Both Sides of the Table

JUNE 5, 2011

I have conversations with entrepreneurs and other VCs on a daily basis about fund raising, the prices of deals, how much companies should raise, etc. Finally, even if they could bring themselves to offer you a major down round, the more sophisticated investors know it’s fool’s gold.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

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. Two weeks ago in San Francisco, a conversation with tech lawyers from the US and Europe was a confirmation of what I read in the news. It’s an investors market.

Founder 173

Founder Technical Review Down Round Liquidation Preference 173

Both Sides of the Table

MAY 30, 2018

Of course valuation is in the eye of the beholder but if that VC thinks your last round valuation was way too high then he or she is more likely to politely pass rather than try and talk down your valuation now. VCs hate “down rounds” and many don’t even like “flat rounds.” There are some simple reasons.

Valuation 324

Valuation Post-Money Valuation Pre-Money Valuation Cofounder 324

ithacaVC

NOVEMBER 14, 2014

Here is Walla’s post: I can’t tell you how many times I’ve had this conversation. A founder is about to raise their first round and asking me how to value their company. [1]. Raising momentum / high demand. If your company is in high demand, it drives the potential valuation up. Don’t risk a down round.

Valuation 69

Valuation Startup Down Round Early Stage 69

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.) Marketing demand creation programs (Search Engine Marketing, Public Relations, Advertising, Lead Generation, Trade Shows, etc.)

Lean 257

Lean Silicon Valley Startup RSS 257

www.quora.com

SEPTEMBER 22, 2011

1 vote by Elad Gil It's a risk/reward, supply/demand power equilibrium. Even if your company succeeds, there is absolutely no guarantee your equity will not be wiped out in a down round. Update Link to Questions, Topics and People Add Find Questions, Topics or People Comment Joshua Seims , ?_? I'm always su.

Equity 40

Equity Employee Founder Cofounder 40