Feld Thoughts

JANUARY 7, 2015

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

Stock Options 70

Stock Options Cofounder Revenue Hosting 70

Feld Thoughts

JULY 19, 2018

“Historically, the $10 million valuation mark has been somewhat of a ceiling for seed stage startups. It has happened only one other time in my investing career – in 1999. In addition to our own funds, we are investors in a number of other early-stage VC funds as part of our Foundry Group Next strategy.

Early Stage 105

Early Stage Seed Stage Valuation Finance 105

Feld Thoughts

AUGUST 25, 2015

For many years preceding 1999, the 1982 vintage was known as the industry’s worst vintage year. Neumann’s definition of the era’s venture deals and each generated returns we would welcome today. Was this a function of “too much money chasing too few deals” as many pundits claimed?

Venture Capital 70

Venture Capital SBIC Technical Review Silicon Valley 70

Feld Thoughts

DECEMBER 10, 2018

Unlike the endless stream of predictions that are about to come out, it’s an analysis of the spread between the public market and private company valuations. If you lived through the Internet-bubble between 1999 and 2002 you know this cycle well. Fred Wilson’s post Thinking Ahead To 2019 is worth reading.

DC 112

DC Equity Hosting Valuation 112

Feld Thoughts

FEBRUARY 9, 2016

I started investing in 1994 and while there was some bumpiness in 1997 and again in 1999, the real pain happened between 2000 and 2005. This is a little tricky in early rounds and with modest up-round financings, as you’ll often have a liquidation preference that is high relative to your overall valuation.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

Feld Thoughts

FEBRUARY 28, 2023

The boom years of 1998 (79 IPOs), 1999 (175 IPOs), and 2000 (142 IPOs) are long gone. Since the attractiveness of investments is also largely related to exit channels, this aspect affects the availability of capital and company valuation at every stage. While there was a major law reform in 2021, the regulations are still inadequate.

Germany 165

Germany Liquidation Preference Option Pool Advisory Board 165