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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

This was an audience of mostly first-time entrepreneurs. It is great for entrepreneurs and great for VCs. So here is what I have been telling entrepreneurs privately for the past 6 months. What a bubble means for each entrepreneur. New investors hate down rounds. I believe that. source: Capital IQ.

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How to Find the Perfect Startup Job: Part III "Selecting the Right Venture"

Genuine VC

If a brand-name VC is an investor, it means that at one time one single partner at the firm saw enough promise in the venture to make a bet on it – it doesn’t mean that a company is doing well now. Has there ever been a down round, inside round, a flat round, or a CEO change?

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How to Talk About Valuation When a VC Asks

Both Sides of the Table

One of the hardest things about the fund-raising process for entrepreneurs is that you’re trying to raise money from people who have “asymmetric information.” As an entrepreneur it can feel as intimidating as going to buy a car where the dealer knows the price of every make & model of a car and you’re guessing at how much to pay.

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Cybersecurity startups face market challenges

ReadWriteStart

Consequently, some startups have faced struggles securing investments, resulting in down rounds where their valuations decline between funding rounds. 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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What Most People Don’t Understand About How Startup Companies are Valued

Both Sides of the Table

I’d like to explain as best I can my opinion on what is going on because most of what I hear from entrepreneurs is not only wrong but is reminiscent of what I heard in 1997-2000. ” “This will be great for VCs and bad for entrepreneurs.” So when prices go down their first reaction is, “S**t.

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Three Startup Financing Myths You Should Avoid

YoungUpstarts

The real issue here is that if an entrepreneur comes in to a pitch and goes on and on about how they’re going to build a billion dollar company in just a few years, most investors eyes tend to glaze over. Like Jerry Yang who started Yahoo, as investors we are looking for entrepreneurs who are obsessed with a new technology.

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

Startup Company Lawyer

My general opinion is that anything that makes the financing process faster and easier or otherwise educates entrepreneurs is a good thing. (A Given that the Series Seed is issued at a fairly low valuation, anti-dilution protection is probably not that important, as a “down round&# from a low valuation in the Series Seed is unlikely.

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