With the performance of the public markets looking like an EKG read-out, I’ve been asked frequently in the past two weeks what effect this will have on the venture financing market. How tied are private company valuations to the public markets? If you’re planning on raising money in a few months would it be better to go out now or better to keep your original plans? Should companies be altering their cash burn projections to become more capital efficient in the face of potential funding challenges?
Here are a few thoughts: