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How to Fund a Startup

www.paulgraham.com

There never has to be atime when you have no revenues. Some angel investors join together in syndicates. 10 ]One new thing the company might encounter is a downround , or a funding round at valuation lower than the previousround. Down rounds are bad news; it is generally the common stockholders who take the hit.

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Venture Outlook 2016

Both Sides of the Table

“Trade in an asset at a price that strongly deviates from an asset’s intrinsic value” The arguments against that, “This time the startups have real revenues!” In 2014 3 out of 12 exits were occurred at a lower valuation than the previous round. 25% “down rounds? ” ring hollow.

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