Both Sides of the Table

JULY 22, 2010

Due to competitive markets we ended up with a pretty good term sheet until we needed to raise money in April 2001 and then we got completely screwed. VC’s in early rounds will argue that “participation&# is simply downside protection and if you sell for a lower price they should get more of the proceeds. This is a shame.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

View from Seed

NOVEMBER 7, 2019

Aggregate VC investment in 2009 hits a low of roughly $20B, a figure last seen in 2003 in the wake of the bursting of the dotcom and telecom bubble and 2001 recession. And even for early stage startups, VCs raise eyebrows at companies that have modest gross margins. VC funding for startups is drying up quickly. 2020 and Beyond?

IPO 202

IPO Early Stage Cofounder B2C 202

YoungUpstarts

DECEMBER 16, 2013

And when the team exited from the Champions League (the competition he held in the highest regard of all) at an early stage in the same season, he blamed his own team selections and tactics. When United lost the Premier League title, by the narrowest of margins, at the end of the 2012 season, he blamed himself, not the players.

Leadership 185

Leadership Employee Early Stage Naming 185

David Teten

FEBRUARY 3, 2014

Leading Late-Stage Technology Investors’ Portfolio by Geography, 2001-1Q2010. Battery & Sequoia data only include late stage/growth equity deals. Their late stage deals outside of the venture centers outperform by ~5% vs. those in the venture centers; early stage deals outperformed by ~4%.

Private Equity 114

Private Equity Venture Capital Technical Review Equity 114

Mucker Lab

OCTOBER 12, 2016

Combined with the usual summer slowdown, some are already raising the spectre of 2001 or 2008. Financially, they have to reserve capital to support large portfolio companies that account for big portions of the portfolio and thus make less early stage investment. The “venture recession” of 2016 is in full swing.

Harvest 60

Harvest Vertical IPO Early Stage 60

Both Sides of the Table

SEPTEMBER 2, 2009

A friend of mine is a serial entrepreneur and is running a high-profile, early stage company in NorCal. In my first company I had to raise money in April 2001 or die. On a panel that I sat on with Ron in LA in 2008 he stated that there were no circumstances in which the founder should take money off of the table.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

Both Sides of the Table

FEBRUARY 25, 2010

I lived through this again September 2001. I’ve offered to fund an early stage company where I promised cash in bank in less than 30 days. I lived through this again September 2001. I’ve offered to fund an early stage company where I promised cash in bank in less than 30 days. We hit sub 2 weeks.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Gust

OCTOBER 20, 2011

This worksheet provides the investor with a basis for deciding if a start-up company should be valued near the top or bottom of the range of values that might reasonably be applied to such an early stage venture. This article was originally written in May 2001, revised extensively in January 2011 and again October 2011.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

BeyondVC

JANUARY 3, 2019

Look at 2001 and 2008’s Lehman collapse and Sequoia RIP Good Times deck for lessons learned. Either you’re a mega fund or an early stage fund, being caught in the middle is a place you don’t want to be.

Stealth 79

Stealth Advisory Board Cloud Virginia 79

Agile VC

NOVEMBER 7, 2019

Aggregate VC investment in 2009 hits a low of roughly $20B, a figure last seen in 2003 in the wake of the bursting of the dotcom and telecom bubble and 2001 recession. And even for early stage startups, VCs raise eyebrows at companies that have modest gross margins. VC funding for startups is drying up quickly. 2020 and Beyond?

IPO 100

IPO Early Stage Cofounder B2C 100

Austin Startup

JUNE 27, 2017

Valuations in startups increased dramatically during the Dot Com boom and then both valuations and the availability of investment capital nationally collapsed in 2001 with the Dot Com bust and 9/11. Entrepreneurs with early stage companies typically look for local funding before going out of region to pursue other funding sources.

Venture Capital 54

Venture Capital Austin Texas Private Equity 54

Feld Thoughts

JUNE 20, 2014

With yesterday’s announcement that early-stage VC Greycroft has raised a $200 million growth fund , this type of fund has officially become a trend. ” Prior to this, plenty of VC firms invested across the early stage to late stage spectrum from the same fund (e.g.

Early Stage 147

Early Stage Later Stage Syndicate Syndication 147

K9 Ventures

SEPTEMBER 8, 2015

What everyone can agree on, though, is that there are definitely more seed and early stage funds now than ever before, and more people willing to give money to young companies looking to make it big. In late 2000, early 2001 I started my second company to test whether I can build a successful company again.

