Both Sides of the Table

SEPTEMBER 25, 2010

Legal costs of early stage financing should be cheap – this is one of the final remaining arguments for convertible debt but even Paul acknowledges that this is no longer necessarily the case: “Different terms for different investors is clearly the way of the future. That’s OK, but it gives you a max (read: price!)

Finance 286

Finance Term Sheet Technical Review Warrant 286

Startup Professionals Musings

AUGUST 26, 2018

According to Investor's Business Daily , even though IPOs in 2018 through July were up nearly 39 percent from last year, the total of 115 companies so far is still nowhere near the rate required to match the yearly total of 486 hit way back in 1999. There are real ongoing costs of maintaining a public company.

Exit Strategy 128

Exit Strategy IPO Initial Public Offering SEC 128

Startup Professionals Musings

JANUARY 16, 2011

Usually a small company can sell about 20 percent of its stock in an IPO. The timing of an IPO is driven heavily by the state of the economy in general and the stock market in particular, in concert with your profitability. In 1999, there were 486 IPOs nationwide; just 10 years later, in 2009, there were only 63.

IPO 223

IPO Social Media Media Exit Strategy 223

www.inc.com

SEPTEMBER 24, 2011

Before Roving Software could receive its first round of financing from professional investors, in early 1999, he had to put all the stock arrangements in writing. That cost him accounting fees, legal fees, and time because the financing round couldnt close until the arrangements were formalized. Consult your lawyer for details.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Both Sides of the Table

JUNE 28, 2011

When I built my first company starting in 1999 it cost $2.5 million in team costs to code, launch, manage, market & sell our software. We paid 10% of the normal costs for the software and that money was for software support. A 90% disruption in cost spawns innovation – believe me.

Venture Capital 334

Venture Capital Software PHP Open Source 334

Pascal's View

AUGUST 12, 2009

economy: “… Sarbanes-Oxley compliance costs, Eliot-Spitzer’s stock analyst settlement and the economic downturn have created an historic drought in venture-backed companies going public. . That exodus has already begun, and it is evident in many statistics that testify to America’s slipping global competitiveness since 1999.

IPO 28

IPO Silicon Valley Merger Sweat Equity 28

ReadWriteStart

APRIL 26, 2012

They all went away; they got rolled up in 1999 and 2000 into these too-big-to-fail banking operations," Davidson tells us. The answer is, they couldn't make any money trading, [or on] giving analyst support for small stocks because the spread got too small.". When small fluctuations in stock value changed from 12.5¢

IPO 115

IPO Stock San Francisco Lean 115

thebarefootvc

DECEMBER 18, 2020

Like him, many retail investors were drawn into nonstop television coverage and headlines that were (to me, scarily) reminiscent of 1999. In a year when the stock markets hit all time highs, and digital platforms grew exponentially, the pent up demand, and access, to invest in digital assets has never been higher.

SEC 45

SEC Valuation Institutional Investors Global 45

Both Sides of the Table

MAY 23, 2012

There are obvious reasons the industry has had less-than-desirable returns, including: massive over-funding of the sector, huge increases in inexperienced venture capitalists that took a decade to peter out, and the massive correction in the value of the public stock markets that closed many exit opportunities for half a decade.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

finance.fortune.cnn.com

AUGUST 21, 2012

The information is based on part of a confidential year-end 2011 investment report distributed to investors in a fund-of-funds that made commitments between 1999 and 2001. Overall, the fund-of-funds is 97% called for 45 funds raised between 1999 and 2002. Accel Partners VII (1999): 89% (74%). Stocks end lower. Think fast!

Naming 49

Naming Term Sheet Private Equity Equity 49

Feld Thoughts

FEBRUARY 9, 2016

Once again, as we find ourselves in the middle of a significant public market correction, especially around technology stocks, there’s an enormous amount of noise in the system, as there always is. Pragmatic cost cuts are always possible and often productive.” Go read it now – I’ll wait. It’s simply not true.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

ConversionXL

DECEMBER 7, 2016

You should always go with the metrics that best define what item in your stock or piece of content on your site is the most popular with your visitors. One of such easily codifiable rules that can define an accessory in relation to a product is items that are often bought together with it, but cost significantly (2x, 3x or more) less.

Conversion 48

Conversion Product Technical Review Widget 48

Venture Chronicles

OCTOBER 31, 2010

– If private investors have already bid up the valuation, will there be an IPO jump in the stock price? This breaks the conventional wisdom about pre-IPO stock options. Companies are required to price their employee stock options close to the “market valuation&#. Good deal for employees and a good deal for investors.

