VC Cafe

MAY 29, 2022

Building on my post on ‘ Advice for startups in a downturn (May 2022 edition) ‘, this week I continued to follow with interest the impact of the current correction on startups and venture capital, particularly in early stage. Layoffs and hiring freezes have started. Sequoia’s Adapting to Endure.

Venture Capital 183

Venture Capital Early Stage Valuation Startup 183

Genuine VC

FEBRUARY 9, 2011

Evaluating a startup as a prospective employee is tough, especially when you compare to VCs. Plus, VCs often will have met the Founder/CEOs of many of a particular startup’s competitors, so they’ll have an even richer understand of the market landscape. On one hand, of course, you’re joining a startup for the upside.

Startup 146

Startup Burn Rate Technical Review Down Round 146

Both Sides of the Table

JUNE 22, 2011

New investors hate down rounds. For others it feels like a two-speed economy, where rules apply to hot tech startups that don’t apply elsewhere. They will enter the “triage phase&# of the market where they figure out which of their existing deals will survive. Many good companies will not get funded.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

www.paulgraham.com

APRIL 28, 2010

Want to start a startup? A typical startup goes throughseveral rounds of funding, and at each round you want to take justenough money to reach the speed where you can shift into the nextgear. Few startups get it quite right. A lot of startups that end upgoing public didnt seem likely to at first.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

View from Seed

FEBRUARY 19, 2015

Below, he gives an honest take about what he’d do differently and what he’d do again as a startup CEO. I called the recruiter running the search and told him I was going to step down and hire a CEO. So, in order to hire a CEO, we have to give someone their first shot at the job.” I contain multitudes.)”.

Founder 120

Founder Startup Cofounder Business Model 120

Feld Thoughts

APRIL 21, 2016

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?

Marketing 70

Marketing Down Round Startup IRR 70

A Crowded Space

DECEMBER 9, 2013

“ Somebody once said that in looking for people to hire, you look for three qualities: integrity, intelligence, and energy. If you hire somebody without [integrity], you really want them to be dumb and lazy.” I haven’t seen many startup railroads. . .” . Some rules are universal. ” In VC: Got it.

Technical Review 68

Technical Review Deal Flow Balance Sheet Down Round 68

This is going to be BIG.

AUGUST 21, 2023

At 43, I’m pretty darn proud of that and you might think that’s pretty fast—but if I equate that into startup terms, no one would fund me at that pace. That’s why down rounds exist. The highest statistical likelihood for any startup is that no one gets a payout—because hard things are hard. of people in that race.

Cap Table 78

Cap Table Term Sheet Database Option Pool 78

abovethecrowd.com

APRIL 20, 2016

In February of last year, Fortune magazine writers Erin Griffith and Dan Primack declared 2015 “ The Age of the Unicorns ” noting — “Fortune counts more than 80 startups that have been valued at $1 billion or more by venture capitalists.” Next came Rolfe Winkler’s deep dive “ Highly Valued Startup Zenefits Runs Into Turbulence. ”

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

The Equity Kicker

JANUARY 22, 2014

To meet growth and revenue targets, you hire and spend like never before. You rush a few key hires, overbuild the team, ramp marketing spend. You fall into the spiral of death: head of sales gets replaced (at least once), CEO gets replaced (at least once), a down-round financing happens (if lucky).

Venture Capital 102

Venture Capital Down Round Valuation Lean 102

Scalable Startup

FEBRUARY 1, 2013

The Future of Startups 2013-2017, beginning of a series. Marc Andreesen gave a great interview about a year agi about “The Future of the Enterprise” and where the next startups will be playing – Hadoop, Big Data, BYOD, etc. Some of these next big startups are in L.A., You mean startups?

Software Review 22

Software Review Startup Venture Capital Stock 22

The Equity Kicker

MARCH 24, 2015

YC’s Sam Altman explained why in a post last year: Startups are usually a pass-fail course — either you succeed or you don’t. If you fail, maybe you get acqui-hired, but that’s happening less frequently and is usually little better than just getting a job at the acquiring company instead.

Valuation 60

Valuation Down Round Dilution Venture Capital 60

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. If you’re venture funded, things get kind of ugly -unhappy board members, cut off from communications, down- rounds to keep you going, or no more funding. Are we becoming passé?

Revenue 22

Revenue Early Stage Down Round Software Review 22

Growthink Blog

MAY 23, 2011

And they hire very aggressive securities attorneys to represent their interests. This combo all too often leads to various forms of deal unpleasantness, like cram-down rounds, liquidation preferences, and change of control provisions, which in turn, often lead to unhappy founders and angel investors even in somewhat successful exits.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

Reid Hoffman

JUNE 8, 2021

As I’m sure most would agree, Airbnb is one of the most iconic startups to have been formed in the world. And I hired a COO, Belinda Johnson , and she said, “No, if people don’t like you, you should meet with them.” But I generally am not a fan of committees and things that get in the way of moving quickly in a startup.

Silicon Valley 69

Silicon Valley Hosting Rhode Island Design 69

www.mattbartus.com

DECEMBER 9, 2012

Perspectives on issues affecting founders, startups and investors from a veteran startup lawyer in Silicon Valley. Interesting strategy, although I don't know if it justifies the added risk of having a flat (or down) round next time you go to raise. Home About Matt Client references Contact. A View from the Valley.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

Reid Hoffman

JUNE 8, 2021

As I’m sure most would agree, Airbnb is one of the most iconic startups to have been formed in the world. And I hired a COO, Belinda Johnson , and she said, “No, if people don’t like you, you should meet with them.” But I generally am not a fan of committees and things that get in the way of moving quickly in a startup.

Silicon Valley 36

Silicon Valley Hosting Rhode Island Design 36

www.quora.com

SEPTEMBER 22, 2011

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? Many startups these days are first-time entrepreneurs. is lowered. After that various i.

Equity 40

Equity Employee Founder Cofounder 40

thebarefootvc

AUGUST 26, 2015

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. Keep employee morale high – if you’ve hired people passionate about your product and mission, and motivate them, they will persevere and produce in all market conditions.

Marketing 40

Marketing Investment Bankers Valuation China 40

thebarefootvc

AUGUST 26, 2015

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. Keep employee morale high – if you’ve hired people passionate about your product and mission, and motivate them, they will persevere and produce in all market conditions.

Marketing 40

Marketing Investment Bankers Valuation China 40

Scalable Startup

OCTOBER 26, 2011

The Second Round, or “B Round”, or “Follow On” round can be the achilles heel of a startup. No doubt the first round of external funding for a startup is usually critical to a startup as it can be the difference between continuing your startup or shutting it down.

Mezzanine 22

Mezzanine Due Diligence IPO Angel Investor 22