Down Round Founder Metrics 
Both Sides of the Table
JUNE 5, 2011
I’ve decided to take all of my private conversations and subjective points-of-view on the topic and make them public in a keynote speech at the Founder Showcase in San Francisco on June 15th. Another firm we saw tried to raise $15 million at a $60 million pre-money with similar metrics. Here’s the problem.
Both Sides of the Table
SEPTEMBER 27, 2010
And people like Jeff Clavier, Aydin Senkut, Dave McClure, Chris Sacca & Eric Paley (at Founder Collective) are leading the charge. Chris Sacca talked about how a $20 million exit can change a founder’s life and that shouldn’t be scoffed at. That’s awesome. I had two kids and a rental house.
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Growthink Blog
MAY 23, 2011
Usually unbeknownst to all, the decision around pursuing or accepting a venture capital round will be the most important factor in determining the investment return for the founder and the original angel investors in the company. It is driven by the following: • The Best Metric for the Health of a Company is Cash Flow.
Feld Thoughts
APRIL 21, 2016
. “Many Unicorn founders and CEOs have never experienced a difficult fundraising environment — they have only known success. Also, they have a strong belief that any sign of weakness (such as a down round) will have a catastrophic impact on their culture, hiring process, and ability to retain employees.
David Teten
AUGUST 7, 2019
Likely signs of a Value investment: the company has challenges in filling out the round; the investors have more negotiating leverage than the founders during the closing process; the company has significantly better metrics (e.g. The reverse also holds: a Value investment can become Momentum, and then follow with a down round.
NZ Entrepreneur
JULY 8, 2019
If a valuation is too low, the founders become over-diluted over time and will struggle to do a later series A or B raise if they’re sitting at single digits – global venture capitalists (VCs) won’t touch this scenario. A simple metric – when I registered my first company in 2004, the naming space was wide open. Valuations.
Both Sides of the Table
SEPTEMBER 18, 2014
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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