Down Round Finance Startup Stock 
Both Sides of the Table
FEBRUARY 8, 2016
Much has changed in the past four months of the technology startup world and how outsiders value the business. We do this in our consumer lives with everything ranging from housing purchases to public stocks. Don’t assume that you can “just do a down round” if necessary. Down rounds are corrosive.
YoungUpstarts
JUNE 26, 2020
by Rizwan Virk, author of “ Startup Myths and Models: What You Won’t Learn in Business School “. If you are building a startup, you’ll find no shortage of people who are willing to give you advice, particularly when it comes to raising financing. My first institutional financing came from people who were in the “MIT” network.
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ReadWriteStart
JUNE 1, 2020
I have often been asked about Startup Funding by entrepreneurs. Many myths surround the subject of startup funding. Here is Startup Funding, a Comprehensive Guide for Entrepreneurs. You must have seen a lot of startups giving out promotions, discounts, and incentives at the early phase of their business. Debt investors.
Both Sides of the Table
JUNE 5, 2011
2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. Private markets for stocks are the opposite. I acknowledged this in the article.
Steve Blank
APRIL 26, 2022
Cram downs are back – and I’m keeping a list. At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. For existing investors, sometimes it was a “pay-to-play” i.e. if you don’t participate in the new financing you lose.
Both Sides of the Table
JULY 29, 2010
The A round was done in February 2000 (end of the bull market) and my B round was done in April 2001 (bear market). As a result I had to do a down round. Down rounds are psychologically really difficult on companies and can make it harder to do later rounds. I eventually needed more money.
Feld Thoughts
FEBRUARY 9, 2016
Mark Suster wrote a great post yesterday titled The Resetting of the Startup Industry. Once again, as we find ourselves in the middle of a significant public market correction, especially around technology stocks, there’s an enormous amount of noise in the system, as there always is. Go read it now – I’ll wait.
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