Both Sides of the Table

DECEMBER 11, 2022

And then in the late 90’s money crept in, swept in to town by public markets, instant wealth and an absurd sky-rocketing of valuations based on no reasonable metrics. 2001–2007: THE BUILDING YEARS The dot com bubble had burst. We wanted new things to exist and to solve new problems and to see our creations come to life.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

Steve Blank

SEPTEMBER 5, 2018

Jeff Katzenberg has a great track record – head of the studio at Paramount, chairman of Disney Studios, co-founder of DreamWorks and now chairman of NewTV. Tech IPO prices exploded and subsequent trading prices rose to dizzying heights as the stock prices became disconnected from the traditional metrics of revenue and profits.

Lean 335

Lean Burn Rate Startup IPO 335

Both Sides of the Table

SEPTEMBER 10, 2021

In 2001 companies IPO’d very quickly if they were working, by 2011 IPOs had slowed down to the point that in 2013 Aileen Lee of Cowboy Ventures astutely called billion-dollar outcomes “unicorns.” They might be ideas they hatch internally (via a Foundry) or a founder who just left SpaceX and raises money to search for an idea.

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

Mucker Lab

OCTOBER 12, 2016

Following the inevitable ups and downs of the VC investment cycle, and what founders can do when it all turns cold. Combined with the usual summer slowdown, some are already raising the spectre of 2001 or 2008. The “venture recession” of 2016 is in full swing.

Harvest 60

Harvest Vertical IPO Early Stage 60

Austin Startup

MARCH 2, 2019

I made very few edits to the original post, mostly in the area of readability and grammar (not in substance of content): Spurred on by my recent Lucky7 post on how capital efficient Bazaarvoice was on its path to IPO , two friends sent me great posts this week on entrepreneurship and risk. I saw this movie in Silicon Valley?

Advisory Board 51

Advisory Board Cofounder Greece Bootstrapping 51

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?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

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