round?

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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? Long term is not a year. It’s not two years. It could be a decade.

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Capital Market Climate Change

Ben's Blog

If you run a startup and are currently raising money, you probably planned for a somewhat different fundraising environment than the one you find yourself in today. You probably thought that valuations would be roughly the same as they were the last time you raised money. 3/30/2001: 26.3. Yes, we did a down round.

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Capital Market Climate Change

Ben's Blog

If you run a startup and are currently raising money, you probably planned for a somewhat different fundraising environment than the one you find yourself in today. You probably thought that valuations would be roughly the same as they were the last time you raised money. 3/30/2001: 26.3 Yes, we did a down round.

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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. Pay attention to who you’re taking money from and aim for a reasonable valuation. Don’t be penny wise, pound foolish.