Impact of market gyrations and start-up valuations explored in latest David Cummings blogpost
The latest blogpost from David Cummings, Founder of the Atlanta Tech Village and also Founder and Chief Executive Officer of Atlanta Ventures, focuses on market gyrations and start-up valuations.
“On the start-up front, a number of entrepreneurs are thinking through what to do and what needs to change in their current plan,” Cummings writes. “While some start-ups are doing well, many that raised money in the last 18 months did so in a way that their valuation got too far ahead of their performance. What to do?” He found some good answers in a recent podcast from David Sacks who says that high growth start-ups with moderate burn will get funded while ones with moderate growth and high burn won’t.