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Why Raising Too Much Money Can Harm Your Startup

Both Sides of the Table

I was reminded of this yesterday watching my friend Justin Kan on Snapchat with this 10-second reminder, “No matter how much you raise at your company you’ll end up spending it in 12–24 months” https://medium.com/media/8594cb16d022a083932b0f3d60b79ebd/href I would probably amend it to say 12–18 months. People do what people do.

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Silicon Valley Venture Capital Survey Finds That, Yes, Valuations Are Up

ReadWriteStart

The survey looks at the valuations and the terms of financing for over 100 technology companies in Silicon Valley that reported raising capital in the third quarter of this year. According to Barry Kramer, a partner in the firm and a co-author of the survey, during the third quarter, "up rounds exceeded down rounds 52% to 30% with 18% flat.

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

David Teten

Likely signs of a Value investment: the company has challenges in filling out the round; the investors have more negotiating leverage than the founders during the closing process; the company has significantly better metrics (e.g. You could argue that when they were [raising] oversubscribed [VC rounds], Facebook, Google, Amazon, etc.,