Party Round

“The challenge with going super viral early, and I had this with party round is that people get a fixed idea A lot of people get a very fixed idea of what your business does. And then you run into this like product marketing challenge, which, you know, people a…”

“And I even with party round was taking it a step further with safe automation where you could Come on the app, KYC, and then generate a round, generate, you know, send it, and it was, like, using Cash App. It was the same amount of time to sign up with Party R…”

“I interviewed there for party round back in the day with Michael Siebel and got a quick rejection. I don't think I fit even with like, we were already backed by Gradient, one of Google's funds and I just didn't fit the YC mold being non-technical myself.”

“Back in the party round days, we did something where we were like, hey, reply with your, like, address, and we're doing an airdrop. And then we airdropped NFT ads for Party Round into everybody's wallets, which you would then have to pay money to get out of yo…”

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

“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.”

“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.”

“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.”

“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 …”

“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.”

“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…”

“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 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 …”

“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…”

“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 …”

“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.”