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“I believe founders and CEOS and Boards should take the pain of a new valuation (flat, down, whatever) over structure.” Companies will take whatever deal they
by ttul 4y ago
“I believe founders and CEOS and Boards should take the pain of a new valuation (flat, down, whatever) over structure.”
Companies will take whatever deal they must in order to continue operating in 2023. Things got truly unhinged in 2021 and I’m glad that capital is becoming a little more scarce. Pruning off the dead branches in startup land will free up talent for startups with better prospects.
- tsunamifury 4y agoMohamed bin Salim and SoftBank were a major reason for the over inflation of Silicon Valley since before 2021 and picked overvalued “winners” before the market sorted them out. Now SV needs to deal with that fallout of that and find a new path forward. I think we need to throw out the overvaluations and look at building longer term value that isn’t just “credit cards but like with a website” this time. We need to get back to inventing and I think tech like Chat GPT is far more of that future than blockchain for con artists.
- cpeterso 4y agoWhat does “structure” mean in regards to VC funding?
- ttul 4y agoEverything other than the valuation is “structure”. Stuff like special rights for the investor’s shares that confer a liquidation precedence, board seats, and the ability to block future share sales or an exit they they don’t like. During the boom time, investors would give up rights they normally demand do they could secure a deal.