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5 Crowdfunding Concerns Worry Professional Investors

Startup Professionals Musings

According to more recent statistics , fewer than a third of all crowdfunding operations end up being successful, and the rest have to return anything they do collect. Lack of checks and balances on startup valuations. A startup that is listed on a crowdfunding platform gets no formal pushback or negotiation on its declared valuation.

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5 Equity Crowdfunding Reflections Before You Sign Up

Startup Professionals Musings

According to more recent statistics , fewer than a quarter of all crowdfunding operations end up being successful, and the rest have to return anything they do collect. Lack of checks and balances on startup valuations. A startup that is listed on a crowdfunding platform gets no formal pushback or negotiation on its declared valuation.

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Need money? Read this!

Berkonomics

When the need is high… For the rest of us, desiring to build large, valuable enterprises quickly, the need for outside capital is high on our list of requirements and even the source for some sleepless nights as we worry over the availability and cost of capital. For those of you who fit that description, nice work.

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Shark Tank Season 4 week 4 breakdown

Lightspeed Venture Partners

That’s why most entrepreneurs do not make a specific ask on valuation, but wait to hear offers from investors. As Cuban pointed out, this is a “down round” Zomm is seeking $2M for 10% of the company, implying an $18M pre money valuation today. The last company was a bit of a puzzler.

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Current Startup Market Emotional Biases

Feld Thoughts

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? Those are my thoughts on less than a third of Bill’s post.

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Does your business need money? Read this!

Berkonomics

For the rest of us desiring to build large, valuable enterprises quickly, the need for outside capital is high on our list of requirements and even the source for some sleepless nights as we worry over the availability and cost of capital. Do not expect grand valuations of your enterprise from these professional angels.

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What is actually happening during a VC slowdown?

This is going to be BIG.

The public markets have been stumbling around lately, trying to figure out what China and oil prices mean for the rest of the world economy. Fear, not surprisingly, weighs markets down. Now that they have to go back into the market next year to pitch their own fund, they're going to have to answer some tough questions about valuations.