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

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. The professor plotted data and showed us statistically that most people buy stocks when they are booming (e.g.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

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.

Silicon Valley 60

Silicon Valley Equity Stock Finance 60

Feld Thoughts

OCTOBER 30, 2014

He had just read my post on being uncomfortable with the phase of the current cycle and told me an anecdote from the great Internet bubble of 2001 that I hadn’t heard. In it, he talks about how he handles public company stocks that he ends up with either via an IPO or a sale of a company he’s involved in to a public company.

Valuation 143

Valuation Stock Angel Investor IPO 143

Steve Blank

MARCH 18, 2011

VC’s worked with entrepreneurs to build profitable and scalable businesses, with increasing revenue and consistent profitability – quarter after quarter. With Netscape’s IPO , there was suddenly a public market for companies with limited revenue and no profit. 2001 – 2010: Back to Basics: The Lean Startup. The New Exits.

Internet 334

Internet IPO Silicon Valley Agile 334

ReadWriteStart

AUGUST 26, 2022

So, think of the typical two founders with a pitch book in a garage. 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’re a crossover fund.

Partner 132

Partner Cofounder Retention Acquisition 132

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. Revenue multiple? At an accelerator …. Your A round?

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Both Sides of the Table

APRIL 22, 2010

It’s still important advice for startup founders and something that I’m passionate about. You’re a startup founder. You start fighting with your co-founder whom you thought you understood. And he has already vested 75% of his stock options at your company. This is part of my startup advice series.

Hiring 392

Hiring Employee Vesting Silicon Valley 392

Feld Thoughts

JANUARY 25, 2015

But even if you, as the founder, believe it, you are still probably deluding yourself. We funded the business with $10 (for ten shares of stock) and my dad personally guaranteed a $20,000 line of credit with his bank. Your revenue growth flattens out for a few quarters but you didn’t get ahead of the cost dynamic.

Finance 70

Finance Bootstrapping Acquisition Revenue 70

Ben's Blog

JULY 16, 2013

Perhaps you are caught in the “Series A crunch” or perhaps you are a consumer company and expected that you would be valued on users rather than revenue like the last time. 3/30/2001: 26.3. They might have said something ridiculous like: “Based on the current price of the preferred stock, your offer is already worth $5M.”

Down Round 78

Down Round Marketing Preferred Stock Post-Money Valuation 78

Seeing Both Sides

AUGUST 3, 2012

With over $1 billion in revenue, 2000 employees and a market capitalization of over $6 billion, Akamai has become a role model for scalable start-ups. billion in revenue, over $1 billion in gross profit and $500 million in EBITDA. The first year of revenue (1999) was $4 million – a remarkable achievement. Gross Profit. $(60).

Distribution 49

Distribution Lean Massachusetts Cofounder 49

Ben's Blog

JULY 16, 2013

Perhaps you are caught in the “Series A crunch” or perhaps you are a consumer company and expected that you would be valued on users rather than revenue like the last time. 3/30/2001: 26.3 They might have said something ridiculous like: “Based on the current price of the preferred stock, your offer is already worth $5M.”

Marketing 46

Marketing Preferred Stock Post-Money Valuation Down Round 46

om.co

FEBRUARY 5, 2013

Om Malik is the founder of GigaOM. He is the founder of Desiparty.com. Evolution of a Founder: Lessons I have learned. Being a startup founder is hard, tough, frustrating and rewarding – possibly all within the space of a nanosecond. Are You Winning As a Founder? He is a venture partner at True Ventures.

Founder 80

Founder Conversion Distribution Silicon Valley 80

Eric Friedman

AUGUST 18, 2021

Dan is the co-founder of Standard Treasury, a Y Combinator backed company. He is also co-founder and Managing Partner of Deciens Capital, an early stage investment fund. How do you get to that point if you have that kind of a view of the world, of founders, and of this space? Fred Ehrsam , his co-founder, is also incredible.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

Both Sides of the Table

FEBRUARY 25, 2010

My co-founder and other management team members wanted us to hold off and see whether we could get the deal done at a higher price. I lived through this again September 2001. If anything changed (stock market crash, real estate crash, somebody trying to buy Salesforce.com, whatever) I could end up with goose eggs.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

abovethecrowd.com

FEBRUARY 27, 2019

Founded by Michael Bruno in Paris in 2001, 1stdibs (*) is the world’s largest online marketplace for luxury one-of-a-kind antiques, high-end modern furniture, vintage fashion, jewelry, and fine art. The estimated annual GMV of GOAT and its leading competitor Stock X is already over $1B per year (on a combined basis). annual GMV.

Internet 88

Internet Matching Vertical Hosting 88