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.
Lightspeed Venture Partners
OCTOBER 7, 2012
He had been at it for 6 months and had no sales or distribution lined up yet. Lori quickly pointed out some problems with the product; it will be hard to move down stairs and it doesn’t wheel easily. The cofounder was charismatic and persuasive and asking for $85k for 12% of the company. The entrepreneur was clearly desperate.
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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.
Both Sides of the Table
MAY 30, 2018
Many VCs will have a distribution curve where they’ll do a small number of early-stage deals (say $1.5–3 3 million invested at a $6–10m pre-money), a larger number of “down the fairway” deals ($4–5 million at a $15–25 million pre) and a few later-stage deals (say $8–10 million at a $30–40 million pre).Of There are some simple reasons.
Feld Thoughts
APRIL 21, 2016
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. Their own ego is also a factor – will a down round signal weakness? However, the DPI is the interesting number from a real perspective.
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.’. If a startup expects $1M in sales revenue but only gets $100k and they haven’t got a backup plan, they may face a down round or in the worst case liquidity concerns.
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. Registration rights. As a practical matter, I don’t think that investors should really care about registration rights.
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