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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

And this is happening in mezzanine (pre-IPO) deals as well. And post IPO deals, although these tend to correct more quickly. If everybody is over-paying for early-to-mid stage deals you’d imagine that these all need to feed into a frenzied M&A and IPO market that will garner big returns for these risks investors are taking.

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5 Equity Crowdfunding Reflections Before You Sign Up

Startup Professionals Musings

In fact, the latest figures show that crowdfunding globally is expected to reach $114 billion by 2021, exceeding the amounts contributed by either angel groups or VCs alone. Unreasonably high early valuations hurt the entrepreneurs, as well as professional investors, later when a second round becomes a down round or can’t be negotiated.

Equity 411
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2023 Global Venture Reports were Gloomy, but there are reasons to be optimistic

VC Cafe

Global venture funding fell 42% year over years to $248.8 For example, Tiger Global, a crossover fund which was one of the most active venture investors in 2021 went from 194 deals in 2021 to a mere 20 in 2023 and has been trying to actively sell its positions in the secondary market at steep discounts to get liquidity.

Global 171
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5 Crowdfunding Concerns Worry Professional Investors

Startup Professionals Musings

In fact, the latest figures show that crowdfunding globally is expected to grow from USD 1.41 Unreasonably high early valuations hurt the entrepreneurs, as well as professional investors, later when a second round becomes a down round or can’t be negotiated. Later funding rounds can’t deal with a thousand shareholders.

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

VC Cafe

That’s of course part of a global trend. On a global level, venture financing of private companies dropped 33% year over year, from a record $733B in 2021 to $490B in 2022. The ten biggest exits of the year included a mix of IPOs and acquisitions. We started to see down rounds taking place especially in growth stage.

Valuation 158
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London and Tel Aviv unicorn alumni produce most startups

VC Cafe

It’s enough to take a look at the global unicorn club of 1,191 startups valued at $1 billion or above to understand that challenging times are ahead for many of them. Atomico’s founder Nicklas Zennstrom recently called the end of the high valuations era and urged founders and VCs to remove the stigma from down rounds.

Israel 97
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An Inside Scoop on the Funding Environment and What it Might Mean for You

Both Sides of the Table

Many had started IPO’ing and we started to think about our future. Most investors still believe in the winner-take-most attributes of a market and Invoca’s financing will in itself help act as a continued moat as smaller competitors will struggle to match our R&D pace or to globalize as we take our platform abroad.