Saved by Mo Shafieeha
when the music stops
I was at Amzn early '00s when we lost 95% of our market cap. Later at FB I negotiated a down-round in '09, and then in '12 our stock dropped 50% post-IPO. I was on the board of a public company that went bankrupt (Borders) and a start-up that went under (Hello). Some lessons:
So how should you approach this as a startup founder/CEO? If you have raised a round at a really extended valuation in the last 6-12 months I would strongly advise making this cash last a lot longer than you had originally planned.
Albert Wenger • Startups and Macro Risk
A scary thought for Series A investors: down rounds can happen even when a startup is performing well. Macro events can move the whole market downward at the most inopportune times, such as after the great recession of 2008.
Patrick Vernon • Venture Capital Strategy: How to Think Like a Venture Capitalist
History shows some of the best opportunities come in bad times, not good ones.Though we’re not in the business of prediction here at Stonks, in the words of Lord Byron: “The best prophet of the future is the past.”Put simply, if public/crypto market turmoil persists, early-stage valuations may well drop ~30% or lower (i.e.below levels seen merely a... See more