Valuation 42

Valuation Stock Options Lock-up Period IPO 42

Ben's Blog

OCTOBER 29, 2020

And no, that doesn’t mean that the IPO is underpriced; recall that there is no cost to putting in an “order” in the IPO book, so the incentive for the buy-side is to put in as large a request as possible with the understanding that they will ultimately be cut back by the underwriters. sell-side research) for free.

IPO 36

IPO Securities and Exchange Commission Demand SEC 36

Seeing Both Sides

AUGUST 3, 2012

The first year of revenue (1999) was $4 million – a remarkable achievement. Look at the (quite ugly) P&L for Akamai in 1999 and 2000 – costly mistakes were made, but ultimately enabled the company to scale as rapidly as it did: ($'s in millions). . . . . Scaling Akamai – Part 1: A Little Fat. Gross Profit. $(60).

Distribution 49

Distribution Lean Massachusetts Cofounder 49

This is going to be BIG.

NOVEMBER 7, 2011

The difference between many of these companies and what we saw back in 1999 is that there are real revenues and revenue growth at many of these companies--and their costs are largely in people, which can always be trimmed down. stock market." Facebook is doing billions in revenues. LinkedIn has great revenue growth.

Angel Investor 104

Angel Investor Valuation Startup Revenue 104

ConversionXL

APRIL 24, 2019

The concept of “economic moats” came from a 1999 Fortune article by Warren Buffett: The key to investing is [.] Economic moats remain tethered to investing: A bigger moat makes a stock a better bet. Economic moats remain tethered to investing: A bigger moat makes a stock a better bet. Low-cost production. That’s my moat.

Non-Compete 122

Non-Compete United States Networking Acquisition 122

ReadWriteStart

AUGUST 26, 2022

When you put those two things together, you get high-quality customers, high LTV, and acquisition at super low costs. And you know, a cost goes out with an acquisition, so whether it’s hiring a salesperson, commissions, or paying Google. The churn rate increased, and then the stock plummeted by 70 percent. David Zhang.

Partner 132

Partner Cofounder Retention Acquisition 132

Both Sides of the Table

APRIL 27, 2010

I was paid less in salary in 2004 than I was paid at the job I quit in 1999 (a job I had held 8+ years). I learned how to retain employees when stock options were no longer a real currency. I learned how to get press coverage when we were no longer “hot.&# I learned how to manage costs effectively.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

Diego Basch

MAY 3, 2012

In the next year and a half the stock went down by 99.9%. In 1999 Google was gaining popularity because they were solving exactly this problem. I still have an email in which I outlined a proposal to build a snippets and caching cluster, which was nixed because of costs. Life was good. What happened? Among other things, Google.

Caching 78

Caching Algorithm Engineer Search 78

Both Sides of the Table

FEBRUARY 17, 2010

Within a year WAP became the laughing stock of the mobile industry. App is one step forward, two steps back – In 1999 I launched my first company, BuildOnline, a SaaS-based (back then we were ASP’s) content management platform for large-scale engineering and construction projects. It was slow. It was hard to use.

Flash 326

Flash Mobile Application Development Cloud 326

Pascal's View

MAY 13, 2011

1999 : Provisions that prohibit a bank holding company from owning other financial companies were repealed on November 12, 1999, by the Gramm-Leach-Bliley Act. When you boil it all down, the fundamental reason for the lack of small US IPO’s has to do with the absence of liquidity in the aftermarket for small cap public stocks.

Equity 31

Equity Securities and Exchange Commission IPO Marketing 31

Up and Running

SEPTEMBER 15, 2015

million in 1999, Zappos is now worth $1 billion. These include the hiring of virtual assistants, which lowers operational costs while increasing the level of productivity. . By outsourcing services, the small business owner can capitalize on comparative advantages in costs, particularly labor. . From a company worth $1.6

Small Business 60

Small Business Non-Compete Europe Philippines 60

ReadWriteStart

JUNE 8, 2020

What the visionary, Milton Friedman, predicted about Bitcoin in 1999. Even before Bitcoin became a reality, visionaries like Milton Friedman were predicting the rise of an internet-version of cash, as long ago as 1999. The internet is going to be one of the major forces for reducing the role of government,” he said at the time.

