This Week in Startups Taking the leap on valuation, strategic retreats (VC School), + more | E1510
Jul 17, 2022
Meiling Gao and David Lu lead Clarity Movement, a clean tech powerhouse revolutionizing air quality monitoring for municipalities. They delve into their innovative hardware solutions, highlighting the urgent need for accurate air pollution data. The conversation also touches on fundraising challenges in a shifting economy and emphasizes the role of hyper-local monitoring in public health. Listeners will gain insights into the unique intersection of entrepreneurship, air quality, and environmental responsibility, showcasing how tech can combat pollution.
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Flat Round Considerations
- Check with existing VCs about investing more at a flat round before seeking new investors.
- This prevents dilution and allows them to maintain their position.
Breakout Company Valuation
- VCs may overpay for breakout companies with strong market pull, like Airbnb or Tesla.
- Market pull indicates runaway success, justifying higher valuations despite market downturns.
Strategic Retreats
- In down markets, consider down rounds, flat rounds, or bridge rounds for runway extension.
- Alternatively, if the market doesn't want the company, consider pulling the plug.