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

Both Sides of the Table

I’ve seen friends (and family members) lose much of their savings that way over the years because “Black Swans” happen and in 1987, 2001, 2003 & 2008 (just to name a few from my memory) huge market gyrations caused much financial distress to people seeking short-term gains. You don’t have a clue. Neither do I.

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How Venture Funding For Early-Stage Startups Will Change During the COVID-19 Crisis

Dream It

In New York, for instance, there are now venture funds with a West Coast mentality and firms with an East Coast mentality; the same is true for firms in San Francisco. Will a financial crisis affect how venture funds deploy capital? The biggest question for a venture firm is whether LPs will fail to make capital calls in a crisis. “It

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Instead of sticking a fork in the venture market, realize. there is no fork

This is going to be BIG.

venture capitalists are now asking tougher questions about start-ups' revenue and profits.". David's firm most recently participated in the $77 million second round financing of SoFi, a one year old startup focusing on student loans. The last closed market we had was from about September 2008 until June 2009--10 months.

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Investors prefer debt over equity (but not venture debt)

TechCrunch

Simply put, equity risk premiums (ERPs) have broken down well below the ranges that were established since 2008. For the venture world specifically, this dynamic is compounded by the venture debt markets cooling, which in turn makes equity the most viable option for most. The data tells a clear and extreme story.

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TechCrunch+ roundup: Cannabis investor survey, product ops, recurring revenue financing

TechCrunch

To learn more about the underlying market forces and hurdles facing entrepreneurs and investors in this maverick industry, she spoke to four investors: Jacqueline Bennett, managing partner and co-founder, Highlands Venture Partners. Can recurring revenue financing drive growth in a turbulent market? Eager Entrepreneur.

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What I wish I’d known about venture capital when I was a founder

TechCrunch

Andy Areitio is a partner at the early-stage fund TheVentureCity , a new venture and acceleration model that helps diverse founders achieve global impact. When you’re running your own venture — especially if it’s your first — it’s unlikely you will find the time to deep dive into how venture capital firms work.

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As fundraising gets harder, founders should ask investors for a flat round

TechCrunch

Matt Cohen, founder and managing partner of Ripple Ventures , was the founding investor of Turnstyle Solutions, which was acquired by Yelp in 2017. VCs and university endowments should partner to make venture more diverse. More posts by this contributor. How to strategically manage your startup advisor’s compensation.

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