Party Round

“And I think, you know, the, one of the big issues that we're going to see in in the market over the next few months is this, the downside of the party round.”

“Now, the absolute worst scenario, and Mark Suster actually talks about it in his recent post on both sides of the table, are these party rounds. I don't think these party rounds are happening as often, but these party rounds are where 20 plus individuals, you …”

“Anecdotally speaking, you're seeing less of these rounds from like, 2012, 2013, where there's like, 12, 13 people on a cap table, and you've thrown the financing together, and you might have two to three million bucks on a note where, and I mean, it could stil…”

“When you have a two million dollar round and you've got four people at a half million dollars, you really don't have an anchor and you don't really have somebody who's putting a stake in the ground saying, Hey, you know what? I'm going to be there for you and …”

“When the company encounters challenges, sometimes an investor group really needs a lead because they need leadership. It's very, very easy to be a good investor when everything's going up and to the right and, you know, the founder is doing all the right thing…”

“When I do need help from my investors, I think they helped me just like they would if they had put in two million dollars or five million dollars, even if they've only put in 25 K. So I haven't noticed a difference based on their responsiveness or their willin…”

“You're going to either want to have a lead or a co-lead of institutional investors. You want to avoid party rounds, but there's usually some allocation that you can leave over to bring strategic angels or individuals onto the cap table.”

“And party rounds did incredibly well. For the last five years, but I suspect party rounds are going to do the worst for the next three years, because getting conviction across three or four small investors that each own seven, eight, nine, 10% of your company …”

“Party rounds are very popular, but then they kind of diffuse responsibility or you end up with, you think you have a lot of people supporting you, but I really, no one's invested in your success.”

“So two million, you can do a party round five million, it's much harder to do a party round now.”

“I would say that we are seeing we're seeing the percentage of party round to non-party round actually being the same, but the overall volume has contracted.”

“I would say that we are seeing we're seeing the percentage of party round to non-party round actually being the same, but the overall volume has contracted.”

“So two million, you can do a party round. Five million, it's much harder to do a party round now.”

“Like I definitely don't encourage founders to have like a party round. It ends up being, An exercise of herding cats.”