David Cohen

MARCH 30, 2020

By 2002 the NASDAQ had fallen by nearly 80%. Uber took the shockingly low valuation of $4m when raising it’s first $1.5m. 3m valuation. Less than a $2m valuation for their seed round. We raised a lifetime grand total of $100,000 for that business in the form of advance payment from early customers. You must be nuts.

Founder 174

Founder Valuation Startup IP 174

Feld Thoughts

JULY 19, 2018

“Historically, the $10 million valuation mark has been somewhat of a ceiling for seed stage startups. By 2002 investments at the seed level had evaporated (there were almost no seed financings happening). Yesterday, in one of the quarterly updates that we get, I saw the following paragraph.

Early Stage 105

Early Stage Seed Stage Valuation Finance 105

YoungUpstarts

MAY 5, 2017

Since its founding in 2002, Musk’s SpaceX (Space Exploration Technologies) has been at the forefront in the conceptualization and manufacture of efficient space rockets. Joe Carlen is the co-founder of Value Guards, LLC and a practitioner of business valuation, patent valuation, and market assessment.

New Mexico 138

New Mexico Albuquerque Mexico Egypt 138

David Teten

SEPTEMBER 16, 2014

Angel Investment Activity, 2002-2013. Villalobos & Payne: “Startup Pre-Money Valuation: The Keystone to Return on Investment” 117. In 2013, 298,800 angels invested in 70,730 entrepreneurial ventures, according to the 2013 Angel Market Analysis by the Center for Venture Research at the University of New Hampshire.

Angel Investor 114

Angel Investor Technical Review Venture Capital Pre-Money Valuation 114

Hearpreneur

AUGUST 5, 2020

The SARS outbreak in 2002 leads to the tremendous growth of online marketplace platforms in China. Another pointer is to how much the industry is ready for disruption is the trend of recent HR and Recruitment startups such as Zenefits which reached up to a valuation of a billion dollars after a few years. 19- Silvertech.

Technical Review 156

Technical Review Software Review Entrepreneur China 156

The Startup Magazine

NOVEMBER 13, 2018

Zhitao runs Hangzhou Liaison Interactive, which is a Chinese technology-based company founded in July 2002. This company’s valuation peaked at $10 billion in 2013/2014. He invested in a new division in his company in 2009 and has expanded significantly since then. He owns a substantial amount of shares in the company. Olaf Carlson Wee.

Cofounder 142

Cofounder Venture Capital India Valuation 142

Feld Thoughts

DECEMBER 10, 2018

Unlike the endless stream of predictions that are about to come out, it’s an analysis of the spread between the public market and private company valuations. If you lived through the Internet-bubble between 1999 and 2002 you know this cycle well. Fred Wilson’s post Thinking Ahead To 2019 is worth reading.

DC 112

DC Equity Hosting Valuation 112

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. Many of us suffered in the 2000–2002 dotcom crash and/or the 2007–2009 Great Recession; others hardly noticed a blip.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Both Sides of the Table

DECEMBER 5, 2010

The Past (1985-2002). Next began the era of “spam-based&# networks of which Plaxo (founded in 2002) was the king. MySpace would liked to have owned YouTube but didn’t have the public stock valuation to purchase them at the price that Google did. Social Networks: Past, Present & Future. The Present Era.

Social Network 318

Social Network Networking Internet Technical Review 318

Startup Professionals Musings

MAY 9, 2016

For example, there once was a social network called Friendster , often credited with starting the social networking boom way back in 2002. You need to nurture non-organic growth partnerships and acquisitions to maximize your valuation. That’s necessary but not sufficient to scale most businesses.

Social Network 120

Social Network Demand Valuation Acquisition 120

Hearpreneur

JULY 28, 2019

This concept was explored in cinematic form in the film ‘Minority Report’ (2002) in which people are served advertisements in public places based on their personal profiles on an individual basis. Photo Credit: Rio Rocket. The future is now and the technology is Personal Digital Merchandising.

