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In Q4 2022, founders face tough choices

VC Cafe

This is largely due to several major stock market crashes and global economic uncertainties. It’s a tough time for a lot of startup founders right now. 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.

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Shark Tank Season 4 week 4 breakdown

Lightspeed Venture Partners

The founders were very sympathetic; a man, laid off from his job, and his very pregnant wife, who sold their house and investing $150k into the business and are working hard to make a go of it. He had been at it for 6 months and had no sales or distribution lined up yet. One of the founders asked for a minute to consider the deal.

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Current Startup Market Emotional Biases

Feld Thoughts

Bill Gurley wrote an incredible post yesterday titled On the Road to Recap: Why the unicorn financing market just became dangerous … for all involved. “Many Unicorn founders and CEOs have never experienced a difficult fundraising environment — they have only known success. It’s long but worth reading every word slowly.

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How to Talk About Valuation When a VC Asks

Both Sides of the Table

VC firms see thousands of deals and have a refined sense of how the market is valuing deals because they get price signals across all of these deals. What was the post money on your last round (and how much capital have you raised)? Many VCs will have a distribution curve where they’ll do a small number of early-stage deals (say $1.5–3

Valuation 324
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Sensitivity Analysis key in startup financial projections

NZ Entrepreneur

The statistics show that even though most founders bet their time and resources that their startups will be the best in the world, 90% of those new startups won’t be in operation in 10-15 years. 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.’.

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Take Five – how shut are the venture markets right now?

VC Cafe

The market correction has come for series A and seed startups. For the past few week I’ve been sharing here the impact of the current downturn that started in the public markets on startups and venture capital. But recently those round sizes and valuations have tumbled to about $10 million and $50 million, respectively, he said.

Valuation 151
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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

Technical progress and market traction are much slower and cost a lot more than anticipated. Usually unbeknownst to all, the decision around pursuing or accepting a venture capital round will be the most important factor in determining the investment return for the founder and the original angel investors in the company.