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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. And then in the late 90’s money crept in, swept in to town by public markets, instant wealth and an absurd sky-rocketing of valuations based on no reasonable metrics.

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LinkedIn: The Series A Fundraising Story ? AGILEVC

Agile VC

The terms and valuation for both offers were comparable and when the team debated which path to choose, we all agreed both firms would have made good partners. round which closed in November 2003, and the pre-money valuation between $10 million and $15 million. It was a pretty good valuation for the time. It was a $4.7M

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Andreessen Horowitz: No bubble but rebalancing from IPO to late stage venture

The Equity Kicker

Firstly this table comparing 1999 and 2014 on key bubble-related metrics. That makes sense, but it looks to me as if they have less valuation discipline than we normally see in either the public markets or in smaller venture rounds. The whole thing is well worth a read, but two slides stood out for me.

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$20,000 in 2020: Bitcoin’s Point of No Return

thebarefootvc

Like him, many retail investors were drawn into nonstop television coverage and headlines that were (to me, scarily) reminiscent of 1999. Guggenheim CIO Scott Minerd appeared on Bloomberg TV and put a $400K price on BTC, based on its “scarcity and relative valuation of such things as gold as a percentage of GDP”. All in one day!

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Is There a Valuation Bubble for Social Media Companies (and if so, is it Bursting)?

Pascal's View

Welcome to the latest passionate debate over the ‘valuation bubble or not?’ For me Bubble will always be inexorably linked to what went down in 1999 and 2000 in the internet sector. Specifically, too much money has gone into VC-backed Internet companies at too high a valuation. question in venture capital. It is intentional.

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Turing Distinguished Leader Series: With Partner David Zhang, TVC

ReadWriteStart

Do you have other efficiency metrics that you look at when you evaluate businesses to check the quality of growth and the quality of the revenues? . You can break that down to revenue retention because different types of models, whether subscription, usage-based, or transactional, will have different retention metrics. . Yeah, yeah.

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It’s Morning in Venture Capital

Both Sides of the Table

Yes, it’s true that FOMO (fear of missing out) is driving some irrational behavior and valuations amongst uber competitive deals and well-financed VCs. In 1998 it was 150 million, 1999 250 million and by 2000 it had crossed 350 million. I’ve written in detail about that in this post, “ On Bubbles, And Why We’ll Be Just Fine.”.