Down Round Founder Stock Technical Review 
VC Cafe
FEBRUARY 27, 2023
Taking stock of the venture capital market in 2023, it’s clear to see that we’re in a transition point. For the past 10 years, with interest rates near zero, VC investors plowed record amounts into tech startups and enjoyed a seemingly ‘easy’ investing environment. Don’t just take it from me.
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.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
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.
VC Cafe
OCTOBER 31, 2022
The top 20 tech billionaires globally have lost $480 billion on paper in the past year. This is largely due to several major stock market crashes and global economic uncertainties. It’s a tough time for a lot of startup founders right now. It’s a tough time for a lot of startup founders right now.
Lightspeed Venture Partners
OCTOBER 7, 2012
I’ve been writing up reviews of this season’s Shark Tank pitches from a silicon valley VCs perspective. Week three’s breakdown covered topics like how hard momentum is to turn around, and how participating preferred stock works. This time I’ll break down week four of this season. BACK 9 DIPS.
Both Sides of the Table
JUNE 22, 2011
I recently spoke at the Founder Showcase at the request of Adeo Ressi. I said that at the Founder Showcase, too. Responses ranged from, “hey, they’re in a HUGE market&# to “it is an amazing company and their technology rocks.&# New investors hate down rounds. But everything has intrinsic value.
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.
Expert insights. Personalized for you.
215 
Let's personalize your content