Remove Distribution Remove Down Round Remove Marketing
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In Q4 2022, founders face tough choices

VC Cafe

This is largely due to several major stock market crashes and global economic uncertainties. 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. It’s an investors market. Funding crunch intensified in Q3 2022.

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Lean Startups aren't Cheap Startups

Steve Blank

In times when venture capital is hard to get, investors extract high costs for failure (down-rounds, cram downs , new management teams, shut down the company.) Marketing demand creation programs (Search Engine Marketing, Public Relations, Advertising, Lead Generation, Trade Shows, etc.)

Lean 263
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Take Five – how shut are the venture markets right now?

VC Cafe

The market correction has come for series A and seed startups. For the past few week I’ve been sharing here the impact of the current downturn that started in the public markets on startups and venture capital. The market correction has come for Series A and seed startups (Source: Pitchbook ). How important are margins?

Valuation 151
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Shark Tank Season 4 week 4 breakdown

Lightspeed Venture Partners

He had been at it for 6 months and had no sales or distribution lined up yet. Lori quickly pointed out some problems with the product; it will be hard to move down stairs and it doesn’t wheel easily. The cofounder was charismatic and persuasive and asking for $85k for 12% of the company. They were right to do so.

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Cybersecurity startups face market challenges

ReadWriteStart

Startups in the cybersecurity sector are facing a daunting market environment , contending with decreased valuations and increasing pressure to sell while competing for vital funding and collaborations. Additionally, these down rounds can decrease employee morale, as they may dilute shares or pay cuts, affecting the overall work environment.

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How to Talk About Valuation When a VC Asks

Both Sides of the Table

VC firms see thousands of deals and have a refined sense of how the market is valuing deals because they get price signals across all of these deals. Many VCs will have a distribution curve where they’ll do a small number of early-stage deals (say $1.5–3 VCs hate “down rounds” and many don’t even like “flat rounds.”

Valuation 324
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State of Israeli tech ecosystem 2022 and what to expect in 2023

VC Cafe

As growth investments (and valuations) go down, unicorns might struggle to survive, according to Globes. Israeli public tech companies saw market cap decline of 65% in 2022. Sector funding distribution according to Greenfield Partners. Down rounds, especially for growth stage companies, and bridge rounds galore.

Valuation 158