ReadWriteStart

JUNE 1, 2020

I have often been asked about Startup Funding by entrepreneurs. Many myths surround the subject of startup funding. Here is Startup Funding, a Comprehensive Guide for Entrepreneurs. You must have seen a lot of startups giving out promotions, discounts, and incentives at the early phase of their business. Debt investors.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Both Sides of the Table

FEBRUARY 8, 2016

Much has changed in the past four months of the technology startup world and how outsiders value the business. Don’t assume that you can “just do a down round” if necessary. Down rounds are corrosive. The days of easy money may be slowing down. Insiders hate them and fight them.

Burn Rate 150

Burn Rate Cap Table Startup Dilution 150

VC Cafe

SEPTEMBER 26, 2022

The past year was a wild ride for startups and founders, giving a whole new meaning to the ”rollercoaster” aspect of being an entrepreneur. A combination of competition for top talent and an effort to bring employees back to the office drove startups in Israel to throw extravagant parties and all-inclusive retreats abroad.

Founder 187

Founder Startup Valuation Pre-Money Valuation 187

Genuine VC

FEBRUARY 9, 2011

Evaluating a startup as a prospective employee is tough, especially when you compare to VCs. Plus, VCs often will have met the Founder/CEOs of many of a particular startup’s competitors, so they’ll have an even richer understand of the market landscape. On one hand, of course, you’re joining a startup for the upside.

Startup 146

Startup Burn Rate Technical Review Down Round 146

crowdSPRING Blog

FEBRUARY 21, 2014

These posts and videos are about logo design , web design , startups, entrepreneurship, small business, leadership, social media, marketing, and more! The open office: Friend or foe to startup success? | 6 Ways To Achieve Maximum Online Exposure On A Startup Budget – crowdspring.co/1giAIDo. ” – crowdspring.co/1oIRbXG.

Social Media 92

Social Media Small Business Design Media 92

VC Cafe

FEBRUARY 27, 2024

A founder asked me what makes a $2M round “pre-seed”? especially if the startup already has a product and revenue? And why do we still sometimes hear about pre-seed rounds that look more like a series A in pricing and size? Defining the pre-seed round It’s futile to look for ‘one true’ definition.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

VC Cafe

FEBRUARY 27, 2023

For the past 10 years, with interest rates near zero, VC investors plowed record amounts into tech startups and enjoyed a seemingly ‘easy’ investing environment. Prices went up from round to round, and startups were encouraged to grow, grow, grow, and not to worry about profitability.

Venture Capital 215

Venture Capital Technical Review LP Institutional Investors 215

Both Sides of the Table

JUNE 22, 2011

New investors hate down rounds. For others it feels like a two-speed economy, where rules apply to hot tech startups that don’t apply elsewhere. They will enter the “triage phase&# of the market where they figure out which of their existing deals will survive. Many good companies will not get funded.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

crowdSPRING Blog

MAY 10, 2013

These posts and videos are about logo design , web design , startups, entrepreneurship, small business, leadership, social media, marketing, and more! 10 Myths about Startups – [link]. How a 1-Page Business Model Will – and Won’t–Help Your Lean Startup | by Kevin Dewalt – [link]. “Embrace skeptics.

Social Media 93

Social Media Small Business Design Media 93

www.paulgraham.com

APRIL 28, 2010

Want to start a startup? A typical startup goes throughseveral rounds of funding, and at each round you want to take justenough money to reach the speed where you can shift into the nextgear. Few startups get it quite right. A lot of startups that end upgoing public didnt seem likely to at first.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

VC Cafe

JUNE 10, 2022

The market correction has come for series A and seed startups. For the past few week I’ve been sharing here the impact of the current downturn that started in the public markets on startups and venture capital. Until now, early stage startups were relatively unaffected. How quickly should startups scale?

Valuation 151

Valuation Marketing Israel Venture Capital 151

Steve Blank

APRIL 26, 2022

Cram downs are back – and I’m keeping a list. At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. A cram down is different than a down round. Cram downs are done by VC bottom feeders.

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Cram Down Founder Venture Capital Recapitalization 417

Startup Professionals Musings

NOVEMBER 25, 2020

Now there are dozens of online equity portals, including WeFunder and Microventures , already geared up to help regular people buy equity in a startup, without qualifying as an accredited investor. Have you ever wondered what professional startup investors think about all this? Lack of checks and balances on startup valuations.

Equity 411

Equity Angel Groups Accredited Investor Due Diligence 411

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

Lightspeed Venture Partners

OCTOBER 7, 2012

As Cuban pointed out, this is a “down round” Zomm is seeking $2M for 10% of the company, implying an $18M pre money valuation today. Some partial answers came up, including spending on a new version of the product with additional features, and excessively high inventories relative to actual sales in holiday 2011.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

Both Sides of the Table

SEPTEMBER 18, 2014

And now I have to explain to team that they’re taking more dilution than they expected if we do a down round. A down round? Startup Lessons' Raising lower seems kind of like something is wrong. Me: More dilution? I thought it was a convertible note with a cap? We never thought about it.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

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

Feld Thoughts

FEBRUARY 9, 2016

Mark Suster wrote a great post yesterday titled The Resetting of the Startup Industry. Then, if you end up doing a down round, it suddenly matters a lot. Don’t worry about this too much, until you do a down round. Then use the down round to clean up your preference overhang.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

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

A Crowded Space

DECEMBER 9, 2013

In VC: I see a fair number of deals that have reached some point of stagnation that are seeking a flat or down round. I haven’t seen many startup railroads. . “The most important thing to do if you find yourself in a hole is to stop digging.” . This is bad. Tread very carefully. . ————-.

