Remove Down Round Remove Finance Remove Hiring Remove Metrics
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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

So in 2011 as a startup company if you can generate lots of demand you can definitely raise an A round of capital (say $3 million) at a $7 or 8 million pre-money valuation or slightly higher whereas just two years ago you would have struggled. That’s the deal you get when you’re raising in a good market for startup financing.

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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. 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.

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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

The typical wisdom regarding the appropriate financing course for a new company goes as follows: 1. This venture capital financing - usually between $3 and $10 million - is the first of a number of rounds of outside investment over a period of three to five years.

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On the Road to Recap:

abovethecrowd.com

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. By the first quarter of 2016, the late-stage financing market had changed materially. Investors were becoming nervous and were no longer willing to underwrite new Unicorn-level financings at the drop of a hat.

IPO 40
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To Follow On or Not to Follow On

This is going to be BIG.

There are a lot of people that artificially group together performance metrics for venture, and try to extrapolate successful stratagies from it. That wasn't a bubble bursting issue--that was a poor financing strategy issue of people getting caught with their pants down, hands in the cookie jar, and all the metaphors you can think of at once.