VC ‘bottom feeders’, valuation calculator, think like an investor – TechCrunch
Farmers are not bothered when the price of maize drops; likewise, there’s no reason for startup founders to lose their joy because publicly traded tech stocks are undercutting their valuations.
If making as much money as possible is your main goal, prepare to be disappointed. Accepting a down round or a smaller seed check is not a sign of failure – as it says in the Bible: the rain falls on the just and the unjust.
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“While the market has turned quickly to buyers, the good news is that it’s not broken,” according to Jeremy Abelson and Jacob Sonnenberg of Irving Investors.
In a TC+ guest post, they share a calculator for using growth metrics and public market valuations that can help founding teams “triangulate toward more company-specific enterprise value.”
The numbers don’t lie – for all but a few serious contenders, the IPO window is now closed.
But if you have an idea for a product or service that could be valuable to others, spending your days working for someone else is a questionable choice, no matter what’s going on in the stock market.
Thank you very much for reading,
The Cram Downs are a character test for VCs and Founders
Follow-on investors taking advantage of the closing of the IPO window to impose unfavorable terms on founders are “the last feeders of the venture capital industry,” writes Steve Blank.
As public procurement contracts and startup valuations follow, it’s common for entrepreneurs who have invested years of their life in a startup to agree to “take it or leave it” terms, says Blank, adjunct professor. at Stanford and Senior Innovation Fellow at Columbia University.
Ultimately, “VCs will stop playing this game when founders stop trading.”
How to Think Like an Investor: Understanding the Real Cost of Fundraising
Founders in fundraising mode are usually focused on the task at hand, but now that valuations are a moving target, it might be useful to borrow an investor’s perspective.
“The presumption that a company knows what its investors expect with clarity is high,” says Rebecca Mitchem, partner at Neotribe Ventures.
In an article aimed at growth-stage entrepreneurs, Mitchem answers three questions:
- What is the cost of risk capital (as defined by the amount of dilution)?
- What financial milestones do investors expect me to achieve between raises?
- What are the most subjective milestones I need to pass to prove I’m ready for the next raise?
Steer’s Anuja Sonalker Explains The Benefits Of Pursuing The Less Glitzy Side Of Self-Reliance
In the audio-visual industry, the ultimate goal is to create vehicles capable of operating in all situations in which a human driver could navigate.
It’s a tough problem to solve: driving is a learned and practiced skill set – negotiating a traffic jam requires a very different skill set than parallel parking.
“No one is going to solve everything. Everyone is going to master one area and then work with others to create this end-to-end ecosystem,” Steer Tech Founder and CEO Anuja Sonalker told Rebecca Bellan.
In his interview, Sonalker discusses the importance of automotive cybersecurity, how “endpoint” automation makes freight more efficient, and why focusing on less glamorous technologies can help companies create better products.
MLB takes a foray into the future with new technology for the old ball game
Baseball has come a long way since 1897, when a Princeton math professor designed a pitching machine that ran on gunpowder.
Today, baseball is a technology-driven business where team owners, players, media organizations, and individual fans have access to tons of raw stats.
To learn more about Major League Baseball’s technology stack, corporate journalist Ron Miller interviewed its CPO and chief engineering officer, Vasanth Williams.
“MLB has a long history of harnessing data and technology and has been an early adopter of many technologies, which I love doing,” he said.
A glimpse of a Ukrainian fintech startup adjusting to life in wartime
In the 54 days since the start of Russia’s invasion, Ukraine’s IT community has mobilized tools to help its citizens and military, such as volunteer offices to house displaced citizens and help employees leave active war zones, writes Nelia Holovina, senior content writer at 42Flux.Tech.
In an article for TechCrunch+, Holovina explains how shifting corporate operations to digital helped them prepare for war and maintain productivity, even as many workers put down laptops and took up guns.
“It is believed that IT demand will remain high and that the IT sector itself could become the new engine of the economy,” she writes. “The situation entirely depends on how long this war lasts and how it will end.”
‘Found’ Receives Webby Nomination for Best Tech Podcast
Found, TechCrunch’s podcast where founders share the stories behind their startups, was nominated for a Webby in the Best Tech Podcasts category.
Vote before April 21 to help her win the People’s Voice Award!