Ben's Blog

JUNE 18, 2011

If they have, then we should be able to see some evidence that the dominant public technology companies are moving towards bubble valuations. Apple’s valuation is now a case for business historians to discuss because I don’t think there are modern precedents. In the last bubble, the S&P hit 44x in January 2000.

Technical Review 76

Technical Review Software Review Valuation Internet 76

Both Sides of the Table

APRIL 20, 2011

Infonautics went public in 1996 and Half.com was sold to eBay in 2000. They chose the name First Round Capital because they thought capital would be deployed most efficiently at smaller seed stage rounds considering the cost to build an internet business had come down drastically. and Half.com. Investing Strategy.

Pre-Money Valuation 284

Pre-Money Valuation Technical Review Cofounder Cram Down 284

500hats.com

AUGUST 2, 2012

While a flood of new VCs came into existence during the late 90’s internet boom, many had difficulty raising new funds after the crashes of 2000-2001 and 2008 , and as a result significantly fewer fund managers exist now compared to a decade ago. In the past ten years there have been several dramatic changes in venture capital.

Silicon Valley 74

Silicon Valley Early Stage Venture Capital Valuation 74

www.inc.com

SEPTEMBER 24, 2011

Internet and Online Business. Jumpstart was one of Grahams first clients; it signed on shortly after he founded Arizona Bay, in 2000. Theres a huge opportunity cost in not taking equity," he says. During the first Internet boom, companies that provided services to tech start-ups were all too happy to work for stock.

Arizona 40

Arizona Equity Iowa Venture Capital 40

abovethecrowd.com

JULY 10, 2014

Financial models, especially valuation models, are interesting in that they can be particularly precise. While it may seem like a tough question to answer, I would argue that most practitioners of valuation analysis would state “not very high.” It is not my aim to specifically convince anyone that Uber is worth any specific valuation.

San Francisco 111

San Francisco San Jose Marketing Technical Review 111

Startup Professionals Musings

OCTOBER 17, 2016

Common resources provided by most of the incubators and accelerators today include the following: Access to shared office facilities for multiple startup teams at a very low cost. Assuming 60 companies are accepted in a specific batch, that would mean around 2000 companies applied. In fact, eight were already billion dollar unicorns.

Incubator 120

Incubator Silicon Valley Startup Small Business Administration 120

Both Sides of the Table

MAY 23, 2012

Cloud computing and the open source movements have brought down the costs of starting a company by more than 90%. They need a combination of capital and experience to separate from the rest of the pack – the low cost of starting a business means it is even more vital to become the market leader more quickly. The Funding Problem.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

Cracking the Code

NOVEMBER 13, 2008

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. It is also intriguing to see that the market bottom was reached only two years after the start of the decline for the 1929, 1973 and 2000 crises, so we might need another year before the market reaches it lowest point.

Software Review 48

Software Review Technical Review Valuation Portfolio 48

Both Sides of the Table

FEBRUARY 17, 2011

When times are really good for fund raising many teams delay to maximize their valuation. For many businesses you should keep your costs low & your capital raises low until you discover whether you are really on to a big idea where there is market demand. 5 million raised at a $9 million pre-money valuation or 35.7%

Pre-Money Valuation 303

Pre-Money Valuation Dilution Valuation PR 303

Berkonomics

SEPTEMBER 27, 2018

But the real asset became obvious to me at almost exactly five PM that day, when all eight stopped what they were doing and began using a tool they had licensed from a Florida company to find other Internet gamers to join them in playing intense first party shooter games over the ‘net. million at a valuation of $80 million.

Pre-Money Valuation 48

Pre-Money Valuation Sales Liquidity Event Valuation 48

The Equity Kicker

AUGUST 24, 2012

You can see from the chart below that the share prices of high-profile internet companies Facebook, Groupon, and Zynga are down 48-60 per cent over the last three months. Secondly, many of the problems are limited to one aspect of the start-up ecosystem: late-stage funding for some consumer internet companies. billion valuation.

IPO 101

IPO Valuation Silicon Valley Venture Capital 101

This is going to be BIG.

NOVEMBER 7, 2011

Is 2012 going to be 2000 all over again? Valuations. There are a ton of companies being funded at $500+ million valuations--seriously limiting exit opportunities. Many of the private companies like AirBnb, Dropbox, and Square and that have been rumored to have big valuations are real, growing businesses. stock market."

