Cost Down Round Software Review Venture Capital 
Both Sides of the Table
JULY 29, 2010
We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. As a result I had to do a down round. We will continue to do more of this.
Both Sides of the Table
SEPTEMBER 28, 2014
So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. This is why investors really like SaaS software companies where you have recurring revenue and your largest customer accounts for < 5% of your revenue and your renewals rates are > 90%.
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ReadWriteStart
JUNE 1, 2020
Any custom manufactured IoT device would require software development as well as hardware customization. It is going to cost a lot of money just to get the initial batch of products to test the market and would definitely require external funding. You might have seen that valuations of several unicorns were suddenly slashed down.
Both Sides of the Table
JUNE 22, 2011
It’s like people arguing that there’s a beautiful beach house in 2006 that represents great long-term value due to scarcity of similar property. New investors hate down rounds. It’s what I love about entrepreneurship and about venture capital. That doesn’t mean it’s not a bubble.
Startup Company Lawyer
MARCH 14, 2010
I also reviewed the TechStars documents last year and they are similar in concept to the Y Combinator documents as the chart below indicates.). If you don’t, please educate yourself on this site, Venture Hacks and the term sheet series by Brad Feld/Jason Mendelson, among other places. under $500K). Legal opinion.
VC Cafe
FEBRUARY 27, 2024
Carta reports that 20% of the rounds in 2023 were down rounds, but I believe the actual number is much higher. For that and other reasons (like cash preservation) VCs moved to focus more on earlier stage, and many funds that typically invest in A started deploying more into seed rounds. who’s talking to customers?)
www.paulgraham.com
APRIL 28, 2010
I wassurprised recently when I realized that all the worst problems wefaced in our startup were due not to competitors, but investors.Dealing with competitors was easy by comparison. Your natural tendency when an investor says yes willbe to relax and go back to writing code. They were helpful in negotiating deals, for example.
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