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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

It is highly dependent upon many factors: experience of the team, type of opportunity (a big biotech or semi-conductor A round is likely to look different from an Internet A round), geography, etc. So the ranges you would expect can be highly imprecise.

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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

Let’s take an example – In the case of an internet or app business, the user traction and market penetration is a must. In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. Establish a competitive advantage.

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Lean Startups aren't Cheap Startups

Steve Blank

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.)

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On the Road to Recap:

abovethecrowd.com

The same thing happened to many Internet stocks. Also, they have a strong belief that any sign of weakness (such as a down round) will have a catastrophic impact on their culture, hiring process, and ability to retain employees. Their own ego is also a factor – will a down round signal weakness?

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

www.quora.com

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? 1 vote by Elad Gil It's a risk/reward, supply/demand power equilibrium. This answer.

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