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What Does the Post Crash VC Market Look Like?

Both Sides of the Table

<== Our conclusion was that this isn’t a temporary blip that will swiftly trend-back up in a V-shaped recovery of valuations but rather represented a new normal on how the market will price these companies somewhat permanently. First in late-stage tech companies and then it will filter back to Growth and then A and ultimately Seed Rounds.

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Praying to the God of Valuation

Both Sides of the Table

And then in the late 90’s money crept in, swept in to town by public markets, instant wealth and an absurd sky-rocketing of valuations based on no reasonable metrics. I started my first company in 1999 and was admittedly swept up in all of this: Magazine covers, fancy conferences, artificial valuations and easy money.

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The Changing Venture Landscape

Both Sides of the Table

I’m over-paying for every check I write into the VC ecosystem and valuations are being pushed up to absurd levels and many of these valuations and companies won’t hold in the long term. I often answer the same way … * “First, yes, nearly every corner of our market is over-valued. By definition?—?I’m dot-com bonanza.

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I Know Everybody Told You to Send Your Fund-Raising Decks as a Link.

Both Sides of the Table

I know all of this because every VC knows this because we’ve all either funded companies that have marketing technology or we’ve seen a pitch with a company that does this. Your deck should be so good that a VC asks you for permission to show it to his or her portfolio companies. A deck is a deck. Just send it.

Funding 239
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How I Invest

Both Sides of the Table

I was speaking recently to the team at NuOrder , an LA-based company we’re an investor in about “realism in startups” — an impromptu talk I have given to any of our portfolio companies who ask. I answered in the same way I always do so I thought I’d just write it publicly. “I I work with a few computer vision companies.

Invest 254
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Timing and why we’re all VCs

TechCrunch LA

Capitalism is fundamentally about timing, since market competition is about finding opportunities before others. When should you start a company? What company should you start? When should you join a company? Start writing down predictions about people, companies, and markets. When should a VC invest?

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Who Should be on Your Startup Board?

Both Sides of the Table

Do you need a board when you first start you company? Time based as in “a guaranteed right for 12 months, which can be renewed by mutual board consent” and event based “a guaranteed right until the company has raised $x million from new investors.” This is the norm and unless you have a hugely competitive round it’s not worth fighting.

Startup 236