Feld Thoughts

FEBRUARY 9, 2016

” Many companies have hired ahead of their growth rate because they had the cash to do so. In our portfolio, we generally don’t have this problem because we aren’t big fans of either (a) overfunding companies or (b) escalating burn rates based on headcount.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

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.) And most startup code and features end up on the floor as customers never really wanted them.

Lean 244

Lean Silicon Valley Startup RSS 244

Genuine VC

FEBRUARY 9, 2011

Start-ups hire ahead of growth (or at least predicted growth), which translate into a viable company, a healthy work environment, and future internal opportunities. What is the burn rate and how much cash is in the bank now? Has there ever been a down round, inside round, a flat round, or a CEO change?

Startup 146

Startup Burn Rate Technical Review Down Round 146

abovethecrowd.com

APRIL 20, 2016

The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate. Layoffs have also become more prevalent.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

www.paulgraham.com

APRIL 28, 2010

For example, a seed firmshould be able to give advice about how to approach VCs, which VCsobviously dont need to do; whereas VCs should be able to giveadvice about how to hire an "executive team," which is not an issuein the seed stage. You dont have to spend time on bureaucraticstuff, because you havent hired any bureaucrats yet.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76