Berkonomics

JANUARY 20, 2010

This class of investor, once quite disorganized, has become much like the venture capital community, creating a process including due diligence (careful examination of a business before investment), terms of investment that match those of venture capitalists, and a process that often takes months from introduction to investment.

Private Equity 69

Private Equity Valuation Cap Table Accredited Investor 69

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 159

Valuation Down Round Venture Capital 159

Both Sides of the Table

FEBRUARY 14, 2016

Most venture capitalists who have been in this business for a long time foresaw this correction and have been talking about it privately for the better part of the last year or two. So the multiples paid by publics matter and when they drop, the late-stage markets drop, too. Why Down Rounds are Harder Than You May Think.

Valuation 150

Valuation Down Round Startup Later Stage 150

abovethecrowd.com

APRIL 20, 2016

In Silicon Valley boardrooms, where “growth at all costs” had been the mantra for many years, people began to imagine a world where the cost of capital could rise dramatically, and profits could come back in vogue. Their own ego is also a factor – will a down round signal weakness? Competition also has access to capital.

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

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

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. Venture Capital Funds VC firms are like seed firms in that theyre actual companies, butthey invest other peoples money, and much larger amounts of it.VC

Technical Review 76

Technical Review Startup Software Review Angel Investor 76