ReadWriteStart

JANUARY 13, 2024

In a progressively saturated market, these startups need to reevaluate their strategies and wisely distribute resources to remain competitive and sustainable amidst the demands of investors and well-established competitors.

Down Round 154

Down Round Marketing Artificial Inteligence Startup 154

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 244

Lean Silicon Valley Startup RSS 244

Both Sides of the Table

MAY 30, 2018

One of the hardest things about the fund-raising process for entrepreneurs is that you’re trying to raise money from people who have “asymmetric information.” As an entrepreneur it can feel as intimidating as going to buy a car where the dealer knows the price of every make & model of a car and you’re guessing at how much to pay.

Valuation 324

Valuation Post-Money Valuation Pre-Money Valuation Cofounder 324

NZ Entrepreneur

SEPTEMBER 16, 2020

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.’. To identify sensitivities here, you need to comprehensively challenge your assumptions about demand, sales cycles, etc. Define ‘Expected Case’, ‘Worst Case’ and ‘Best Case’.

Startup 69

Startup Sales Cycle Down Round Revenue 69

abovethecrowd.com

APRIL 20, 2016

Many modern entrepreneurs have limited exposure to the notion of failure or layoffs because it has been so long since these things were common in the industry. Also, they have a strong belief that any sign of weakness (such as a down round) will have a catastrophic impact on their culture, hiring process, and ability to retain employees.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Startup Company Lawyer

MARCH 14, 2010

My general opinion is that anything that makes the financing process faster and easier or otherwise educates entrepreneurs is a good thing. (A The liquidation preference would not apply in this situation, and any distribution to stockholders would trigger the dividend preference. Registration rights. Investor pressure.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70