VC Cafe

JANUARY 2, 2023

As Vintage Venture Partners put it in a recent presentation shared in Tel Aviv , 2022 started off well but fell of a cliff in the second half (the slides were shared on Twitter by Amitai Ziv from Tech 12 ). A report by Greenfield Partners puts the total fundraising of Israeli startups at $15.16 2022 in Israeli tech and venture.

Valuation 158

Valuation Down Round Israel Venture Capital 158

Both Sides of the Table

FEBRUARY 14, 2016

I recently survey more than 150 VC friends from all stages and geographies what they thought about the market by asking “Which of the following statements best describes your mood heading into 2016?” I’ll spare you the math and point out that this means we funded 0.104% of the market. This is how VCs feel.

Valuation 150

Valuation Down Round Startup Later Stage 150

YoungUpstarts

JUNE 26, 2020

To do that you have to show how your market is big enough (a multi-billion dollar market) to support that kind of valuation. Like Mark Zuckerberg, who built a site only for college students, we are looking for a small, protected market that you as an entrepreneur, can dominate. Why does it need to be a small market?

Finance 205

Finance Silicon Valley Valuation Startup 205

Both Sides of the Table

MARCH 30, 2016

It is an heroic accomplishment in a brutal fund-raising market in which only market leaders can bring in that sort of money. Mark dutifully went to partner meetings, back-channel references began, firms started calling existing VCs to “test prices” and we started debating whom our best partner would be.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

Growthink Blog

MAY 23, 2011

Technical progress and market traction are much slower and cost a lot more than anticipated. Venture capital funds are usually 7 - 10 year partnerships whereby the general partners - the “VC” - manage the capital of the limited partners, usually institutions (endowments, pension funds, etc.). There are a lot of dark, hard days.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

ithacaVC

FEBRUARY 23, 2012

Most of my stomach turning results from the fact that this exercise is purely about unrealized return values of purely non-liquid assets (unless of course there is an active secondary market for the stock – this applies to a few handfuls of VC backed companies). I think this practice is not prudent.

Valuation 49

Valuation Institutional Investors Marketing Down Round 49

thebarefootvc

JULY 26, 2015

After a tumultuous week in global markets, today the US stock market ended higher on the session. As a former investment banker who followed the markets closely once upon a time (especially when I was in the midst of public market M&A transactions), I now have the luxury of watching from an arm’s length.

Marketing 40

Marketing Investment Bankers Valuation China 40

thebarefootvc

AUGUST 26, 2015

After a tumultuous week in global markets, today the US stock market ended higher on the session. As a former investment banker who followed the markets closely once upon a time (especially when I was in the midst of public market M&A transactions), I now have the luxury of watching from an arm’s length.

Marketing 40

Marketing Investment Bankers Valuation China 40

thebarefootvc

AUGUST 26, 2015

After a tumultuous week in global markets, today the US stock market ended higher on the session. As a former investment banker who followed the markets closely once upon a time (especially when I was in the midst of public market M&A transactions), I now have the luxury of watching from an arm’s length.

Marketing 40

Marketing Investment Bankers Valuation China 40

This is going to be BIG.

JANUARY 17, 2016

The public markets have been stumbling around lately, trying to figure out what China and oil prices mean for the rest of the world economy. Fear, not surprisingly, weighs markets down. They might have to get another round in, and that round will most certainly be a down round.

Dilution 60

Dilution Portfolio China Down Round 60

Both Sides of the Table

JUNE 30, 2016

You will build out features or expend to platforms — often before you have enough market feedback to warrant it. My analogy was that there are markets where it’s relatively easier to raise capital and therefore you should take a little bit more but you should create a budget where you only spend 70% of what you raise on a pace of 18 months.

Pre-Money Valuation 292

Pre-Money Valuation Valuation Early Stage Startup 292

The Equity Kicker

JANUARY 25, 2016

On Friday it seemed like everyone in the venture capital industry was again reading about market turmoil, this time the news is that angel investors are pulling back and valuations taking a hit. In the ecommerce and marketplace markets Forward Partners operates in growth is limited because business has to scale country by country.

Venture Capital 60

Venture Capital Angel Investor Startup Participating Preferred 60

A Crowded Space

MAY 31, 2016

We expect there to be an increase in down rounds, flat rounds, inside rounds and various pay-to-play scenarios. The great companies that are breaking out will be fine in any market. Every single one of them had either a flat, down, or inside round during their history. All of this has happened before.

