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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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Why Has Seed Investing Declined? And What Does this Mean for the Future?

Both Sides of the Table

The reality is that as a result of two major trends the costs of starting a technology startup went down massively. Between 1999–2005 the costs went down by 90% and between 2005–2010 they went down a further 90%. I launched my first startup in 1999 so I know the economics of launching from first-hand experience.

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The Great Coding School Rollup of 2015

Feld Thoughts

When I saw the proposal, I immediately thought of the web consulting rollups of 1999. revenue were the correct valuations since these are generally 5% to 10% net income businesses that are 30% – 40% gross margin and heavily dependent on (a) transitory labor and (b) favorable supply/demand conditions. I’d argue the 0.5x

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Debating the Tech Bubble with Steve Blank: Part II

Ben's Blog

In reading my friend Steve Blank’s arguments, I found the bubble definition quite compelling: “A tech bubble is the rapid inflation in the valuation of public and private technology companies that exceeds their fundamental value by a large margin.&#. So I looked to find evidence to support the bubble hypothesis.

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A Venture Capital History Perspective From Jack Tankersley

Feld Thoughts

The key reason for the explosion in capital flowing into the industry, and therefore the large increase in practitioners, had nothing to do with 1970’s performance, early stage investing, or technology. So contrary to the piece, it wasn’t VC were good at early stage technology, it was that they had newfound capital and a big exit window.

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Venture Capital Funding and the Sexism You Can’t Quite Prove

Up and Running

Her background includes senior roles in both the banking and tech sectors, and she has launched four data businesses—including her current firm, New Frontier Data , which boasts a $20 million valuation and has received $5 million in funding. Giadha Aguirre de Carcer via Her Agenda. Stitch Fix CEO Katrina Lake, via the Los Angeles Times.

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Why Bitcoin can never be a global currency

Start Up Blog

Cryptocurrency and the underlying blockchain technology that powers it are amazing. What we have seen this time is excess asset valuations, as well as booming equity and crypto markets. The technology is good. Australia had a currency change as recently as 1966 and the Euro arrived only in 1999. There, I said it.

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