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. Why did the VC markets freeze so quickly? Market downturn – We all know that investors move in herds.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

Growthink Blog

JANUARY 19, 2014

What started as a small company has since grown into an easily recognizable brand which owns a significant portion of its own market. That changed in 2001, however, and GoDaddy.com quickly grew. In 2011, 65% of the company was sold to a group of private equity firms for approximately $2.25 Is it relevant in today’s market?

Technical Review 104

Technical Review Private Equity Hosting Advertising 104

Austin Startup

JUNE 27, 2017

For investors outside of Austin and LPs: Austin is a a vibrant startup market and this list of capital sources can help you identify firms to co-invest with and funds to invest in. Sevin Rosen in Dallas launched the next year and throughout the 1980s and 1990s the two firms vied for their place in the Texas market.

Venture Capital 54

Venture Capital Austin Texas Private Equity 54

Both Sides of the Table

AUGUST 24, 2015

If you didn’t notice that the stock markets in the US dropped nearly 4% today (after falling last Thursday and Friday) then you were probably completely off-the-grid and on vacation. And by this I assume he meant that “market prognosticator twitter” was vomitous. It was a nerve racking morning. Neither do I.

Stock 150

Stock Finance Marketing Valuation 150

The Startup Magazine

NOVEMBER 13, 2018

Investments from capital markets to real estate plummeted. Belnick founded BizChair.com with $500 in 2001. These shares propelled him to billionaire status in 2015 when the firm’s market value soared. In 2014, the company raised $28 million in shareholder equity. Ten years have passed since this crisis occurred.

Cofounder 142

Cofounder Venture Capital India Valuation 142

Growthink Blog

MAY 14, 2012

Because golly, when it comes to the IPO market and public market returns in general, help is needed in a big way. 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.

IPO 78

IPO Private Equity Initial Public Offering Balance Sheet 78

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. This crisis could be different.

Silicon Valley 60

Silicon Valley Equity Stock Finance 60

K9 Ventures

SEPTEMBER 8, 2015

2) New market (less common form, examples are Lyft and eShares) and 3) New business model (least common, non-K9 portfolio examples are PriceLine and SolarCity). At K9 we focus on the first two, either core new technologies and technology platforms or new markets. New Technology or New Market, meaning no “me too” ideas.

San Francisco 48

San Francisco Early Stage Portfolio Software Engineering 48

Steve Blank

SEPTEMBER 14, 2009

To do this they have to accomplish five things; 1) get deal flow – via networking and legwork, they identify likely industries, companies and teams with the potential for rapid growth (less than 10 years), 2) evaluate those companies and teams on the basis of technology, market opportunity, and team.

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

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. And so forth.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Early Growth Financial Services

OCTOBER 23, 2014

In case you missed our recent webinar, we featured panelists Lucas Nelson, Principal, Gotham VC; Marlon Nichols, Director, Intel Capital; Alan Wink, Director of Capital Markets for EisnerAmper LLP; and Sirk Roh, COO for Early Growth Financial Services. This was the largest quarterly investment total since 2001’s first half.

Pre-Money Valuation 59

Pre-Money Valuation Equity Valuation Startup 59

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. 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.

Burn Rate 150

Burn Rate San Francisco Private Equity LP 150

Pascal's View

MAY 13, 2011

iii. Post bubble period 2001-2009 totals $218.2 years in 2007- the longest gestation period since 1991: What has driven these changes to the capital markets and are they permanent or temporary? This is a good example of technology driven market change being accelerated by new securities regulations). 80% of IPO’s <$50MM.

Equity 31

Equity Securities and Exchange Commission IPO Marketing 31

rapidrollout.wordpress.com

JANUARY 15, 2011

And finally, you may be able to avoid diluting your equity. 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! Try Google.

