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

ReadWriteStart

NOVEMBER 22, 2010

According to Barry Kramer, a partner in the firm and a co-author of the survey, during the third quarter, "up rounds exceeded down rounds 52% to 30% with 18% flat. The report also finds that the best performing industries in the quarter were Internet and digital media companies, followed by those in the life sciences.

Silicon Valley 115

Silicon Valley Venture Capital Valuation Down Round 115

Both Sides of the Table

FEBRUARY 14, 2016

No you’re kind of f *d because nobody wants to buy any at all and your bank is calling you concerned that you may need to slow down your pace of new purchases for a bit. Many experienced partners are funds have 7-10 boards and most of these will need more capital. So when prices go down their first reaction is, “S**t.

Valuation 150

Valuation Down Round Startup Later Stage 150

Startup Company Lawyer

MARCH 14, 2010

I was actually somewhat surprised that the following investors have agreed to use the Series Seed documents in certain of the their deals: Baseline, Charles River Ventures, SV Angel (Ron Conway), First Round Capital, Harrison Metal Capital, Mike Maples, Polaris Venture Partners, SoftTech VC and True Ventures.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

YoungUpstarts

JUNE 26, 2020

I always caution entrepreneurs not to take too high a valuation in any round because it sets very high expectations for the next round. A down round, which can damage a company and make it difficult to raise money in the future. He is also a venture partner at several VC firms. What happens then?

Finance 205

Finance Silicon Valley Valuation Startup 205

Growthink Blog

MAY 23, 2011

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.). At the end of the period, all profits and proceeds are distributed to the various partners on a pre-determined split.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

Both Sides of the Table

MARCH 30, 2016

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. Mutual funds had begun marking down the valuations of their private investments in high-profile deals.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

This is going to be BIG.

JANUARY 17, 2016

They might have to get another round in, and that round will most certainly be a down round. They might be doing board meetings more frequently, coaching first time founders through layoffs and debating with their partners which companies they should bridge until things thaw out.

Dilution 60

Dilution Portfolio China Down Round 60

Both Sides of the Table

JUNE 30, 2016

And if you raise the “5 on 20” and don’t grow into your next-round valuation you’re stuck because venture investors HATE doing down rounds. Some people can skip first base My partner Greg Bettinelli has a sports metaphor that I’ve become fond of which is “skipping first base.”

Pre-Money Valuation 292

Pre-Money Valuation Valuation Early Stage Startup 292

ithacaVC

FEBRUARY 23, 2012

Some VC firms use the art of Level 3 inputs to mark up their valuations, which has a tendency to make limited partners happy. My easy solution for VC firms would be to mark up or down the valuation of investments based only on new independently led outside rounds of financing. I think this practice is not prudent.

Valuation 49

Valuation Institutional Investors Marketing Down Round 49

The Equity Kicker

JANUARY 25, 2016

However severe our current situation is, I’m sure there will be plenty of short term negatives, including more job losses, company failures and down rounds. 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

Altgate

JANUARY 9, 2009

Why I Canceled My CO2stats Account → Quote Of The Day Posted on January 9, 2009 by fnazeeri We intend to continue forward and be very supportive of your down rounds this year.&# This from the head of Intel Capital while speaking at CES (according to Jeff Busang over at Flybridge Capital Partners ).

Down Round 31

Down Round Venture Capital Partner Entrepreneur 31

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. My partners at JSV have been in the venture business for 14 years and have had the good fortune to be involved in several very large successful companies. 2) Some insiders are supportive.

Cram Down 60

Cram Down Pay to Play Angel Investor Warrant 60

www.mattbartus.com

DECEMBER 9, 2012

Interesting strategy, although I don't know if it justifies the added risk of having a flat (or down) round next time you go to raise. Interesting strategy, although I don't know if it justifies the added risk of having a flat (or down) round next time you go to raise. link] Brad Hargreaves. link] Roy Rodenstein.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

thebarefootvc

JULY 26, 2015

As someone who invested through the 2001 and 2008 crashes I can assure you that down rounds and fire sales are not fun for anyone involved. There is a silver lining to the recent volatility: a more rational market separates out the noise – for both investors and teams who are looking for experienced, long term partners.

Marketing 40

Marketing Investment Bankers Valuation China 40

thebarefootvc

AUGUST 26, 2015

As someone who invested through the 2001 and 2008 crashes I can assure you that down rounds and fire sales are not fun for anyone involved. There is a silver lining to the recent volatility: a more rational market separates out the noise – for both investors and teams who are looking for experienced, long term partners.

Marketing 40

Marketing Investment Bankers Valuation China 40

thebarefootvc

AUGUST 26, 2015

As someone who invested through the 2001 and 2008 crashes I can assure you that down rounds and fire sales are not fun for anyone involved. There is a silver lining to the recent volatility: a more rational market separates out the noise – for both investors and teams who are looking for experienced, long term partners.

Marketing 40

Marketing Investment Bankers Valuation China 40

NZ Entrepreneur

JULY 8, 2019

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’). Who does this investor know in the customer, partner and executive space they can introduce you to? The Rolodex.

