Remove 2001 Remove Cost Remove Equity Remove Partner
article thumbnail

Praying to the God of Valuation

Both Sides of the Table

2001–2007: THE BUILDING YEARS The dot com bubble had burst. We had nascent revenues, ridiculous cost structures and unrealistic valuations. I learned to avoid unnecessary conferences, avoid non-essential costs and strive for at least a neutral EBITDA if for no other reason than nobody was interested in giving us any more money.

Valuation 466
article thumbnail

What’s Really Going on in the VC Industry? What Does it Mean for Startups?

Both Sides of the Table

The VC industry grew dramatically as a result of the Internet bubble - Before the Internet bubble the people who invested in VC funds (called LPs or Limited Partners) put about $50 billion into the industry and by 2001 this had grown precipitously to around $250 billion. Partners leave the industry. VC will shrink.

LP 311
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Turing Distinguished Leader Series: With Partner David Zhang, TVC

ReadWriteStart

How to Scale Unicorns With Partner David Zhang, TVC. Joining us for this episode is our partner David Zhang, Partner at TCV (( Technology Crossover Ventures ). I’m a partner at TCV, which we founded in 1996. So this has always been our most significant focus area, whether in 2022, 2021, or 2001. .

Partner 132
article thumbnail

The Great VC Ice Age is Thawing (for now) – Part 1 of 3

Both Sides of the Table

Just ask anybody who was trying to close funding the fateful week of September 11, 2001 or even March 2000. This came in part due to the huge influx of money into VC but also because hedge funds and private equity shops with no VC experience wanted part of the action. While the company continues to perform well it has come at a cost.

Burn Rate 263
article thumbnail

On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

But this mania to not miss out on the next big thing is driving some investors to pay growth-equity prices for traditional market risk (as in, they’re paying up before it is clear there is product / market fit). So at GRP Partners we’re very active now. And well they should be. And so on down then line.

article thumbnail

The Economic Antidote to COVID-19

Startup Lessons Learned

The Economic Antidote to COVID-19 Eric Ries & Ryan Beck In 2001, Apple's revenue fell by 33% in the depths of the dotcom bust. As revenue contracts, orders slow, and capital markets freeze, conventional wisdom drives business leaders to cut costs and shy away from new projects. The rest is history. This crisis could be different.

article thumbnail

Startup Advice: When to Use a Consulting CTO

rapidrollout.wordpress.com

Also, working with a consulting CTO will prepare you for finding and selecting a permanent technology partner. And finally, you may be able to avoid diluting your equity. Avoid delay by using a consulting CTO on a short-term basis while you are searching for a permanent technology partner. Why are consulting CTOs so scarce?