ReadWriteStart

JUNE 1, 2020

In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. For these businesses, it is imperative to get funding from the start without which the company cannot be set up. Equity investors.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Both Sides of the Table

JUNE 22, 2011

But this mania to not miss out on the next big thing is driving some investors to pay growth-equity prices for traditional market risk (as in, they’re paying up before it is clear there is product / market fit). And so on down then line. New investors hate down rounds. And well they should be. That’s a fact.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

VC Cafe

OCTOBER 31, 2022

Many companies are now having to resort to tough measures in order to stay afloat, including layoffs, down rounds and tough terms from current investors. If the answer is yes, then a down round is likely the best path forward. Why you shouldn’t worry about raising a down round ( source ).

Founder 173

Founder Technical Review Down Round Liquidation Preference 173

VC Cafe

FEBRUARY 27, 2024

There are of course anomalies, like French AI startup Mistral which raised a “seed” round of $113M in June last year. In smaller funds, ticket sizes tend to be lower, so pre-seed is the only stage where micro funds are able to secure their minimum equity targets.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

Growthink Blog

MAY 23, 2011

An entrepreneur starts a company in classic " bootstrap " fashion - with a combination of sweat equity and their own financial resources. Technical progress and market traction are much slower and cost a lot more than anticipated. The typical wisdom regarding the appropriate financing course for a new company goes as follows: 1.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

Both Sides of the Table

FEBRUARY 14, 2016

In the case of startups the “buyer” is the VC looking to part cash for “purchasing” equity in your startup. So inside rounds get delayed and when there are non-participants you often find “recaps” or “structure” or “pay-to-play” provisions. Down rounds are hard.

Valuation 150

Valuation Down Round Startup Later Stage 150