San Francisco 48

San Francisco Early Stage Portfolio Software Engineering 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. 44% 2001-2019 13.7% First, as the below chart shows, IPO pops are not a new phenomenon.

SEC 36

SEC Accredited Investor IPO Technical Review 36

Feld Thoughts

JUNE 20, 2014

With yesterday’s announcement that early-stage VC Greycroft has raised a $200 million growth fund , this type of fund has officially become a trend. ” Prior to this, plenty of VC firms invested across the early stage to late stage spectrum from the same fund (e.g.

Early Stage 108

Early Stage Later Stage Syndicate Syndication 108

500hats.com

AUGUST 2, 2012

While a flood of new VCs came into existence during the late 90’s internet boom, many had difficulty raising new funds after the crashes of 2000-2001 and 2008 , and as a result significantly fewer fund managers exist now compared to a decade ago. In the past ten years there have been several dramatic changes in venture capital.

Silicon Valley 74

Silicon Valley Early Stage Venture Capital Valuation 74

Both Sides of the Table

JANUARY 16, 2012

I raised money as an entrepreneur, like you, in 1999, 2000, 2001, 2003 and 2005 for two different companies. And trust me, if you’re early stage you DO want to meet Bryce. He’s awesome for early-stage entrepreneurs. Meet early. I’ve raised seed rounds and A-D rounds. Not so much.

Developer 366

Developer Silicon Valley PR Las Vegas 366

Both Sides of the Table

JUNE 28, 2010

This lasted from about 2001-2004. Since then Mike his built his career by investing in early-stage companies (seed or series A), which is remarkable given that Polaris Ventures is a $1 billion fund. -Example of publishers include: moviefone, Fandango, Jingle, SayNow, and voice blogs. Founded in Sunnyvale, CA in 2001.

San Francisco 230

San Francisco Los Angeles Cofounder SMS 230

Both Sides of the Table

SEPTEMBER 14, 2010

This is exactly what happened in the broader VC industry between 1999-2001 as many people without the requisite skills entered the industry. Their first call is often into one of the above or the many other successful early stage investors including Marc Andreessen, Jeff Clavier or Mike Maples.

Silicon Valley 306

Silicon Valley Deal Flow Angel Investor Cofounder 306

YoungUpstarts

MARCH 3, 2020

Vancouver executive Christopher Kape is an entrepreneur and venture capitalist who founded JAMCO Capital Partners , an early-stage investment and strategic advisory firm that focuses on a number of industries, including gaming, high-tech, food and wellness.

Partner 147

Partner Uganda Angel Investor Bulgaria 147

VC Cafe

JANUARY 9, 2011

Billion dollars in the period of 2001-2010, says Globes in an article published today. The amount was calculated by the Israel MoneyTree Report for 2001-2010, conducted quarterly by PricewaterhouseCooper Israel. Early stage investments in Israel have dropped as well, compared to investments in more mature businesses.

Venture Capital 97

Venture Capital Early Stage Partner 97

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.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

David Teten

NOVEMBER 30, 2020

Hybrid “is the most far-reaching, in-depth program for early-stage ventures led by Arabs in Israel. We start and fund early-stage companies, primarily in innovative medical devices and life sciences, and encourage Arab and Jewish entrepreneurship.” . We are entirely equity and profit free.”. Takwin Labs.

UAE 60

UAE United Arab Emirates Technology 60

Eric Friedman

AUGUST 18, 2021

He is also co-founder and Managing Partner of Deciens Capital, an early stage investment fund. A second aspect of it is I knew I wanted to go do early stage financial services Venture Capital and I didn’t think there was an obvious way to do it within that context. Dan Kimerling: I love 2001: a Space Odyssey.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

View from Seed

JANUARY 11, 2017

I was an early employee at PayPal and back in the 2000-2001 timeframe, and we ended up taking a fairly significant amount of strategic investment (tens of millions of $) from various banks in the US, Europe, and Asia. All things being equal, seed and early stage startups are not usually well suited to take strategic investments.

Strategic Investors 120

Strategic Investors Post-Money Valuation Seed Stage Cofounder 120

Agile VC

JULY 19, 2012

Back in the 2000-2001 timeframe, a flood of LP capital was coming into the VC asset class given the strong returns of the mid-late 90s tech boom/bubble. This is true not only in a firm’s dealings with entrepreneurs but also with it’s limited partners and even within the firm among its partners.

