Remove Down Round Remove Metrics Remove Revenue Remove Sales
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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

Then you can do a little bit of research and find out that very few companies ever achieve this valuation in a trade sale so you’re clearly gunning for an IPO. I raised my A round at a $31.5 million post-money valuation with no revenue. The risk wouldn’t be appropriate. It was early 2000. That was market.

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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

This venture capital financing - usually between $3 and $10 million - is the first of a number of rounds of outside investment over a period of three to five years. With this capital, the company propels itself to $50 million+ in revenues, and to either a sale to a strategic acquirer or to an initial public offering.

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

David Teten

Likely signs of a Value investment: the company has challenges in filling out the round; the investors have more negotiating leverage than the founders during the closing process; the company has significantly better metrics (e.g. LTV / CAC, revenue growth, etc.) were clearly Momentum, but [in hindsight] they were also Value.”

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On the Road to Recap:

abovethecrowd.com

A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue. 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.

IPO 40
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People-First Capitalism

Reid Hoffman

At the time, they said, it’s not enough to design a product that’s good for sales, it must also be good for the environment. 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. So it works for as many stakeholders as possible.

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People-First Capitalism

Reid Hoffman

At the time, they said, it’s not enough to design a product that’s good for sales, it must also be good for the environment. 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. So it works for as many stakeholders as possible.

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Advice for startups in a downturn (May 2022 Edition)

VC Cafe

Down rounds are coming. David Sacks offers a few benchmarks on growth rates (revenue), gross margins, CAC payback and burn. Thomasz Tunguz from Redpoint Capital shared 4 scenarios that startups should be contemplating now depending on their sales efficiency and cash reserves. Source: Pitchbook NVCA Venture Monitor.