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The Great VC Ice Age is Thawing (for now) – Part 1 of 3

Both Sides of the Table

High burn-rates fueled by over investment – One of the most damning things that happened to the start-up markets in 97-00 and 05-08 was the overfunding of technology companies. This came in part due to the huge influx of money into VC but also because hedge funds and private equity shops with no VC experience wanted part of the action.

Burn Rate 263
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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

When companies seeking their first round of serious funding are good enough to receive a term-sheet from an investor, the first issue that always arises is valuation.   For individual angels and others investing their own money, this may be more fluid than for someone with responsibility for a managed fund.