Both Sides of the Table

SEPTEMBER 28, 2014

Your goal is to invest in engineering (to maintain your product lead), new offices / locations (to capture markets before others), marketing (to capture consumer attention before others do) … all of these activities consume cash often in advance of the revenue they generate. Think DropBox, Airbnb, Uber, Maker Studios.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

crowdSPRING Blog

MAY 10, 2013

Reverse Engineering Your Startup’s Success - [link]. The Damaging Psychology of Down Rounds | by Mark Suster – [link]. 6 Interesting Facebook Tricks You Might Not Know | Search Engine Journal – [link]. | by Adii Pienaar – [link]. Surround yourself with people who make you happy | TNW – [link].

Social Media 93

Social Media Small Business Design Media 93

Both Sides of the Table

JUNE 22, 2011

New investors hate down rounds. When you’re building a startup and can’t hire the engineers you need, can’t retain staff, can’t get press coverage and can’t hire sales people – it certainly affects you. Many good companies will not get funded. Vultures will start circling looking for deals.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

VC Cafe

SEPTEMBER 26, 2022

Kawasaki’s Law of Pre-Money Valuation: for every full-time engineer, add $500,000; for every full-time M.B.A., Many startups that raised money in 2021 on inflated valuations that were detached from their actual value, are struggling to raise up-rounds and face difficult choices these days: down rounds, early sellout or failing altogether.

Founder 187

Founder Startup Valuation Pre-Money Valuation 187

www.mattbartus.com

DECEMBER 9, 2012

Interesting strategy, although I don't know if it justifies the added risk of having a flat (or down) round next time you go to raise. Interesting strategy, although I don't know if it justifies the added risk of having a flat (or down) round next time you go to raise. link] Brad Hargreaves. link] Roy Rodenstein.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

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

VC Cafe

JANUARY 2, 2023

While 7,838 tech jobs were lost across 120 companies in 2022, according to an analysis by Tech12 , the demand for engineers remained high with 13,100 open engineering roles. Down rounds, especially for growth stage companies, and bridge rounds galore. Source: Vintage ). billion to $17.1 ” Fred Wilson.

Valuation 158

Valuation Down Round Venture Capital 158