Gastvortrag Grazia Equity

In earlier days of VC, investors were clearly favoured

• often exploited naive founders

• Founders lost majority in angel and seed rounds

• Crazy waterfalls (liquidation preference stack)

• Veto rights

• 1 year due diligence

Consequences:

• No accountability of founders

• Uninspired business plan and insufficient visions

• Competitors catched-up and overtook

• “living deaths”

DURING THE LAST YEARS THE POWER SHIFTED TO THE FOUNDERS

• crazy valuations

• dozens of termsheets

• 24h deals

• more money = better

• Confirmatory due diligence, if any at all

Consequences:

• Inflated business plans

• No business model, no path to profitability

• Wipe-out constellations once tides started to turn

• don’t optimize valuation at the beginning

• Strategic planning of financing needs, milestones and corresponding financing rounds

• Look at all terms

• Transparency and honesty (rollercoaster ride)

• Search for a true partner - you win and loose together