ReadWriteStart

JANUARY 3, 2011

514 companies achieved liquidity in 2010, netting $39.3 That's a five-fold increase from the 8 IPOs that raised $903 million in 2009. Exit activity is staging a comeback but capital netted lagged as large M&As and IPOs were still uncommon in 2010," said Jessica Canning, director of global research for Dow Jones VentureSource.

IPO 118

IPO .Net Capital Gains Acquisition 118

Agile VC

FEBRUARY 2, 2012

Facebook S-1: The Most Anticipated IPO in a Decade. Here’s my first look at Facebook viewed through the lens of their IPO filing. 2011 Net Income: $1.00 Plus Facebook has ample cash on hand today and will get a huge slug more from the IPO. How to Evaluate Firms for a Seed VC. How To Think About The Future.

IPO 100

IPO South Korea Venezuela Revenue 100

Hunter Walker

JULY 18, 2021

All in all it worked out fine, driven primary by some fortunate acquisitions to companies like Microsoft, Pinterest and Facebook, the latter two in pre-IPO equity which grew substantially prior to their public listings. I never really tracked IRR or net returns, but I did pay close attention to ‘lessons learned.’

Cap Table 140

Cap Table IRR Angel Investor IPO 140

View from Seed

JUNE 13, 2019

I know some of the investors in Chewy prior to the PetSmart acquisition, but I am not a shareholder nor do I intend to purchase shares in the IPO. Annual Net Sales By Customer Cohort. Chewy is unprofitable, on both a net income and EBITDA basis. I’ll break down Chewy’s business based on their recent S-1 filing here.

Leadership 214

Leadership .Net Revenue Acquisition 214

Agile VC

AUGUST 9, 2012

The company’s lost nearly 80% of its value from the peak earlier this year, in the run up to Facebook’s IPO, and currently trades below $3/share… a fraction of it’s IPO price of $10. The “value” case goes like this: A) Valuation Net of Cash – Zynga’s market cap sits at around $2.2-2.3B

Stock 160

Stock LBO .Net Valuation 160

Both Sides of the Table

MAY 4, 2010

They’ve had a total of 12 deals that have IPO’d. If this figure is accurate – it’s certainly a very large business even when you look at net revenues. We also discussed the fact that an IPO often doesn’t mean the founders or investors can take too much money off the table. Net income was around $1.4

IPO 236

IPO .Net Venture Capital Strategic Investors 236

thebarefootvc

MAY 20, 2013

Tumblr, a next generation content site that epitomizes media creation, consumption and usage of the 21st century and of the net-native generation, has been acquired by a staid, late 20th century, Web 1.0 Given that Tumblr is a VC backed company, the two options for exit were IPO or acquisition. Why did it have to happen?

IPO 87

IPO Venture Capital Curation Acquisition 87

Agile VC

JUNE 13, 2019

I know some of the investors in Chewy prior to the PetSmart acquisition, but I am not a shareholder nor do I intend to purchase shares in the IPO. Annual Net Sales By Customer Cohort. Chewy is unprofitable, on both a net income and EBITDA basis. I’ll break down Chewy’s business based on their recent S-1 filing here.

Leadership 100

Leadership .Net Revenue Acquisition 100

Hunter Walker

MARCH 8, 2014

Your Options Very Likely Worth Something : Options are lottery tickets and most aren’t worth much when you net out the lower cash compensation compared to what a Google would pay you for the same role. From folks a few years more experienced you’ll get mentorship and learn good habits.

Liquidity Event 134

Liquidity Event Early Stage Seed Stage Startup 134

Tim Keane

MARCH 9, 2011

Example one: Sustainable net operating income with some growth in a stable market.  Example two:  Explosive market share growth and revenue in an expanding market with acquisitive players available. Example one: Sustainable net operating income with some growth in a stable market.  five years.). five years.).

Finance 83

Finance Bootstrapping Startup Equity 83

Feld Thoughts

SEPTEMBER 9, 2015

If private capital is no longer available in the future, these companies will seek a public offering or acquisition. I get uncomfortable when the net burn rate for a company goes above $500k / month. In fast growing companies with a balance sheet > $25m I can stomach a $1m / month net burn.

Liquidation Preference 70

Liquidation Preference Burn Rate Balance Sheet .Net 70

Both Sides of the Table

JUNE 17, 2017

This is not atypical for “middle men” who often take 15–30% of the value of the sale If you’re shaking your head and thinking, “duh” I promise you that even some of the most sophisticated people I know get off track on this issue of “gross revenue” versus “net revenue.” Not necessarily.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Business Plan Blog

NOVEMBER 13, 2013

The return only happens when there is an exit via acquisition or an IPO. The above definition of accredited investors is being currently reviewed by the SEC in terms of current financial thresholds of income and net worth. Raising Angel Capital. Have $1,000,000 in assets excluding the value of their primary residence.

