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A heartbreaking story about time and money.

Berkonomics

It is not a strong bargaining position for the CEO to ask for money to complete a product promised for completion with the previous round of funding. And professional investors often penalize the company with lower-priced down rounds or expensive loans as a result. and the result of not listening to our gut?

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

crowdSPRING Blog

These posts and videos are about logo design , web design , startups, entrepreneurship, small business, leadership, social media, marketing, and more! crowdSPRING’s Small Business Spotlight: Red Poppy Floral Design – [link]. The Damaging Psychology of Down Rounds | by Mark Suster – [link].

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Wasted time is money lost.

Berkonomics

It is not a strong bargaining position for the CEO to ask for money to complete a product promised for completion with the previous round of funding. And professional investors often penalize the company with lower-priced down rounds or expensive loans as a result. Time slipped; fixed overhead continued.

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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

Along with the business plan, you must have a well-designed investor deck, which is a presentation of around 15 to 25 slides summarizing the business plan. But, in subsequent rounds of funding inflated valuation will be normalized resulting in a down round. Point number 3: Never raise money with an increased valuation.

Startup 150
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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

New investors hate down rounds. Huge structural under-employment in much of the country and full employment in some niche tech markets where it’s impossible to hire developers, designers or sales professionals. So I’m not advocating panic or a need to rush your funding round. Get funded now, if you can.&#.

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Shark Tank Season 4 week 4 breakdown

Lightspeed Venture Partners

They won a design award at a trade show, but have no revenue and no orders. As Cuban pointed out, this is a “down round” Zomm is seeking $2M for 10% of the company, implying an $18M pre money valuation today. The company still had $2M in inventory on the books. The entrepreneur was clearly desperate.

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

Berkonomics

It is not a strong bargaining position for the CEO to ask for money to complete a product promised for completion with the previous round of funding. Time slipped; fixed overhead continued. And exactly as you’d expect, there came the time when the company ran out of money as it ignored its original market.