VC Adventure

APRIL 2, 2020

Everyone is being cautious about valuations. Anecdotally I’ve heard that early stage valuations are already down 30-50%. First, the overall trends, which show both a steady increase of returns post the 2000 bubble and show the specific increases post 9/11 and post the 2008 market crash.

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Valuation Portfolio Database Early Stage 118

ConversionXL

MAY 1, 2017

Reporting in the Harvard Business Review on a major study of growth stalls they conducted, Olson and his colleagues cite the case of the iconic brand Levi Strauss, which hit a historic high mark of sales in 1995, reaching revenue of $7 billion, but then, starting in 1996, saw a decline in sales so precipitous that by 2000, revenue was down to $4.6

Technical Review 127

Technical Review Algorithm Channel Analytics 127

www.inc.com

SEPTEMBER 24, 2011

Jumpstart was one of Grahams first clients; it signed on shortly after he founded Arizona Bay, in 2000. But with the help of Grahams company, which specializes in creating tech systems for start-ups, Jumpstart grew to more than $50 million in revenue--enough to make it an attractive acquisition for media conglomerate Hachette Filipacchi.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Pascal's View

AUGUST 21, 2011

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.

Valuation 50

Valuation Social Media Media IPO 50

gigaom.com

JULY 10, 2012

Lingo licenses Watson’s core speech technology for its language servers (though that relationship will likely end after the Nuance acquisition closes), and Research in Motion’s QNX is working with Watson’s API to develop a conceptual connected car assistant. Previous What’s wrong with the tech valuations?

API 50

API Technical Review Artificial Inteligence RSS 50

View from Seed

JANUARY 11, 2017

I was an early employee at PayPal and back in the 2000-2001 timeframe, and we ended up taking a fairly significant amount of strategic investment (tens of millions of $) from various banks in the US, Europe, and Asia. It doesn’t mean it can’t be done, but having say Google as an investor can make it tricky to work with say Apple.

Strategic Investors 120

Strategic Investors Post-Money Valuation Seed Stage Cofounder 120

Feld Thoughts

FEBRUARY 9, 2016

I learned this lesson 127 times between 2000 and 2005. 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. But, as you raise more money at higher valuations, this will normalize. Then, if you end up doing a down round, it suddenly matters a lot.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

Agile VC

JANUARY 21, 2015

Not every round of funding is closed at a “monster” valuation. And even acquisitions painted as successes may look very different below the (typically confidential) surface. But the reality of tech entrepreneurship is that not everyone is “killing it,” and certainly not all of the time.

Cofounder 188

Cofounder Seed Stage Employee PR 188

The Equity Kicker

AUGUST 24, 2012

The reality is that we have been dealing with a market failure to provide liquidity to investors in late-stage companies for most of the time since the internet bubble burst in March 2000. billion valuation. This is one of the reasons that CalPERS returns have been so poor for the last ten years. With its $1.5 With its $1.5

IPO 101

IPO Valuation Silicon Valley Venture Capital 101

This is going to be BIG.

MARCH 30, 2015

I have a feeling that a lot of these "on demand" companies aren''t going to be as gamechanging as we think--and will come back down to earth with valuations that look more like temp agencies than the next big thing. But at what valuation? The later stage guys would just have to wait longer for the company to grow into its valuation.

Hockey Stick 60

Hockey Stick Valuation Startup Maryland 60

Both Sides of the Table

MAY 23, 2012

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 there were around 850 VC funds and by 2000 there were 2,300. By 2000 the total LP commitments had mushroomed to more than $100 billion. The Funding Problem.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

Growthink Blog

APRIL 2, 2014

in the 1st quarter - the largest number of new issuers since 2000 -raising a total of 11.1 Mergers & Acquisitions: Global mergers & acquisition activity totaled $710 billion (Thomson Reuters), up 54% from last year. And, as of Monday 54 of the 72 of them were trading above their IPO price. Private Equity.

Private Equity 69

Private Equity Merger IPO Initial Public Offering 69

Both Sides of the Table

MARCH 11, 2010

I know the standard line, “I want to do a small round now and raise a larger round later when we get A,B,C deal done and I can raise at a higher valuation.&# If it works you’re a hero. They can fund a deal if necessary and valid at the time you present an acquisition target to them. No good investor wants that. What to do?

