Berkonomics
OCTOBER 5, 2023
It is not a strong bargaining position for the CEO to ask for money to complete a product promised for completion with the previous round of funding. And professional investors often penalize the company with lower-priced down rounds or expensive loans as a result. Growth before the VC arrived was not a problem.
Startup Professionals Musings
AUGUST 6, 2023
According to more recent statistics , fewer than a third of all crowdfunding operations end up being successful, and the rest have to return anything they do collect. Unreasonably high early valuations hurt the entrepreneurs, as well as professional investors, later when a second round becomes a down round or can’t be negotiated.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Startup Professionals Musings
NOVEMBER 25, 2020
According to more recent statistics , fewer than a quarter of all crowdfunding operations end up being successful, and the rest have to return anything they do collect. Unreasonably high early valuations hurt the entrepreneurs, as well as professional investors, later when a second round becomes a down round or can’t be negotiated.
ReadWriteStart
JUNE 1, 2020
Reasons for funding. ? Scale up your operations. One of the most prominent reasons for funding is to scale up your operations, for expansion and achieve economies of scale. Now you may want to scale up your operations or expand your presence. The third reason is to fund your short term operational expenses or working capital.
Both Sides of the Table
JUNE 30, 2016
And if you raise the “5 on 20” and don’t grow into your next-round valuation you’re stuck because venture investors HATE doing down rounds. There are some great funds that operate this way and I see some merits.
Both Sides of the Table
SEPTEMBER 28, 2014
If you have a very low gross margin (10-30%) it can be very hard to build a large, scalable business because you need to make a lot of sales to cover your operating costs. 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).
Berkonomics
AUGUST 10, 2017
It is not a strong bargaining position for the CEO to ask for money to complete a product promised for completion with the previous round of funding. And professional investors often penalize the company with lower-priced down rounds or expensive loans as a result.
Expert insights. Personalized for you.
118 
Let's personalize your content