VC Cafe

JANUARY 29, 2024

Many startups extended runway, cut costs and took on painful down rounds or expensive debt to avoid raising in 2023. The 2023 open source generative AI survey by the Linux Foundation found that 41% of organisations expressed a clear preference for open-source generative AI technologies over proprietary solutions.

Global 171

Global Generative AI Venture Capital Valuation 171

Both Sides of the Table

FEBRUARY 14, 2016

There is much discussion online and also in small, private groups, about why the price of technology companies – public and private – are falling. So inside rounds get delayed and when there are non-participants you often find “recaps” or “structure” or “pay-to-play” provisions.

Valuation 150

Valuation Down Round Startup Later Stage 150

Growthink Blog

MAY 23, 2011

Through connections, or through a chance meeting at a networking or social event, an angel investor hears the entrepreneur's story, likes them and their technology, and on the spot, writes a check to provide the company with its first outside financing. There are a lot of dark, hard days.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

Both Sides of the Table

MARCH 30, 2016

Six firms had expressed strong interest, two had strong champions already trying to test price and round size and one had made it clear they were planning to submit a term sheet the following week. Below is a graph of the NASDAQ the US public barometer of technology companies. But of course public markets had begun gyrating.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

Berkonomics

OCTOBER 5, 2023

What most managers miss is that every month cut from the time it takes to perform such tasks cuts the cost by the value of a month’s worth of fixed overhead or burn. Ignoring the cost of product for a moment to make a point, saving a month’s fixed overhead by making processes more efficient, could easily double profits for the year.

Silicon Valley 118

Silicon Valley Burn Rate Angel Investor Down Round 118

Berkonomics

AUGUST 10, 2017

What most managers miss is that every month cut from the time it takes to perform such tasks cuts the cost by the value of a month’s worth of fixed overhead or burn. Ignoring cost of product for a moment to make a point, saving a month’s fixed overhead by making processes more efficient, could easily double profits for the year.

Silicon Valley 97

Silicon Valley Burn Rate Angel Investor Down Round 97

Berkonomics

MARCH 30, 2010

What most managers miss is that every month cut from the time it takes to perform such tasks cuts the cost by the value of a month’s worth of fixed overhead or burn. In the technology sector where I most often play, extended unplanned software development cycles account for the majority of these corporate failures.

Silicon Valley 85

Silicon Valley Burn Rate Angel Investor Down Round 85

Reid Hoffman

JUNE 8, 2021

And back then, the word technology may as well have been like a dictionary definition for the word good. In other words, all technology was a step forward for humanity. And I of course, [over time, the way we now think of technology in 2021 is more nuanced]. I came to Silicon Valley when I was 25, turning 26. And it was 2007.

Silicon Valley 69

Silicon Valley Hosting Rhode Island Design 69

abovethecrowd.com

APRIL 20, 2016

In late 2015, many public technology companies saw a significant retrenchment in their share prices primarily as a result of a reduction in valuation multiples. In Q1 of 2016 there were zero VC-backed technology IPOs. Their own ego is also a factor – will a down round signal weakness?

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

www.paulgraham.com

APRIL 28, 2010

Angels whove made money in technology are preferable,for two reasons: they understand your situation, and theyre asource of contacts and advice. It costs you a little more equity, but being able to play the two firms off each other (as well as ask one if the other is being out of line) is invaluable. Whendel.icio.us

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Reid Hoffman

JUNE 8, 2021

And back then, the word technology may as well have been like a dictionary definition for the word good. In other words, all technology was a step forward for humanity. And I of course, [over time, the way we now think of technology in 2021 is more nuanced]. I came to Silicon Valley when I was 25, turning 26. And it was 2007.

Silicon Valley 36

Silicon Valley Hosting Rhode Island Design 36

Both Sides of the Table

FEBRUARY 4, 2016

In fact, 62% of VCs surveyed – across a wide variety of stages and geographies – said their portfolios were starting to cut costs, expected the markets to tighten. Most flat rounds. More down rounds. More structured rounds. And of course all of these factors are related.

LP 150

LP Valuation Burn Rate Pre-Money Valuation 150

Scalable Startup

FEBRUARY 1, 2013

Marc Andreessen: So the computer industry started in 1950 and basically ran for 50 years with the same model, which was a model where all of the new computers, all the new technology, all the new software started out being sold for the highest prices to the biggest organizations. So originally the customer was the Department of Defense.

Software Review 22

Software Review Startup Venture Capital Stock 22

Both Sides of the Table

OCTOBER 18, 2015

There is a lot of uncertainty about the state of the private, high-growth technology markets and the venture capital markets that underpin them. Great technology firms were built during the last dry period and we saw the huge wealth creation of Facebook, Twitter, Tesla and others. 25% “down rounds? Boom and bust.

IPO 150

IPO Venture Capital LP SEC 150