Berkonomics
OCTOBER 5, 2023
In the technology sector where I most often play, extended unplanned software development cycles account for the majority of these corporate failures. 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.
Both Sides of the Table
SEPTEMBER 28, 2014
This is why investors really like SaaS software companies where you have recurring revenue and your largest customer accounts for < 5% of your revenue and your renewals rates are > 90%. Many software companies have > 80% gross margins which is why they are more valuable than say traditional retailers or consumer product companies.
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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.
Berkonomics
AUGUST 10, 2017
Email readers, continue here…] In the technology sector where I most often play, extended unplanned software development cycles account for the majority of these corporate failures. 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.
ReadWriteStart
JUNE 1, 2020
Any custom manufactured IoT device would require software development as well as hardware customization. But, in subsequent rounds of funding inflated valuation will be normalized resulting in a down round. You might have seen that valuations of several unicorns were suddenly slashed down.
crowdSPRING Blog
MAY 10, 2013
Startups: You Should Value Software More | by Wade Foster – [link]. The Damaging Psychology of Down Rounds | by Mark Suster – [link]. Legal Contracts for Software Developers Who Hate Contracts (w/free contract template to use today) – [link]. 7 A/B Testing Blunders That Even Experts Make – [link].
Berkonomics
MARCH 30, 2010
In the technology sector where I most often play, extended unplanned software development cycles account for the majority of these corporate failures. 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. Email readers continue here.]
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