Remove Down Round Remove Operations Remove Partner Remove Reputation
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Why Raising Too Much Money Can Harm Your Startup

Both Sides of the Table

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. Some people can skip first base My partner Greg Bettinelli has a sports metaphor that I’ve become fond of which is “skipping first base.”

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On the Road to Recap:

abovethecrowd.com

All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. Their own ego is also a factor – will a down round signal weakness? This is uncharted territory.

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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

The angel then introduces the entrepreneur to his or her wealthy friends and business connections who, based on the good reputation of the referring angel, also invest. By definition, companies that receive venture capital cannot fund their businesses from operations, and thus need to seek outside capital.

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How to Fund a Startup

www.paulgraham.com

Most startups operate close to themargin of failure, and the distraction of having to deal with clientscould be enough to put you over the edge. One of the dangers of taking investment from individual angels,rather than through an angel group or investment firm, is that theyhave less reputation to protect.