Steve Blank

APRIL 26, 2022

Most existing investors (those still in business) hoarded their money and stopped doing follow-on rounds until the rubble had cleared. Except, that is, for the bottom feeders of the Venture Capital business – investors who “ cram down ” their companies. A cram down is different than a down round. You Have a Choice.

Cram Down 404

Cram Down Founder Venture Capital Recapitalization 404

Both Sides of the Table

MAY 5, 2013

” In the article I discussed the downside of raising capital at a too high of a price and referred people to a previous article I had written encouraging founders to raise “ At the Top end of Normal ” as opposed to stratospheric prices. The Damaging Psychology of Down Rounds. A down round.

Down Round 302

Down Round Cram Down Valuation Reputation 302

Both Sides of the Table

JUNE 30, 2016

Amongst the most often asked questions I get from founders is, “How much money should I raise?” Reflexively founders want to raise as much money as they can because they figure it will give them more resources, better chances of competing and a longer runways before they have to do the often painful job of asking, yet again, for money.

Pre-Money Valuation 292

Pre-Money Valuation Valuation Early Stage Startup 292

ReadWriteStart

JUNE 1, 2020

I have interacted with a lot of founders who funded their initial business expenses through credit cards. Point number 1: You must understand that funding is a business transaction between the investors and the startup founders. But, in subsequent rounds of funding inflated valuation will be normalized resulting in a down round.

Startup 150

Startup Elevator Pitch Entrepreneur Seed Stage 150

VC Cafe

MAY 29, 2022

Sequoia’s “Adapting to Endure” Sequoia presented this deck to a group of portfolio founders and it quickly spread online to founders worldwide. Investing at this stage is primarily focused on founders, market tailwinds, and underlying product/strategy (in that order). Source: VentureUnlocked newsletter.

Venture Capital 183

Venture Capital Early Stage Valuation Startup 183

View from Seed

FEBRUARY 19, 2015

This is a guest post from Rob May , a co-founder and CEO of Backupify , which raised $19.5M Hang out with other founders and CEOs. Other CEOs are the only people you can sit down and talk with about the hardest parts of your job. and sold to Datto in late 2014. Disclosure: NextView was not an investor in Backupify.).

Founder 120

Founder Startup Cofounder Business Model 120

This is going to be BIG.

AUGUST 21, 2023

Before we get into a debate about how much a founder should own, there’s a context implicit in the question that is easily overlooked. Because you’ve still only got a handful of people on your team and you’re doing nine jobs—none of which involves creating enough reputation and industry notoriety to get on the radar of an investor quite yet.

Cap Table 78

Cap Table Term Sheet Database Option Pool 78