Altgate

MARCH 8, 2009

There are three types of venture investing (early stage, “growth&# stage and later stage. Early stage means the first real investors in a startup when the team could be as small as 5-10 people. So in the current collapse, the later stage investors will fare the best, or should I say least worst.

Later Stage 34

Later Stage Early Stage Venture Capital Portfolio 34

Both Sides of the Table

FEBRUARY 14, 2016

So the multiples paid by publics matter and when they drop, the late-stage markets drop, too. If you’re a B-round investor used to paying $50-100 million pre-money and you had a few years of later-stage investors paying $200 million+ 18 months after you invested you suddenly become less price sensitive.

Valuation 150

Valuation Down Round Startup Later Stage 150

VC Cafe

JANUARY 2, 2023

Large LPs are signalling the need to slow down, and funds realise it may take longer to fundraise. As a result, I expect to see slower pace of investing across stages. Lower valuations , especially in later stage. Down rounds, especially for growth stage companies, and bridge rounds galore.

Valuation 158

Valuation Down Round Venture Capital 158

Berkonomics

JANUARY 20, 2010

They have been burned too badly during the last decade by overvaluing businesses and finding themselves like friends and family, “stuffed” into a down round of lower valuation when a company takes its next round of financing from the next step, venture capitalists.

Private Equity 69

Private Equity Valuation Cap Table Accredited Investor 69

This is going to be BIG.

SEPTEMBER 7, 2012

Here are the top things I hear about follow ons and why they don't make a lot of sense to me: 1) You need to have follow on capital to protect your investments in case of a down round. If you're a multi-stage investor, I get this. If you're doing seed deals, how often does a down round in a seed deal even happen?

Later Stage 99

Later Stage Down Round Pre-Money Valuation Early Stage 99

abovethecrowd.com

APRIL 20, 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? A down round is nothing. Get over it and move on.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

This is going to be BIG.

MARCH 3, 2019

We do the work of sorting through the pitch decks of everyone and their mother, finding the diamonds in the rough, helping them turn an idea into something that looks like a company—and we do it for a fraction of the management fees of our later stage counterparts. It doesn’t take into consideration options, down rounds, or recaps.

Portfolio 110

Portfolio Burn Rate LP Distribution 110

www.paulgraham.com

APRIL 28, 2010

Angels and even VC firms occasionally do this, but they alsoinvest at later stages. The problems are different in the early stages. 10 ]One new thing the company might encounter is a downround , or a funding round at valuation lower than the previousround.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76