Both Sides of the Table
JUNE 22, 2011
I know that most people who are close to them tend to deny their existence, as we saw in the great housing bubble of 2002-2007 and the dot com bubble of 1997-2000. Ah, but today’s Internet companies have real revenue! And for some that means that despite waiting they may see worse valuations in the future than now.
Feld Thoughts
JANUARY 2, 2023
Its revenue grew by 30%+. Another company had a revenue decline of 25%. 2002 sucked, but it wasn’t as dreadful. No one will value a company with a GM% of 10% at the same as a company with a GM% of 80% just because they are growing revenue at the same rate. Its gross margin grew by 30%+. Its EBITDA grew by 30%+.
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Feld Thoughts
JANUARY 7, 2015
Companies were being bought (and valued) at 10x forward revenue only to be valued at between 0.5x revenue several years later. We were bought for a more reasonable 1x revenue (and about 4x pre-tax income) when the value of the AmeriData stock, options, and cash we took out were factored in. I’d argue the 0.5x
Agile VC
MAY 26, 2011
Silicon Valley is still emerging from the tech bubble and massive downturn of late 2000-2002. To give you a sense, for 2002 the entire US online ad market was $6B and had shrunk year over year (it was $25B+ for 2010). round which closed in November 2003, and the pre-money valuation between $10 million and $15 million.
Up and Running
JULY 23, 2014
That usually ends up as something like “[this similar company] was purchased by [that company] in [that year] for [that amount], which was [that multiple] of its revenues.” ” The standard phrase in that context is “5X” for an exit value of five times revenues, or “10X,” or whatever.
Austin Startup
AUGUST 20, 2017
Keep the valuations consistent with company progress. The bottom line is that the pedigree of your investors will have much to do with your ultimate valuation and with your enjoyment of the startup experience. I am very surprised when that cool thing actually meets a customer need or drives revenue.
www.inc.com
SEPTEMBER 24, 2011
But with the help of Grahams company, which specializes in creating tech systems for start-ups, Jumpstart grew to more than $50 million in revenue--enough to make it an attractive acquisition for media conglomerate Hachette Filipacchi. In 2002, he stepped gingerly into the work-for-equity arena, with a modest investment in one start-up.
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