Down Round, Entrepreneur and Metrics

Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

JUNE 5, 2011

I have conversations with entrepreneurs and other VCs on a daily basis about fund raising, the prices of deals, how much companies should raise, etc. These are not scientific, just anecdotal and just trying to provide some transparency for entrepreneurs on what I’ve seen the market. And of course there are always outliers.

Pre-Money Valuation

Pre-Money Valuation Valuation Silicon Valley Stock

Bad Notes on Venture Capital

Both Sides of the Table

SEPTEMBER 18, 2014

At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago.

Venture Capital

Venture Capital Liquidation Preference Valuation Term Sheet

Twitter Link Roundup #178 – Small Business, Startups, Innovation, Social Media, Design, Marketing and More

crowdSPRING Blog

MAY 10, 2013

The critical metrics for each stage of your SaaS business | by Lars Lofrgren – [link]. The Start-up Hall of Shame (America’s 10 Worst States for Entrepreneurs) – [link]. The Damaging Psychology of Down Rounds | by Mark Suster – [link]. 10 Myths about Startups – [link]. ” [link].

Social Media

Social Media Small Business Design Media

Bad Notes on VC

Gust

SEPTEMBER 17, 2014

Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. It’s like we need a finance 101 course for entrepreneurs.

Liquidation Preference

Liquidation Preference Valuation Term Sheet Stock

Current Startup Market Emotional Biases

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?

Marketing

Marketing Down Round Startup IRR

What I Would Have Said at TechCrunch Disrupt

Both Sides of the Table

SEPTEMBER 27, 2010

These days that’s not the case and it’s a great outcome for entrepreneurs and for innovation. A: Only because it’s a nicer branding for entrepreneurs. I totally agree and have been arguing this to entrepreneurs for years. I always counsel young entrepreneurs to start on the local train.

Liquidity Event

Liquidity Event Silicon Valley Seed Stage Finance

Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

MAY 23, 2011

An entrepreneur starts a company in classic " bootstrap " fashion - with a combination of sweat equity and their own financial resources. The angel then introduces the entrepreneur to his or her wealthy friends and business connections who, based on the good reputation of the referring angel, also invest. All live happily ever after.

Angel Investor

Angel Investor Venture Capital Sweat Equity Cram Down

In Venture Capital, Should You Be a Momentum or a Value Investor?

David Teten

AUGUST 7, 2019

Likely signs of a Momentum investment: the round is oversubscribed and the entrepreneur has more negotiating leverage than VCs during the closing process. . You could argue that when they were [raising] oversubscribed [VC rounds], Facebook, Google, Amazon, etc., LTV / CAC, revenue growth, etc.)

Venture Capital

Venture Capital Valuation Stock NDA

How NZ entrepreneurs can up their capital raising game

NZ Entrepreneur

JULY 8, 2019

In the first of a three part series on early stage business investment, we asked serial entrepreneur and investor Josh Comrie what three key things New Zealand entrepreneurs must get better at when it comes to seeking angel investment. I personally funded my first ventures, then led the two rounds that have seen Ambit take in $2.2m

New Zealand

New Zealand Entrepreneur Valuation Dilution

On the Road to Recap:

abovethecrowd.com

APRIL 20, 2016

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

IPO Term Sheet Silicon Valley Valuation

People-First Capitalism

Reid Hoffman

JUNE 8, 2021

The burden [should] just be that we care; that if we learn something, we improve it, and that we don’t only use single output metrics and its growth at all costs. And then how are some ideas for other entrepreneurs and other people thinking of doing it? And I said, I think it’s going to be a down round, because people are scared.

Silicon Valley

Silicon Valley Hosting Rhode Island Design

To Follow On or Not to Follow On

This is going to be BIG.

SEPTEMBER 7, 2012

There are a lot of people that artificially group together performance metrics for venture, and try to extrapolate successful stratagies from it. Here are the top things I hear about follow ons and why they don't make a lot of sense to me: 1) You need to have follow on capital to protect your investments in case of a down round.

Later Stage

Later Stage Down Round Pre-Money Valuation Early Stage

People-First Capitalism

Reid Hoffman

JUNE 8, 2021

The burden [should] just be that we care; that if we learn something, we improve it, and that we don’t only use single output metrics and its growth at all costs. And then how are some ideas for other entrepreneurs and other people thinking of doing it? And I said, I think it’s going to be a down round, because people are scared.

Silicon Valley

Silicon Valley Hosting Rhode Island Design

The Future of Startups 2013-2017

Scalable Startup

FEBRUARY 1, 2013

And that’s been reflected in the entrepreneurial community, where entrepreneurs, especially between 2000 and 2008, entrepreneurs really only wanted to do — for the most part wanted to do consumer software, because that’s the only software that they could actually get anybody to adopt. That’s the entrepreneur we are looking for.

Software Review

Software Review Startup Venture Capital Stock

StartUpRoar