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. TVPI = total value to paid in capital (paper gains) DPI = distributed to paid-in capital (real cash gains, paid out). But it’s not just billionaires who are struggling.

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.) Sales people cost money, and when they’re not bringing in revenue, their wandering in the woods is time consuming, cash-draining and demoralizing.

Lean 257

Lean Silicon Valley Startup RSS 257

NZ Entrepreneur

SEPTEMBER 16, 2020

For example, “How will unit cost affect our capital requirements and how will product pricing affect revenue?” A much better analysis would be ‘if we do not secure this distribution agreement, the market share we can achieve by this date will be halved.’. Cost of goods sold (COGS). Underestimating costs.

Startup 69

Startup Sales Cycle Down Round Revenue 69

Startup Company Lawyer

MARCH 14, 2010

The only practical situation that I can think of where a dividend preference is beneficial to a stockholder is where a company does a partial sale of assets and wishes to distribute the proceeds to stockholders. The only way that the Series Seed documents will be widely used is if investors demand use of the documents.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

abovethecrowd.com

APRIL 20, 2016

In Silicon Valley boardrooms, where “growth at all costs” had been the mantra for many years, people began to imagine a world where the cost of capital could rise dramatically, and profits could come back in vogue. Their own ego is also a factor – will a down round signal weakness? A down round is nothing.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40