Venture Capital 319

Venture Capital Startup Silicon Valley Warrant 319

View from Seed

JANUARY 20, 2015

Not every round of funding is closed at a “monster” valuation. And even acquisitions painted as successes may look very different below the (typically confidential) surface. But the reality of tech entrepreneurship is that not everyone is “killing it,” and certainly not all of the time.

Cofounder 120

Cofounder Startup Employee PR 120

Up and Running

OCTOBER 17, 2017

Is it $2000, $3000, five, six, or seven clients per month? From every business dimension, the best mentors have been shown to make a significant impact in entrepreneurial success whether by boosting new business initiatives, increasing revenue, funding, acquisitions, partnerships, and more. Identify the magic number.

Cofounder 125

Cofounder Revenue Valuation Design 125

Agile VC

JANUARY 21, 2015

Not every round of funding is closed at a “monster” valuation. And even acquisitions painted as successes may look very different below the (typically confidential) surface. But the reality of tech entrepreneurship is that not everyone is “killing it,” and certainly not all of the time.

Cofounder 100

Cofounder Seed Stage Employee PR 100

ReadWriteStart

SEPTEMBER 25, 2012

However, in hindsight, and especially in light of all of the recent acquisitions of the aforementioned, I believe we had a core advantage to really plug into the “second wave” of social, which has the potential to be even more disruptive than the first. Some potential investors told us we were late to the party.

Social Media 152

Social Media Flash Business Model Startup 152

ReadWriteStart

SEPTEMBER 25, 2012

However, in hindsight, and especially in light of all of the recent acquisitions of the aforementioned, I believe we had a core advantage to really plug into the “second wave” of social, which has the potential to be even more disruptive than the first. Some potential investors told us we were late to the party.

Social Media 103

Social Media Flash Business Model Startup 103

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. Scarcity of IPOs.

IPO 36

IPO Securities and Exchange Commission Demand SEC 36

VC Cafe

OCTOBER 2, 2020

in 2000, M-Systems, inventor the disk-on-key, was acquired for $1.6 billion valuation when it was acquired by Google. Lucent acquired Chromatis for $4.8b Billion by Sandisk in 2006, etc. Since then, Israel has produced unicorns in many software categories, from health to cyber and enterprise to consumer.

Venture Capital 183

Venture Capital Acquisition IPO 183

Both Sides of the Table

DECEMBER 5, 2010

After a few acquisitions they offered many of the services you think about as foundations to social networks today. MySpace would liked to have owned YouTube but didn’t have the public stock valuation to purchase them at the price that Google did. They had mail, IM, groups, answers, etc.

Social Network 318

Social Network Networking Internet Technical Review 318

Agile VC

NOVEMBER 13, 2012

Sarah also points to the vast global wealth that has to get allocated somewhere as well as a small bump in long term average returns, now that the generally terrible performance of funds from the 2000-2002 time frame (after the tech bubble of the late 90s crashed) no longer factor in to 10 year returns.

LP 154

LP Portfolio Venture Capital IRR 154

VC Cafe

JANUARY 20, 2014

New data from research firm Pitchbook makes it official: valuations are at an all-time high. 222 firms held initial public offerings last year, raising $55 Billion, the most since 406 companies went public for $97 million in 2000. Across all investment stages, median pre-money valuations last year rose dramatically.

Venture Capital 155

Venture Capital Pre-Money Valuation IPO 155

Ben's Blog

MAY 24, 2021

There are a number of trends concerning IPOs and capital formation to note: First, the raw number of IPOs has declined significantly: From 1980-2000, the US averaged roughly 300 IPOs per year; from 2001-2016, the average fell to 108 per year. 1999-2000 51.6% Time Period IPO Pop % Above IFR 1999-2000 51.6% 1990-1998 13.3%

SEC 36

SEC Accredited Investor IPO Technical Review 36

VC Cafe

AUGUST 15, 2011

Following the acquisition S1 shareholders will own about 55 percent of the combined company and Fundtech shareholders the rest. a privately held maker of at-home dermatological products, is merging with US company Photomedex in a share swap deal that gives Radiancy a $175 million valuation. S1 CORP BUYS ISRAEL’S FUNDTECH.

China 90

China Cofounder India 90

Up and Running

DECEMBER 9, 2014

Bates: Josh, it reminds me of when I was doing web sites back in the day in 2000 and 1998 and instead of going and being able to buy a shopping cart you had to code the shopping cart from scratch. Bates: You know Josh—. Joshua Reeves: You don’t have to wear those twenty hats any longer.

Small Business 95

Small Business Finance Forecast Metrics 95