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Why Raising Too Much Money Can Harm Your Startup

Both Sides of the Table

It is a truism that with more capital you will hire people more quickly and spend more liberally whether it’s on external contractors, PR firms, attending events, doing legal work (trademarks, patents) or whatever. It forces harder decisions about whom you’ll hire and whom you’ll delay. million or $4 million.

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Take Five – How will the downturn continue to play out on startups and venture capital

VC Cafe

Layoffs and hiring freezes have started. Big tech (Google, Meta, Microsoft, Amazon, Apple) have implemented a temporary hiring freeze. However General Catalyst, Coatue, Qiming Venture Partners and D1 Capital Partners have siginficatedly slowed down their investments based on disclosed data. The bull market is over.

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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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The BSList - Busted Cap Table (No. 104)

This is going to be BIG.

It’s this part: “I’m getting inbound from investors…” Nearly all of the inbound VC interest happening out there is from non-partner investors (i.e. A check-writing partner reaches out to you. That’s why down rounds exist. professionals who can’t write a check) and they’re doing it systematically.

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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

Venture capital funds are usually 7 - 10 year partnerships whereby the general partners - the “VC” - manage the capital of the limited partners, usually institutions (endowments, pension funds, etc.). At the end of the period, all profits and proceeds are distributed to the various partners on a pre-determined split.

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Market Truths

thebarefootvc

As someone who invested through the 2001 and 2008 crashes I can assure you that down rounds and fire sales are not fun for anyone involved. There is a silver lining to the recent volatility: a more rational market separates out the noise – for both investors and teams who are looking for experienced, long term partners.

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Market Truths

thebarefootvc

As someone who invested through the 2001 and 2008 crashes I can assure you that down rounds and fire sales are not fun for anyone involved. There is a silver lining to the recent volatility: a more rational market separates out the noise – for both investors and teams who are looking for experienced, long term partners.