Compared to the previous two years, and now startups raise funds more difficult. For those who are still exploring the business model in terms of start-up companies, or unable to raise funds, or simply accept the "bloodshed financing" (down round) bar.play Dora games.
In fact, if your company valuation discount, then the time, investors will think that your company does not have much value, at least, you have no one to raise funds on less valuable.
Brad Horowitz is a famous venture capital firm Andreessen Horowitz partner who is also a board member of many startups, such as Lytro and Foursquare. Here, he now wants to raise funds for those entrepreneurs to provide some suggestions.play baby games.
He said that the market is often not so logical and, on the contrary, the market is emotional, which is why the market is always volatility causes. Decline in today's investment environment, he put those fund-raising efforts of entrepreneurs compared to Titanic's captain. They've hit an iceberg, and now they have to do is prepare the lifeboat, Horowitz published in this view of the "Fortune" magazine at a forum.
Horowitz said that enterprises encounter financing is not end of the world price. If you're burned investor's money, but also did not produce income, then you will have no other choice, in the face of price cuts financing, valuation of your company will be relatively low. "You need to figure out how to stop the bleeding as soon as possible so that enterprises, otherwise it will be too late," Horowitz wrote, "Although people feel uncomfortable intersection of tuition, but it is better than suicide."play free baby games.
If entrepreneurs want to save the sinking of the Titanic, then the price of financing will have to face some problems, and these problems are precisely what entrepreneurs need to be addressed. Grievance also tend to have a negative impact. "If you lower the amount of money raised, your employees will not only surprised, they may even suspect that you are not deceiving them," Horowitz wrote. Founders need to honestly explain to employees finance situation, and let them keep the faith.
Horowitz suggested that business founders can say this is the case, for example, "Yes, we have completed this round of financing valuation is discounted. Yes, there are some bad, but this is definitely not the end of the world."play fishing games.
Finally, he reminded all entrepreneurs to keep in mind - Cash is king. If your start-up companies do not make money, then pray that it acquired it.
"If you can make money, then the investor is meaningless to you; Conversely, if you do not make money, then want to be successful, they must rely on the kindness of strangers investors."