Down Round Employee Revenue Startup 
Steve Blank
APRIL 26, 2022
Cram downs are back – and I’m keeping a list. At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. A cram down is different than a down round. This article previously appeared in TechCrunch.
Both Sides of the Table
JULY 29, 2010
The A round was done in February 2000 (end of the bull market) and my B round was done in April 2001 (bear market). As a result I had to do a down round. Down rounds are psychologically really difficult on companies and can make it harder to do later rounds. I eventually needed more money.
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Scalable Startup
JANUARY 27, 2011
An ominous title for a blog post, but “Grow or Die” has been one of the most basic rules in the high-growth startup world for decades. And by growth I mean revenue growth. Flat to negative revenue growth is a real red flag, especially for early stage companies. And protection form death. And gasoline to create more growth.
VC Cafe
FEBRUARY 27, 2024
A founder asked me what makes a $2M round “pre-seed”? especially if the startup already has a product and revenue? And why do we still sometimes hear about pre-seed rounds that look more like a series A in pricing and size? Defining the pre-seed round It’s futile to look for ‘one true’ definition.
Both Sides of the Table
SEPTEMBER 18, 2014
How will you price the next round? Your A round? Revenue multiple? Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. Less than you’ll probably grant your most junior employees in stock options? A down round? Startup Lessons'
VC Cafe
SEPTEMBER 26, 2022
The past year was a wild ride for startups and founders, giving a whole new meaning to the ”rollercoaster” aspect of being an entrepreneur. A combination of competition for top talent and an effort to bring employees back to the office drove startups in Israel to throw extravagant parties and all-inclusive retreats abroad.
Both Sides of the Table
FEBRUARY 8, 2016
Much has changed in the past four months of the technology startup world and how outsiders value the business. If you raised money in the past 2 years and have grown it is possible that your next round valuation might be flat (or lower) even though you have a higher revenue because investors may value your multiple differently.
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