Both Sides of the Table

SEPTEMBER 28, 2014

So money spent should add equity value or create IP that eventually will. Simply put – down rounds are very hard to achieve psychologically because insiders fight against them (rightly or wrongly) and outsiders have a mental gap that if your valuation is going down your company is forked up and they often just pass.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Hunter Walker

AUGUST 8, 2023

Restructures, Down Rounds, and Pay to Plays. And fascinating new advances (and needs) in AI, climate, biology, etc are driving tech-IP driven startups. Whatever gets reported is just the tip of the iceberg. Funds will get rightsized , which helps better align investors and founders in what defines a successful outcome.

Portfolio 98

Portfolio Cap Table LP Valuation 98

Both Sides of the Table

SEPTEMBER 18, 2014

And now I have to explain to team that they’re taking more dilution than they expected if we do a down round. A down round? Lawyers don’t make money on your seed round in any instance. They are investing in your relationship in hopes that you do an A, B and C round. Me: More dilution? Employment.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Gust

SEPTEMBER 17, 2014

And now I have to explain to team that they’re taking more dilution than they expected if we do a down round. A down round? Lawyers don’t make money on your seed round in any instance. They are investing in your relationship in hopes that you do an A, B and C round. Me: More dilution? Not in my experience.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153