

VC-backed company valuations continue to fall in Silicon Valley - cwan
http://www.fenwick.com/publications/6.12.1.asp?vid=10

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pg
I think this is slightly out of date. Valuations seem to have bottomed in the
spring.

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robk
This is a pretty helpful document to help folks understand what's really
common. Unfortunately, while it's nice to see a 1x liquidation preference,
when multiple rounds happen these often turn nasty as each investor starts to
look out for themselves in the pile. Unfortunately, the entrepreneur is
usually a loser in that scenario unless the exit is at a nice valuation. A
great argument why an up-round isn't always a good thing.

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pwnix_rising
I find it hard to believe that anyone would accept a multiple liquidation
preference. I'd seriously consider it better to shut down than to stay in the
game for the benefit of investors I'd end up hating.

I can't even imagine MLP benefiting investors. It'd be a huge morale-buster.
Also, a company that needs to accept those sorts of terms is in severe trouble
and, as I'd see it, although I may be wrong, not likely to be a good
investment at all.

