VC Cafe
OCTOBER 31, 2022
The top 20 tech billionaires globally have lost $480 billion on paper in the past year. This is largely due to several major stock market crashes and global economic uncertainties. Many companies are now having to resort to tough measures in order to stay afloat, including layoffs, down rounds and tough terms from current investors.
VC Cafe
FEBRUARY 27, 2023
For the past 10 years, with interest rates near zero, VC investors plowed record amounts into tech startups and enjoyed a seemingly ‘easy’ investing environment. Prices went up from round to round, and startups were encouraged to grow, grow, grow, and not to worry about profitability. Luck favours the bold!
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VC Cafe
FEBRUARY 27, 2024
Carta reports that 20% of the rounds in 2023 were down rounds, but I believe the actual number is much higher. For that and other reasons (like cash preservation) VCs moved to focus more on earlier stage, and many funds that typically invest in A started deploying more into seed rounds.
Both Sides of the Table
FEBRUARY 8, 2016
Much has changed in the past four months of the technology startup world and how outsiders value the business. Don’t assume that you can “just do a down round” if necessary. Down rounds are corrosive. Optimize for a W more than % dilution in these circumstances. Insiders hate them and fight them.
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. This article originally appeared on TechCrunch. I acknowledged this in the article. Increase price.
Lightspeed Venture Partners
OCTOBER 7, 2012
I’ve been writing up reviews of this season’s Shark Tank pitches from a silicon valley VCs perspective. This time I’ll break down week four of this season. Doing the research to form your own view of a company’s prospects is called due diligence. BACK 9 DIPS. The entrepreneur was clearly desperate.
Both Sides of the Table
JUNE 30, 2016
And if you raise the “5 on 20” and don’t grow into your next-round valuation you’re stuck because venture investors HATE doing down rounds. The data suggests that the investors have a much easier time hitting a $100–200 million outcome than a $400–500 million outcome so it’s easier to commit at lower prices.
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