Comments on: What the @#$ Is a “Down Round”? http://venturehype.com/what-is-a-down-round/ Where Venture Angels Ignite™ Tue, 27 Jul 2010 18:24:52 +0000 hourly 1 http://wordpress.org/?v=abc By: The Hyper Team @ Venture Hype http://venturehype.com/what-is-a-down-round/comment-page-1/#comment-2554 The Hyper Team @ Venture Hype Mon, 17 Aug 2009 23:12:46 +0000 http://venturehype.com/?p=2037#comment-2554 Angel investing isn't for the faith of heart. Not only do you have to be prepared for the down round but you also have to treat it as if you've lost your investment right after you invested in a startup -- it's that risky. But it's also very rewarding if you hit a home run. Angel investing isn't for the faith of heart. Not only do you have to be prepared for the down round but you also have to treat it as if you've lost your investment right after you invested in a startup — it's that risky. But it's also very rewarding if you hit a home run.

]]> By: The Hyper Team @ Venture Hype http://venturehype.com/what-is-a-down-round/comment-page-1/#comment-633 The Hyper Team @ Venture Hype Mon, 17 Aug 2009 16:12:46 +0000 http://venturehype.com/?p=2037#comment-633 Angel investing isn't for the faith of heart. Not only do you have to be prepared for the down round but you also have to treat it as if you've lost your investment right after you invested in a startup -- it's that risky. But it's also very rewarding if you hit a home run. Angel investing isn't for the faith of heart. Not only do you have to be prepared for the down round but you also have to treat it as if you've lost your investment right after you invested in a startup — it's that risky. But it's also very rewarding if you hit a home run.

]]> By: crimson45 http://venturehype.com/what-is-a-down-round/comment-page-1/#comment-628 crimson45 Mon, 17 Aug 2009 02:49:35 +0000 http://venturehype.com/?p=2037#comment-628 Risk this is the name of the game, If your not up to it then you won't know whether it will become successful or not. You can not foresee how the economy will be in the future so you should always be ready anytime. Risk this is the name of the game, If your not up to it then you won't know whether it will become successful or not. You can not foresee how the economy will be in the future so you should always be ready anytime.

]]> By: The Hyper Team @ Venture Hype http://venturehype.com/what-is-a-down-round/comment-page-1/#comment-516 The Hyper Team @ Venture Hype Sat, 11 Jul 2009 12:37:48 +0000 http://venturehype.com/?p=2037#comment-516 The purpose of this post is to define “down round.” But yes, just like investing in the stock market, it’s not recommended to put all your eggs in one basket when investing in startups. Prominent angels often have tens or hundreds of companies in their portfolio. Many of the startups they invest in will fail, that’s part of the game, but one or two home runs may be enough to cover all of their losses and generate some very handsome returns. The purpose of this post is to define “down round.” But yes, just like investing in the stock market, it’s not recommended to put all your eggs in one basket when investing in startups. Prominent angels often have tens or hundreds of companies in their portfolio. Many of the startups they invest in will fail, that’s part of the game, but one or two home runs may be enough to cover all of their losses and generate some very handsome returns.

]]> By: Ricardo http://venturehype.com/what-is-a-down-round/comment-page-1/#comment-510 Ricardo Fri, 10 Jul 2009 16:19:38 +0000 http://venturehype.com/?p=2037#comment-510 I suppose for most angel investors, their activity investing in any one project would ideally be just part of their portfolio...?<br><br>I'd think that diversifying would hopefully offer some protection against unforeseen obstacles like natural disasters, etc. I suppose for most angel investors, their activity investing in any one project would ideally be just part of their portfolio…?

I'd think that diversifying would hopefully offer some protection against unforeseen obstacles like natural disasters, etc.

]]> By: Angel Investing Terms | Venture Hype http://venturehype.com/what-is-a-down-round/comment-page-1/#comment-503 Angel Investing Terms | Venture Hype Thu, 09 Jul 2009 14:48:30 +0000 http://venturehype.com/?p=2037#comment-503 [...] What the @#$ Is a “Down Round”? [...] [...] What the @#$ Is a “Down Round”? [...]

]]> By: The Hyper Team @ Venture Hype http://venturehype.com/what-is-a-down-round/comment-page-1/#comment-499 The Hyper Team @ Venture Hype Thu, 09 Jul 2009 12:36:23 +0000 http://venturehype.com/?p=2037#comment-499 You're absolutely right. Angel investing is rewarding but it's also risky. Not only is there possibility of down round but you'd also lose your shirt. You're absolutely right. Angel investing is rewarding but it's also risky. Not only is there possibility of down round but you'd also lose your shirt.

]]> By: tongyun http://venturehype.com/what-is-a-down-round/comment-page-1/#comment-486 tongyun Tue, 07 Jul 2009 14:52:35 +0000 http://venturehype.com/?p=2037#comment-486 Unfortunately, this is one of those chances you take when you become an angel investor. There are times when you can do all of the necessary due diligence before investing with a company but for reasons beyond anyone's expectation, the market or company could go belly up. I'd suspect that if you didn't have the stomach for potential down rounds, then you shouldn't be an angel investor. Unfortunately, this is one of those chances you take when you become an angel investor. There are times when you can do all of the necessary due diligence before investing with a company but for reasons beyond anyone's expectation, the market or company could go belly up. I'd suspect that if you didn't have the stomach for potential down rounds, then you shouldn't be an angel investor.

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