Remove Down Round Remove IPO Remove Revenue
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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

Early-stage investors in technology startups are only looking for growth-oriented companies that can achieve an “exit&# someday – either via selling your company to a larger company or via an IPO. I raised my A round at a $31.5 million post-money valuation with no revenue. The risk wouldn’t be appropriate.

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

Ah, but today’s Internet companies have real revenue! And this is happening in mezzanine (pre-IPO) deals as well. And post IPO deals, although these tend to correct more quickly. And as you probably guessed the data aren’t any better on IPOs with less than 20 / year average for the past 10 years. and profits!

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

VC Cafe

The ten biggest exits of the year included a mix of IPOs and acquisitions. As growth investments (and valuations) go down, unicorns might struggle to survive, according to Globes. Down rounds, especially for growth stage companies, and bridge rounds galore. Total deal value this year was $16.9 ” Fred Wilson.

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London and Tel Aviv unicorn alumni produce most startups

VC Cafe

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. As mentioned in the Battery Ventures “State of the Opencloud report” 2022 , the bar is high for these private unicorns to transition into successful IPOs.

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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. Investors had grown too used to the idea that any deal you funded would get marked up to a higher valuation in the next round and that’s clearly not always true. CMRR (contracted monthly recurring revenue) grow 100% y/y. Total customers grew 20% year/year.

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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

This venture capital financing - usually between $3 and $10 million - is the first of a number of rounds of outside investment over a period of three to five years. With this capital, the company propels itself to $50 million+ in revenues, and to either a sale to a strategic acquirer or to an initial public offering. read more.

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The Second VC Round – A True Test of Scalability

Scalable Startup

It’s no longer based on a hunch, unless the company is in trouble and needs money to finish what the first round started. This problem often leads to a lowered valuation or “down round” Not a great scenario.) If the company is doing well, the second round is easier to acquire. source: Crunchbase.