VC Cafe
FEBRUARY 27, 2024
What’s the difference between an angel round and pre-seed round and why do I believe we’ll see more pre-seed rounds taking place in 2024? While the answers are somewhat semantic, the pre-seed funding round is making a comeback in 2024 startup financing. who’s talking to customers?)
Steve Blank
APRIL 26, 2022
For existing investors, sometimes it was a “pay-to-play” i.e. if you don’t participate in the new financing you lose. A cram down is different than a down round. A down round is when a company raises money at valuation that is lower than the company’s valuation in its prior financing round.
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VC Cafe
JANUARY 2, 2023
On a global level, venture financing of private companies dropped 33% year over year, from a record $733B in 2021 to $490B in 2022. Down rounds, especially for growth stage companies, and bridge rounds galore. We started to see down rounds taking place especially in growth stage. ” Fred Wilson.
Both Sides of the Table
JULY 29, 2010
The A round was done in February 2000 (end of the bull market) and my B round was done in April 2001 (bear market). As a result I had to do a down round. Down rounds are psychologically really difficult on companies and can make it harder to do later rounds. I eventually needed more money.
Both Sides of the Table
JUNE 22, 2011
New investors hate down rounds. Or worse yet they may never get financed. Raise at “ the top end of normal &# but not so high that future financings in a corrected market become impossible. customers who paid for services often get burned. Many good companies will not get funded. That’s a fact.
ReadWriteStart
JUNE 1, 2020
The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. Any custom manufactured IoT device would require software development as well as hardware customization. Both of which are expensive and time-consuming.
Berkonomics
AUGUST 3, 2023
Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.
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