Why the public markets will affect your funding round even if you can't perceive it

FinTech Collective

August 28, 2015

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FinTech Collective

venture capital

A day after Mark Suster posted about the public market effects on the VC ecosystem, he reached out to the entrepreneurial community, CEOs specifically, letting them know the current market roulette will effect financing rounds in the near future. Suster believes late-stage ventures have been over-valued, so startups - stay lean, humble, and keep valuations reasonable.

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So final thoughts if you’re a CEO, I believe now as I did before the minor correction keep your burn rate under control relative to your balance sheet (ie how much cash you have) and your income statement (how much cash you’re burning) start raising early be humble enough to know that a 1 is better than a 0 and sometimes optimizing for maximum valuation doesn’t pay off in the long run. I’m not saying don’t try. I’m just saying understand the trade-offs and risks of not getting a round done

http://www.bothsidesofthetable.com/2015/08/25/the-morning-after/