Alex's Tech Thoughts

When you are in the early stages of your company and raise money at an insane valuation you face the problem of not reaching that value (and more) by the time you need to raise more money. To get the money you need, you will need to take money in at a down round and that sucks.

We are living in frothy times (yes, still) and eventhough you may be able to raise that 750k at a 10M pre, you shouldn’t. There are a million things that will go wrong and it is better to take an appropriate valuation and have the right investors/support system around you. 

I’m all for better terms and more equity for the operational team (founders, employees, etc) - but I’m also for meeting your expectations and not setting up yourself to fail. I’m seeing a ton of companies (especially companies coming out of accelerator companies) set their terms where there is nothing else to do but not meet expectations. 

I’m not an investor (although I send deals to some here and there)- any investors out there seeing something similar?