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Making Sense of the Stock Market Drops in Relation to Venture Financing

Both Sides of the Table

It will make follow-on financings much harder and people will have to consider whether or not to do inside rounds. These are all normal things but in this big run since 2009 we’ve all gotten used to nearly 100% follow-on financing rates, valuations only moving up, deals clearly the convertible note caps and low mortality rates.

finance 344
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What is the Definition of a Seed Round or an A Round?

Both Sides of the Table

5 million was always the classic definition of an A-round between the late nineties (crazy financings aside) and say 2007. Entrepreneurs started demanding that VCs call their first-round financings “seed” rounds even if they were $3 million. Whom you take advice from really matters. and there''s always a but].

VC 399
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Lessons from the Trenches: One Founder’s Candid Look at Bootstrapping

Entrepreneurs' Organization

This experience allowed me to identify a critical void in financing companies: building healthy capital stacks and navigating the public offering process. With no revenue three years in and an ever-increasing pile of expenses, my personal finances took a hit. Loans replaced savings, and credit lines were stretched to their limits.

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Should Investors in the Same Round of Financing Ever Get Different Prices?

Both Sides of the Table

But Paul Graham really did have a point in his “ high resolution fundraising ” post – that there is a problem – particularly in angel financing – with herding cats. Since 2009 I have been counseling people to offer discounts to the first angel investors.

finance 294
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This Week in VC Episode 6 with @Jason Calacanis: Best One Yet

Both Sides of the Table

Clearly a startup should consult its lawyer before filing or not filing.But the attorneys I relied on to write this piece told me that they’ve done lots of Section 4(2) deals in the past, and would recommend it to clients who had relatively simple financing agreements (not tranched-out, not too many investors, etc.) Short answer: no.

VC 285
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The Harder I Work, The Luckier I Get

Both Sides of the Table

years ago you’d remember RIP Good Times from Sequoia, which still strikes me as having been prudent advice in late 2008. But they weren’t there in 2009 when you were up late nights shitting yourself whether you really were smart for pursuing this idea. I agreed to finance a company today. So which is it?

advice 391
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Praying to the God of Valuation

Both Sides of the Table

Almost no financings, many VCs and tech startups cratered for the second time in less than a decade following the dot com bursting. Starting in 2009 I began writing checks consistently, year-in and year-out. During this era, from 2009–2015, most founders I knew were in it for building great & sustainable companies.

VC 466