Remove Business Model Remove Down Round Remove Equity Remove Partner
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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

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. So at GRP Partners we’re very active now.

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In Q4 2022, founders face tough choices

VC Cafe

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 ).

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How the pre-seed round made a comeback in 2024

VC Cafe

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.

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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

An entrepreneur starts a company in classic " bootstrap " fashion - with a combination of sweat equity and their own financial resources. Management has the wrong pedigree, is geographically undesirable, competes in the wrong industry, and/or has a business model that lacks "scalability credibility" with the venture community.

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What Most People Don’t Understand About How Startup Companies are Valued

Both Sides of the Table

No you’re kind of f *d because nobody wants to buy any at all and your bank is calling you concerned that you may need to slow down your pace of new purchases for a bit. Many experienced partners are funds have 7-10 boards and most of these will need more capital. So when prices go down their first reaction is, “S**t.

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