Technical Review 50

Technical Review Technology Artificial Inteligence Entrepreneur 50

David Teten

MARCH 24, 2014

We over-weighted small cap value stocks in 1998-2002. However, it was the right thing to do from a valuation perspective. Our value in the past has come from big tactical asset allocation bets. It was a nutty thing to do at the time. And it helped our returns.

Software Review 114

Software Review Due Diligence Venture Capital Portfolio 114

www.inc.com

SEPTEMBER 24, 2011

In the past few years, hundreds of small companies have been snatched up by private equity firms willing to agree to ever-rising valuations. In 2002, he stepped gingerly into the work-for-equity arena, with a modest investment in one start-up. Its easy to see where Graham is coming from. Graham liked the idea.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Agile VC

JANUARY 21, 2015

Not every round of funding is closed at a “monster” valuation. We went public in 2002 and eBay bought the company later that year for over $1.5 But the reality of tech entrepreneurship is that not everyone is “killing it,” and certainly not all of the time. The Power of Perception . PayPal ultimately became a very successful company.

Cofounder 188

Cofounder Seed Stage Employee PR 188

VC Adventure

JUNE 15, 2011

But what’s going on right now with early stage company valuations suggests that VCs may be poor judges of at least some of these patterns. In 2002 a series of random shootings rocked the Washington DC area. .&# Or so the logic goes. For a period of about two weeks, an unknown assailant killed 10 people in a sniper like fashion.

DC 92

DC Valuation Early Stage Washington 92

Both Sides of the Table

FEBRUARY 7, 2014

Between 1995-2002 I visited often – especially since I founded my first company there. Scenes from my counter-top on my last night in Dublin. I recently returned from a 5-day visit to Ireland, my first time back in 10 years and the start of what I hope will be a more regular travel schedule there. It will not.

Ireland 392

Ireland Global Las Vegas Switzerland 392

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. 3/29/2002: 82.5. So, the average company on the S&P 500 IT index with $10M in annual earnings would be worth $210M in March of 1995, $820M in March of 2002, $310M in March of 2004 and $155M in March of last year.

Down Round 78

Down Round Marketing Preferred Stock Post-Money Valuation 78

Agile VC

NOVEMBER 9, 2015

I’ll address potential valuation further down the post here. Unfortunately the fact that the company raised capital in private markets at a healthy valuation ($6B) and the uncertainty about having a CEO who’s attention is divided between two public companies obscures this story.

IPO 165

IPO .Net Revenue Acquisition 165

View from Seed

JANUARY 11, 2017

But mainly we did it because these corporate VCs were among the only groups willing to invest at PayPal’s somewhat inflated post-money valuation, during the middle of the dot-com crash when traditional VCs pulled back sharply and other sources of funding were constrained.

Strategic Investors 120

Strategic Investors Post-Money Valuation Seed Stage Cofounder 120

YoungUpstarts

MARCH 14, 2012

This valuation rubric ignores both cost of capital and degradation of long-term assets, prompting Warren Buffett to mock the metric at a Berkshire Hathaway Annual Meeting in 2002, saying, “People who use EBITDA are either trying to con you or they’re conning themselves.” EBITDA is often used in loans covenants.

Non-disclosure Agreement 202

Non-disclosure Agreement NDA IPO Covenant 202

View from Seed

JANUARY 26, 2016

In the years immediately prior to the popularity of institutional seed investing (I’m using a time frame of 2002 – 2007), the early-stage financing landscape looked similar to the first segment of the chart. Series A investors invested quite early, often before product/market fit. Also, the stage of the company tends to be very early.

Seed Stage 120

Seed Stage Early Stage Cofounder Finance 120

View from Seed

JANUARY 20, 2015

Not every round of funding is closed at a “monster” valuation. We went public in 2002 and eBay bought the company later that year for over $1.5 But the reality of tech entrepreneurship is that not everyone is “killing it,” and certainly not all of the time. The Power of Perception .

Cofounder 120

Cofounder Startup Employee PR 120

Agile VC

JANUARY 21, 2015

Not every round of funding is closed at a “monster” valuation. We went public in 2002 and eBay bought the company later that year for over $1.5 But the reality of tech entrepreneurship is that not everyone is “killing it,” and certainly not all of the time. The Power of Perception . PayPal ultimately became a very successful company.

