Steve Blank

NOVEMBER 2, 2009

In times when venture capital is hard to get, investors extract high costs for failure (down-rounds, cram downs , new management teams, shut down the company.) And as much as I like the startup ecosystem here it seems to me that the people cost of software development forces startups to launch half-baked products.

Lean 244

Lean Silicon Valley Startup RSS 244

crowdSPRING Blog

MAY 10, 2013

Startups: You Should Value Software More | by Wade Foster – [link]. The Damaging Psychology of Down Rounds | by Mark Suster – [link]. Legal Contracts for Software Developers Who Hate Contracts (w/free contract template to use today) – [link]. 7 A/B Testing Blunders That Even Experts Make – [link].

Social Media 93

Social Media Small Business Design Media 93

Berkonomics

MARCH 30, 2010

In the technology sector where I most often play, extended unplanned software development cycles account for the majority of these corporate failures. It is not a strong bargaining position for the CEO to ask for money to complete a product promised for completion with the previous round of funding. Email readers continue here.]

Silicon Valley 85

Silicon Valley Burn Rate Angel Investor Down Round 85

Both Sides of the Table

JUNE 22, 2011

New investors hate down rounds. I remember in the late 90′s trying to charge fair prices for software when my well-financed competitors were giving things away for free. They will enter the “triage phase&# of the market where they figure out which of their existing deals will survive. Get funded now, if you can.&#.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

VC Cafe

MAY 18, 2022

Down rounds are coming. If they’re down 60%, there’s a good chance you’re in a similar position. When looking at high growth public software companies, you’ll want to compare your ARR valuation multiple to their revenue valuation multiples because of its availability as a GAAP accounting metric.

Term Sheet 190

Term Sheet Startup Valuation Ukraine 190

The Equity Kicker

JULY 9, 2015

I’ve been here before too, when implementing anti-dilution clauses after down-rounds. In time the Blockchain might be a better solution to this problem, but spreadsheets would work today without further development of software. It shouldn’t be necessary.

Dilution 60

Dilution Down Round Finance Software 60

Scalable Startup

FEBRUARY 1, 2013

Marc Andreessen: So the computer industry started in 1950 and basically ran for 50 years with the same model, which was a model where all of the new computers, all the new technology, all the new software started out being sold for the highest prices to the biggest organizations. So originally the customer was the Department of Defense.

Software Review 22

Software Review Startup Venture Capital Stock 22

Both Sides of the Table

MARCH 30, 2016

” And then this happened: While the much beloved Twitter had been going through a long and slow decline over many months, LinkedIn and Tableau Software went through a big-bang correction (a reversion to the mean) in a single day in early February. We still seemed very close and many firms were still “digging in.”

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

NZ Entrepreneur

JULY 8, 2019

I waited for the ‘casino-like’ world of startup investing until I was 28 years old, putting $10,000 into a friend’s software distribution company – a tidy sum for me at that age. So I splashed out and bought a gigantic pack of pick ‘n’ mix. Seven years later, I exited for $220,000. Holy s**t,” I thought, there’s something in this!

New Zealand 42

New Zealand Entrepreneur Valuation Dilution 42

thebarefootvc

AUGUST 26, 2015

Mobile technology is ubiquitous, software is eating the world, sensors are proliferating – and with much of the world yet to come online, the bulk of tech growth is ahead of us. 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.

Marketing 40

Marketing Investment Bankers Valuation China 40

thebarefootvc

AUGUST 26, 2015

Mobile technology is ubiquitous, software is eating the world, sensors are proliferating – and with much of the world yet to come online, the bulk of tech growth is ahead of us. 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.

Marketing 40

Marketing Investment Bankers Valuation China 40

thebarefootvc

JULY 26, 2015

Mobile technology is ubiquitous, software is eating the world, sensors are proliferating – and with much of the world yet to come online, the bulk of tech growth is ahead of us. 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.

Marketing 40

Marketing Investment Bankers Valuation China 40

Scalable Startup

JANUARY 27, 2011

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? Time for a new CEO? And all those other depressing clichés. Many early stage founders aren’t sure how to handle this requirement for success.

Revenue 22

Revenue Early Stage Down Round Software Review 22

www.paulgraham.com

APRIL 28, 2010

But of coursetheir main job is to build version 1 of their software. Software is not only moreconvincing, but a better way to explore ideas. Stage 2: Angel Round While writing the prototype, the group has been traversing theirnetwork of friends in search of angel investors. Wethought software was all that mattered.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Startup Company Lawyer

MARCH 14, 2010

Given that the Series Seed is issued at a fairly low valuation, anti-dilution protection is probably not that important, as a “down round&# from a low valuation in the Series Seed is unlikely. In addition, WSGR’s Series A documents can be created using the document automation software behind the WSGR term sheet generator.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70