Finance 93

Finance Accredited Investor Angel Investor Seed Capital 93

ConversionXL

AUGUST 13, 2019

Chances are you’ve been told to focus on metrics like: Monthly Recurring Revenue (MRR); Lifetime Value (LTV); Customer Acquisition Cost (CAC). While email acquisition generally measures the strength of your top-of-funnel content, this conversion metric is heavily influenced by your mid-funnel content (e.g. Image source).

Metrics 117

Metrics SQL Retention Churn Rate 117

Board Effect

MAY 10, 2019

Those who still need additional funds may turn next to angel investors , high-net-worth individuals who are willing to provide funding for small startups and entrepreneurs. The goal of venture funding is to get a very high return, usually in the form of an acquisition of the startup or IPO.

Venture Capital 49

Venture Capital Startup Elevator Pitch Angel Investor 49

Occam's Razor

OCTOBER 14, 2014

Any big changes in your marketing/customer acquisition strategy over the last time period (more money doing Search, less money in Email, elimination Facebook as it does not work, etc., Leaders (company is leaving China, our IPO is next week, 1,800 new stores are being opened in 180 days, our new IRR is 8%). Exhaust those first.

Analytics 133

Analytics Vertical Metrics Web 133

Startup Professionals Musings

JUNE 6, 2022

This requires a simple signature that you have a net worth of at least $1M or have made at least $200K each year for the last two years. Liquidity events include merger or acquisition (M&A), or Initial Public Offering (IPO) when the stock goes public. It’s a lot easier to buy stock in a startup than it is to sell it.

Liquidity Event 300

Liquidity Event Angel Investor SEC Accredited Investor 300

ConversionXL

JUNE 2, 2022

If leads-based B2B marketing is fishing with a net, ABM is using a harpoon. 2,320 sign-ups; 39% of attendees were net new accounts; 34 sales-qualified opportunities; 5 new customers immediately converted with LTV of over $100k each (normally a 9 to 12 month sales cycle). Results from Snowflake’s ABM efforts post-IPO.

Marketing 105

Marketing Campaign Artificial Inteligence Sales Cycle 105

David Teten

JANUARY 10, 2012

Michael was the lead research analyst for the IPOs of Internet companies like UUNET, Yahoo!, Mr. Parekh started his career at Goldman Sachs, developing the firm’s equities business in the Middle East, with high net worth family offices and sovereign wealth funds. He joined Goldman Sachs & Co.

Technical Review 128

Technical Review Technology North Carolina Switzerland 128

Startup Company Lawyer

MAY 26, 2012

In addition, the amount an issuer can sell to an individual investor in any 12-month period is limited to the maximum of: • the greater of $2,000 or 5 percent of the annual income or net worth of an investor, if either the investor’s net worth or annual income is less than $100,000; and. •

SEC 58

SEC Securities and Exchange Commission Accredited Investor Private Placement 58

paulgraham.com

SEPTEMBER 23, 2012

The reason is that they get paid by getting their capital back, ideally after the startup IPOs, or failing that when its acquired. Pretty much every successful startup will get acquisition offers too. Most product acquisitions have some component of fear. The latter type is sometimes called an HR acquisition.

Startup 111

Startup Technical Review Software Review Acquisition 111

Startup Professionals Musings

SEPTEMBER 6, 2019

This requires a simple signature that you have a net worth of at least $1M or have made at least $200K each year for the last two years. Liquidity events include merger or acquisition (M&A), or Initial Public Offering (IPO) when the stock goes public. It’s a lot easier to buy stock in a startup than it is to sell it.

Liquidity Event 224

Liquidity Event SEC Entrepreneur Accredited Investor 224

www.payne.org

SEPTEMBER 22, 2011

Common stockholders should care about the preference, because that preference is "ahead" of the commons in any acquisition outcome. In addition, IPOs are a special scenario, where the preference usually goes away and all stock classes are in equal footing). That means that theres a total of $5m of Series A preference in the company.

Equity 56

Equity Employee Vesting Preferred Stock 56

Startup Professionals Musings

SEPTEMBER 16, 2017

This requires a simple signature that you have a net worth of at least $1M or have made at least $200K each year for the last two years. Liquidity events include merger or acquisition (M&A), or Initial Public Offering (IPO) when the stock goes public. It’s a lot easier to buy stock in a startup than it is to sell it.

Liquidity Event 184

Liquidity Event SEC Accredited Investor Angel Investor 184

Startup Professionals Musings

NOVEMBER 1, 2013

This requires a simple signature that you have a net worth of at least $1M or have made at least $200K each year for the last two years. Liquidity events include merger or acquisition (M&A), or Initial Public Offering (IPO) when the stock goes public. It’s a lot easier to buy stock in a startup than it is to sell it.

