Both Sides of the Table

FEBRUARY 15, 2016

This has led VC & entrepreneur bloggers alike to similar conclusions: start raising capital early and be careful about having too high of a burn rate because that lessens the amount of runway you have until you need more cash. But the hardest question to actually answer is, “What is the right burn rate for your company?”

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

Feld Thoughts

FEBRUARY 9, 2016

Once again, as we find ourselves in the middle of a significant public market correction, especially around technology stocks, there’s an enormous amount of noise in the system, as there always is. ” Many companies have hired ahead of their growth rate because they had the cash to do so.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

abovethecrowd.com

FEBRUARY 24, 2015

Over the last few years, the late-stage (pre-IPO) market has become the most competitive, the most crowded, and the frothiest of these financing stages. Yet, for many “promising” private consumer companies this marketing tactic is widespread, and many improperly account for this in their financial presentations.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Both Sides of the Table

FEBRUARY 14, 2016

I recently survey more than 150 VC friends from all stages and geographies what they thought about the market by asking “Which of the following statements best describes your mood heading into 2016?” I’ll spare you the math and point out that this means we funded 0.104% of the market. In short – no.

Valuation 150

Valuation Down Round Startup Later Stage 150

dondodge.typepad.com

JANUARY 15, 2011

The investment market conditions change all the time. My next post will be about the importance of cash flow, keeping burn rates low, and how to avoid excessive equity dilution. If you build the company to 100 employees and sell it for $100M you will probably end up with about $2M. Every situation is different.

Equity 40

Equity Employee Dilution Valuation 40