VC Cafe

JANUARY 29, 2024

Global venture funding fell 42% year over years to $248.8 For example, Tiger Global, a crossover fund which was one of the most active venture investors in 2021 went from 194 deals in 2021 to a mere 20 in 2023 and has been trying to actively sell its positions in the secondary market at steep discounts to get liquidity.

Generative AI 171

Generative AI Global Venture Capital Valuation 171

Startup Professionals Musings

AUGUST 6, 2023

In fact, the latest figures show that crowdfunding globally is expected to grow from USD 1.41 Unreasonably high early valuations hurt the entrepreneurs, as well as professional investors, later when a second round becomes a down round or can’t be negotiated. Later funding rounds can’t deal with a thousand shareholders.

Angel Groups 201

Angel Groups Accredited Investor Due Diligence Equity 201

Startup Professionals Musings

NOVEMBER 25, 2020

In fact, the latest figures show that crowdfunding globally is expected to reach $114 billion by 2021, exceeding the amounts contributed by either angel groups or VCs alone. Unreasonably high early valuations hurt the entrepreneurs, as well as professional investors, later when a second round becomes a down round or can’t be negotiated.

Equity 411

Equity Angel Groups Accredited Investor Due Diligence 411

VC Cafe

JANUARY 2, 2023

That’s of course part of a global trend. On a global level, venture financing of private companies dropped 33% year over year, from a record $733B in 2021 to $490B in 2022. The ten biggest exits of the year included a mix of IPOs and acquisitions. We started to see down rounds taking place especially in growth stage.

Valuation 158

Valuation Down Round Venture Capital 158

Both Sides of the Table

JUNE 22, 2011

And this is happening in mezzanine (pre-IPO) deals as well. And post IPO deals, although these tend to correct more quickly. If everybody is over-paying for early-to-mid stage deals you’d imagine that these all need to feed into a frenzied M&A and IPO market that will garner big returns for these risks investors are taking.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

VC Cafe

NOVEMBER 30, 2022

It’s enough to take a look at the global unicorn club of 1,191 startups valued at $1 billion or above to understand that challenging times are ahead for many of them. Atomico’s founder Nicklas Zennstrom recently called the end of the high valuations era and urged founders and VCs to remove the stigma from down rounds.

Europe 97

Europe Balance Sheet Valuation 97

Both Sides of the Table

OCTOBER 18, 2015

As I pointed out in this post about the changing structure of the VC industry , private tech companies are delaying IPOs and thus privately held tech investors are reaping more of the value prior to an eventual IPO so public investors must have felt compelled to respond. 25% “down rounds? The response?

IPO 150

IPO Venture Capital LP SEC 150