Remove Conversion Remove Down Round Remove Finance Remove Valuation
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Down Rounds: Deal With Reality

Feld Thoughts

She has a good article today in TechCrunch titled Embrace the down round (it’s going to be okay, maybe). I like the quote she pulled out of me in our conversation. ” Now, I’m not encouraging anyone to do a down round if unnecessary., If you can do this cleanly, take the money.

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Why Raising Too Much Money Can Harm Your Startup

Both Sides of the Table

I understand this instinct for more capital and I have two very different personal experiences: In my first company we raised an A-round of $16.5 conversation literally every week with startups. A $15–20 million valuation sounds better than an $8 million valuation, doesn’t it? I have this “How much should I raise?”

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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

2: As expected at least one person accused me of writing this post because I want to see lower valuations. 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. You can be pissed off, but I don’t set prices. That’s stupid.

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Founders – Use Your Down Round To Clean Up Your Cap Table

Feld Thoughts

Much of it is very short term focused and, like a giant tractor beam, draws the conversation into a very short time horizon (as in days or weeks). I watched, participated, and suffered through every type of creative financing as companies were struggling to raise capital in this time frame. Or you might need to raise it.

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Bad Notes on Venture Capital

Both Sides of the Table

At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. A down round?

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VC Optimism Returning But More Pain Ahead In Their Portfolios

Hunter Walker

Satya and I were having lunch (yummy Chinese food) with our LPAC and the conversation turned to generally “how much more did venture portfolios have to fall before they found their true current value?” Valuations. Restructures, Down Rounds, and Pay to Plays.

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Startup Valuations – Again….

ithacaVC

I have written about startup valuations previously. If you are advising startup founders, I strongly suggest having them read all 4 of the posts to get the lay of the startup valuation land. Here is Walla’s post: I can’t tell you how many times I’ve had this conversation. Valuations of other companies like you.