Remove Distribution Remove Down Round Remove Early Stage Remove Hiring
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Take Five – how shut are the venture markets right now?

VC Cafe

Until now, early stage startups were relatively unaffected. According to new research by Pitchbook , the trickle down effect has already started in seed and series A startups with round sizes and valuations shrinking in size compared to 2021. The market correction has come for series A and seed startups.

Valuation 151
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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.) I see a lot of early-stage entrepreneurs waste too much time chasing money rather than figuring this out first.

Lean 244
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On the Road to Recap:

abovethecrowd.com

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? A down round is nothing.

IPO 40
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The Future of Startups 2013-2017

Scalable Startup

So these companies that are kind of for — in the sort of mechanical term, distributed workforces and outsource work being run online. And then the other thing is companies are having — if you talk to anybody running a company, they are having real trouble hiring enough qualified people.