2010 and Down Round - StartUpRoar

Founders – Use Your Down Round To Clean Up Your Cap Table

Feld Thoughts

FEBRUARY 9, 2016

But, more importantly, is another point Mark buries later on, which includes an awesome post of his from 2010. Then, if you end up doing a down round, it suddenly matters a lot. Don’t worry about this too much, until you do a down round. Then use the down round to clean up your preference overhang.

Cap Table

Cap Table Down Round Liquidation Preference Founder

Shark Tank Season 4 week 4 breakdown

Lightspeed Venture Partners

OCTOBER 7, 2012

The entrepreneur launched Zomm in late 2010 and did $700k in sales that year. As Cuban pointed out, this is a “down round” Zomm is seeking $2M for 10% of the company, implying an $18M pre money valuation today. Finds your keys using an app on your phone. Provides an emergency one touch dialer.

Technical Review

Technical Review Technical Cofounder Valuation Pre-Money Valuation

Silicon Valley Venture Capital Survey Finds That, Yes, Valuations Are Up

ReadWriteStart

NOVEMBER 22, 2010

The law firm Fenwick & West LLP has released its Third Quarter 2010 Silicon Valley Venture Capital Survey. According to Barry Kramer, a partner in the firm and a co-author of the survey, during the third quarter, "up rounds exceeded down rounds 52% to 30% with 18% flat.

Silicon Valley

Silicon Valley Venture Capital Valuation Down Round

Capital Market Climate Change

Ben's Blog

JULY 16, 2013

3/31/2010: 18.8. When you go to fundraise, you will need to consider the possibility of a valuation lower than the valuation of your last round, i.e., the dreaded down round. Down rounds are bad and hit founders disproportionately hard, but they are not as bad as bankruptcy. Yes, we did a down round.

Down Round

Down Round Marketing Preferred Stock Post-Money Valuation

CES Quote of the Day - "We Will Be Very Supportive Of Your Down Rounds This Year".

Seeing Both Sides

JANUARY 9, 2009

Seeking to assuage the nervous entrepreneurs amongst the portfolio companies that were in attendence at his networking lunch reception, he assured them, "We [Intel Capital] intend to continue forward and be very supportive of your down rounds this year". But Intel Capital will be happy to invest in their down rounds.

Down Round

Down Round Forecast Portfolio Government

Using warrants to pump up your VC valuation

www.mattbartus.com

DECEMBER 9, 2012

Matt Bartus — February 9, 2010. Interesting strategy, although I don't know if it justifies the added risk of having a flat (or down) round next time you go to raise. Interesting strategy, although I don't know if it justifies the added risk of having a flat (or down) round next time you go to raise.

Warrant

Warrant Valuation Pre-Money Valuation Term Sheet

What I Would Have Said at TechCrunch Disrupt

Both Sides of the Table

SEPTEMBER 27, 2010

If you do a $1 million angel round at $6 million pre-money and hope to do a Series A round for $2-3 million that’s fine as long as you’re doing awesome against your metric goals and the market continues to be frothy. If either condition doesn’t hold it will be hard to do anything but a flat or down round.

Liquidity Event

Liquidity Event Silicon Valley Seed Stage Finance

A Recently Exited Founder on Surviving the Contradictory Role of Startup CEO

View from Seed

FEBRUARY 19, 2015

In 2010, we were recruiting for a Senior Vice President of Sales and Marketing for Backupify, and it was clear that many of the people I was interviewing wanted the CEO role. I called the recruiter running the search and told him I was going to step down and hire a CEO. Disclosure: NextView was not an investor in Backupify.).

Founder

Founder Startup Cofounder Business Model

Lean Startups aren't Cheap Startups

Steve Blank

NOVEMBER 2, 2009

In times when venture capital is hard to get, investors extract high costs for failure (down-rounds, cram downs , new management teams, shut down the company.) Reply Amit , on January 22, 2010 at 11:34 am Said: Great article! Lean Startups aren’t Cheap Startups « Steve Blank (tags: startups) [.]

Lean

Lean Silicon Valley Startup RSS

Quote Of The Day

Altgate

JANUARY 9, 2009

Why I Canceled My CO2stats Account → Quote Of The Day Posted on January 9, 2009 by fnazeeri We intend to continue forward and be very supportive of your down rounds this year.&# This from the head of Intel Capital while speaking at CES (according to Jeff Busang over at Flybridge Capital Partners ).

Down Round

Down Round Venture Capital Partner Entrepreneur

Capital Market Climate Change

Ben's Blog

JULY 16, 2013

3/31/2010: 18.8 When you go to fundraise, you will need to consider the possibility of a valuation lower than the valuation of your last round, i.e., the dreaded down round. Down rounds are bad and hit founders disproportionately hard, but they are not as bad as bankruptcy. Yes, we did a down round.

Marketing

Marketing Preferred Stock Post-Money Valuation Down Round

Lower values, higher risks? Or a paradise for investors? - Startups.

Tim Keane

SEPTEMBER 17, 2009

Third, angels in particular have had unpleasant experiences with second rounds that are venture led where down-round terms are painful and expensive. All of that leads to a tighter money supply which tends to drive down prices. . All of that leads to a tighter money supply which tends to drive down prices.

Wisconsin

Wisconsin Valuation Angel Investor Startup

How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

MARCH 14, 2010

Given that the Series Seed is issued at a fairly low valuation, anti-dilution protection is probably not that important, as a “down round&# from a low valuation in the Series Seed is unlikely. The Series Seed documents were released in March 2010. Comprehensive protective provisions.

Finance

Finance Software Review Term Sheet Liquidation Preference

Why is there such a large founder to early employee equity drop-off? - Quora

www.quora.com

SEPTEMBER 22, 2011

Update Link to Questions, Topics and People Add Find Questions, Topics or People Cancel Flag Answer 2 Comments • Mar 9, 2010 Cheers Anon - EPIC answer! +1 1 and lots of thanks for articulating this so well Matthew Carroll • Nov 3, 2010 I'm curious how relevant this answer is now, one year later. is lowered.

Equity

Equity Employee Founder Cofounder

The Collapse of the VC Ecosystem & What It Will Look Like Post.

Altgate

MARCH 8, 2009

Later stage funds will end up owning more of their portfolio companies via down rounds and ultimately should see ok returns.

Later Stage

Later Stage Early Stage Venture Capital Portfolio

People-First Capitalism

Reid Hoffman

JUNE 8, 2021

So you met me in 2010. And I made a decision not to do an equity round, because I thought it would be a down round. And I said, I think it’s going to be a down round, because people are scared. What’s some of the ways that that kind of informs your leadership? We’ve had I think an 11-year relationship.

Silicon Valley

Silicon Valley Hosting Rhode Island Design

People-First Capitalism

Reid Hoffman

JUNE 8, 2021

So you met me in 2010. And I made a decision not to do an equity round, because I thought it would be a down round. And I said, I think it’s going to be a down round, because people are scared. What’s some of the ways that that kind of informs your leadership? We’ve had I think an 11-year relationship.

Silicon Valley

Silicon Valley Hosting Rhode Island Design

Are Investors Being Unreasonable? - Startups and angels: Along the.

Tim Keane

AUGUST 20, 2009

" The problem has been that too-high valuations and too generous terms have spawned painful down rounds that squash the entrepreneur and his early investors. New money, usually VC money, comes in and crams down those early investors and takes substantial shares from the entrepreneur. April 2013.

Milwaukee

Milwaukee Bootstrapping Cram Down Deal Structure

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