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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

It is highly dependent upon many factors: experience of the team, type of opportunity (a big biotech or semi-conductor A round is likely to look different from an Internet A round), geography, etc. So the ranges you would expect can be highly imprecise.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

it is also the title of a fabulous book from Internet 1.0 In startup world low GM almost always equals death which is why many Internet retailers have failed or are failing (many operated at 35% gross margins).

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

The fact that today’s Internet bubble does not represent all companies does not disprove its existence. Ah, but today’s Internet companies have real revenue! New investors hate down rounds. But they also often have a rippling effect on broader markets as all of our economies seem to be intertwined these days.

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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

Let’s take an example – In the case of an internet or app business, the user traction and market penetration is a must. But, in subsequent rounds of funding inflated valuation will be normalized resulting in a down round. You might have seen that valuations of several unicorns were suddenly slashed down.

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Silicon Valley Venture Capital Survey Finds That, Yes, Valuations Are Up

ReadWriteStart

According to Barry Kramer, a partner in the firm and a co-author of the survey, during the third quarter, "up rounds exceeded down rounds 52% to 30% with 18% flat. The report also finds that the best performing industries in the quarter were Internet and digital media companies, followed by those in the life sciences.

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Sustainable startup growth and venture capital

The Equity Kicker

However severe our current situation is, I’m sure there will be plenty of short term negatives, including more job losses, company failures and down rounds. We need a new disruptive capitalism that is designed for a much more mature internet market, one that can bring founders, investors, and employees together.

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Lean Startups aren't Cheap Startups

Steve Blank

In times when venture capital is hard to get, investors extract high costs for failure (down-rounds, cram downs , new management teams, shut down the company.) Preserve your cash: When you have unlimited cash (internet bubbles, frothy venture climate,) you can iterate on your mistakes by burning more dollars.

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