Fractional CTO 40

Fractional CTO CTO CTO Hire Fractional VPE 40

YoungUpstarts

MARCH 3, 2020

A successful venture capitalist, Chris and his team at JAMCO continue to consult with and maintain equity positions with a range of firms operating in his areas of expertise. Chris Kape: I established JAMCO in early 2001 in the wake of the dot-com bubble collapse. The future is also exciting for JAMCO.

Partner 147

Partner Uganda Angel Investor Bulgaria 147

finance.fortune.cnn.com

AUGUST 21, 2012

Term Sheet The latest on private equity, M&A, deals and movements — from Wall Street to Silicon Valley. 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. Crosslink Ventures IV (2001): 246% (104%).

Naming 49

Naming Term Sheet Private Equity Equity 49

Both Sides of the Table

MARCH 11, 2010

But there are also problems / risks: - the funding environment might change dramatically – there may never be a next round (see: March 2000, September 11, 2001 and September 2008). - there may be major competitive changes in the market that makes your next funding round hard (e.g. Who started this meme? Should you take it?

Venture Capital 319

Venture Capital Startup Silicon Valley Warrant 319

The Startup Magazine

MARCH 3, 2020

By 2001, he was invested in the stock market and witnessed a unique situation where the stock market was in a tumble and, simultaneously, real estate was going up. Analysis of the CRE Market in the US. When these leases are up and rates increase by a couple of points, it could negatively impact the entire market.

New York City 107

New York City Marketing Technical Review New York 107

Ben's Blog

OCTOBER 29, 2020

Demand matters: IPOs are a bull market product Gauging demand for an IPO can be difficult, in part because so many IPO order books are over-subscribed. Interestingly the data for the 1990-98 and 2001-19 time periods are roughly the same – approximately one-quarter of deals priced above the initial filing range.

IPO 36

IPO Securities and Exchange Commission Demand SEC 36

500hats.com

AUGUST 2, 2012

While institutional LPs know big changes are happening, most focus too much on 1) increasing/decreasing fund size or 2) marketing + branding as the major trends. Or, as my friend Marc Andreessen might say, Software Eats the Private Equity World. This is a long piece, so if you’re not a fan of inside baseball, skip it.

Silicon Valley 74

Silicon Valley Early Stage Venture Capital Valuation 74

Pascal's View

AUGUST 12, 2009

Between 2001 and 2008 mergers and acquisitions (M&A) accounted for 87% of venture-backed company exits, up from an average of 44% in between 1992 and 2000. Second, emerging growth companies lose negotiating leverage in acquisitions when they have no other viable liquidity alternatives. Investors take risk in order to reap rewards.

IPO 28

IPO Silicon Valley Merger Sweat Equity 28

David Teten

MAY 16, 2011

Kupietzky held a variety of management roles in marketing, sales and product management at world-class technology companies: Digital Insight (Intuit), Loudcloud/Opsware (Hewlett-Packard) and Siebel Systems (Oracle). Prior to business school, Mr. Barhydt held various sales and marketing leadership positions for smaller high-tech companies.

Naming 122

Naming Government Intellectual Property LLC 122

Growthink Blog

MARCH 12, 2012

Stengel’s great credibility comes from both his remarkable career - where he rose through the ranks to become Proctor and Gamble's global marketing officer, arguably the biggest marketing job in the world with a $9 billion marketing budget responsibility for famed P&G brands like Crest, Duracell, Gillette, Pampers, and Tide.

Equity 72

Equity Global Marketing 72

Gust

SEPTEMBER 17, 2014

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. But lawyers will charge much more for equity.” I’m not sure.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

ReadWriteStart

AUGUST 26, 2022

Instead, that’s the sort of pre-series-A investment where companies or founders have visions of where they think there are underserved market needs, and they’re coming up with something super excited to try to solve that. . We come in after a product has landed and found product market fit and has some escape velocity.

