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.

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Technical Review Software Review Valuation Internet 76

Steve Blank

MARCH 18, 2011

The signals are loud and clear : seed and late stage valuations are getting frothy and wacky, and hiring talent in Silicon Valley is the toughest it has been since the dot.com bubble. VC’s worked with entrepreneurs to build profitable and scalable businesses, with increasing revenue and consistent profitability – quarter after quarter.

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Internet IPO Silicon Valley Agile 334

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.

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Arizona Equity Iowa Venture Capital 40

Austin Startup

AUGUST 20, 2017

Keep the valuations consistent with company progress. The bottom line is that the pedigree of your investors will have much to do with your ultimate valuation and with your enjoyment of the startup experience. Can you acquire them at a sustainable cost? Work hard to give yourself some decisions to make on who’s in and who’s out.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

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

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

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.

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San Francisco San Jose Marketing Technical Review 111

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. Facebook is doing billions in revenues. LinkedIn has great revenue growth. Are their valuations justified? Are we in a bubble? stock market."

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Angel Investor Valuation Startup Revenue 104

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 23, 2012

invested, IPO’ed in 2000 for $32/share — stock price now $2. After I sold Smart Bear, that division has increased revenue and profit every year, for five years, even through the 2008/2009 economic disaster. Freeloader — On $3m invested, sold for $38m in 1996 — shut down in 1997. Support.com — On 2.5m

IPO 240

IPO Flash Bootstrapping Private Equity 240

gigaom.com

JULY 10, 2012

Registered developers will get 5000 points a month and any speech transaction of a minute or less will cost one point. Developers that exceed that amount will be charged $20 for each 2000-point increment, which works out to about 1 cent per transaction. Previous What’s wrong with the tech valuations? Join the conversation.

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API Technical Review Artificial Inteligence RSS 50

David Teten

AUGUST 7, 2019

LTV / CAC, revenue growth, etc.) than comparable companies in the same sector that raised at a higher valuation. In 2000, LPs invested $104b into 638 funds, but by 2003, LPs’ commitment rate had dropped to just $11b into 161 funds. THEREFORE: we don’t need to be valuation-sensitive. Weaker negotiating posture.

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Venture Capital Valuation Stock NDA 60

The Equity Kicker

AUGUST 24, 2012

Firstly, the fundamentals for start-ups are stronger than ever: innovation is still required, the cost of innovation continues to fall, the pace of change continues to increase, and the best people increasingly want to work in start-ups. billion valuation. I think that is an over-reaction. Here’s why. With its $1.5

IPO 101

IPO Valuation Silicon Valley Venture Capital 101

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

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. billion in revenue, over $1 billion in gross profit and $500 million in EBITDA. The first year of revenue (1999) was $4 million – a remarkable achievement. Market Cap.

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Distribution Lean Massachusetts Cofounder 49

Ben's Blog

OCTOBER 29, 2020

And no, that doesn’t mean that the IPO is underpriced; recall that there is no cost to putting in an “order” in the IPO book, so the incentive for the buy-side is to put in as large a request as possible with the understanding that they will ultimately be cut back by the underwriters. Are bankers simply irrational?

IPO 36

IPO Securities and Exchange Commission Demand SEC 36

Altgate

MARCH 8, 2009

Growth stage investors are usually the Series B or C investors who come in when the product is in the market but there is little or no revenue and the team is probably in the 20-something range with the goal to ramp it up to 40-50 employees with the new money, build out a sales team, etc. Also, the $1.5

Later Stage 34

Later Stage Early Stage Venture Capital Portfolio 34

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

Both Sides of the Table

DECEMBER 5, 2010

billion in annual subscription revenues not including advertising or eCommerce). 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.

Social Network 318

Social Network Networking Internet Technical Review 318

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

VC Adventure

SEPTEMBER 4, 2015

It was a great chance to compare notes, meet far flung colleagues (“cousins” as we sometimes refer to employees at different portfolio companies) and discuss a variety of topics effecting companies selling with a recurring revenue model. increase in revenue multiple. between these companies. That’s highly significant.

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Burn Rate Portfolio Revenue Valuation 48

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

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.”.

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IPO Cofounder Europe 92

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. Two, revenue.

Small Business 95

Small Business Finance Forecast Metrics 95

Both Sides of the Table

SEPTEMBER 17, 2017

I believe the massive valuation increases in cryptocurrencies we’ve witnessed of late are not based on any fundamentals other than speculation and a drive for a quick profit by many who have gained from the market hype. This does not mean that all existing intermediaries go away. Regulation will come. It needs to come fast.

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Government Distribution Stock United States 280