This is going to be BIG.

JULY 30, 2015

One of the first things I did when I joined the venture asset class as a lowly institutional LP analyst in 2001 was to build the VC fund cashflow model. You incorporate expected company returns, mortality rates, and fee structures to try to predict how a venture capital fund works from a cash in, cash out, and NAV standpoint.

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Venture Capital Pre-Money Valuation IRR Valuation 60

BeyondVC

JANUARY 3, 2019

Balanced growth vs. growth at all costs: No conversation about 2019 will be complete without considering the uncertain economic, financial and geopolitical environment in which we are currently living. Look at 2001 and 2008’s Lehman collapse and Sequoia RIP Good Times deck for lessons learned.

Stealth 79

Stealth Advisory Board Cloud Virginia 79

Pascal's View

AUGUST 12, 2009

In Silicon Valley, Boston, Austin, and other innovation centers across the country, entrepreneurs and their backers (who are not limited to venture capitalists) are all keenly aware that Washington’s addiction to enacting hasty, one-size-fits–all financial regulation will continue to have far-reaching unintended negative consequences for the U.S.

IPO 28

IPO Silicon Valley Merger Sweat Equity 28

Both Sides of the Table

OCTOBER 14, 2015

One of the points I tried to make is that as venture capital investors as an industry we seem to have a healthy disdain for public market investors. I encouraged them to stay in shorter-term space, higher per-unit costs but no capital outlays. I spoke at Michael Kim’s excellent annual Cendana VC/LP conference today.

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Burn Rate San Francisco Private Equity LP 150

500hats.com

AUGUST 2, 2012

TL:DR : This post aims to recap significant changes in the venture capital industry over the past ten years, and then make some [biased] predictions as to major forces at play in the next five years. However, all three shifts are related and can be summed up simply as: Geeks are Taking Over Venture Capital.

Silicon Valley 74

Silicon Valley Early Stage Venture Capital Valuation 74

rapidrollout.wordpress.com

JANUARY 15, 2011

Why Use a Consulting CTO A consulting CTO can help you complete a business plan by estimating costs and timelines for the company’s technology development and deployment. Though after the dotcom collapse of 2000-2001, there are many more than there were! Why are consulting CTOs so scarce? Perhaps the more failures, the better?

Fractional CTO 40

Fractional CTO CTO CTO Hire Fractional VPE 40

The Equity Kicker

JULY 3, 2013

And in fact the two forces are related: the decreasing cost of starting a startup is one of the reasons startups are becoming a more normal thing to do. They are why I stayed in the venture industry through a difficult decade 2001-2011 and why I’ve now moved to a place where we can make earlier stage investments.

Startup 100

Startup Venture Capital Operations Cost 100

Mucker Lab

DECEMBER 2, 2015

Most brilliant “Internet of Things” ideas are quicksand for capital unless you have the branding, vertical integration and customer lock-in that Apple achieved. 20 years ago, a majority of “Sand Hill” venture capital went into enterprise-focused startups. The iPod model will separate IoT platforms from fads.

Vertical 60

Vertical Widget Distribution China 60

ReadWriteStart

NOVEMBER 5, 2019

According to a study by CB Insights (2017), a software that gathers essential data from investors, companies and industries, more than 70% of startups do not exceed the first stage of venture capital investment. The rounds were conducted from 2008 to 2010, starting from seed capital. Why do so many companies fail?

Venture Capital 77

Venture Capital Cofounder Finance United States 77

Steve Blank

MARCH 18, 2011

2001 – 2010: Back to Basics: The Lean Startup. After the dot.com bubble collapsed, venture investors spent the next three years doing triage, sorting through the rubble to find companies that weren’t bleeding cash and could actually be turned into businesses. Filed under: Technology , Venture Capital. Wide Adoption.

Internet 334

Internet IPO Silicon Valley Agile 334

Growthink Blog

MAY 14, 2012

Since the Internet bubble burst in 2001, the number of IPOs hasn’t recovered to even 1980s levels. For perspective, before 2001 over 40% of all venture capital exits were via initial public offerings. Because golly, when it comes to the IPO market and public market returns in general, help is needed in a big way.

IPO 78

IPO Private Equity Initial Public Offering Balance Sheet 78

Both Sides of the Table

APRIL 27, 2010

Most of what I learned about operating startups I learned from the really tough years at my first company from 2001-2003. My company had raised venture capital in April 2001 but we were told that there may never be any more coming. So how did I come to work in the world of venture capital?

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Venture Capital Hiring Software Review Stock Options 285

finance.fortune.cnn.com

AUGUST 21, 2012

FORTUNE -- Its no secret that venture capitalists were hit hard by last decades dotcom bust, considering that median returns for 1998-2001 vintage funds are all underwater. Through 12/31/11, less than 66% of the fund-of-funds called capital had been returned to limited partners. Crosslink Ventures IV (2001): 246% (104%).

Naming 49

Naming Term Sheet Private Equity Equity 49

This is going to be BIG.

JUNE 17, 2013

After I graduated in 2001, I remember it seeming impossible to feel the same way about living in New York City. I will have setup at least two dozen of these things before the the year is out and it''s the equivalent of sponsoring a two hundred plus person event, for just a couple grand of total cost in a completely manageable way.

Community 116

Community New York New York City Hosting 116

thebarefootvc

MARCH 8, 2012

I talked about creative disruption and how many significant companies would be formed as a result of this (not dissimilar to what I saw in Silicon Valley while investing post 2001 crash). Now we have an overabundance of capital at that stage. Well, now they can’t stop writing about the NYC story!

