Both Sides of the Table

SEPTEMBER 29, 2009

Just ask anybody who was trying to close funding the fateful week of September 11, 2001 or even March 2000. But any entrepreneurs raising capital should keep in mind that this opening of the markets could possibly be temporary. This should not be confused with raising too much money as many companies did in 2006-08.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

Steve Blank

MARCH 31, 2014

I’m honored to be at a university noted for knowledge, and in a city with 2000 years of history – home of Gaudí one of the 20 th century’s greatest innovators. I like the guy because he’s credited with coining the word entrepreneur. Companies horde cash and squeeze the most revenue and margin from the money they use.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

Both Sides of the Table

JULY 27, 2014

We both agree that the later-stage valuations are being driven up to a point that feels irrationally priced [he uses b-round SaaS valuations as an example and I am willing to be even more broad based]. Most of those industries are fee-based and are competing on revenue growth. I don’t totally agree with that view.

Valuation 309

Valuation Pre-Money Valuation Later Stage Non-Compete 309

Steve Blank

JULY 15, 2010

The Golden Age for Entrepreneurs and VC’s. The two decades from 1979 when pension funds fueled the expansion of venture capital to 2000 when the dot-com bubble burst were the Golden Age for entrepreneurs and venture capital firms. Until 1995 startups going public typically had a track record of revenue and profits.

Venture Capital 297

Venture Capital IPO Liquidity Event Entrepreneur 297

Version One Ventures

OCTOBER 15, 2020

Up until late August, Lightning Labs had capped the channel capacity and payment size for users of their popular implementation of the network to ~$2000 USD and ~$500 respectively to better protect user funds with experimental software. . And >40% of that revenue is coming from in-game purchases.

Networking 168

Networking Global OTC Security 168

Agile VC

MAY 26, 2011

Silicon Valley is still emerging from the tech bubble and massive downturn of late 2000-2002. I also joke with Reid Hoffman that this was back in the days before he was “Reid” Reid’s an incredible entrepreneur, startup investor, and human being. It was a pretty good valuation for the time. It was a $4.7M

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

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.

Internet 334

Internet IPO Silicon Valley Agile 334

www.inc.com

SEPTEMBER 24, 2011

Entrepreneur news from reporter Eric Markowitz. Jumpstart was one of Grahams first clients; it signed on shortly after he founded Arizona Bay, in 2000. In the past few years, hundreds of small companies have been snatched up by private equity firms willing to agree to ever-rising valuations. Finance | Tuesdays. Tools & Research.

Arizona 40

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. I’ve been guilty of the SNIT method of selling — Sell Now Invent Tomorrow — as have most entrepreneurs in tech businesses.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

This is going to be BIG.

NOVEMBER 7, 2011

Every investor and entrepreneur knows there is something scary about the current startup economy. More entrepreneurs get to try out their ideas with smaller amounts of capital, but the bar remains the same to get to the bigger rounds. Is 2012 going to be 2000 all over again? Valuations. LinkedIn has great revenue growth.

Angel Investor 104

Angel Investor Valuation Startup Revenue 104

Both Sides of the Table

MAY 23, 2012

The movie, “The Social Network” might have had more of an impact on creating future entrepreneurs than any other event of the past 5 years. 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. Thank you, Aaron Sorkin! The Funding Problem.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

The Equity Kicker

AUGUST 25, 2015

On the one hand you have the ‘entrepreneurs should just do their thing and not pay attention to the markets’ folk and then on the other hand there are plenty of observers saying that a bubble has burst. I saw that in 2000 and then again in 2008. There’s a lot of contradictory advice out there at the moment.

Valuation 60

Valuation Startup Stock Portfolio 60

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 23, 2012

Witness, for example, this terrific Fast Company article on Bill Nguyen , serial entrepreneur who’s seventh startup “Color” famously raised $41m for a new mobile app before it even launched. invested, IPO’ed in 2000 for $32/share — stock price now $2. The launch, by the way, was a failure. Surely not.

IPO 240

IPO Flash Bootstrapping Private Equity 240

Up and Running

OCTOBER 17, 2017

As an entrepreneur, instead of looking for an internship or part-time job while at school, I found that leveraging the available collegiate resources such as professors’ advice, library, connections, and things as little as a printer to pursue a startup venture was a great extracurricular activity. Keep a cash cow: Your monthly revenue goal.

