Remove Demand Remove Down Round Remove Entrepreneur Remove Reputation
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The Damaging Psychology of Down Rounds

Both Sides of the Table

. “Whenever I hear advice about pricing a round too high for the next round, I can’t help but think: well, if the choice (ceteris paribus) is between. I would love it if other people would weigh in on the comments section below if you’ve had experiences with down rounds. A down round.

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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

I have often been asked about Startup Funding by entrepreneurs. Here is Startup Funding, a Comprehensive Guide for Entrepreneurs. In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. Pre-Requisites of Funding.

Startup 150
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On the Road to Recap:

abovethecrowd.com

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
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Why is there such a large founder to early employee equity drop-off? - Quora

www.quora.com

Early employees are paid a salary from day 1, don't have to have the reputation/connections to raise money, take on much less risk, and often have much more information about the company (team so far, financials, product traction/progress) when they decide to join than the founders do when they found the company. +1 is lowered.

Equity 40