ReadWriteStart

JUNE 1, 2020

I have often been asked about Startup Funding by entrepreneurs. Many myths surround the subject of startup funding. Here is Startup Funding, a Comprehensive Guide for Entrepreneurs. You must have seen a lot of startups giving out promotions, discounts, and incentives at the early phase of their business. Debt investors.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Both Sides of the Table

SEPTEMBER 18, 2014

On the phone … Me: So, you raised venture capital? We raised a seed round. You’ll find out the minimum when the next round is raised. And now I have to explain to team that they’re taking more dilution than they expected if we do a down round. A down round? Startup Lessons'

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Steve Blank

APRIL 26, 2022

At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. Most existing investors (those still in business) hoarded their money and stopped doing follow-on rounds until the rubble had cleared. Why do VCs Do This?

Cram Down 404

Cram Down Founder Venture Capital Recapitalization 404

Both Sides of the Table

SEPTEMBER 28, 2014

I was reading Danielle Morrill’s blog post today on whether one’s “ Startup Burn Rate is Normal. I love how transparently Danielle lives her startup (& encourages other to join in) because it provides much needed transparency to other startups. ” I highly recommend reading it. Valuation.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Steve Blank

NOVEMBER 2, 2009

For those of you who have been following the discussion, a Lean Startup is Eric Ries ’s description of the intersection of Customer Development , Agile Development and if available, open platforms and open source. Over its lifetime a Lean Startup may spend less money than a traditional startup. Lets see why.

Lean 244

Lean Silicon Valley Startup RSS 244

VC Cafe

JANUARY 29, 2024

It’s easy to find bad news about venture capital these days. In other words, the venture capital bust has only just started. 2023 was a rough year for Venture Capital and for startups, and it might get even worse. Global venture funding fell 42% year over years to $248.8

Generative AI 171

Generative AI Global Venture Capital Valuation 171

VC Cafe

NOVEMBER 30, 2022

The 2022 Founders Factories report by DealRoom and Accel shines a spotlight on the startup clusters that produced most unicorns across Europe and Israel, and then tracks the alumni of those unicorns to test where the talent goes to found their next companies. London and Tel Aviv are home to the most founder nurturing unicorn startups.

Europe 97

Europe Balance Sheet Valuation 97

Startup Professionals Musings

AUGUST 6, 2023

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of angel investment groups and venture capital organizations. Have you ever wondered what professional startup investors think about all this? Lack of checks and balances on startup valuations.

Angel Groups 201

Angel Groups Accredited Investor Due Diligence Equity 201

VC Cafe

JANUARY 2, 2023

Israeli venture funding dropped 40% compared to 2021, from $28.7 billion according to the 2022 Israel high tech ecosystem report by Viola Ventures. A report by Greenfield Partners puts the total fundraising of Israeli startups at $15.16 Israeli startups 2022 funding summary. billion to $17.1 billion (by 394 companies).

Valuation 158

Valuation Down Round Venture Capital 158

Startup Professionals Musings

NOVEMBER 25, 2020

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of those demanding angel investment groups and venture capital organizations. Have you ever wondered what professional startup investors think about all this? Lack of checks and balances on startup valuations.

Equity 411

Equity Angel Groups Accredited Investor Due Diligence 411

Both Sides of the Table

JUNE 5, 2011

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. That’s the deal you get when you’re raising in a good market for startup financing.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

crowdSPRING Blog

FEBRUARY 21, 2014

These posts and videos are about logo design , web design , startups, entrepreneurship, small business, leadership, social media, marketing, and more! The open office: Friend or foe to startup success? | 6 Ways To Achieve Maximum Online Exposure On A Startup Budget – crowdspring.co/1giAIDo. ” – crowdspring.co/1oIRbXG.

Social Media 92

Social Media Small Business Design Media 92

VC Cafe

MAY 18, 2022

venture capital and private equity) the VC index (by Refinitiv) shows a nearly 40% decline. While Q1 2022 looked normal, in venture, there’s a lagging effect in pricing, and deals that get announced in Q1 and even early Q2 2022 might have been signed in Q4 2021. Down rounds are coming.

Term Sheet 190

Term Sheet Startup Valuation Ukraine 190

The Equity Kicker

JANUARY 25, 2016

On Friday it seemed like everyone in the venture capital industry was again reading about market turmoil, this time the news is that angel investors are pulling back and valuations taking a hit. The best startups capture all the returns so focusing too much on entry valuation is a mistake.

Venture Capital 60

Venture Capital Angel Investor Startup Participating Preferred 60

Feld Thoughts

FEBRUARY 9, 2016

Mark Suster wrote a great post yesterday titled The Resetting of the Startup Industry. Then, if you end up doing a down round, it suddenly matters a lot. Don’t worry about this too much, until you do a down round. Then use the down round to clean up your preference overhang.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

YoungUpstarts

JUNE 26, 2020

by Rizwan Virk, author of “ Startup Myths and Models: What You Won’t Learn in Business School “. If you are building a startup, you’ll find no shortage of people who are willing to give you advice, particularly when it comes to raising financing. Unfortunately, most startups don’t meet their initial rosy projections. In the U.S.,

Finance 205

Finance Silicon Valley Valuation Startup 205

Both Sides of the Table

JUNE 22, 2011

New investors hate down rounds. For others it feels like a two-speed economy, where rules apply to hot tech startups that don’t apply elsewhere. When your competition does irrational things to grow fueled by low-cost capital it makes it harder for you to compete by playing by the conventional rules.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Scalable Startup

FEBRUARY 1, 2013

The Future of Startups 2013-2017, beginning of a series. Marc Andreesen gave a great interview about a year agi about “The Future of the Enterprise” and where the next startups will be playing – Hadoop, Big Data, BYOD, etc. Some of these next big startups are in L.A., You mean startups?