Silicon Valley 69

Silicon Valley Ghana Venture Capital India 69

Steve Blank

JULY 11, 2016

I talked it over with some friends that night, and decided the next morning we’d have to cut all of our costs. . Especially difficult were the days after the Internet bubble burst: 2001 was a staggering blow to technology. I started working with startups and venture capitalists. If you can’t hear the clip, click here.

Silicon Valley 120

Silicon Valley Entrepreneur Cofounder Customer Development 120

Babbling VC

DECEMBER 5, 2010

This cost me money! Although I probably couldn't of avoided this mistake, I underestimated at how many tables I'd be sitting alone in 2001. I learned so much in the years I've been involved with venture capital. I never received that contract and the signature on it. A lot of it! We never led rounds.

Technical Review 76

Technical Review Europe Portfolio Germany 76

ReadWriteStart

APRIL 2, 2012

The real truth is, since the "Internet bubble" burst in 2001, initial public offerings have not resumed the vitality levels of the late 1980s, let alone the boom years of the '90s. Doing so would reduce costs for companies while still adhering to the first principle of investor protection.". Stock image by Shutterstock. Discuss.

IPO 121

IPO Startup Florida Seed Capital 121

Both Sides of the Table

SEPTEMBER 27, 2010

There are real changes in the venture capital industry and it would have been fun to talk about them. My wife worked at Google so while we had good income in Silicon Valley it’s hardly the life of luxury given the costs of housing. Answer: Not much. And that was evident on today’s Angel vs. VC panel.

Liquidity Event 308

Liquidity Event Silicon Valley Seed Stage Finance 308

Gust

SEPTEMBER 17, 2014

Me: So, you raised venture capital? 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. On the phone ….

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Liquidation Preference Valuation Term Sheet Stock 153

ReadWriteStart

APRIL 26, 2012

In an interview with ReadWriteWeb, Davidson explains how the latest industry to receive the disruption treatment has been the venture capital business itself, with the epicenter of the quake right around San Francisco. With that great decrease in cost to launch something, you have the emergence of all these new funds.

IPO 115

IPO Stock San Francisco Lean 115

Eric Friedman

AUGUST 18, 2021

I lovingly call him the curmudgeon of fintech – in this episode we go deep into how he is building a venture capital firm and practice, not just running a fund and how he views the world of fintech investing. One of the ones that really bothers me is how Venture Capitalists try and conflate what they do as being complicated.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

Software By Rob

DECEMBER 10, 2008

Right now companies are cutting costs and letting go of their $125/hour development shop. A lot of contract work is out there looking for mid- to low-cost providers. Back in 2001 I worked with a consultant who was a developer when times were really good, and a trainer when times were really bad. 2 Kevin Jenkins on 12.11.08

Programming 30

Programming Technical Review Software Review RSS 30

Both Sides of the Table

SEPTEMBER 2, 2009

In my first company I had to raise money in April 2001 or die. The very modest salary that I drew didn’t come anywhere near meeting my monthly costs so I had to eat into savings. Tags: Pitching VCs Start-up Advice VC Industry startup technology vc venture capital. That’s when the VC has lost.

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Founder Liquidation Preference Term Sheet Participating Preferred 329

Ben's Blog

MARCH 24, 2011

Let’s look at public market comparables and venture capital flows to see if we can find a match. Venture capital flows. A basic driver for a private technology market bubble is the over-supply of venture capital into the sector. If too much venture capital hits the streets, valuations will bubble up.

Technical Review 78

Technical Review Venture Capital Valuation Database 78

Pascal's View

MAY 13, 2011

Amount of venture capital raised has exploded. iii. Post bubble period 2001-2009 totals $218.2 2001: Decimalization (further loss of economics to provide market support for small companies), by reducing minimum commissions from 12.5 i. Pre bubble period 1991-1996 totals $28 billion. cents or 6.25 cents or 6.25

Equity 31

Equity Securities and Exchange Commission IPO Marketing 31

Both Sides of the Table

JANUARY 31, 2010

We raised a seed round of capital in 1999 and our first venture capital round was the first week of March 2000 (e.g. We worked out a plan to merge our company with another European competitor, raise money from both sets of investors, cut the cost base and live to fight another day. We were based in London.

Entrepreneur 308

Entrepreneur Silicon Valley San Diego Non-Compete 308

abovethecrowd.com

FEBRUARY 27, 2019

Unfortunately, either information asymmetry or physical distances and the resulting distribution costs can both cut against the economic advantages that would otherwise arise for all. Once again, this is an asset against which the marginal cost to host a dog is near zero. annual GMV.

Internet 88

Internet Matching Vertical Hosting 88

Software By Rob

SEPTEMBER 1, 2011

In October of 2001, Webster, McCarthy, and Graff decided to do just that and GoldStar was born. Started as a weekend project, the three spent money out of their own pockets to cover the cost of a domain, hosting, and started sharing their idea for free with their friends.

Bootstrapping 78

Bootstrapping Startup Cofounder Salary 78

Ben's Blog

MAY 24, 2021

billion multi-stage venture capital firm focused on IT-related investments… I also serve on various investment committees, including for the St. Jude Children’s Cancer Hospital and the Stanford Medical Center, and teach entrepreneurship and venture capital at the Stanford Graduate School of Business. 1990-1998 13.3%

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SEC Accredited Investor IPO Technical Review 36

blog.expensify.com

APRIL 24, 2012

Shame on you for spinning your desire for junior developers as being solely related to cost. ” My guess would have more to do with the costs of Windows Server licensing and the Visual Studio IDE than with the capabilities of.NET or C# (of which the above post demonstrates an extremely limited understanding). originalgeek.

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Java PHP Software Review Coder 107