VC Cafe
OCTOBER 31, 2022
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. If the answer is yes, then a down round is likely the best path forward. Why you shouldn’t worry about raising a down round ( source ).
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.
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ReadWriteStart
JUNE 1, 2020
In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. For these businesses, it is imperative to get funding from the start without which the company cannot be set up. It might be tempting to do so.
Both Sides of the Table
JUNE 22, 2011
New investors hate down rounds. Those with strong business models suddenly stand out when the tide goes out. 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. Many good companies will not get funded.
crowdSPRING Blog
MAY 10, 2013
It’s difficult to fake corporate culture | Business Insider – [link]. How a 1-Page Business Model Will – and Won’t–Help Your Lean Startup | by Kevin Dewalt – [link]. The critical metrics for each stage of your SaaS business | by Lars Lofrgren – [link]. They can make your business better.
NZ Entrepreneur
SEPTEMBER 16, 2020
Sensitivity analysis is a financial modeling tool used to analyse how changes in the value of one or more independent variables would affect other dependent variables. For example, “How will unit cost affect our capital requirements and how will product pricing affect revenue?” Cost of goods sold (COGS).
Lightspeed Venture Partners
OCTOBER 7, 2012
As he said, “Great innovations solve problems or reduce costs. As Cuban pointed out, this is a “down round” Zomm is seeking $2M for 10% of the company, implying an $18M pre money valuation today. Kevin questioned the use case since bowls are ubiquitous. The company still had $2M in inventory on the books.
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