Remove Cost Remove Down Round Remove Metrics
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Bad Notes on Venture Capital

Both Sides of the Table

Him: But when I raised my first round we didn’t know how to price the company. There were no metrics. How will you price the next round? Your A round? Him: On metrics. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round.

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Twitter Link Roundup #178 – Small Business, Startups, Innovation, Social Media, Design, Marketing and More

crowdSPRING Blog

The critical metrics for each stage of your SaaS business | by Lars Lofrgren – [link]. The Damaging Psychology of Down Rounds | by Mark Suster – [link]. Hospital Prices No Longer Secret As New Data Reveals Bewildering System, Staggering Cost Differences – [link]. 10 Myths about Startups – [link].

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What I *Would Have* Said at TechCrunch Disrupt

Both Sides of the Table

My wife worked at Google so while we had good income in Silicon Valley it’s hardly the life of luxury given the costs of housing. If either condition doesn’t hold it will be hard to do anything but a flat or down round. &# I was a founder once. I had two kids and a rental house.

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Bad Notes on VC

Gust

Him: But when I raised my first round we didn’t know how to price the company. There were no metrics. How will you price the next round? Your A round? Him: On metrics. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round.

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People-First Capitalism

Reid Hoffman

The burden [should] just be that we care; that if we learn something, we improve it, and that we don’t only use single output metrics and its growth at all costs. And I made a decision not to do an equity round, because I thought it would be a down round. It cost us nothing. So we’re going to do debt.

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On the Road to Recap:

abovethecrowd.com

In Silicon Valley boardrooms, where “growth at all costs” had been the mantra for many years, people began to imagine a world where the cost of capital could rise dramatically, and profits could come back in vogue. Their own ego is also a factor – will a down round signal weakness? A down round is nothing.

IPO 40
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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

Technical progress and market traction are much slower and cost a lot more than anticipated. Yes, you heard me right – multiple research studies, including from the Kauffman Foundation , have shown that when you remove a follow-on venture capital round from a founder or angel investor-funded company, that expected returns skyrocket.