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Venture Capital Q&A Session

Both Sides of the Table

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.

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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

Accelerators and incubators support the startups with a small amount of funding, mentorship, networking opportunities, resources, and workspaces. ? Under this category, you have the angel investors who would invest their own money and Venture Capital or VC firms, who manage funds aimed towards specific startup sectors and stages.

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Take Five – How will the downturn continue to play out on startups and venture capital

VC Cafe

Snap’s stock plunged 40% last week after Evan Spigel announced the company will miss revenue targets, which raises questions about other ‘advertising powered’ social networks. Samir Kaji shares more evidence to the slow down in venture capital investment. Notable tech layoffs (source: Protocol ).

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A Recently Exited Founder on Surviving the Contradictory Role of Startup CEO

View from Seed

Yes, it is hard to manage. Sometimes the only path forward is to fill a gap with a down round of funding, a B-player, or some other non-ideal option. The next time around, I’ll manage for capital efficiency. Backupify was managed for momentum. My next startup will be managed for capital efficiency.

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In Venture Capital, Should You Be a Momentum or a Value Investor?

David Teten

You identify the “hot” companies; network into them; and sell them on the value of accepting your capital. Likely signs of a Momentum investment: the round is oversubscribed and the entrepreneur has more negotiating leverage than VCs during the closing process. . “You were clearly Momentum, but [in hindsight] they were also Value.”

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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

Through connections, or through a chance meeting at a networking or social event, an angel investor hears the entrepreneur's story, likes them and their technology, and on the spot, writes a check to provide the company with its first outside financing. There are a lot of dark, hard days. For most companies, it is simply a non-starter.

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Lower values, higher risks? Or a paradise for investors? - Startups.

Tim Keane

I'm just reading a post  from Wisbusiness.com  by Joe Kremer of the Wisconsin Angel Network.  Relatively late stage pharma ventures, just to cite one example, tend to be doing second and third rounds at depressed values. All of that leads to a tighter money supply which tends to drive down prices.