Cost, Down Round and Silicon Valley

A heartbreaking story about time and money.

Berkonomics

OCTOBER 5, 2023

What most managers miss is that every month cut from the time it takes to perform such tasks cuts the cost by the value of a month’s worth of fixed overhead or burn. Ignoring the cost of product for a moment to make a point, saving a month’s fixed overhead by making processes more efficient, could easily double profits for the year.

Silicon Valley

Silicon Valley Burn Rate Angel Investor Down Round

Wasted time is money lost.

Berkonomics

AUGUST 10, 2017

What most managers miss is that every month cut from the time it takes to perform such tasks cuts the cost by the value of a month’s worth of fixed overhead or burn. Ignoring cost of product for a moment to make a point, saving a month’s fixed overhead by making processes more efficient, could easily double profits for the year.

Silicon Valley

Silicon Valley Burn Rate Angel Investor Down Round

Wasted time is money lost. (And another story of lost opportunity.)

Berkonomics

MARCH 30, 2010

What most managers miss is that every month cut from the time it takes to perform such tasks cuts the cost by the value of a month’s worth of fixed overhead or burn. And we were able to secure that investment along with a partner from that firm joining our board.

Silicon Valley

Silicon Valley Burn Rate Angel Investor Down Round

Twitter Link Roundup #178 – Small Business, Startups, Innovation, Social Media, Design, Marketing and More

crowdSPRING Blog

MAY 10, 2013

Defending the Brash Arrogance of Silicon Valley | by Mike Greenfield – [link]. The Damaging Psychology of Down Rounds | by Mark Suster – [link]. Hospital Prices No Longer Secret As New Data Reveals Bewildering System, Staggering Cost Differences – [link]. “Embrace skeptics.

Social Media

Social Media Small Business Design Media

Shark Tank Season 4 week 4 breakdown

Lightspeed Venture Partners

OCTOBER 7, 2012

I’ve been writing up reviews of this season’s Shark Tank pitches from a silicon valley VCs perspective. This time I’ll break down week four of this season. As he said, “Great innovations solve problems or reduce costs. BACK 9 DIPS. Kevin questioned the use case since bowls are ubiquitous.

Technical Review

Technical Review Technical Cofounder Valuation Pre-Money Valuation

Lean Startups aren't Cheap Startups

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.) Sales people cost money, and when they’re not bringing in revenue, their wandering in the woods is time consuming, cash-draining and demoralizing.

Lean

Lean Silicon Valley Startup RSS

What I Would Have Said at TechCrunch Disrupt

Both Sides of the Table

SEPTEMBER 27, 2010

My wife worked at Google so while we had good income in Silicon Valley it’s hardly the life of luxury given the costs of housing. If either condition doesn’t hold it will be hard to do anything but a flat or down round. I had two kids and a rental house.

Liquidity Event

Liquidity Event Silicon Valley Seed Stage Finance

People-First Capitalism

Reid Hoffman

JUNE 8, 2021

I came to Silicon Valley when I was 25, turning 26. And I think one of the things that we’ve learned is, when I came to Silicon Valley in 2007, we were starting Airbnb in 2008, it was a marketplace. But there’s something else that I think I learned, and that was that a lot of focus on Silicon Valley is about growth.

Silicon Valley

Silicon Valley Hosting Rhode Island Design

On the Road to Recap:

abovethecrowd.com

APRIL 20, 2016

John was the first to uncover that just because a company can raise money from a handful of investors at a very high price, it does not guarantee (i) everything is going well at the company, or (ii) those shares are permanently worth the last round valuation. Their own ego is also a factor – will a down round signal weakness?

IPO

IPO Term Sheet Silicon Valley Valuation

People-First Capitalism

Reid Hoffman

JUNE 8, 2021

I came to Silicon Valley when I was 25, turning 26. And I think one of the things that we’ve learned is, when I came to Silicon Valley in 2007, we were starting Airbnb in 2008, it was a marketplace. But there’s something else that I think I learned, and that was that a lot of focus on Silicon Valley is about growth.

Silicon Valley

Silicon Valley Hosting Rhode Island Design

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

Both Sides of the Table

FEBRUARY 14, 2016

Back then Michael Arrington accused some of Silicon Valley’s top seed funds of “colluding” by meeting secretly to talk down the valuation of startups. Why Down Rounds are Harder Than You May Think. Down rounds are hard. Plus, down rounds trigger anti-dilution provisions.

Valuation

Valuation Down Round Startup Later Stage

Changes in the Venture Capital Funding Environment

Both Sides of the Table

JUNE 5, 2016

In other words, it isn’t that VCs suddenly got smart, it’s that the costs of starting a company went down dramatically. If a company raised a big B and/or C round and needs more money the late stage guys have the bucks and that early-stage guys often don’t. 3VCs agreed to fund an inside round and cut costs.

Venture Capital

Venture Capital Silicon Valley Burn Rate LP

Why is there such a large founder to early employee equity drop-off? - Quora

www.quora.com

SEPTEMBER 22, 2011

Type to Add and Search Questions; Search Topics and People Startups Startup Compensation Entrepreneurship Compensation Stock Options Major Internet Companies Silicon Valley Why is there such a large founder to early employee equity drop-off? If your question is available, choose it from the list.

Equity

Equity Employee Founder Cofounder

The Future of Startups 2013-2017

Scalable Startup

FEBRUARY 1, 2013

In doing research for a post on “The Enterprise Cool Kids” at the tail end of last year, I interviewed Silicon Valley veteran Marc Andreessen about where he thought the enterprise was headed. I can switch to SaaS for less than the cost of the maintenance on the old software.” Marc Andreessen On The Future Of Enterprise.

Software Review

Software Review Startup Venture Capital Stock

StartUpRoar