Cofounder 125

Cofounder Revenue Valuation Design 125

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. With this decline, the average EV/08 rev.

Software Review 48

Software Review Technical Review Valuation Portfolio 48

Agile VC

JANUARY 21, 2015

Not every round of funding is closed at a “monster” valuation. But during the year 2000, we went through three different CEOs, fraud nearly killed the company, our revenue was negligible and unproven, and at our worst point, the company was burning well over $10 million a month — A MONTH!

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. It will still be possible for entrepreneurs and their investors to make good money. With its $1.5

IPO 101

IPO Valuation Silicon Valley Venture Capital 101

Both Sides of the Table

MARCH 11, 2010

I’ve seen too many entrepreneurs try to do things on the cheap. 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. Your revenue will take longer to ramp then you think.

Venture Capital 319

Venture Capital Startup Silicon Valley Warrant 319

David Teten

AUGUST 7, 2019

Likely signs of a Momentum investment: the round is oversubscribed and the entrepreneur has more negotiating leverage than VCs during the closing process. . LTV / CAC, revenue growth, etc.) than comparable companies in the same sector that raised at a higher valuation. THEREFORE: we don’t need to be valuation-sensitive.

Venture Capital 60

Venture Capital Valuation Stock NDA 60

View from Seed

JANUARY 20, 2015

Not every round of funding is closed at a “monster” valuation. But during the year 2000, we went through three different CEOs, fraud nearly killed the company, our revenue was negligible and unproven, and at our worst point, the company was burning well over $10 million a month — A MONTH!

Cofounder 120

Cofounder Startup Employee PR 120

Agile VC

JANUARY 21, 2015

Not every round of funding is closed at a “monster” valuation. But during the year 2000, we went through three different CEOs, fraud nearly killed the company, our revenue was negligible and unproven, and at our worst point, the company was burning well over $10 million a month — A MONTH!

Cofounder 100

Cofounder Seed Stage Employee PR 100

Seeing Both Sides

AUGUST 3, 2012

Facebook and Google would be obvious choices for this, but so much has been written about each of them and they represent such special business models, I worried that it would be both hard for entrepreneurs to relate and hard for me to develop new insights. billion in revenue, over $1 billion in gross profit and $500 million in EBITDA.

Distribution 49

Distribution Lean Massachusetts Cofounder 49

techcrunch.com

OCTOBER 13, 2012

He is on the board of the Angel Resource Institute, and is a partner with Montlake Capital (a late stage growth capital fund) and with Revenue Capital Management (a royalty based lender). It is not highly concentrated geographically, or in the bubble of 1998-2000, or in any industry. So which is it? They are different than formal VCs.

Angel Investor 103

Angel Investor Venture Capital Seed Stage Silicon Valley 103

Both Sides of the Table

FEBRUARY 25, 2010

A reminder that it is important for all entrepreneurs is to remember to be careful about “deal drift.” million at a $15 million pre-money valuation. We moved into the legal process and final due diligence in January and February of 2000. Morgan Stanley had proposed a higher valuation to let them in.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

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.

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. ” “This will be great for VCs and bad for entrepreneurs.” Do Investors WANT Valuations to Drop? All of these are false.

Valuation 150

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. 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

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. A startup with a couple founders in their early twenties can haveexpenses so low that they could be profitable onas little as $2000 per month. Be independent.

Bootstrapping 77

Bootstrapping Term Sheet Founder Startup 77

Cracking the Code

OCTOBER 13, 2020

We’d like to thank KeyBank and G2 for providing some of the data used in the report - * It’s an amazing time to be a cloud entrepreneur in Europe. Cloud Entrepreneurs: Embracing the “Silicon Valley State of Mind" Accel has been a big believer in cloud since the early days of this secular shift. Big milestones for the old continent!

Europe 71

Europe Cloud Silicon Valley 71

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

Are you an entrepreneur or small business owner with questions about funding your small business? I’m the CEO of Executive Speaking Success and I’m a long-time entrepreneur. I’ve been an entrepreneur for almost as long as I can remember. One, I’m an entrepreneur or in the startup stage of a business.

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. Why would pouring hundreds of millions into even earlier stage startups with even less or no oversight be a good idea?

Government 280

Government Distribution Stock United States 280