Valuation Returns-Formulas-Rules of Thumb

What the greatest technology investors say about Valuation Returns-Formulas-Rules of Thumb

Nothing More Dilutive & Morale-Crushing than a Down Round

Chris Dixon General Partner Andreessen Horowitz, angel investor and former entrepreneur

“[] if [an entrepreneur] expect[s] to raise more money (and [he] should expect to), make sure [the] post-money valuation is one that [he’ll] be able to “beat” [exceed] in [the] next round.  There is nothing more dilutive and morale crushing than a down round.” Chris Dixon, Ideal first round funding terms August 16, 2009;  http://cdixon.org/2009/08/16/ideal-first-round-funding-terms/