Cofounder 193

Cofounder Limited Partner Early Stage LP 193

Startup Professionals Musings

MAY 9, 2011

The second company in which I invested, back in 2001, was a novel concept from the serial entrepreneur who invented social networking. David: The exponential development of technology has begun to cause deep and fundamental changes to the world of early stage finance. The third company is still alive.

New York 221

New York Accredited Investor Advisory Board IRR 221

The Startup Magazine

AUGUST 11, 2017

” The Outstanding 50 Asian Americans in Business Awards Gala Dinner was first established in 2001 by the Asian American Business Development Center (AABDC) and has remained the only forum to highlight the achievements of Asian Americans business professionals across the U.S.

Illinois 77

Illinois Chicago Entrepreneur Cofounder 77

genylabs.typepad.com

SEPTEMBER 24, 2011

Before you agree to take equity in lieu of cash, you need to understand that any individual early stage start-up company equity is most likely going to be worthless. The best start-up I ever invested in went bankrupt in 2001. Even the best venture capital firms have a lot of failures and few successes. what your rights are.

Equity 40

Equity Technical Review San Jose Stock 40

David Teten

JANUARY 13, 2015

For early-stage founders, I suggest AngelList and Crunchbase. For later-stage companies, I suggest the Association for Corporate Growth online community, Axial , and Preqin. When I was running an Israel-based company in 1999-2001, my location was a significant barrier.

Venture Capital 60

Venture Capital Advisory Board Greece Cofounder 60

VC Cafe

MAY 3, 2012

Inventor Benny Landa, who previously founded digital printing technology company Indigo, which was sold to HP in 2001 for $830 million said:“Each press can print in up to eight colors and operate at 600 dpi or 1200 dpi resolution, at speeds up to 11,000 sheets per hour.”. BG NEGEV LICENSES PARKINSON’S DRUG PLATFORM. DIGITAL GENERATION INC.

Denmark 96

Denmark Ireland Europe 96

Both Sides of the Table

AUGUST 24, 2015

I’ve seen friends (and family members) lose much of their savings that way over the years because “Black Swans” happen and in 1987, 2001, 2003 & 2008 (just to name a few from my memory) huge market gyrations caused much financial distress to people seeking short-term gains. So plan your start date accordingly.

Stock 150

Stock Finance Marketing Valuation 150

ReadWriteStart

APRIL 26, 2012

Bullpen is one of a growing number of early-stage funds - or, perhaps more accurately, "earlier-stage," since even his is no longer the first out of the gate. stock market: The change led by NASDAQ in early 2001 to valuing stocks in increments from one-eighth of a dollar down to one cent. How old is Instagram?

IPO 115

IPO Stock San Francisco Lean 115

Berkonomics

NOVEMBER 4, 2016

Originally created in the mid 1990’s to help with the imprecise problem of how to value early stage companies, especially those in technology, I developed what soon became known as “The Berkus Method” when published in the popular book, “Winning Angels” by Harvard’s Amis and Stevenson with my permission in 2001.

Valuation 48

Valuation North Carolina Oklahoma City Silicon Valley 48

rapidrollout.wordpress.com

JANUARY 15, 2011

Preserve your equity by using a consulting CTO to ramp up your company before securing early-stage financing and hiring a permanent technology partner. Though after the dotcom collapse of 2000-2001, there are many more than there were! Why are consulting CTOs so scarce? For one thing, you’ll learn from his mistakes.

Fractional CTO 40

Fractional CTO CTO CTO Hire Fractional VPE 40

Both Sides of the Table

FEBRUARY 17, 2011

million and you’re an early stage business this is probably a fair deal. As anyone raising money in April 2000, September 2001 or September 2008 can tell you that. I like to tell entrepreneurs that the “fairway&# of fund raising is 25-33% per round. So if you can take 27% dilution for $1.5

Pre-Money Valuation 303

Pre-Money Valuation Dilution Valuation PR 303

Both Sides of the Table

SEPTEMBER 27, 2010

I discussed it in my post on the topic linked above. ** One small note: many VCs who got into the industry in 2001 or later have never seen a “carry&# check. This is evidenced by the current price creep that we’re experiencing for early-stage deals.

Liquidity Event 308

Liquidity Event Silicon Valley Seed Stage Finance 308