Technical Review 68

Technical Review Deal Flow Balance Sheet Down Round 68

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

Startup Professionals Musings

SEPTEMBER 14, 2010

This clause attempts to protect the conversion price of stock of angel investors, prior to additional financing, from being reduced to a price equal to the price per share paid in a later “down” round. Tags: entrepreneur startup angel investment term sheet business. But some dilution is almost inevitable. Right of first refusal.

Term Sheet 227

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 227

Startup Professionals Musings

AUGUST 6, 2023

Now there are dozens of online equity portals, including WeFunder and Microventures , already geared up to help regular people buy equity in a startup, without qualifying as an accredited investor. Have you ever wondered what professional startup investors think about all this? Lack of checks and balances on startup valuations.

Angel Groups 201

Angel Groups Accredited Investor Due Diligence Equity 201

VC Cafe

JANUARY 2, 2023

A report by Greenfield Partners puts the total fundraising of Israeli startups at $15.16 Israeli startups 2022 funding summary. Down rounds, especially for growth stage companies, and bridge rounds galore. We started to see down rounds taking place especially in growth stage. billion to $17.1

Valuation 158

Valuation Down Round Israel Venture Capital 158

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

Startup Professionals Musings

JANUARY 27, 2012

This clause attempts to protect the conversion price of stock of Angel investors, prior to additional financing, from being reduced to a price equal to the price per share paid in a later “down” round. But some dilution is almost inevitable. Right of first refusal.

Term Sheet 223

Term Sheet Pre-Money Valuation Due Diligence Angel Investor 223

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

Both Sides of the Table

SEPTEMBER 27, 2010

Industry change allows the entry of newer players at earlier stages – It doesn’t take as much money to launch a startup anymore. So in the past we needed VC to really get a startup going. If you invest it in startups you’re a VC professional money manager. We all know that.

Silicon Valley 308

Silicon Valley Liquidity Event Seed Stage Finance 308

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. Dividend preference.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

VC Cafe

NOVEMBER 30, 2022

The 2022 Founders Factories report by DealRoom and Accel shines a spotlight on the startup clusters that produced most unicorns across Europe and Israel, and then tracks the alumni of those unicorns to test where the talent goes to found their next companies. London and Tel Aviv are home to the most founder nurturing unicorn startups.

Israel 97

Israel Europe Balance Sheet Valuation 97

View from Seed

FEBRUARY 19, 2015

Below, he gives an honest take about what he’d do differently and what he’d do again as a startup CEO. Now that Backupify has had a nice exit and my life is in a different place, I agreed to write this post, full of my own advice based on my experience as a startup CEO. Startups are incredibly hard. Keep at it.

Founder 120

Founder Startup Cofounder Business Model 120

VC Cafe

JANUARY 29, 2024

2023 was a rough year for Venture Capital and for startups, and it might get even worse. I believe there are a lot of problems need solving, my outlook is longer term and I invest in new companies (most of the startups that Remagine Ventures II will invest in don’t yet exist). In many ways, Edward is right.

Global 171

Global Generative AI Venture Capital Valuation 171

ithacaVC

NOVEMBER 14, 2014

I have written about startup valuations previously. If you are advising startup founders, I strongly suggest having them read all 4 of the posts to get the lay of the startup valuation land. A founder is about to raise their first round and asking me how to value their company. [1]. Here is a post from October 2012.

Valuation 69

Valuation Startup Down Round Early Stage 69

Feld Thoughts

APRIL 21, 2016

Also, they have a strong belief that any sign of weakness (such as a down round) will have a catastrophic impact on their culture, hiring process, and ability to retain employees. Their own ego is also a factor – will a down round signal weakness?

Marketing 70

Marketing Down Round Startup IRR 70

Startup Professionals Musings

MAY 20, 2016

At least ten online portals are already gearing up to help regular people buy startup equity, without abiding by accredited investor rules. Have you ever wondered what professional startup investors think about all this? Lack of checks and balances on startup valuations. Investors cannot verify accountability or governance.

Angel Groups 136

Angel Groups Accredited Investor Equity Due Diligence 136

VC Cafe

SEPTEMBER 6, 2024

We must #BRINGTHEMALLHOME August was a slow month in venture investment as globally startups raised $18 billion in August worldwide, a 37% decline MoM and 24% decline year over year. This was also felt in Israeli startups, who reportedly raised only $201M in 7 deals, bringing the total to $938 million in 61 deals in Q3 2024 so far.

Israel 97

Israel Down Round Silicon Valley Stealth 97

Growthink Blog

MAY 23, 2011

This combo all too often leads to various forms of deal unpleasantness, like cram-down rounds, liquidation preferences, and change of control provisions, which in turn, often lead to unhappy founders and angel investors even in somewhat successful exits. And they hire very aggressive securities attorneys to represent their interests.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112