Today’s Pill (45): You Need a Sound Cap Table
Serial founders will bring the valuations down themselves, as they won’t want to be in a position whereby even if they do end up closing a round at a specific/desired valuation, they’ll be going to have a flat or down round next time they need to raise.
Founders need now a sound cap table, one that future investors will also want to back.
Beware of the Joker investors: those who came in to ride momentum, paid high prices and played the bubble game, but are now the first ones out the door when founders have to make real decisions; so, get references as founders need higher-quality money now.
”Be scrappy and pivot and change and get money in however you can.” (source: Sifted, in an inspirational article you can read here.)