Both Sides of the Table

JUNE 5, 2011

Another firm we saw tried to raise $15 million at a $60 million pre-money with similar metrics. They did an inside round, spent a bunch of money and then went through a fire sale of the business less than 2 years later. And the CEO they would hire to come in and run the business when you go would always be a mercenary.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Feld Thoughts

APRIL 21, 2016

Also, they have a strong belief that any sign of weakness (such as a down round) will have a catastrophic impact on their culture, hiring process, and ability to retain employees. Their own ego is also a factor – will a down round signal weakness?

Marketing 70

Marketing Down Round Startup IRR 70

Reid Hoffman

JUNE 8, 2021

And I hired a COO, Belinda Johnson , and she said, “No, if people don’t like you, you should meet with them.” The burden [should] just be that we care; that if we learn something, we improve it, and that we don’t only use single output metrics and its growth at all costs. That was totally counterintuitive. And I said, “Why?”

Silicon Valley 69

Silicon Valley Hosting Rhode Island Design 69

Growthink Blog

MAY 23, 2011

Yes, you heard me right – multiple research studies, including from the Kauffman Foundation , have shown that when you remove a follow-on venture capital round from a founder or angel investor-funded company, that expected returns skyrocket. It is driven by the following: • The Best Metric for the Health of a Company is Cash Flow.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

Reid Hoffman

JUNE 8, 2021

And I hired a COO, Belinda Johnson , and she said, “No, if people don’t like you, you should meet with them.” The burden [should] just be that we care; that if we learn something, we improve it, and that we don’t only use single output metrics and its growth at all costs. That was totally counterintuitive. And I said, “Why?”

Silicon Valley 36

Silicon Valley Hosting Rhode Island Design 36

Scalable Startup

FEBRUARY 1, 2013

And so the other reason that I am very interested in delving deep into this space is that it seems like IPOs like Workday, Palo Alto Networks are sort of — they have metrics and analytics that Wall Street understands, more so than a Facebook; like “We are going to sell X number of this in the next year.”

Software Review 22

Software Review Startup Venture Capital Stock 22

abovethecrowd.com

APRIL 20, 2016

Also, they have a strong belief that any sign of weakness (such as a down round) will have a catastrophic impact on their culture, hiring process, and ability to retain employees. Their own ego is also a factor – will a down round signal weakness? A down round is nothing.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40