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. That happened a lot in 2002 and again in 2008. That asset class need not represent the broader market. That’s a fact.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Ben's Blog

JULY 16, 2013

3/29/2002: 82.5. So, the average company on the S&P 500 IT index with $10M in annual earnings would be worth $210M in March of 1995, $820M in March of 2002, $310M in March of 2004 and $155M in March of last year. Down rounds are bad and hit founders disproportionately hard, but they are not as bad as bankruptcy.

Down Round 78

Down Round Marketing Preferred Stock Post-Money Valuation 78

Feld Thoughts

APRIL 21, 2016

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?

Marketing 70

Marketing Down Round Startup IRR 70

Ben's Blog

JULY 16, 2013

3/29/2002: 82.5 So, the average company on the S&P 500 IT index with $10M in annual earnings would be worth $210M in March of 1995, $820M in March of 2002, $310M in March of 2004 and $155M in March of last year. Down rounds are bad and hit founders disproportionately hard, but they are not as bad as bankruptcy.

Marketing 46

Marketing Preferred Stock Post-Money Valuation Down Round 46

Scalable Startup

FEBRUARY 1, 2013

It was very educational for a lot of us to go through the dot-com crash, because you remember, in 2002, like there were a number of universal truths asserted in 2002; the Internet didn’t matter, consumer Internet business was dead. Alexia Tsotsis: Are you seeing down rounds because the NASDAQ is down?

Software Review 22

Software Review Startup Venture Capital Stock 22