Remove Down Round Remove Finance Remove Operations Remove Partner
article thumbnail

A heartbreaking story about time and money.

Berkonomics

Many of the start-ups my various angel funds have financed died a slow death , not because of poor concept but because of poor execution, wasting fixed overhead and draining the financial resources from the company coffers. And professional investors often penalize the company with lower-priced down rounds or expensive loans as a result.

article thumbnail

Why Raising Too Much Money Can Harm Your Startup

Both Sides of the Table

And if you raise the “5 on 20” and don’t grow into your next-round valuation you’re stuck because venture investors HATE doing down rounds. Some people can skip first base My partner Greg Bettinelli has a sports metaphor that I’ve become fond of which is “skipping first base.” Most firms are somewhere in the middle.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Wasted time is money lost.

Berkonomics

Many of the start-ups my various angel funds have financed died a slow death, not because of poor concept but because of poor execution, wasting fixed overhead and draining the financial resources from the company coffers. And professional investors often penalize the company with lower-priced down rounds or expensive loans as a result.

article thumbnail

On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

New investors hate down rounds. Or worse yet they may never get financed. Raise at “ the top end of normal &# but not so high that future financings in a corrected market become impossible. So at GRP Partners we’re very active now. Many good companies will not get funded. Get funded now, if you can.&#.

article thumbnail

Wasted time is money lost. (And another story of lost opportunity.)

Berkonomics

Many of the start-ups my various angel funds have financed died a slow death, not because of poor concept but because of poor execution, wasting fixed overhead and draining the final resources from the company coffers. . And we were able to secure that investment along with a partner from that firm joining our board.

article thumbnail

On the Road to Recap:

abovethecrowd.com

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. By January of 2016, that number had ballooned to 229.

IPO 40
article thumbnail

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. Venture capitalists Cut Tough Deals.