Both Sides of the Table

JULY 29, 2010

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.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

Both Sides of the Table

JUNE 22, 2011

Responses ranged from, “hey, they’re in a HUGE market&# to “it is an amazing company and their technology rocks.&# It’s like people arguing that there’s a beautiful beach house in 2006 that represents great long-term value due to scarcity of similar property. New investors hate down rounds.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

www.paulgraham.com

APRIL 28, 2010

I wassurprised recently when I realized that all the worst problems wefaced in our startup were due not to competitors, but investors.Dealing with competitors was easy by comparison. Angels whove made money in technology are preferable,for two reasons: they understand your situation, and theyre asource of contacts and advice.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Scalable Startup

FEBRUARY 1, 2013

These are good things to think about and companies to study as we move back from consumer to Enterprise in the tech cycle. And so it has always been this kind of trickle-down model for 50 years. So now you have got the rise of this new set of companies that are sort of consumerized technology for businesses.

Software Review 22

Software Review Startup Venture Capital Stock 22