Accredited Investor 219

Accredited Investor Liquidity Event SEC Stock 219

www.paulgraham.com

APRIL 28, 2010

In an IPO, it might not merely addexpense, but change the outcome. Those remedial actions can delay, stall or even kill the IPO. Of course the odds of any given startup doing an IPO are small.But not as small as they might seem. Its thesame with acquisitions. Onefounder I know wrote: Two-firm deals are great.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Startup Professionals Musings

SEPTEMBER 24, 2012

This requires a simple signature that you have a net worth of at least $1M or have made at least $200K each year for the last two years. Liquidity events include merger or acquisition (M&A), or Initial Public Offering (IPO) when the stock goes public. It’s a lot easier to buy stock in a startup than it is to sell it.

Portfolio 228

Portfolio Accredited Investor Liquidity Event SEC 228

Agile VC

NOVEMBER 13, 2012

The IPO market remained closed to IT startups, but there were big acquisitions like Google buying YouTube for $1.65B (Fall 2006) and late stage financing rounds for companies like Facebook (Microsoft round at $15B valuation in Fall 2007). So at a fund level (e.g. typically, which in most cases would to >20% IRR.

LP 154

LP Portfolio Venture Capital IRR 154

Startup Professionals Musings

FEBRUARY 6, 2015

This requires a simple signature that you have a net worth of at least $1M or have made at least $200K each year for the last two years. Liquidity events include merger or acquisition (M&A), or Initial Public Offering (IPO) when the stock goes public. It’s a lot easier to buy stock in a startup than it is to sell it.

Accredited Investor 120

Accredited Investor Liquidity Event SEC Entrepreneur 120

Cracking the Code

OCTOBER 10, 2008

Save Asia for post-IPO Single instance, multi-tenant, single datacenter - Have only one version of the code in production. Only after reaching $1M in CMRR should you consider hiring European sales and services execs behind customer demand. Cashflow is the other key metric. Philippe Botteri. Bessemer SaaS Law #2.

Software Review 48

Software Review North America Europe Metrics 48

Duct Tape Marketing

SEPTEMBER 10, 2019

You see every day these IPOs coming out of companies that we work, for example. Just had an IPO and last quarter they lost $700 million. And we use the standard kind of format that most acquirers have adopted, which is called Net Promoter Score. John Jantsch: So you mentioned the idea of growth potential. John Warrillow: Right.

Entrepreneur 49

Entrepreneur Switzerland Revenue Differentiation 49

David Teten

MARCH 5, 2021

Kauffman Fellows Report (2020): “Diverse Founding Teams generate higher median realized multiples (RMs) on Acquisitions and IPOs]. As mentioned above, we report realized multiples (RMs) only for successful startups that were acquired or went through the IPO process.”. How do we reconcile these two sets of data?

Cofounder 78

Cofounder Founder Technical Cofounder Technical Review 78

K9 Ventures

DECEMBER 9, 2008

I’ll try to list at least some of them here: Lack of IPO and M&A exits : Q2 2008 was the first quarter in 30 years in which not a single venture backed company exited via an IPO (see NY Times article ). Mergers and acquisitions have also been down, especially the large deals.

Venture Capital 48

Venture Capital Capital Call Portfolio Stock 48

Startup Lessons Learned

DECEMBER 16, 2008

We were trying to broaden the conversation beyond just viral customer acquisition. But if your new positioning message improves your engagement loop by more than the cost to your viral loop , you have a net win on your hands. Today, I was comparing notes with Ed Baker (one of the gurus of viral growth).

Viral 140

Viral San Francisco Lean Continuous Deployment 140

ReadWriteStart

SEPTEMBER 21, 2020

If and when a startup gets big enough, it can pursue an initial public offering (IPO) to get listed on the stock market, and raise funds publicly. First, let’s consider the existence of Special-Purpose Acquisition Companies (SPACs) and the nature of corporate VCs. Corporate VCs and SPACs.

Initial Public Offering 117

Initial Public Offering Startup IPO Equity 117

Cracking the Code

FEBRUARY 4, 2008

2007 was a turning point for the SaaS industry with the successful IPOs of NetSuite, SuccessFactors, DemandTec, Salary.com, Aprimo and Constant Contact. or What do I need to do to get ready for an IPO. Save Asia for post-IPO. How can I best partner with the large public saas vendors? One Datacenter.

Software Review 48

Software Review South Korea IPO Portfolio 48

abovethecrowd.com

JUNE 2, 2021

Would that help retention and NPS (Net Promote Score)? If somehow Sofi could obtain allocation to these so called “hot IPOs” clearly it would be a powerful marketing tool. If somehow Sofi could obtain allocation to these so called “hot IPOs” clearly it would be a powerful marketing tool. Would they be loyal?

IPO 82

IPO Customer Matching Silicon Valley 82