For start-up companies, there may be such a thing as an embarrassment of riches. In these heady times of high valuations, some have started to suggest that fledgling firms need to be more wary about how they raise capital.
Among those sounding the alarm is prominent venture capitalist Marc Andreessen. In a series of recent tweets, Andreessen warned that “high cash-burn startups almost never survive down rounds. VAPORIZE. Further, to get into this position, you probably had to raise too much (money) at too high valuation before.”
Â
