Conversion Dilution Down Round Founder 
Both Sides of the Table
SEPTEMBER 28, 2014
by Michael Woolf that is worth any startup founder reading to get a sense of perspective on the reality warp that is startup world during a frothy market such as 1997-1999, 2005-2007 or 2012-2014. Conversely if you’re burning $600,000 per month (yes, some companies do) then you only have 5 months of cash left.
Both Sides of the Table
JUNE 5, 2011
I have conversations with entrepreneurs and other VCs on a daily basis about fund raising, the prices of deals, how much companies should raise, etc. So rounds tend to be “range bound&# where the top end of the valuation spectrum often being done in boom markets (i.e. I thought I’d post on one of the topics before hand.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Hunter Walker
AUGUST 8, 2023
Satya and I were having lunch (yummy Chinese food) with our LPAC and the conversation turned to generally “how much more did venture portfolios have to fall before they found their true current value?” Restructures, Down Rounds, and Pay to Plays. Whatever gets reported is just the tip of the iceberg.
Both Sides of the Table
MAY 30, 2018
What was the post money on your last round (and how much capital have you raised)? It’s not uncommon for a VC to ask you how much capital you’ve raised and what the post-money valuation was on your last round. VCs hate “down rounds” and many don’t even like “flat rounds.” There are some simple reasons. After all?—?we
Both Sides of the Table
SEPTEMBER 18, 2014
And now I have to explain to team that they’re taking more dilution than they expected if we do a down round. Me: More dilution? A down round? I know how to structure around that to protect the founders from getting screwed on a multiple liquidation preference. These are all real conversations.
Startup Professionals Musings
JANUARY 27, 2012
The first capital a young company receives usually takes the form of common stock, the same class of shares the founders hold. Venture capitalists and later round investors like the preferred convertible shares. These “IV drip” financings may reduce risk for investors, but put more pressure on founders. Anti-dilution protection.
Startup Professionals Musings
SEPTEMBER 14, 2010
The first capital a young company receives usually takes the form of common stock, the same class of shares the founders hold. Venture capitalists and later round investors like the preferred convertible shares. These “IV drip” financings may reduce risk for investors, but put more pressure on founders. Anti-dilution protection.
Expert insights. Personalized for you.
383 
Let's personalize your content