Partner 132

Partner Cofounder Retention Acquisition 132

Altgate

APRIL 28, 2012

—————————————– I’ve been collecting data about startups and compensation since 2001. The big difference is in equity: Startup CEOs who are not founders get 6.2 times as much equity as the lowest-paid member of their team. Myth number 2.

Silicon Valley 50

Silicon Valley Vesting New York City Equity 50

www.noamwasserman.com

MARCH 26, 2012

I’ve been collecting data about startups and compensation since 2001. The big difference is in equity: Startup CEOs who are not founders get 6.2 times as much equity as the lowest-paid member of their team. One exception is the Midwest, where startups tend to strike a different balance between cash and equity compensation.)

Silicon Valley 40

Silicon Valley Vesting New York City Equity 40

The Next Web

OCTOBER 10, 2013

Of course, Excite also went bankrupt in 2001, so maybe five is a terrible number? At that time, Mac computers made up a mere 6 percent of the market and I argued we needed to focus on other areas. But having cofounders who can give perspective can help you see a different side of the market. The last is a designer.

Cofounder 143

Cofounder Technical Cofounder Kenya Dilution 143

Venture Chronicles

OCTOBER 31, 2010

Don Dodge wrote about a very dry but critically important issue facing private companies that issue equity to employees… 409A valuations : IPO bump? Companies are required to price their employee stock options close to the “market valuation&#. This breaks the conventional wisdom about pre-IPO stock options.

Valuation 42

Valuation Stock Options Lock-up Period IPO 42

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. If you could return investors nearly triple their money and mid 20's returns consistently, compared to the 8% long term return in the public equities market, they'd more than accept that.

Venture Capital 60

Venture Capital Pre-Money Valuation IRR Valuation 60

blog.captainrecruiter.com

MARCH 8, 2012

These professionals can help with anything from finance to marketing, but you wont find any software engineers volunteering their services. It's not a question of me being unwilling to work for equity -- I am. Will an marketer commit to promoting a OSS project? Because software engineers dont work for free. Not likely.

Cofounder 40

Cofounder Technical Cofounder Founder Software Engineering 40

Hearpreneur

SEPTEMBER 16, 2020

Unfortunately, he was fired and all of that potential equity disappeared. Conant joined the team in 2001, just as sales were declining for the company and its market value was decreasing. Thanks to Paige Arnof-Fenn, Mavens & Moguls ! #2- 2- Noah Kagan. Photo Credit: Bruce Harpham. Photo Credit: Deborah Sweeney.

Entrepreneur 107

Entrepreneur China Incubator Philippines 107

David Teten

FEBRUARY 3, 2014

It might appear that origination is becoming much easier because of new tools like AngelList and the SEC moving toward adoption of rules that will allow equity based crowdfunding. We published the full report in the Journal of Private Equity ; it’s now the #2-most viewed article in the Journal’s history.

Private Equity 114

Private Equity Venture Capital Technical Review Equity 114

Both Sides of the Table

SEPTEMBER 2, 2009

We could do more in 2010 with more VC investment; the doubling assumes only ratable increase in marketing spend to achieve profitability. In my first company I had to raise money in April 2001 or die. We should end the year with a few million in fully recurring revenue and we’re projected to double next year.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

Gust

OCTOBER 20, 2011

Individual accredited investors in typical angel deals put personal capital at risk for an equity share of growth-oriented, start-up companies. For this round of investment, the angels collectively purchase 20-40% of the equity of the company and are seeking a return on investment of 20-30X in a period of five to eight years.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

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. Razor thin or negative gross margins are accepted (or even ignored) on the widely accepted view that growth and market share are what really matters in terms of value creation.

IPO 202

IPO Early Stage Cofounder B2C 202

Eric Friedman

AUGUST 18, 2021

One dimension is a pretty firm belief that starting financial services companies should not be as hard as it is, and that there is demand in the market for yet another venture fund focused on functionally day-zero companies in financial services. Dan Kimerling: There are a couple of dimensions. You have to pick one. Everything we do.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88