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. Most startup founders voluntarily exit or are pushed out, and the fun is gone.

Exit Strategy 128

Exit Strategy IPO Initial Public Offering SEC 128

Both Sides of the Table

SEPTEMBER 6, 2010

I freely admit this (along with nearly everything between 1999-2000) was a mistake. We set our sites on our IPO price and then worked back to our current valuation and showed potential employees what we thought they could earn (with all legal caveats) if the company was successful. rounds and still be competitive.

Stock Options 294

Stock Options Stock Valuation Liquidation Preference 294

Venture Chronicles

OCTOBER 31, 2010

Don Dodge wrote about a very dry but critically important issue facing private companies that issue equity to employees… 409A valuations : IPO bump? – If private investors have already bid up the valuation, will there be an IPO jump in the stock price? It is called the 409A Valuation requirement from the IRS.

Valuation 42

Valuation Stock Options Lock-up Period IPO 42

Both Sides of the Table

AUGUST 30, 2010

While not 1999 all over again but I am observing first-hand the signs of funding frenzy. VC funding is definitely back from the constipation that was 2009 replete with frothy valuations chasing dreams of the next Facebook, Groupon or Zynga. VCs get paid to “put money to work.&#. I know not everybody agrees.

Entrepreneur 298

Entrepreneur Technical Review Balance Sheet Government 298

The Equity Kicker

APRIL 11, 2012

Instagram is an incredibly well run company – there are numerous small pieces of evidence for this, but my favourite is that they got to 4m users with only 4 employees. I think that is the difference between 1999 and today. 1bn values Instagram at $33 per user, which compares with $118 on Facebook (assuming a $100bn IPO).

IPO 110

IPO Valuation Forecast Acquisition 110

www.inc.com

SEPTEMBER 24, 2011

Employee Benefits. Back in 1997, Randy Parker was staring at a blank whiteboard, wondering where hed find the money to hire the employees and consultants he needed to build his new product. "We a 50-employee provider of e-marketing solutions to small and midsize businesses, based in Needham, Mass. "We Business Taxes.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Both Sides of the Table

NOVEMBER 4, 2009

Let’s assume that the company raised it at a normal VC valuation, which means it gave up 33% of the company and thus $5 million / 33% = $15 million post-money valuation. It was 1999. He’d be employee number 3. OK, you would own 0.25% of the stock. They raised $5 million in their B round.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

thebarefootvc

DECEMBER 16, 2011

Discovery, in contrast to search, took center stage as Pinterest displayed hockey stick growth (and raised VC money near a $200M valuation in late 2011). Disruption in the Education Space: When I first started looking at education technology investments in 1999, very few VCs would go near the sector.

Technical Review 110

Technical Review India Mobile Hockey Stick 110

Ben's Blog

JULY 16, 2013

You probably thought that valuations would be roughly the same as they were the last time you raised money. 3/31/1999: 49.7. And those are big companies with real earnings, so you can imagine how a private company’s valuation might fluctuate. In June of 2000, I raised money at an $820M post-money valuation. Things change.

Down Round 78

Down Round Marketing Preferred Stock Post-Money Valuation 78

thebarefootvc

AUGUST 26, 2015

I’ve seen several cycles in the market since I first started venture investing in 1999, and I believe there has been no greater potential for wealth creation in the sector than there is now. Pay attention to who you’re taking money from and aim for a reasonable valuation. Don’t be penny wise, pound foolish.

Marketing 40

Marketing Investment Bankers Valuation China 40

thebarefootvc

AUGUST 26, 2015

I’ve seen several cycles in the market since I first started venture investing in 1999, and I believe there has been no greater potential for wealth creation in the sector than there is now. Pay attention to who you’re taking money from and aim for a reasonable valuation. Don’t be penny wise, pound foolish.

Marketing 40

Marketing Investment Bankers Valuation China 40

thebarefootvc

JULY 26, 2015

I’ve seen several cycles in the market since I first started venture investing in 1999, and I believe there has been no greater potential for wealth creation in the sector than there is now. Pay attention to who you’re taking money from and aim for a reasonable valuation. Don’t be penny wise, pound foolish.

Marketing 40

Marketing Investment Bankers Valuation China 40

David Teten

FEBRUARY 6, 2013

From the perspective of best practices, we will address questions such as: How to assess opportunities (idea, team, valuation). Our panelists will share best practices of angel investing and guide you through potential pitfalls. Should you require a full-blown business plan and what to look for. How to source great deals.

Private Equity 114

Private Equity North America Cofounder Angel Groups 114

Hunter Walker

FEBRUARY 8, 2016

I tried a bunch of jobs: I taught fourth grade, worked at a nonprofit, and made an ungodly amount of money doing odd jobs at a dot-com because hey, it was 1999. I studied creative writing in college, and was dismayed to discover, upon graduating, that it didn’t offer me a surefire way to pay my rent.

Valuation 48

Valuation Bankruptcy California Media 48

Ben's Blog

JULY 16, 2013

You probably thought that valuations would be roughly the same as they were the last time you raised money. 3/31/1999: 49.7 And those are big companies with real earnings, so you can imagine how a private company’s valuation might fluctuate. In June of 2000, I raised money at an $820M post-money valuation. Things change.

Marketing 46

Marketing Preferred Stock Post-Money Valuation Down Round 46

Seeing Both Sides

SEPTEMBER 15, 2015

Only a handful of so-called unicorns — companies that have achieved a valuation of over $1 billion in the last 10 years — come from Israel, and only one Israeli firm, Teva, ranks in the world’s 500 largest companies by market capitalization. That’s the good news. The bad news is that Israeli startups are struggling to scale.

Cofounder 20

Cofounder Technical Review United States 20

Seeing Both Sides

AUGUST 3, 2012

With over $1 billion in revenue, 2000 employees and a market capitalization of over $6 billion, Akamai has become a role model for scalable start-ups. The first year of revenue (1999) was $4 million – a remarkable achievement. The chart below shows the company’s strong financial performance from 2009 to the present. Gross Profit. $(60).

Distribution 49

Distribution Lean Massachusetts Cofounder 49

ReadWriteStart

AUGUST 26, 2022

That’s a valuation number and pricing number. We think of it much more in terms of how many employees does the company have? Suppose you trace the history of Netflix, which we’ve invested in since 1999 and are still one of the largest shareholders. Like that happens. . And so that’s exactly how we see it.

Partner 132

Partner Cofounder Retention Acquisition 132

Ben's Blog

OCTOBER 29, 2020

Once again, the 1999-2000 dot-com bubble period shows the highest percentage of pricing above the initial filing range – 44% of deals were priced above. Even assuming they wanted to raise the same amount of nominal dollars at the IPO as in the past, higher valuations means they can do so by issuing many fewer shares.

IPO 36

IPO Securities and Exchange Commission Demand SEC 36