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

Both Sides of the Table

FEBRUARY 17, 2011

A year ago I blogged about one of my most common mantras that applies to sales, biz dev & fund raising alike: “ Time is the Enemy of all Deals.&#. When times are really good for fund raising many teams delay to maximize their valuation. 5 million raised at a $9 million pre-money valuation or 35.7% 25% dilution).

Pre-Money Valuation 303

Pre-Money Valuation Dilution Valuation PR 303

Berkonomics

MARCH 25, 2012

Because the Internet has such a long memory and documents from the distant past can be found with ease, a search the “The Berkus Method” today will yield a number of conflicting valuations culled from the many subsequent publications of the method over the ensuing years. Email readers, continue here.]

Early Stage 128

Early Stage Valuation Revenue Internet 128

Steve Blank

SEPTEMBER 14, 2009

billion for a company with less than $50 million in sales. Underwriters realized that as long as the public was happy snapping up shares, they could make huge profits on the inflated valuations (regardless of whether or not the company should have ever been public.)

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

genylabs.typepad.com

SEPTEMBER 24, 2011

I wont bother going into details on start-up financing terms ( see this post for an overview of typical VC terms) except to say if you dont know and understand: the firms cap table and valuation. The best start-up I ever invested in went bankrupt in 2001. what kind of stock you are getting. what your rights are.

Equity 40

Equity Technical Review San Jose Stock 40

finance.fortune.cnn.com

AUGUST 21, 2012

FORTUNE -- Its no secret that venture capitalists were hit hard by last decades dotcom bust, considering that median returns for 1998-2001 vintage funds are all underwater. The information is based on part of a confidential year-end 2011 investment report distributed to investors in a fund-of-funds that made commitments between 1999 and 2001.

Naming 49

Naming Term Sheet Private Equity Equity 49

thebarefootvc

AUGUST 26, 2015

As someone who invested through the 2001 and 2008 crashes I can assure you that down rounds and fire sales are not fun for anyone involved. Pay attention to who you’re taking money from and aim for a reasonable valuation. Don’t be penny wise, pound foolish.

Marketing 40

Marketing Investment Bankers Valuation China 40

thebarefootvc

AUGUST 26, 2015

As someone who invested through the 2001 and 2008 crashes I can assure you that down rounds and fire sales are not fun for anyone involved. Pay attention to who you’re taking money from and aim for a reasonable valuation. Don’t be penny wise, pound foolish.

Marketing 40

Marketing Investment Bankers Valuation China 40

thebarefootvc

JULY 26, 2015

As someone who invested through the 2001 and 2008 crashes I can assure you that down rounds and fire sales are not fun for anyone involved. Pay attention to who you’re taking money from and aim for a reasonable valuation. Don’t be penny wise, pound foolish.

Marketing 40

Marketing Investment Bankers Valuation China 40

ReadWriteStart

AUGUST 26, 2022

The startup didn’t work out, but I found ways to be around it, whether it was on the sales side in Goldman for a few years. So this has always been our most significant focus area, whether in 2022, 2021, or 2001. . That’s a valuation number and pricing number. I never had to focus on building a sales team.

Partner 132

Partner Cofounder Retention Acquisition 132

Seeing Both Sides

AUGUST 3, 2012

They didn’t raise their Series B until they proved some of the initial hypotheses around market adoption and were ready to scale the sales efforts, as described below. Despite the Internet bubble bursting, the company was able to generate over $160 million in revenue in 2001. Scaling Akamai – Part 1: A Little Fat. Gross Profit. $(60).

Distribution 49

Distribution Lean Massachusetts Cofounder 49

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. VC, sales, biz dev, M&A or otherwise. million at a $15 million pre-money valuation. Morgan Stanley had proposed a higher valuation to let them in.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

aweissman.com

DECEMBER 18, 2006

The valuations (ie, price of the stock) of venture backed companies are rising precipitously. - I am seeing a marked increase in M&A books done by bankers pitching venture backed start ups, with astronomic valuations associated with the potential sales of such start ups What does this mean?

Valuation 20

Valuation Stock Venture Capital Equity 20

Startup Company Lawyer

FEBRUARY 21, 2010

This was particularly common from 2001 to 2003, after the dot-com crash when companies had raised a large amount of venture financing at high valuations. Some companies have implemented junior preferred stock, which often receives a certain percentage liquidation preference on the sale of the company. Junior Preferred Stock.

Retention 31

Retention Liquidation Preference Employee Common Stock 31

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