Remove Cost Remove Down Round Remove Metrics Remove Operations
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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

Technical progress and market traction are much slower and cost a lot more than anticipated. It is driven by the following: • The Best Metric for the Health of a Company is Cash Flow. By definition, companies that receive venture capital cannot fund their businesses from operations, and thus need to seek outside capital.

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In Venture Capital, Should You Be a Momentum or a Value Investor?

David Teten

Likely signs of a Value investment: the company has challenges in filling out the round; the investors have more negotiating leverage than the founders during the closing process; the company has significantly better metrics (e.g. You could argue that when they were [raising] oversubscribed [VC rounds], Facebook, Google, Amazon, etc.,

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On the Road to Recap:

abovethecrowd.com

In Silicon Valley boardrooms, where “growth at all costs” had been the mantra for many years, people began to imagine a world where the cost of capital could rise dramatically, and profits could come back in vogue. Their own ego is also a factor – will a down round signal weakness? This is uncharted territory.

IPO 40
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People-First Capitalism

Reid Hoffman

And all of the other smart and operational decisions that have enabled Airbnb to weather the storm and go on to have one of the most successful public market debuts. The burden [should] just be that we care; that if we learn something, we improve it, and that we don’t only use single output metrics and its growth at all costs.

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People-First Capitalism

Reid Hoffman

And all of the other smart and operational decisions that have enabled Airbnb to weather the storm and go on to have one of the most successful public market debuts. The burden [should] just be that we care; that if we learn something, we improve it, and that we don’t only use single output metrics and its growth at all costs.