PJC Blog  filter by tag: VC_trends

For those who have been held up in a cave for the past few months, the credit markets have been in turmoil.  Across all markets, financing companies with debt and equity has become more challenging.  While the impact on venture-backed companies has not been as acute as financial institutions, there has clearly been an impact on financing early stage companies.  Valuations have contracted, firms have increased capital reserved for existing investments, and the bar has been raised in the minds of many investors.

For companies seeking to raise follow-on capital, this can present a challenge--particularly for those that are close to key milestones ... but haven't quite reached them.  In an era of higher bars and lower valuations, this often presents a disconnect between the valuation expectations of new investors and management/existing investors.  What to do?

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