article thumbnail

In Q4 2022, founders face tough choices

VC Cafe

It’s a tough time for a lot of startup founders right now. Many companies are now having to resort to tough measures in order to stay afloat, including layoffs, down rounds and tough terms from current investors. What is a founder to do? If the answer is yes, then a down round is likely the best path forward.

Founder 173
article thumbnail

10 Rosh Hashanah Resolutions for Startup Founders

VC Cafe

The past year was a wild ride for startups and founders, giving a whole new meaning to the ”rollercoaster” aspect of being an entrepreneur. Patrick Collison , self-made billionaire founder of Stripe. Bill Gates , founder of Microsoft. A good way to think about valuation in seed/pre-seed is to reverse engineer the next round.

Founder 187
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Shark Tank Season 4 week 4 breakdown

Lightspeed Venture Partners

The founders were very sympathetic; a man, laid off from his job, and his very pregnant wife, who sold their house and investing $150k into the business and are working hard to make a go of it. At this point, the very pregnant cofounder was weeping. But in the end Robert came back in to join Lori. Daymond offered to be an advisor.

article thumbnail

How to Talk About Valuation When a VC Asks

Both Sides of the Table

What was the post money on your last round (and how much capital have you raised)? It’s not uncommon for a VC to ask you how much capital you’ve raised and what the post-money valuation was on your last round. VCs hate “down rounds” and many don’t even like “flat rounds.” There are some simple reasons. After all?—?we

Valuation 324
article thumbnail

Lessons for VCs from the Oracle.

A Crowded Space

In VC: I see a fair number of deals that have reached some point of stagnation that are seeking a flat or down round. He doesn’t seek co-investors. Every good founder I know writes a list of names when they are starting to prepare for fundraising. This is bad. Tread very carefully. . Pretty clear philosophy. .

article thumbnail

How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

Founders Institute Plain Preferred Term Sheet (by WSGR – disclaimer, I represent the Founders Institute and was involved in drafting this document). Co-sale rights. These rights are missing, which is probably okay since I have never heard of a co-sale right being used before. Comprehensive protective provisions.

Finance 70
article thumbnail

Why is there such a large founder to early employee equity drop-off? - Quora

www.quora.com

Type to Add and Search Questions; Search Topics and People Startups Startup Compensation Entrepreneurship Compensation Stock Options Major Internet Companies Silicon Valley Why is there such a large founder to early employee equity drop-off? The real question here is: why is it fair for founders to get so much more?

Equity 40