Feld Thoughts
JUNE 10, 2022
She has a good article today in TechCrunch titled Embrace the down round (it’s going to be okay, maybe). I like the quote she pulled out of me in our conversation. ” Now, I’m not encouraging anyone to do a down round if unnecessary., If you can do this cleanly, take the money.
Feld Thoughts
FEBRUARY 9, 2016
Much of it is very short term focused and, like a giant tractor beam, draws the conversation into a very short time horizon (as in days or weeks). I watched, participated, and suffered through every type of creative financing as companies were struggling to raise capital in this time frame. Or you might need to raise it.
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Both Sides of the Table
JUNE 30, 2016
I understand this instinct for more capital and I have two very different personal experiences: In my first company we raised an A-round of $16.5 conversation literally every week with startups. And if you raise the “5 on 20” and don’t grow into your next-round valuation you’re stuck because venture investors HATE doing down rounds.
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. That’s the deal you get when you’re raising in a good market for startup financing. I thought I’d post on one of the topics before hand. That’s fine.
Both Sides of the Table
SEPTEMBER 18, 2014
At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. A down round?
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.
Startup Professionals Musings
JANUARY 27, 2012
As the company grows and the second or third group of investors comes in, the terms of each subsequent financing grow in size, scope, and the number of lawyers’ fingerprints on them. These “IV drip” financings may reduce risk for investors, but put more pressure on founders. Anti-dilution protection.
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