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The situation I see time and again is an over-valuation on a markedly smaller-than-anticipated business, revenue numbers not achieved, and then needing to do another raise on a lower valuation (a ‘down-round’). Appropriate governance. This often carries the double whammy of dilution.
Also, they have a strong belief that any sign of weakness (such as a downround) will have a catastrophic impact on their culture, hiring process, and ability to retain employees. Their own ego is also a factor – will a downround signal weakness? A downround is nothing. Get over it and move on.
The burden [should] just be that we care; that if we learn something, we improve it, and that we don’t only use single output metrics and its growth at all costs. Most boards have an audit committee, a nominating governance committee and a comp committee. And I said, I think it’s going to be a downround, because people are scared.
The burden [should] just be that we care; that if we learn something, we improve it, and that we don’t only use single output metrics and its growth at all costs. Most boards have an audit committee, a nominating governance committee and a comp committee. And I said, I think it’s going to be a downround, because people are scared.
And then medium-size businesses start to use it, and then large businesses start to use it, and then eventually the government starts to use it. Alexia Tsotsis: It’s grassroots versus trickle-down. Marc Andreessen: Versus trickle-down. Alexia Tsotsis: Are you seeing downrounds because the NASDAQ is down?
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