Software Review 22

Software Review Startup Venture Capital Stock 22

www.paulgraham.com

APRIL 28, 2010

Want to start a startup? November 2005 Venture funding works like gears. A typical startup goes throughseveral rounds of funding, and at each round you want to take justenough money to reach the speed where you can shift into the nextgear. Few startups get it quite right. Apply for funding by March 3.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

A Crowded Space

DECEMBER 9, 2013

For me, it’s changed the way I look at my job as an investor in venture capital. So, here are my lessons learned and applications to venture: . In VC: I see a fair number of deals that have reached some point of stagnation that are seeking a flat or down round. I haven’t seen many startup railroads. .

Technical Review 68

Technical Review Deal Flow Balance Sheet Down Round 68

Startup Professionals Musings

MAY 20, 2016

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of those demanding angel investment groups and venture capital organizations. At least ten online portals are already gearing up to help regular people buy startup equity, without abiding by accredited investor rules.

Angel Groups 136

Angel Groups Accredited Investor Equity Due Diligence 136

Both Sides of the Table

FEBRUARY 4, 2016

” There are a lot of data points that one can observer to get a sense of the venture capital markets – both LP fundings into venture and VC financings of startups. times the dollars went into venture-backed startups as went the money that poured into venture. Most flat rounds.

LP 150

LP Valuation Burn Rate Pre-Money Valuation 150

The Equity Kicker

JANUARY 22, 2014

You fall into the spiral of death: head of sales gets replaced (at least once), CEO gets replaced (at least once), a down-round financing happens (if lucky). Startup general interest Venture Capital' Investors who paid up for your financing are not happy.

Venture Capital 102

Venture Capital Down Round Valuation Lean 102

Growthink Blog

MAY 23, 2011

With this seed capital – more often than not totaling between $100,000 and $1,000,000 - the company accomplishes a number of key technical milestones, gets a beta customer or two, and then goes on a "road show" to venture capitalists around the country for capital to “scale” the business. There are a lot of dark, hard days.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

The Equity Kicker

MARCH 24, 2015

They will most probably go on to raise multiple rounds of venture capital after all. YC’s Sam Altman explained why in a post last year: Startups are usually a pass-fail course — either you succeed or you don’t. Startup general interest' We think about valuation the same way.

Valuation 60

Valuation Down Round Dilution Venture Capital 60

OnlyOnce

JANUARY 18, 2022

I won’t go deep on extending the metaphor to a bad night of blackjack, but I’m sure it has a lot in common with down rounds and ultimately things like Chapter 11. The post The Blackjack Table appeared first on The Startup CEO blog.

Down Round 62

Down Round .Net Finance Startup 62

Startup Company Lawyer

MARCH 14, 2010

In addition, I think that a “peace treaty&# between early-stage investors and startup companies on standard terms (at least at a term sheet level) is a step in the right direction. If you don’t, please educate yourself on this site, Venture Hacks and the term sheet series by Brad Feld/Jason Mendelson, among other places.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Both Sides of the Table

JUNE 5, 2016

The funding environment for tech startups is an ever shifting ground as we go through predictable shifts that go hand-in-hand with the slowing of the overall market. Boom in Number of Startups. There was an explosion in number of startups both because it was cheap and there was tons of available capital. Choose wisely.

Venture Capital 150

Venture Capital Silicon Valley Burn Rate LP 150

Both Sides of the Table

SEPTEMBER 27, 2010

There are real changes in the venture capital industry and it would have been fun to talk about them. Industry change allows the entry of newer players at earlier stages – It doesn’t take as much money to launch a startup anymore. So in the past we needed VC to really get a startup going. Answer: Not much.

Liquidity Event 308

Liquidity Event Silicon Valley Seed Stage Finance 308

The Equity Kicker

NOVEMBER 20, 2015

So the share price has been trending down for some time before popping after the IPO. The interesting question for me is what this means for startup valuations more generally. I say that because investors in the $6bn round in Square have still made money on the deal.

IPO 60

IPO Matching Ratchet Valuation 60

Scalable Startup

JANUARY 27, 2011

An ominous title for a blog post, but “Grow or Die” has been one of the most basic rules in the high-growth startup world for decades. 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?

Revenue 22

Revenue Early Stage Down Round Software Review 22

Altgate

JANUARY 9, 2009

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← Be Glad You Are An Entrepreneur! This from the head of Intel Capital while speaking at CES (according to Jeff Busang over at Flybridge Capital Partners ). .&# Bookmark the permalink.

Down Round 31

Down Round Venture Capital Partner Entrepreneur 31

Hippoland

NOVEMBER 13, 2016

The #1 problem with the venture capital game, in general, is that *actual success* is measured over decades not years. It takes a long time to see the results of a startup that does well. If a company raises a good round, it gets marked up to the new value. And if a company takes a down-round, it gets marked down.

IRR 48

IRR Valuation Portfolio Due Diligence 48

Feld Thoughts

SEPTEMBER 9, 2015

Some will demonstrate strategically justifiable metrics and have fantastic ‘up round’ exits; others may see liquidation preferences kick in which will negatively impact founders and employees; others may fulfill the adage “IPO is the new down round” , which has been the case for more than half of the public companies on our list.

Liquidation Preference 70

Liquidation Preference Burn Rate Balance Sheet .Net 70

Berkonomics

JANUARY 20, 2010

Some businesses require very little capital and the founder is able to self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 69

Private Equity Valuation Cap Table Accredited Investor 69