Angel Investor 104

Angel Investor Valuation Startup Revenue 104

Both Sides of the Table

JANUARY 31, 2011

And also there are a large number of people who would like to do startups in theory, but have high cost bases (family, real estate, school loans, whatever) that makes it very difficult to take the kinds of risks required. Mostly you read about fundings, product releases, big valuations, and M&A. Internet pioneers.

Entrepreneur 384

Entrepreneur Startup Salary Egypt 384

www.inc.com

SEPTEMBER 24, 2011

Internet and Online Business. That cost him accounting fees, legal fees, and time because the financing round couldnt close until the arrangements were formalized. As you think about how much equity to offer, have a reasonable valuation in mind thats been determined using professional advice. Copyright © 2000 inc.com.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Berkonomics

SEPTEMBER 17, 2011

But the real asset became obvious at almost exactly 5 PM that day, when all eight stopped what they were doing and began using a tool they had licensed from a Florida company to find other Internet gamers to join them in playing intense first party shooter games over the ‘net. million at a valuation of $80 million.

Liquidity Event 59

Liquidity Event Pre-Money Valuation Sales Valuation 59

The Equity Kicker

JULY 8, 2019

From around 2000, and perhaps coinciding with the need to work harder to win deals as opportunities dried up after the internet bubble burst, individual partners at VC firms began adding ‘helping CEOs win’ to their job descriptions. . The most visible symptom of this trend was VCs writing blogs to show just how value add they were.

Portfolio 84

Portfolio LP Venture Capital Partner 84

Ben's Blog

MARCH 24, 2011

As we do so, keep in mind that the relevant bubble statistic is not valuation. High valuations are fine if the underlying value is there. In the great bubble of 1998-2000, the boom in public valuations mirrored the boom in private valuations. If too much venture capital hits the streets, valuations will bubble up.

Technical Review 78

Technical Review Venture Capital Valuation Database 78

Both Sides of the Table

JANUARY 22, 2011

And also there are a large number of people who would like to do startups in theory, but have high cost bases (family, real estate, school loans, whatever) that makes it very difficult to take the kinds of risks required. Mostly you read about fundings, product releases, big valuations, and M&A. Internet pioneers.

Entrepreneur 176

Entrepreneur Startup Salary Egypt 176

Seeing Both Sides

AUGUST 3, 2012

With over $1 billion in revenue, 2000 employees and a market capitalization of over $6 billion, Akamai has become a role model for scalable start-ups. Interestingly, the company’s founding vision was not a lean idea, but rather a big idea: to accelerate and manage Internet traffic on a global, highly scalable, highly distributed scale.

Distribution 49

Distribution Lean Massachusetts Cofounder 49

Both Sides of the Table

DECEMBER 5, 2010

The Bridge Between Online Services & The Internet: AOL. It was an online community like CompuServe and eventually started offering people dial-up access to the Internet for a monthly fee. AOL was controlled by one company and the Internet was distributed. AOL was closed, the Internet was open. And then came AOL.

Social Network 318

Social Network Networking Internet Technical Review 318

David Teten

NOVEMBER 15, 2013

Each new investor tends to raise valuations and lower returns for all the other competitive investors. It is mathematically impossible for the median investor to beat a low-cost index, after expenses. (Of This option-based valuation methodology can also be used to explain the early 2000 internet/telecom bubble in the public markets.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

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% 1999-2000 37.5%

SEC 36

SEC Accredited Investor IPO Technical Review 36

Up and Running

DECEMBER 9, 2014

The DIY mentality can really bog you down and become a burden eventually, plus it can really cost you more time and money in the grand scheme of things. I just wanted to break down those two pieces real quick the time side and the cost side. Then the second one here which I eluded to is really all about cost.

Small Business 95

Small Business Finance Forecast Metrics 95

Both Sides of the Table

SEPTEMBER 17, 2017

In more than a decade of writing about the Internet and tech-enabled businesses I’ve learned that mobs don’t do nuance well. Decentralized Internet — This is perhaps the most unsexy part of cryptocurrency but the one that most purists I follow on this topic are most excited about.

Government 280

Government Distribution Stock United States 280