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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

by Michael Woolf that is worth any startup founder reading to get a sense of perspective on the reality warp that is startup world during a frothy market such as 1997-1999, 2005-2007 or 2012-2014. (it is also the title of a fabulous book from Internet 1.0

Burn Rate 383
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Shark Tank Season 4 week 4 breakdown

Lightspeed Venture Partners

in 2012 sales and $2M in income. 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. Zomm is probably counting on a big Q4 holiday bump to hit its 2012 sales and profitability projections. Provides an emergency one touch dialer.

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Capital Market Climate Change

Ben's Blog

3/30/2012: 15.5. 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.

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Startup Valuations – Again….

ithacaVC

Here is a post from October 2012. And here is a post from November 2012. Hopefully, it’s in high demand for good reasons, otherwise you risk a down round in the future. The latter won’t be enough money to grow and without the capital to grow, could risk failing or a down round. Don’t risk a down round.

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Using warrants to pump up your VC valuation

www.mattbartus.com

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. link] Brad Hargreaves. link] Roy Rodenstein.

Warrant 40
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Capital Market Climate Change

Ben's Blog

3/30/2012: 15.5 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.

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

Tim Keane

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. .