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Those valuations were typically lowered in subsequent financing.
But subsequent financing proved a bit harder to come by.
"Of course, after the success of Gates, we had a track record, and subsequent financing was a lot easier because we had leverage.
Firms would also have to make commitments about providing subsequent financing if the banks need it, and they would have to disclose much more than many do right now about their own ownership structures.
Dubai World's surprise decision late last year to stop paying interest on its mountainous debt shocked world markets and was in some ways an early warning signal for the subsequent financing problems that now face indebted euro zone economies.
All these firms and other resources like incubators helped make initial financing easier, but subsequent financing is still difficult, and investors are already warning founders to tighten their belts.
Similar(43)
Expansion can be financed via subsequent rounds of financing by VC firms or angel investors.
The Supreme Court's 2010 Citizen United ruling and subsequent campaign-finance decisions diminished the program's effectiveness.
But subsequent research, financed in part by the biotechnology industry, found that caterpillars were not likely to be exposed to lethal amounts of BT corn pollen under actual field conditions.
Later, trying to explain a subsequent vote against financing for the occupation of Iraq, he faced more problems, and charges of inconsistency.
Not least thanks to the new tax breaks, raising the first few £100,000 or a couple million to get a start-up off the ground has become easier, but subsequent rounds of financing are harder to come by.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com