Iceland 140

Iceland Government Internet Bandwidth 140

SVPG

SEPTEMBER 30, 2016

Hate mail started streaming in from everywhere - including emails directly to Bill Gates who would forward them on to the team with messages like "this is depressing MSFT's stock price. But back in 1999, a then very young Netflix based in Los Gatos with less than 20 employees, was on the edge of going bust. In 1993, Word 6.0

Product 60

Product Technical Review Software Review Engineer 60

abovethecrowd.com

APRIL 20, 2016

The same thing happened to many Internet stocks. In Silicon Valley boardrooms, where “growth at all costs” had been the mantra for many years, people began to imagine a world where the cost of capital could rise dramatically, and profits could come back in vogue. Late 2015 also brought the arrival of “mutual fund markdowns.”

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

SoCal CTO

OCTOBER 5, 2010

Consumer RSS: 1999-2010 - Venture Chronicles , September 11, 2010 paidContent made an interesting connection about Bloglines being shut down and the broader question of RSS in the age of Twitter. Building a Better Product. Not Another Ex-Insiders Thoughts On Nokia!

Technology 191

Technology Product San Francisco CTO Hire 191

Both Sides of the Table

JANUARY 31, 2010

Mine started this way … I started my first company in the “go-go years&# of the Internet: 1999. We raised a seed round of capital in 1999 and our first venture capital round was the first week of March 2000 (e.g. But the stock market continued to tank and one of our investors who had committed $12 million pulled out.

Entrepreneur 308

Entrepreneur Silicon Valley San Diego Non-Compete 308

abovethecrowd.com

FEBRUARY 27, 2019

Unfortunately, either information asymmetry or physical distances and the resulting distribution costs can both cut against the economic advantages that would otherwise arise for all. In 1999, Jack Ma created Alibaba , a Chinese-based B2B marketplace for connecting small and medium enterprise with potential export opportunities.

Internet 88

Internet Matching Vertical Hosting 88

Both Sides of the Table

AUGUST 9, 2011

The parallels to the music industry are too obvious even though the industry players, the medium and the cost structures are different. So when the market started showing good signs (iPhone, Facebook, Zynga, Twitter, stock market growth) it was happy days again. Risks of these two factors to the stock market. M&A returned.

Stock 305

Stock Technical Review Marketing Greece 305

Scalable Startup

FEBRUARY 1, 2013

All you need is for one of the new enterprise companies to completely whiff a quarter and their stock will collapse and then everybody will get all freaked out. We are already invested in these companies; we can’t sell our stock. We don’t have to sell our stock. People get confused about — it’s really funny watching the stock.

Software Review 22

Software Review Startup Venture Capital Stock 22

Ben's Blog

MAY 24, 2021

For public investors in Facebook to achieve returns comparable to those of Microsoft shareholders, Facebook would need to reach a market cap of $500 trillion, a number that well exceeds the total global market cap of all listed stocks.

SEC 36

SEC Accredited Investor IPO Technical Review 36

Austin Startup

MAY 3, 2017

Staying private  — The average age of a technology company before it goes public is 11 years, as opposed to an average life of four years back in 1999. Marketing and innovation produce results; all the rest are costs. Imagine that. They can just go back to their investors for more capital. too obvious?)

Texas 48

Texas Startup Silicon Valley Bootstrapping 48

Both Sides of the Table

AUGUST 30, 2010

My original thinking from Oct ’09 was, while I didn’t (and still don’t) have a crystal ball I worried that: consumers were over-stretched with debt (and make up 77% of the economy), unemployment would continue to rise, which in turn would drive the stock market south and cut the rate of M&A activity and VC investment even further.

Entrepreneur 298

Entrepreneur Technical Review Balance Sheet Government 298

Both Sides of the Table

DECEMBER 9, 2010

When I started my first company in 1999 we spent more than $2 million on technology infrastructure including Sun servers & Solaris operating system, Oracle databases, EMC storage, load balancers, app servers, back-up devices, disk mirrors and on and on. So I still had to outlay $50-80k for hardware costs. Processing.

Cloud 343

Cloud Technical Review Database Semantic 343

Up and Running

OCTOBER 31, 2017

Typically this includes the mortgage, property taxes, and management costs (if the investor decides to hire a property management company). Buffett made his first stock purchase when he was just 11 years old. The investor usually mortgages the property then either renovates it or rents it out straight away. billion dollars.

Entrepreneur 121

Entrepreneur Affiliate Finance United States 121

abovethecrowd.com

JUNE 2, 2021

According to an interview with Elon Musk, this campaign cost Paypal about $60 million , which most Silicon Valley historians would consider money well spent. It would cost a tremendous amount of money to run such a program. With the 7% banker fee that is a 35% AVERAGE cost of capital. Billions of dollars. first-day “pop.”

IPO 82

IPO Customer Matching Silicon Valley 82