VC Cafe

FEBRUARY 27, 2023

Maybe surprisingly, but emerging managers in particular, outperformed ‘blue chip’ funds from 2004 to 2020. The result is mass layoffs (over 119,000 in the US since the beginning of 2023 and it’s only Feb), down rounds (even for Silicon Valley darlings like Stripe) and fund terms that go above the 2/20 standard.

Venture Capital 215

Venture Capital Technical Review LP Institutional Investors 215

Ben's Blog

JULY 16, 2013

3/31/2004: 31.6. So, the average company on the S&P 500 IT index with $10M in annual earnings would be worth $210M in March of 1995, $820M in March of 2002, $310M in March of 2004 and $155M in March of last year. Down rounds are bad and hit founders disproportionately hard, but they are not as bad as bankruptcy.

Down Round 78

Down Round Marketing Preferred Stock Post-Money Valuation 78

Ben's Blog

JULY 16, 2013

3/31/2004: 31.6 So, the average company on the S&P 500 IT index with $10M in annual earnings would be worth $210M in March of 1995, $820M in March of 2002, $310M in March of 2004 and $155M in March of last year. Down rounds are bad and hit founders disproportionately hard, but they are not as bad as bankruptcy.

Marketing 46

Marketing Preferred Stock Post-Money Valuation Down Round 46

NZ Entrepreneur

JULY 8, 2019

The situation I see time and again is an over-valuation on a markedly smaller-than-anticipated business, revenue numbers not achieved, and then needing to do another raise on a lower valuation (a ‘down-round’). A simple metric – when I registered my first company in 2004, the naming space was wide open.

New Zealand 42

New Zealand Entrepreneur Valuation Dilution 42