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Current Startup Market Emotional Biases

Feld Thoughts

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.

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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

At the end of the period, all profits and proceeds are distributed to the various partners on a pre-determined split. And they hire very aggressive securities attorneys to represent their interests. Venture capitalists for the most part are very nice guys and passionate about entrepreneurship, but they are not shrinking violets.

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

VC Cafe

new unicorns created each day), startups may find themselves raising down rounds as they struggle to justify previous valuations. These changes come as Meta is dealing with slowed revenue growth , which has led the company to freeze hiring in some divisions. With over 1,000 global unicorns (and about 1.5

Valuation 152
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Lean Startups aren't Cheap Startups

Steve Blank

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.) When money is tight, when there aren’t dollars to redo mistakes, you look for processes that allow you to minimize waste.

Lean 257
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On the Road to Recap:

abovethecrowd.com

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? A down round is nothing.

IPO 40
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The Future of Startups 2013-2017

Scalable Startup

So these companies that are kind of for — in the sort of mechanical term, distributed workforces and outsource work being run online. And then the other thing is companies are having — if you talk to anybody running a company, they are having real trouble hiring enough qualified people.