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Praying to the God of Valuation

Both Sides of the Table

Something happened in the past 7 years in the startup and venture capital world that I hadn’t experienced since the late 90’s — we all began praying to the God of Valuation. How might our next phase of the journey seem brighter, even with more uncertain days for startups and capital markets? What happened? There was no money train.

Valuation 466
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China’s Torch Program – the glow that can light the world (Part 2 of 5)

Steve Blank

I just spent a few weeks in Japan and China on a book tour for the Japanese and Chinese versions of the Startup Owners Manual. The previous post described how China built its science and technology infrastructure. This post is about the how the Chinese government engineered technology clusters. All the usual caveats apply.

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China’s Torch Program – the glow that can light the world (Part 2 of 5)

Steve Blank

I just spent a few weeks in Japan and China on a book tour for the Japanese and Chinese versions of the Startup Owners Manual. The previous post described how China built its science and technology infrastructure. This post is about the how the Chinese government engineered technology clusters. All the usual caveats apply.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

I was reading Danielle Morrill’s blog post today on whether one’s “ Startup Burn Rate is Normal. I love how transparently Danielle lives her startup (& encourages other to join in) because it provides much needed transparency to other startups. ” I highly recommend reading it.

Burn Rate 383
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Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

When I first read Paul Graham’s blog post on “High Resolution&# Financing I read it as a treatise arguing that convertible notes are better than equity. Either would be fine with startups, so long as they can easily change their valuation. He’s fine with equity provided it’s cheap to paper it legally.

Finance 286
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Where are the Deals? How VCs Identify the Next Generation of Startups

David Teten

It might appear that origination is becoming much easier because of new tools like AngelList and the SEC moving toward adoption of rules that will allow equity based crowdfunding. But in practice, these phenomena create a tremendous volume of startups, which investors then have to filter. Detailed due diligence.

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Stock Market Drops. Then It Rallies. What Happens Next for Funding?

Both Sides of the Table

Let’s review all of our existing investments. Come 2009 we felt really bullish about the future for startups because the froth was gone and so, too, were wantrapreneurs. Not just tech companies but industrials, too. On Mar-6 it hit 6,626 or 53% off its peak. We need some visibility. Cut where needed. Finance where needed.

Stock 305