Ben's Blog

JUNE 18, 2011

If they have, then we should be able to see some evidence that the dominant public technology companies are moving towards bubble valuations. Apple’s valuation is now a case for business historians to discuss because I don’t think there are modern precedents. Ex-cash it’s 13.5. Horace Dediu, Asymco.

Technical Review 76

Technical Review Software Review Valuation Internet 76

Gust

OCTOBER 20, 2011

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Scorecard Valuation Methodology. Such comparisons can only be made for companies at the same stage of development, in this case, for pre-revenue startup ventures. The range of the data is from a low pre-money valuation of $0.8

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

Steve Blank

SEPTEMBER 14, 2009

Five Quarters of Profitability During the 1980’s and through the mid 1990’s startups going public had to do something that most companies today never heard of – they had to show a track record of increasing revenue and consistent profitability. There was now a public market for companies with no revenue, no profit and big claims.

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. Him: $12 pre.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Babbling VC

AUGUST 10, 2011

It's about to get rough out there and I am not even alluding to valuations. I am seriously babbling like everyone else did in 2001, 2008 and now again in 2011. Make your customers happy, especially the ones generating the majority of your revenues. No matter what, stay focussed on generating revenues. .

Germany 76

Germany Stock IPO Valuation 76

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. He’d gotten a random note asking about his valuation when we invested relative to another financing that was just announced.

Valuation 143

Valuation Stock Angel Investor IPO 143

Scalable Startup

AUGUST 26, 2014

As further market proof of the power of Drupal in the enterprise, Acquia has received about $100 million in funding in the past 3 months, which puts its valuation at over $1 billion. Drupal was launched in 2001, and Acquia started in 2007. There’s a lot of buzz about the Amazon acquisition of TWITCH this week. Acquia, Inc.

Founder 42

Founder Los Angeles PHP Open Source 42

Berkonomics

MARCH 25, 2012

There are many ways to project the value of a company for purposes of pricing an investment, but all rely upon the revenue and profit projections of the entrepreneur as a starting point. million), but certainly also allowing the investor to put much lower values into each test, resulting in valuations well below that amount.

Early Stage 128

Early Stage Valuation Revenue Internet 128

Steve Blank

MARCH 18, 2011

The signals are loud and clear : seed and late stage valuations are getting frothy and wacky, and hiring talent in Silicon Valley is the toughest it has been since the dot.com bubble. VC’s worked with entrepreneurs to build profitable and scalable businesses, with increasing revenue and consistent profitability – quarter after quarter.

Internet 334

Internet IPO Silicon Valley Agile 334

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? People seem concerned about valuation.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Both Sides of the Table

MARCH 11, 2010

I know the standard line, “I want to do a small round now and raise a larger round later when we get A,B,C deal done and I can raise at a higher valuation.&# If it works you’re a hero. Your revenue will take longer to ramp then you think. you may hit unexpected bumps in the road yourself making the next round tough.

Venture Capital 319

Venture Capital Startup Silicon Valley Warrant 319

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

JULY 16, 2013

You probably thought that valuations would be roughly the same as they were the last time you raised money. 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. But they most certainly are not.

Down Round 78

Down Round Marketing Preferred Stock Post-Money Valuation 78

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

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

You probably thought that valuations would be roughly the same as they were the last time you raised money. 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 But they most certainly are not.

Marketing 46

Marketing Preferred Stock Post-Money Valuation Down Round 46

Ben's Blog

MARCH 24, 2011

As we do so, keep in mind that the relevant bubble statistic is not valuation. High valuations are fine if the underlying value is there. In the great bubble of 1998-2000, the boom in public valuations mirrored the boom in private valuations. If too much venture capital hits the streets, valuations will bubble up.

Technical Review 78

Technical Review Venture Capital Valuation Database 78

Both Sides of the Table

FEBRUARY 25, 2010

million at a $15 million pre-money valuation. Morgan Stanley had proposed a higher valuation to let them in. 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. million at a $15 million pre-money valuation.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Eric Friedman

AUGUST 18, 2021

They talk about] businesses which are not contractually recurring revenue in the parlance of recurring revenue run rates. They conflate flow businesses or they conflate usage-based businesses with contractual, recurring revenue businesses, and so on. Dan Kimerling: I love 2001: a Space Odyssey. That scares me.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

VC Adventure

SEPTEMBER 4, 2015

It was a great chance to compare notes, meet far flung colleagues (“cousins” as we sometimes refer to employees at different portfolio companies) and discuss a variety of topics effecting companies selling with a recurring revenue model. increase in revenue multiple. between these companies. That’s highly significant.

Burn Rate 48

Burn Rate Portfolio Revenue Valuation 48

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. 44% 2001-2019 13.7% First, as the below chart shows, IPO pops are not a new phenomenon.

SEC 36

SEC Accredited Investor IPO Technical Review 36

Both Sides of the Table

FEBRUARY 12, 2017

(there’s a great story from Jonah in the video but you have to watch to hear it :)) But it’s undeniable that it has become a digital media powerhouse having raised around $500 million in capital with a valuation reported at $1.7 billion and revenues likely exceeding $250 million (Wikipedia lists 2015 revenue at $167 million).

Media 210

Media Los Angeles Russia Viral 210