Cram Down 60

Cram Down Pay to Play Angel Investor Warrant 60

David Teten

AUGUST 7, 2019

To simplify, there are two classic approaches to public markets investing. The first is Momentum Investing , “a strategy to capitalize on the continuance of an existing market trend”, which usually meaning that the price has been rising in the recent past. As a venture capitalist, should you be a Momentum or a Value investor?

Venture Capital 60

Venture Capital Valuation Stock NDA 60

NZ Entrepreneur

JULY 8, 2019

I made my first investment in the stock market when I was 12 years old. 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’). I killed it, everyone did. The Rolodex.

New Zealand 53

New Zealand Entrepreneur Valuation Dilution 53

Altgate

MARCH 8, 2009

I say ecosystem as opposed to industry because it is not just the VC funds themselves that are imploding, instead the collapse includes entrepreneurs and startups that were funded by VCs, angel investors, service providers like lawyers, bankers and accountants as well as limited partner investors in VC funds.

Later Stage 34

Later Stage Early Stage Venture Capital Portfolio 34

Scalable Startup

OCTOBER 26, 2011

The first venture round is often based on an idea, past successes, a business plan, or a market hunch. The current phenomenon of Internet multi-millionaires recycling their money back into the startup markets is creating “super” angels like Ron Conway. Where is the market going? Accel Partners.

Mezzanine 22

Mezzanine Due Diligence IPO Angel Investor 22

Berkonomics

OCTOBER 5, 2023

Since this number is budgeted and pre-authorized, managers tend to focus upon other things such as sales, marketing and product development issues. There is an art to efficient management of a process, whether that is the process of bringing a product to market from R&D to production or developing a new product’s launch program.

Silicon Valley 118

Silicon Valley Burn Rate Angel Investor Down Round 118

Berkonomics

AUGUST 10, 2017

Since this number is budgeted and pre-authorized, managers tend to focus upon other things such as sales, marketing and product development issues. There is an art to efficient management of a process, whether that is the process of bringing a product to market from R&D to production or developing a new product’s launch program.

Silicon Valley 97

Silicon Valley Burn Rate Angel Investor Down Round 97

Berkonomics

MARCH 30, 2010

Since this number is budgeted and pre-authorized, managers tend to focus upon other things such as sales, marketing and product development issues. There is an art to efficient management of a process, whether that is the process of bringing a product to market from R&D to production or developing a new product’s launch program.

Silicon Valley 85

Silicon Valley Burn Rate Angel Investor Down Round 85

www.paulgraham.com

APRIL 28, 2010

As a company gets more established,its valuation gets closer to an actual market value. The fund managers, who are called"general partners," get about 2% of the fund annually as a managementfee, plus about 20% of the funds gains. Not all the people who work at VC firms are partners. Dont be misled by thisoptimism.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. By January of 2016, that number had ballooned to 229.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Reid Hoffman

JUNE 8, 2021

Greylock Partners · Brian Chesky | People-First Capitalism. And all of the other smart and operational decisions that have enabled Airbnb to weather the storm and go on to have one of the most successful public market debuts. So we have to think of ourselves as partners. It’s a market. I always saw it as the opposite.”.

Silicon Valley 69

Silicon Valley Hosting Rhode Island Design 69

Both Sides of the Table

FEBRUARY 4, 2016

” There are a lot of data points that one can observer to get a sense of the venture capital markets – both LP fundings into venture and VC financings of startups. But these data points are often lagging indicators and perhaps a better barometer of the future would be to gather data on VC perceptions in the market right now.

LP 150

LP Valuation Burn Rate Pre-Money Valuation 150

VC Cafe

MAY 29, 2022

According to the State of Private Markets report by Carta it’s clear to see that the biggest impact of the current downturn is on the growth stages (post series A) and that seed remains stable (for now). Carta’s State of Private Markets Q1 2022. The bull market is over. . ‘doom and gloom’ headlines.

Venture Capital 183

Venture Capital Early Stage Valuation Startup 183

Reid Hoffman

JUNE 8, 2021

Greylock Partners · Brian Chesky | People-First Capitalism. And all of the other smart and operational decisions that have enabled Airbnb to weather the storm and go on to have one of the most successful public market debuts. So we have to think of ourselves as partners. It’s a market. I always saw it as the opposite.”.

Silicon Valley 36

Silicon Valley Hosting Rhode Island Design 36

Scalable Startup

FEBRUARY 1, 2013

And then five years later computers became — they dropped half in price and then the big insurance companies could buy them, and that’s when Thomas Watson, who ran IBM at the time, was quoted as saying, “There’s only a market need in the world for five computers.”. So GoodData is at the intersection of kind of marketing and business.

Software Review 22

Software Review Startup Venture Capital Stock 22