Cofounder 100

Cofounder Seed Stage Employee PR 100

VC Adventure

JUNE 15, 2011

But what’s going on right now with early stage company valuations suggests that VCs may be poor judges of at least some of these patterns. In 2002 a series of random shootings rocked the Washington DC area. .” Or so the logic goes.

DC 48

DC Valuation Early Stage Washington 48

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. 3/29/2002: 82.5 So, the average company on the S&P 500 IT index with $10M in annual earnings would be worth $210M in March of 1995, $820M in March of 2002, $310M in March of 2004 and $155M in March of last year.

Marketing 46

Marketing Preferred Stock Post-Money Valuation Down Round 46

Feld Thoughts

APRIL 21, 2016

In 2001 and 2002 I learned a brutal set of lessons, including experiencing that $100 million of paper money going to $0 when Interliant went bankrupt. And, as a VC, I experienced a VC fund that was quickly worth over 2x on paper that ultimately resulted in being a money losing fund.

Marketing 70

Marketing Down Round Startup IRR 70

Austin Startup

JULY 23, 2010

The cash looks good on the balance sheet, and venture investors want to pile on money at low valuations before the valuation increases by 10x as a public stock. It’s common for even profitable companies to raise a large round in preparation for an IPO. Or both things could be happening. Or both things could be happening.

Balance Sheet 67

Balance Sheet Private Equity LP IPO 67

Cracking the Code

SEPTEMBER 2, 2008

2002, the stock price went from $17.5 Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. Did he really "accidentally" made several hundred million dollars by investing in a company (NetSuite) that raised $120m and turned it into a $1B market cap… What an unsuccessful outcome! per share to $8.0

Software Review 48

Software Review Software Technical Review Cloud 48

Agile VC

NOVEMBER 13, 2012

Sarah also points to the vast global wealth that has to get allocated somewhere as well as a small bump in long term average returns, now that the generally terrible performance of funds from the 2000-2002 time frame (after the tech bubble of the late 90s crashed) no longer factor in to 10 year returns.

LP 154

LP Portfolio Venture Capital IRR 154

Cracking the Code

MAY 15, 2008

With the oil barrel price moving from $20 in 2002 to $124 today, and cities like San Francisco in active discussion to build a 5-megawatt installation within the city limits , this prediction seems on its way - and was widely approved by the audience. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation.

Software Review 48

Software Review Technical Review San Jose Venture Capital 48

finance.fortune.cnn.com

AUGUST 21, 2012

Overall, the fund-of-funds is 97% called for 45 funds raised between 1999 and 2002. MPM BioVentures III (2002): 76% (44%). We agreed to withhold the name of the fund-of-funds manager and to not post the source documents, as a condition of receiving the materials. JK&B Capital IV (2001): 85% (15%).

Naming 49

Naming Term Sheet Private Equity Equity 49

Both Sides of the Table

JANUARY 31, 2011

Mostly you read about fundings, product releases, big valuations, and M&A. It was 2002 – the “dog days&# of the Internet and we were running out of cash. And for ones that do get sold often most of the employees don’t really make huge upside gains. I’m not trying to be negative.

Entrepreneur 384

Entrepreneur Startup Salary Egypt 384

Both Sides of the Table

JANUARY 22, 2011

Mostly you read about fundings, product releases, big valuations, and M&A. It was 2002 – the “dog days&# of the Internet and we were running out of cash. And for ones that do get sold often most of the employees don’t really make huge upside gains. I’m not trying to be negative.

Entrepreneur 176

Entrepreneur Startup Salary Egypt 176

Mike Michalowicz

OCTOBER 14, 2012

I have my own one-pager of “look how great I am” bullet points – building and selling a couple companies before my 35th birthday, writing a few business books, facilitating angel and VC raises (and getting ridiculous valuations), hosting business makeover segments on TV, keynoting a lot and being the CEO of a business consulting group.

.Net 167

.Net Securities and Exchange Commission California Angel Investor 167