2001 Cost Equity Revenue 
Both Sides of the Table
DECEMBER 11, 2022
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.
Both Sides of the Table
JULY 16, 2010
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. VC will shrink. Oh yes it will. Price MUST be in a certain range.
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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. Huge downturns have a real impact on the revenue line of start-ups and therefore the pressure on valuations. While the company continues to perform well it has come at a cost. I argued for literally a year to slash burn.
Both Sides of the Table
JUNE 22, 2011
Ah, but today’s Internet companies have real revenue! 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). I said that at the Founder Showcase, too. and profits!
Both Sides of the Table
OCTOBER 14, 2015
The truth is that the brutal reality of public markets is that they self correct much more quickly than our shitty little private equity illiquid corner of the universe. What is your revenue growth rate and what does this imply about your number of months of capital remaining? I put up this slide as part of my discussion.
Startup Lessons Learned
JUNE 22, 2020
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.
Both Sides of the Table
SEPTEMBER 18, 2014
At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. Your A round?
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