Remove Down Round Remove Internet Remove Later Stage Remove Metrics
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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

The earlier you invest the higher the chances the company won’t work out and thus you pay a lower price than later-stage investors. It is highly dependent upon many factors: experience of the team, type of opportunity (a big biotech or semi-conductor A round is likely to look different from an Internet A round), geography, etc.

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On the Road to Recap:

abovethecrowd.com

The same thing happened to many Internet stocks. 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?

IPO 40