Steve Blank

APRIL 26, 2022

For the common shareholders (employees, advisors, and previous investors), a cram down is a big middle finger, as it comes with reverse split – meaning your common shares are now worth 1/10th, 1/100th or even 1/1000th of their previous value. (A A cram down is different than a down round. Why do VCs Do This?

Cram Down 417

Cram Down Founder Venture Capital Recapitalization 417

YoungUpstarts

JUNE 26, 2020

Like Jerry Yang who started Yahoo, as investors we are looking for entrepreneurs who are obsessed with a new technology. When a VC’s website says they do “early stage” – to a VC that means a product has already been built and generating some revenue, while to an entrepreneur it means “just an idea.”. We’ve heard it all before.

Finance 205

Finance Silicon Valley Valuation Startup 205

Both Sides of the Table

FEBRUARY 14, 2016

There is much discussion online and also in small, private groups, about why the price of technology companies – public and private – are falling. forward revenue for SaaS businesses when in the years before it had been less than 5x. Why Down Rounds are Harder Than You May Think. Down rounds are hard.

Valuation 150

Valuation Down Round Startup Later Stage 150

VC Cafe

SEPTEMBER 6, 2024

Kol hakavod Itamar Arel and team Tenyx on the acquisition by Salesforce for an undisclosed sum to boost Salesforce AI agents with Tenyx voice technology! Israel’s most promising startups in 2024, according to Israeli news website N12 News Israel Are we past the worst in down rounds? billion compared to $6.7 35% of U.S.

Israel 97

Israel Down Round Silicon Valley Stealth 97

Both Sides of the Table

MARCH 30, 2016

Six firms had expressed strong interest, two had strong champions already trying to test price and round size and one had made it clear they were planning to submit a term sheet the following week. Below is a graph of the NASDAQ the US public barometer of technology companies. CMRR (contracted monthly recurring revenue) grow 100% y/y.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

Growthink Blog

MAY 23, 2011

Through connections, or through a chance meeting at a networking or social event, an angel investor hears the entrepreneur's story, likes them and their technology, and on the spot, writes a check to provide the company with its first outside financing. There are a lot of dark, hard days.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

This is going to be BIG.

SEPTEMBER 7, 2012

In the late 90's, it wasn't surprising that companies with no revenue that were funded at 100 million dollar valuations didn't survive. That wasn't a bubble bursting issue--that was a poor financing strategy issue of people getting caught with their pants down, hands in the cookie jar, and all the metaphors you can think of at once.

Later Stage 99

Later Stage Down Round Pre-Money Valuation Early Stage 99

Berkonomics

OCTOBER 5, 2023

How about young or pre-revenue companies? Although young companies rarely measure profitability this repeatedly, more mature companies usually can bring from five to ten percent of revenues to the bottom line in the form of net profit. The financial pain of unplanned delays. The post A heartbreaking story about time and money.

Silicon Valley 118

Silicon Valley Burn Rate Angel Investor Down Round 118

Berkonomics

AUGUST 10, 2017

Although young companies rarely measure profitability this repeatedly, more mature companies usually can bring from five to ten percent of revenues to the bottom line in the form of net profit. 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.

Silicon Valley 97

Silicon Valley Burn Rate Angel Investor Down Round 97

Berkonomics

MARCH 30, 2010

Although young companies rarely measure profitability this repeatedly, more mature companies usually can bring from five to ten percent of revenues to the bottom line in the form of net profit. 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.

Silicon Valley 85

Silicon Valley Burn Rate Angel Investor Down Round 85

abovethecrowd.com

APRIL 20, 2016

In late 2015, many public technology companies saw a significant retrenchment in their share prices primarily as a result of a reduction in valuation multiples. A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Reid Hoffman

JUNE 8, 2021

And back then, the word technology may as well have been like a dictionary definition for the word good. In other words, all technology was a step forward for humanity. And I of course, [over time, the way we now think of technology in 2021 is more nuanced]. I came to Silicon Valley when I was 25, turning 26. And it was 2007.

Silicon Valley 69

Silicon Valley Hosting Rhode Island Design 69

www.paulgraham.com

APRIL 28, 2010

There never has to be atime when you have no revenues. Angels whove made money in technology are preferable,for two reasons: they understand your situation, and theyre asource of contacts and advice. 10 ]One new thing the company might encounter is a downround , or a funding round at valuation lower than the previousround.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Reid Hoffman

JUNE 8, 2021

And back then, the word technology may as well have been like a dictionary definition for the word good. In other words, all technology was a step forward for humanity. And I of course, [over time, the way we now think of technology in 2021 is more nuanced]. I came to Silicon Valley when I was 25, turning 26. And it was 2007.

Silicon Valley 36

Silicon Valley Hosting Rhode Island Design 36

Business Plan Blog

OCTOBER 8, 2013

In order to launch a successful business and raise the capital needed to do so, a startup needs to consider several aspects of the business including the management team , the size of the opportunity, the product/service/technology, the market/sales/distribution channels, the competitive environment and several other factors.

Business Plan 67

Business Plan NDA Exit Strategy Valuation 67

Both Sides of the Table

OCTOBER 18, 2015

There is a lot of uncertainty about the state of the private, high-growth technology markets and the venture capital markets that underpin them. Great technology firms were built during the last dry period and we saw the huge wealth creation of Facebook, Twitter, Tesla and others. 25% “down rounds? Boom and bust.

IPO 150

IPO Venture Capital LP SEC 150