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. Two weeks ago in San Francisco, a conversation with tech lawyers from the US and Europe was a confirmation of what I read in the news. It’s an investors market.

Founder 173

Founder Technical Review Down Round Liquidation Preference 173

Steve Blank

NOVEMBER 2, 2009

In times when venture capital is hard to get, investors extract high costs for failure (down-rounds, cram downs , new management teams, shut down the company.) Marketing demand creation programs (Search Engine Marketing, Public Relations, Advertising, Lead Generation, Trade Shows, etc.)

Lean 260

Lean Silicon Valley Startup RSS 260

Both Sides of the Table

MAY 30, 2018

Many VCs will have a distribution curve where they’ll do a small number of early-stage deals (say $1.5–3 3 million invested at a $6–10m pre-money), a larger number of “down the fairway” deals ($4–5 million at a $15–25 million pre) and a few later-stage deals (say $8–10 million at a $30–40 million pre).Of There are some simple reasons.

Valuation 324

Valuation Post-Money Valuation Pre-Money Valuation Cofounder 324