Startup Professionals Musings

DECEMBER 27, 2014

Institutional venture capital dispensed thus far in 2014 has been up significantly over the last few years, but is still less than half of the peak hit way back in the year 2000 (over $100 billion). The cost of entry for tech startups continues to go down. Mobile and web software apps may cost even less.

Angel Investor 260

Angel Investor Silicon Valley Startup Portfolio 260

Ben's Blog

MAY 24, 2021

Editor’s Note: This testimony was delivered by a16z managing partner Scott Kupor to the U.S. By way of background, I am the Managing Partner for Andreessen Horowitz, a $16.5 In fact, if you exclude the Dot Com Bubble of 1999-2000, they have been steady for nearly thirty years. 1999-2000 51.6% IPO market. 1990-1998 13.3%

SEC 36

SEC Accredited Investor IPO Technical Review 36

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

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. In the past few years, hundreds of small companies have been snatched up by private equity firms willing to agree to ever-rising valuations. Graham liked the idea.

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Arizona Equity Iowa Venture Capital 40

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. Now the cost of entry to the Party is rising. Last year, the VC industry partied like its 1999.

Venture Capital 155

Venture Capital Pre-Money Valuation IPO 155

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

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

Cracking the Code

NOVEMBER 13, 2008

The fact that SaaS valuations are being more affected by the downturn than the Nasdaq can be surprising given the supposed resiliency of the SaaS model (recurring revenues) but it translates the public investors belief that SMB software spend is going to be hit very hard by this recession. So were do we go from here?

Software Review 48

Software Review Technical Review Valuation Portfolio 48

Berkonomics

SEPTEMBER 27, 2018

I’ve been offered $15 million for my company and my partner is suing me for all I am worth. And yes, his partner had a valid suit, having been locked out of the web-design business and denied access to decisions and accounting information. million at a valuation of $80 million. What can I do?”. My immediate reaction and offer.

Pre-Money Valuation 48

Pre-Money Valuation Sales Liquidity Event Valuation 48

Both Sides of the Table

FEBRUARY 14, 2016

I’d like to explain as best I can my opinion on what is going on because most of what I hear from entrepreneurs is not only wrong but is reminiscent of what I heard in 1997-2000. I have been talking about my concerns about valuations for the past couple of years because, well, they’ve been rising very rapidly the past two years!

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Valuation Down Round Startup Later Stage 150

David Teten

AUGUST 7, 2019

than comparable companies in the same sector that raised at a higher valuation. However, Abe Othman, Partner at Indicator Fund and Head of Data Science at AngelList, observes, “Those companies don’t have a “margin of safety” though, in the traditional Seth Klarman sense of the word. LTV / CAC, revenue growth, etc.)

Venture Capital 60

Venture Capital Valuation Stock NDA 60

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. . Value add strategies make partners at VC firms more personally effective. Building platforms.

Portfolio 84

Portfolio LP Venture Capital Partner 84

www.inc.com

SEPTEMBER 24, 2011

That cost him accounting fees, legal fees, and time because the financing round couldnt close until the arrangements were formalized. Durkin , managing partner with the Boston -based law firm Lucash, Gesmer & Updegrove LLP. Chip Morse , cofounder and partner with Morse, Barnes-Brown & Pendleton P.C., Copyright © 2000 inc.com.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

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. Sit back and watch usage.

Entrepreneur 384

Entrepreneur Startup Salary Egypt 384

finance.fortune.cnn.com

AUGUST 21, 2012

Now Fortune has obtained more granular data, including returns for dotcom-era funds managed by such firms as Accel Partners, Benchmark Capital, General Catalyst Partners and Lightspeed Venture Partners. Through 12/31/11, less than 66% of the fund-of-funds called capital had been returned to limited partners.

Naming 49

Naming Term Sheet Private Equity Equity 49

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 In the asset management industry, the norm is that the General Partner puts in 1-2% of the total assets under management.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

Both Sides of the Table

DECEMBER 5, 2010

MySpace would liked to have owned YouTube but didn’t have the public stock valuation to purchase them at the price that Google did. This is an awesome trend and will further lower the cost of startup development. In April of 2000 there were fears that the AOL / Time Warner merger would create a monopoly on the Internet.

Social Network 318

Social Network Networking Internet Technical Review 318

Berkonomics

SEPTEMBER 17, 2011

I’ve been offered $15 million for my company and my partner is suing me for all I am worth. And yes, the partner had a valid suit, having been locked out of the business and denied access to decisions and accounting information. Within three months, we easily obtained $3 million of investment at a pre-money valuation of $30 million.

Liquidity Event 59

Liquidity Event Pre-Money Valuation Sales Valuation 59

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. Sit back and watch usage.

Entrepreneur 176

Entrepreneur Startup Salary Egypt 176

VC Adventure

SEPTEMBER 4, 2015

We looked at a bunch of different factors, but as I give away above, the single most important factor for valuation of a SaaS business is growth. Much more on this in my bubble post upcoming, but I didn’t want anyone walking away from this note saying “Seth says grow at all costs!”

Burn Rate 48

Burn Rate Portfolio Revenue Valuation 48

VC Cafe

NOVEMBER 9, 2011

There were over 2000 participants and around 100 speakers from all over the world. Regulations have not gotten easier, yet “compliance costs have gone down considerably, and maneuvering through the process is less daunting and scary. The US markets have generally proven themselves as giving better valuations, and long term liquidity.”.

IPO 92

IPO Cofounder Europe 92

Startup Lessons Learned

JUNE 12, 2020

In the boom times, everything gets more expensive except cost of capital. Commitments to respect their employees, their customers, their partners. You may have suppliers, vendors, partners, and then you have society. And by the way, it doesn't cost anything to ask and you'll be surprised the generosity. We have five.

Silicon Valley 113

Silicon Valley Design Hiring Government 113

Altgate

MARCH 8, 2009

I say ecosystem as opposed to industry because it is not just the VC funds themselves that are imploding, instead the collapse includes entrepreneurs and startups that were funded by VCs, angel investors, service providers like lawyers, bankers and accountants as well as limited partner investors in VC funds. Also, the $1.5

Later Stage 34

Later Stage Early Stage Venture Capital Portfolio 34

www.paulgraham.com

APRIL 28, 2010

We chargedquite a lot for our software—about $140 per user per month—butit was at least a year before our revenues would have covered evenour paltry costs. It costs not justthe time of the actual meeting, but the time getting there and back,and the time preparing for it beforehand and thinking about itafterward.

Bootstrapping 77

Bootstrapping Term Sheet Founder Startup 77