New Zealand 53

New Zealand Entrepreneur Valuation Dilution 53

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. You could argue that when they were [raising] oversubscribed [VC rounds], Facebook, Google, Amazon, etc.,

Venture Capital 60

Venture Capital Valuation Stock NDA 60

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

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. Accel Partners.

Mezzanine 22

Mezzanine Due Diligence IPO Angel Investor 22

Berkonomics

OCTOBER 5, 2023

It is not a strong bargaining position for the CEO to ask for money to complete a product promised for completion with the previous round of funding. And professional investors often penalize the company with lower-priced down rounds or expensive loans as a result.

Silicon Valley 118

Silicon Valley Burn Rate Angel Investor Down Round 118

Berkonomics

AUGUST 10, 2017

It is not a strong bargaining position for the CEO to ask for money to complete a product promised for completion with the previous round of funding. And professional investors often penalize the company with lower-priced down rounds or expensive loans as a result.

Silicon Valley 97

Silicon Valley Burn Rate Angel Investor Down Round 97

Berkonomics

MARCH 30, 2010

It is not a strong bargaining position for the CEO to ask for money to complete a product promised for completion with the previous round of funding. And we were able to secure that investment along with a partner from that firm joining our board.

Silicon Valley 85

Silicon Valley Burn Rate Angel Investor Down Round 85

www.paulgraham.com

APRIL 28, 2010

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. If you get a call from a VCfirm, go to their web site and check whether the person you talkedto is a partner.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

abovethecrowd.com

APRIL 20, 2016

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. Their own ego is also a factor – will a down round signal weakness? A down round is nothing.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Reid Hoffman

JUNE 8, 2021

Greylock Partners · Brian Chesky | People-First Capitalism. So we have to think of ourselves as partners. Our hosts — we have 4 million hosts — most people would have, you might call them, your suppliers, your developers, your partners. And most companies have a partner, group and then society. EPISODE TRANSCRIPT.

Silicon Valley 69

Silicon Valley Hosting Rhode Island Design 69

Reid Hoffman

JUNE 8, 2021

Greylock Partners · Brian Chesky | People-First Capitalism. So we have to think of ourselves as partners. Our hosts — we have 4 million hosts — most people would have, you might call them, your suppliers, your developers, your partners. And most companies have a partner, group and then society. EPISODE TRANSCRIPT.

Silicon Valley 36

Silicon Valley Hosting Rhode Island Design 36

VC Cafe

MAY 29, 2022

However General Catalyst, Coatue, Qiming Venture Partners and D1 Capital Partners have siginficatedly slowed down their investments based on disclosed data. Interestingly, the investors you’d expect to be holding back (SoftBank. Which Startup Investors Pulled Back The Most So Far In 2022? The bull market is over.

Venture Capital 183

Venture Capital Early Stage Valuation Startup 183

Both Sides of the Table

FEBRUARY 4, 2016

Limited Partners (LPs) who invest in VC funds have continued to pour money into venture – with the market returning to pre-recession levels. Most flat rounds. More down rounds. More structured rounds. State of the Market. The full presentation & data can be downloaded on SlideShare.

LP 150

LP Valuation Burn Rate Pre-Money Valuation 150

Berkonomics

AUGUST 3, 2023

It’s an option, even though an expensive one. “ Strategic partner” investors: If you can find a strategic partner willing to invest in your enterprise, consider it a blessing. It is most often a win-win for both you and the strategic partner. Professional angels: This is the arena where I work and play.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Berkonomics

JUNE 8, 2017

Strategic partner” investors: If you can find a strategic partner willing to invest in your enterprise, consider it a blessing. It is most often a win-win for both you and the strategic partner. And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

This is going to be BIG.

AUGUST 21, 2023

It’s this part: “I’m getting inbound from investors…” Nearly all of the inbound VC interest happening out there is from non-partner investors (i.e. A check-writing partner reaches out to you. That’s why down rounds exist. professionals who can’t write a check) and they’re doing it systematically.

Cap Table 78

Cap Table Term Sheet Database Option Pool 78

Berkonomics

JANUARY 20, 2010

It’s an option, even though an expensive one. “ Strategic partner” investors: If you can find a strategic partner willing to invest in your enterprise, consider it a blessing. It is most often a win-win for both you and the strategic partner. Professional angels: This is the arena where I work and play.

Private Equity 69

Private Equity Valuation Cap Table Accredited Investor 69

Scalable Startup

FEBRUARY 1, 2013

Number one is, a lot of companies need to actually educate their customers or their partners, and a lot of that has to happen online. Alexia Tsotsis: Are you seeing down rounds because the NASDAQ is down? Marc Andreessen: No, we have not seen down rounds yet.

Software Review 22

Software Review Startup Venture Capital Stock 22

Hippoland

NOVEMBER 13, 2016

But as we’ve seen, these valuations can be hocus-pocus — even at later stage rounds, we’ve seen lots of companies of late fall from grace and become massively devalued overnight when they cannot raise their next round at a higher valuation. If a company raises a good round, it gets marked up to the new value.

IRR 48

IRR Valuation Portfolio Due Diligence 48