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. Optimize for a W more than % dilution in these circumstances. Insiders hate them and fight them.

Burn Rate 150

Burn Rate Cap Table Startup Dilution 150

Berkonomics

OCTOBER 5, 2023

In the technology sector where I most often play, extended unplanned software development cycles account for the majority of these corporate failures. 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 118

Silicon Valley Burn Rate Angel Investor Down Round 118

Berkonomics

AUGUST 10, 2017

Email readers, continue here…] In the technology sector where I most often play, extended unplanned software development cycles account for the majority of these corporate failures. 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

Genuine VC

FEBRUARY 9, 2011

Not just financial upside, but also the upside of making an impact in an organization, working in small teams with other exceptional people, involvement with cutting-edge technology, and working with other motivated people. Has there ever been a down round, inside round, a flat round, or a CEO change?

Startup 146

Startup Burn Rate Technical Review Down Round 146

Berkonomics

MARCH 30, 2010

In the technology sector where I most often play, extended unplanned software development cycles account for the majority of these corporate failures. 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. Email readers continue here.]

Silicon Valley 85

Silicon Valley Burn Rate Angel Investor Down Round 85

Lightspeed Venture Partners

OCTOBER 7, 2012

This includes calling current and prospective customers, understanding technology and manufacturing, doing reference calls on the founders and key executives, verifying financial and legal information and often other items specific to the company. In the real world, he would make those calls BEFORE investing, not after.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

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.

Cram Down 417

Cram Down Founder Venture Capital Recapitalization 417

Feld Thoughts

FEBRUARY 9, 2016

Once again, as we find ourselves in the middle of a significant public market correction, especially around technology stocks, there’s an enormous amount of noise in the system, as there always is. Then, if you end up doing a down round, it suddenly matters a lot. Go read it now – I’ll wait.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

ReadWriteStart

JANUARY 13, 2024

This competitive landscape has driven these emerging companies to push the boundaries of innovation and develop cutting-edge technologies that can address even the most sophisticated cyber-attacks. Additionally, these down rounds can decrease employee morale, as they may dilute shares or pay cuts, affecting the overall work environment.

Down Round 154

Down Round Marketing Artificial Inteligence Startup 154

ReadWriteStart

NOVEMBER 22, 2010

The survey looks at the valuations and the terms of financing for over 100 technology companies in Silicon Valley that reported raising capital in the third quarter of this year. 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.

Silicon Valley 115

Silicon Valley Venture Capital Valuation Down Round 115

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

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. In Q1 of 2016 there were zero VC-backed technology IPOs. Their own ego is also a factor – will a down round signal weakness?

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

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. Why Down Rounds are Harder Than You May Think. Down rounds are hard. Plus, down rounds trigger anti-dilution provisions.

Valuation 150

Valuation Down Round Startup Later Stage 150

www.paulgraham.com

APRIL 28, 2010

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. Angel Investors Angels are individual rich people. Whendel.icio.us

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

YoungUpstarts

JUNE 26, 2020

Like Jerry Yang who started Yahoo, as investors we are looking for entrepreneurs who are obsessed with a new technology. I always caution entrepreneurs not to take too high a valuation in any round because it sets very high expectations for the next round. We’ve heard it all before. So how do billion dollar companies get built?

Finance 205

Finance Silicon Valley Valuation Startup 205

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

VC Cafe

JANUARY 29, 2024

Many startups extended runway, cut costs and took on painful down rounds or expensive debt to avoid raising in 2023. The 2023 open source generative AI survey by the Linux Foundation found that 41% of organisations expressed a clear preference for open-source generative AI technologies over proprietary solutions.

Global 171

Global Generative AI Venture Capital Valuation 171

Both Sides of the Table

FEBRUARY 4, 2016

Most flat rounds. More down rounds. More structured rounds. And just as we get despondent from the things that are working less well than we’d like, we fall in love again with a new group of innovations and innovators and disruptors in the inevitable march towards technology progress.

LP 150

LP Valuation Burn Rate Pre-Money Valuation 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

Scalable Startup

FEBRUARY 1, 2013

Marc Andreessen: So the computer industry started in 1950 and basically ran for 50 years with the same model, which was a model where all of the new computers, all the new technology, all the new software started out being sold for the highest prices to the biggest organizations. So originally the customer was the Department of Defense.

Software Review 22

Software Review Startup Venture Capital Stock 22

This is going to be BIG.

SEPTEMBER 7, 2012

Here are the top things I hear about follow ons and why they don't make a lot of sense to me: 1) You need to have follow on capital to protect your investments in case of a down round. If you're doing seed deals, how often does a down round in a seed deal even happen? Down from what?

Later Stage 99

Later Stage Down Round Pre-Money Valuation Early Stage 99

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

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. But of course public markets had begun gyrating.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

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

thebarefootvc

AUGUST 26, 2015

If you doubt that, take a look at the following chart I spotted on Twitter today: I’m long term bullish on technology which is why I run a venture fund. Mobile technology is ubiquitous, software is eating the world, sensors are proliferating – and with much of the world yet to come online, the bulk of tech growth is ahead of us.

Marketing 40

Marketing Investment Bankers Valuation China 40

thebarefootvc

AUGUST 26, 2015

If you doubt that, take a look at the following chart I spotted on Twitter today: I’m long term bullish on technology which is why I run a venture fund. Mobile technology is ubiquitous, software is eating the world, sensors are proliferating – and with much of the world yet to come online, the bulk of tech growth is ahead of us.

Marketing 40

Marketing Investment Bankers Valuation China 40

thebarefootvc

JULY 26, 2015

If you doubt that, take a look at the following chart I spotted on Twitter today: I’m long term bullish on technology which is why I run a venture fund. Mobile technology is ubiquitous, software is eating the world, sensors are proliferating – and with much of the world yet to come online, the bulk of tech growth is ahead of us.

Marketing 40

Marketing Investment Bankers Valuation China 40

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