ReadWriteStart

JANUARY 13, 2024

Startups in the cybersecurity sector are facing a daunting market environment , contending with decreased valuations and increasing pressure to sell while competing for vital funding and collaborations.

Down Round 154

Down Round Marketing Artificial Inteligence Startup 154

YoungUpstarts

JUNE 26, 2020

by Rizwan Virk, author of “ Startup Myths and Models: What You Won’t Learn in Business School “. If you are building a startup, you’ll find no shortage of people who are willing to give you advice, particularly when it comes to raising financing. Unfortunately, most startups don’t meet their initial rosy projections.

Finance 205

Finance Silicon Valley Valuation Startup 205

Both Sides of the Table

MAY 30, 2018

I thought I’d write a post about how to talk about valuation at a startup and give you some sense of what might be on the mind of the person considering funding you. Of course, unlike cars there is no direct comparison across each startup so these are just some general guidelines to try and even the information field.

Valuation 324

Valuation Post-Money Valuation Pre-Money Valuation Cofounder 324

Both Sides of the Table

FEBRUARY 14, 2016

” “Mark has a vested interest in talking down valuations of startups.” Most prefer not to say this publicly for two reasons: 1) they have an entire portfolio of startups, many of whom are raising capital and 2) they prefer not to be attacked publicly or seem “anti entrepreneur.” goes into a startup.

Valuation 150

Valuation Down Round Startup Later Stage 150

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

Startup Company Lawyer

MARCH 14, 2010

In addition, I think that a “peace treaty&# between early-stage investors and startup companies on standard terms (at least at a term sheet level) is a step in the right direction. Almost all startup companies don’t declare dividends, so deletion of a dividend preference is irrelevant to an investor. “ .

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Scalable Startup

FEBRUARY 1, 2013

The Future of Startups 2013-2017, beginning of a series. Marc Andreesen gave a great interview about a year agi about “The Future of the Enterprise” and where the next startups will be playing – Hadoop, Big Data, BYOD, etc. Some of these next big startups are in L.A., You mean startups? I don’t know.

Software Review 22

Software Review Startup Venture Capital Stock 22

abovethecrowd.com

APRIL 20, 2016

In February of last year, Fortune magazine writers Erin Griffith and Dan Primack declared 2015 “ The Age of the Unicorns ” noting — “Fortune counts more than 80 startups that have been valued at $1 billion or more by venture capitalists.” Next came Rolfe Winkler’s deep dive “ Highly Valued Startup Zenefits Runs Into Turbulence. ”

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Reid Hoffman

JUNE 8, 2021

Greylock Partners · Brian Chesky | People-First Capitalism. As I’m sure most would agree, Airbnb is one of the most iconic startups to have been formed in the world. So we have to think of ourselves as partners. And most companies have a partner, group and then society. I always saw it as the opposite.”.

Silicon Valley 69

Silicon Valley Hosting Rhode Island Design 69

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

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. Limited Partners (LPs) who invest in VC funds have continued to pour money into venture – with the market returning to pre-recession levels.

LP 150

LP Valuation Burn Rate Pre-Money Valuation 150

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

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

The Equity Kicker

JANUARY 25, 2016

Startups everywhere will need to adjust their fundraising strategies and good investors will be helping them to adjust quickly – it’s much less painful that way. 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.

Venture Capital 60

Venture Capital Angel Investor Startup Participating Preferred 60

Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). 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

Reid Hoffman

JUNE 8, 2021

Greylock Partners · Brian Chesky | People-First Capitalism. As I’m sure most would agree, Airbnb is one of the most iconic startups to have been formed in the world. So we have to think of ourselves as partners. And most companies have a partner, group and then society. I always saw it as the opposite.”.

Silicon Valley 36

Silicon Valley Hosting Rhode Island Design 36

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. They're just.

Dilution 60

Dilution Portfolio China Down Round 60

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. of people in that race.

Cap Table 78

Cap Table Term Sheet Database Option Pool 78

Berkonomics

JANUARY 20, 2010

Some businesses require very little capital and the founder is able to self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 69

Private Equity Valuation Cap Table Accredited Investor 69

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. These inside rounds will lead to one of a few possibilities: 1) No insiders are supportive. These companies shut down. But, this year we’ve seen the greed of the last several years switch to fear.

Cram Down 60

Cram Down Pay to Play Angel Investor Warrant 60

Altgate

JANUARY 9, 2009

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← Be Glad You Are An Entrepreneur! 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.&#

Down Round 31

Down Round Venture Capital Partner Entrepreneur 31

www.mattbartus.com

DECEMBER 9, 2012

Perspectives on issues affecting founders, startups and investors from a veteran startup lawyer in Silicon Valley. 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. Home About Matt Client references Contact. A View from the Valley.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 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

Hippoland

NOVEMBER 13, 2016

It takes a long time to see the results of a startup that does well. 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.

IRR 48

IRR Valuation Portfolio Due Diligence 48

NZ Entrepreneur

JULY 8, 2019

I waited for the ‘casino-like’ world of startup investing until I was 28 years old, putting $10,000 into a friend’s software distribution company – a tidy sum for me at that age. There are numerous unforeseen and unknowable challenges when running a startup; one person’s experience is rarely sufficient to identify a great solution.

New Zealand 43

New Zealand Entrepreneur Valuation Dilution 43

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. Bookmark the permalink.

Later Stage 34

Later Stage Early Stage Venture Capital Portfolio 34

Scalable Startup

OCTOBER 26, 2011

The Second Round, or “B Round”, or “Follow On” round can be the achilles heel of a startup. No doubt the first round of external funding for a startup is usually critical to a startup as it can be the difference between continuing your startup or shutting it down.

Mezzanine 22

Mezzanine Due Diligence IPO Angel Investor 22

VC Cafe

MAY 29, 2022

Building on my post on ‘ Advice for startups in a downturn (May 2022 edition) ‘, this week I continued to follow with interest the impact of the current correction on startups and venture capital, particularly in early stage. 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