Babbling VC

AUGUST 10, 2011

OK, hands up, who's truly surprised by the drop in the stock markets or the postponed tech IPO's or even the upcoming slowdown in venture financing? If you're a private investor in stocks, you better get ready for a financial beating unless you sold everything a couple weeks ago. . No really, who is surprised? What is the reality now?

Germany 76

Germany Stock IPO Valuation 76

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

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

OnlyOnce

JUNE 23, 2022

And yet there are days and circumstances that feel like 2001 or 2009. Yes, inflation is high, the stock market is down, and interest rates are creeping up. Plenty of businesses, especially in the tech sector, are kicking ass. It’s tough to navigate as a startup CEO. But beyond that, there’s no clear playbook. Wait, what?

Europe 62

Europe Stock Revenue Global 62

Both Sides of the Table

JUNE 22, 2011

Ah, but today’s Internet companies have real revenue! But when it’s all over and they define the era of this mini run up in stock prices I suspect they’ll include 2011 in the “over valued&# category. I said that at the Founder Showcase, too. and profits! That may be. Good things may come out of bubbles.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Ben's Blog

JUNE 18, 2011

Here is a telling statement from an analyst on Apple’s most recent quarter: Apple’s stock price to earnings ratio has dropped to 16.72. If we are in a bubble, that is a bit of an odd commentary for a company that grew revenues 83% year-over-year and grew earnings 93% year-over-year. Ex-cash it’s 13.5.

Technical Review 76

Technical Review Software Review Valuation Internet 76

Feld Thoughts

AUGUST 5, 2011

This one is more specific than “ignore the macro economy&# – instead, it’s “ignore the Dow and the stock market and get back to work on your business.&#. In 1999, 2000, and 2001 I had a my.yahoo.com page up with a bunch of stocks, including a number of companies I was an investor in, as my home page. .&#

Stock 155

Stock Entrepreneur Chicago Finance 155

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

BeyondVC

AUGUST 9, 2006

The state of the stock market for an IPO is as uncertain as it could be. Tech stocks, in particular, are once again taking a beating on Wall Street, due in part to some investment banks cutting their ratings on the U.S. Their steady rise over recent months has put adverse pressure on stocks overall. Market conditions 2.

Technical Review 60

Technical Review IPO SEC Stock 60

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? Stock Option plans. Your A round?

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Feld Thoughts

JANUARY 25, 2015

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. Imagine being an investor and being approached by a business SaaS company that has raised $5 million, has $100k / month of revenue, has been growing at about 5% per month, and is doing a $10 million round.

Finance 70

Finance Bootstrapping Acquisition Revenue 70

ReadWriteStart

AUGUST 26, 2022

So first, we were much more sort of with a high growth rate, and we did not even care about how we got the revenue when we got it. And now we are much more careful about revenue quality revenues. So this has always been our most significant focus area, whether in 2022, 2021, or 2001. . Would you say that? . David Zhang.

Partner 132

Partner Cofounder Retention Acquisition 132

Ben's Blog

OCTOBER 29, 2020

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. Taken together, we can hypothesize that overall investor demand for IPOs was weaker in 1980-1989, in the middle in 1990-98 and again in 2001-2019, and highest in the dot-com bubble.

IPO 36

IPO Securities and Exchange Commission Demand SEC 36

Pascal's View

OCTOBER 10, 2009

Decimalization, quoting stock prices in decimals instead of fractions, isn’t a problem in and of itself. This change to decimalization occurred in 2001. The problem with this, again, is that it caused market makers to lose money, so they stopped marking markets in stocks where they would lose money.

Stock 31

Stock IPO Video Revenue 31

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. And he has already vested 75% of his stock options at your company. When my company hit the fan in 2001 I could have easily walked and gotten a better paying job.

Hiring 392

Hiring Employee Vesting Silicon Valley 392

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. I learned how to retain employees when stock options were no longer a real currency.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

ReadWriteStart

APRIL 2, 2012

The real truth is, since the "Internet bubble" burst in 2001, initial public offerings have not resumed the vitality levels of the late 1980s, let alone the boom years of the '90s. It refers to this specific, new group of young, low-revenue companies for whom some of the SOX reporting regulations will no longer apply. Discuss.

IPO 121

IPO Startup Florida Seed Capital 121

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

BeyondVC

NOVEMBER 17, 2006

From April 2001 through June 30, 2006, we achieved 21 consecutive quarters of revenue growth. In fact, during the last 3 fiscal years for the company, it did $6.4mm, $10mm, and then $15mm in revenue. The trailing twelve month number is closer to $20mm in revenue. million, $0.9 million and $1.8

IPO 60

IPO Investment Bankers Demand Revenue 60

Both Sides of the Table

FEBRUARY 25, 2010

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. If it’s a biz deal you might care about IP protection, revenue share, investment commitments to joint marketing – whatever.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Feld Thoughts

APRIL 7, 2017

It’s the summer of 2001. By breakfast in the summer of 2001, the stock was trading under $1 / share. He certainly didn’t have to get up every day and go to the office, which by the summer of 2001 was a real business battle on multiple fronts. The NASDAQ peak is in the rear view mirror. I was exhausted. But he did.

SEC 148

SEC New York Venture Capital Partner 148

Eric Friedman

AUGUST 18, 2021

But then again, I’m not a gold bug, I don’t trade stocks, I don’t go to casinos. They talk about] businesses which are not contractually recurring revenue in the parlance of recurring revenue run rates. Dan Kimerling: I love 2001: a Space Odyssey. In that regard, I don’t understand crypto.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

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

YoungUpstarts

JUNE 3, 2014

But really — what are the measurable facts and figures that say “This is a great company whose stocks have long-term value”? Look for companies that make the Best Places to Work lists and are industry leaders in revenue per employee. He has been a regular panelist on television’s Forbes on FOX since the show’s inception in 2001.

Leadership 225

Leadership Social Media Employee Agile 225

om.co

FEBRUARY 5, 2013

I had been writing GigaOM (the blog) since December 2001, but in 2003, I started working on a piece for Business 2.0 I remember sitting down in the balcony of my apartment and looking into the night, taking stock of my life so far. Here is the TL:DR version in case you are pressed for time. STARTING IT UP. What I had learned and why.

Founder 80

Founder Conversion Distribution Silicon Valley 80

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. double the rate of the prior year, 103 of those being venture-backed companies.

SEC 36

SEC Accredited Investor IPO Technical Review 36