Some interesting links we found across the web this week:
The Price of High Seed Stage Valuations
While high seed stage valuations may be attractive, they can be a
double-edged sword. There are a number of potential downsides to
high seed stage valuations, from venture capitalists taking too
large an ownership share to undue pressure to justify the
valuation. This piece from Medium highlights these concerns and
suggests the better amount to raise in a seed stage
financing.
To Be IPO Ready, You Need to Prepare for These 5
Potential Pitfalls
Prior to going public, emerging growth companies must consider how
to scale for growth. In this article by Entrepreneur, a managing
director at Deloitte highlights five potential issues that emerging
growth companies should confront to better balance scale with
growth in preparation for an IPO.
The Key Missteps Entrepreneurs Must Avoid When
Teaming up With an Angel Investor
Angel investors are an increasingly available option for
early-stage startups. However, raising capital shouldn't be the
only priority—it is also important for the angel investor be
a good fit. Check out this Keeping Stock article for tips on being
selective and partnering with the right angel investor for your
startup.
Why Startups Keep Raising Mega-Rounds of $100
Million (or More)
The ability to raise massive rounds of upwards of $100 million is
becoming increasingly commonplace—and at a price. Sometimes a
startup's business does demand the massive investment. But this
article by Fortune highlights the many downsides of, and the
"ominous force" behind, the mega-rounds.
AI Desperately Needs Regulation and Public
Accountability, Experts Say
AI is a hot area worthy of investment—but it is also in need
of regulation and oversight. A 40-page report published this week
by a New York University-based organization, with Microsoft
Research and Google-associated members, discusses the current lack
of accountability and safeguards for responsibility, liability, and
due process. Check out this article in TechCrunch to read a summary
of the report and its recommendations.
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