Both Sides of the Table

FEBRUARY 28, 2018

We seed funded a company a few years ago called Parachute Home that has grown 180% CAGR (compounded annually) and is now doing tens of millions of revenue with very little capital raised. I will use some examples from Parachute and some other portfolio companies to give you examples from our experiences of watching successful brands grow.

Curation 296

Curation Los Angeles Differentiation Channel 296

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). - Your revenue will take longer to ramp then you think. .&# If it works you’re a hero. add a buffer. that is the correct amount to raise.

Venture Capital 319

Venture Capital Startup Silicon Valley Warrant 319

Both Sides of the Table

DECEMBER 13, 2010

Within a year, by late 2000 / early 2001 consulting firms were firing people en masse. On July 27th, 2001 Accenture IPO’s and many of the partners grew fabulously wealthy. Since that date the S&P 500 is up 2.45% while Accenture stock is up 206% with revenue of $23 billion and a market cap of $32 billion.

Turkey 302

Turkey Differentiation IP Technical Review 302

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. and we ultimately sold when we hit $14 million and had more than $30 million in backlog revenue.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

Both Sides of the Table

APRIL 22, 2010

Your revenues are “just around the corner.&# Your angel investors are nervous because the VCs aren’t moving that fast to fund your next round. When my company hit the fan in 2001 I could have easily walked and gotten a better paying job. You have Google guys sending you CVs. Then your competitor launches better shit.

Hiring 392

Hiring Employee Vesting Silicon Valley 392

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. They raised at $40 million pre-money for pre-revenue companies and when the economy corrected it became hard for them to refinance themselves.

Liquidity Event 308

Liquidity Event Silicon Valley Seed Stage Finance 308

Both Sides of the Table

SEPTEMBER 2, 2009

We should end the year with a few million in fully recurring revenue and we’re projected to double next year. But more spend = more viral opps = more revenue down the road. >50% of our revenue in now viral. In my first company I had to raise money in April 2001 or die. Probably revenue based.

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. If it’s a biz deal you might care about IP protection, revenue share, investment commitments to joint marketing – whatever. I lived through this again September 2001. Many companies that were in the process of raising money did not. Anybody who didn’t close was dead.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Both Sides of the Table

DECEMBER 18, 2009

This was soon after the bursting of the dot com bubble – in early 2001. million in recurring revenue of which $600k came from Germany. The agreement was that both sets of investors would fund the combined entity, we would reduce overlapped costs and become a healthier company. But we did $2.1 The next year we did $5.9

Germany 298

Germany Entrepreneur Merger Los Angeles 298

Both Sides of the Table

MAY 7, 2011

As an example, Joel says that there is a chief revenue officer who is solely responsible for bringing in revenue to StackExchange. He is responsible for bringing in revenue from advertising and their careers offering. Lesson: Joel had been building a community of readers since 2001. 29:45 minutes. How did you leave Juno?

Software Review 285

Software Review Software St. Louis API 285

Both Sides of the Table

FEBRUARY 12, 2017

billion and revenues likely exceeding $250 million (Wikipedia lists 2015 revenue at $167 million). Around 2001 Jonah was studying at MIT Media Lab and began running experiments in viral stories in an era before smart phones (2007) and before social networks took off (2004–2007) and before YouTube (2005).

Media 210

Media Los Angeles Russia Viral 210