The Equity Kicker

APRIL 8, 2015

It seems to me there are two obvious explanations for the dramatic reduction in the time it takes for companies to achive $1bn valuations: The pace of change is increasing allowing new companies to develop and mature faster. We are in a bubble – at least for late stage companies.

Valuation 60

Valuation Finance Developer Startup 60

Feld Thoughts

JULY 19, 2018

“Historically, the $10 million valuation mark has been somewhat of a ceiling for seed stage startups. For anyone that remembers 2000-2003, this obviously ended badly. In addition to our own funds, we are investors in a number of other early-stage VC funds as part of our Foundry Group Next strategy.

Early Stage 105

Early Stage Seed Stage Valuation Finance 105

Steve Blank

SEPTEMBER 14, 2009

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.) For the next four or five years, technology M&A boomed, growing from 50 in 2003 to 450 in 2006.

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

Both Sides of the Table

NOVEMBER 9, 2009

It was 2003 and I was training for a marathon so I was in great shape (yes, I know this was YEARS ago but I did complete it in 3:57). When you bring them up you take the issue off the table. I can’t say that they’ll get over the issue, but they won’t hold it against you for not bringing it up. Small story.

Venture Capital 264

Venture Capital Due Diligence Flash Strategic Investors 264

Gust

NOVEMBER 4, 2011

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. Valuation caps can come into play in settings other than seed-stage convertible note financing rounds. Read on for a fuller explanation. by February 2006).

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

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

techcrunch.com

SEPTEMBER 2, 2012

She graduated from Columbia University in 2003, where she was. Sometimes these loans have a valuation cap and/or a discount. The point, he says, is to avoid time-consuming valuation negotiations and allowing a variable amount of capital to be raised. → Learn More.

Equity 87

Equity San Francisco Technical Review Angel Investor 87

thebarefootvc

MAY 8, 2012

This is also what I advise entrepreneurs when discussing dilution and valuation — think of the bigger picture and the end game of what you are looking to build — and who will help you get there.

Venture Capital 78

Venture Capital Syndicate Syndication Bandwidth 78

Both Sides of the Table

AUGUST 24, 2015

I’ve seen friends (and family members) lose much of their savings that way over the years because “Black Swans” happen and in 1987, 2001, 2003 & 2008 (just to name a few from my memory) huge market gyrations caused much financial distress to people seeking short-term gains. So plan your start date accordingly.

Stock 150

Stock Finance Marketing Valuation 150

Seeing Both Sides

NOVEMBER 30, 2013

We looked at the companies in New England (call them "Boston and surrounding") that had exited in the last 10 years (2003-2013) with greater than $500 million in market valuation. In order to have a reasonable population of companies to assess, we tweaked Aileen''s definition.

Boston 55

Boston Technical Review Silicon Valley Software Review 55

The Equity Kicker

NOVEMBER 4, 2013

Aileen Lee of early stage fund Cowboy ventures wrote a post for Techcrunch yesterday looking at the characteristics of 39 startups founded since 2003 that are worth over $1bn. Fred’s Hackpad lists $1bn+ value companies founded after 2003 and founded before 2003. Now the list is not complete (e.g.

Startup 113

Startup Europe Early Stage Venture Capital 113

Hunter Walker

JUNE 7, 2022

And with the tech valuation reckoning underway, if you’ve been RIF’ed you’re not alone. When I left in 2003 we agreed that my final title could be focused on Product and Marketing, since that’s what I was interested in pursuing next. The Things to Know When You Lose Your Job In A Downturn. RIF aka reduction in force.

Stock Options 94

Stock Options Vesting Stock Valuation 94

The Startup Magazine

NOVEMBER 13, 2018

Holmes founded a company known as Theranos in 2003 when she was just 19 years old. This company’s valuation peaked at $10 billion in 2013/2014. Today, he is worth $1.5 Elizabeth Holmes. She was a sophomore student at Stanford University at the time. Holmes dropped out of university to focus on her company.

Cofounder 141

Cofounder Venture Capital India Valuation 141

Both Sides of the Table

JULY 16, 2013

I remember just a decade ago in 2003 when we all laughed at how dumb people in the 90′s were talking about the race to “capture as many eyeballs as possible” before your competition. I start to notice when bad behavior creeps into the system as a whole. I have seen much of that behavior over the past 2 years get worse.

Burn Rate 412

Burn Rate Dilution Revenue Valuation 412

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. People seem concerned about valuation. At an accelerator ….

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

techcrunch.com

APRIL 26, 2013

She graduated from Columbia University in 2003, where she was. No wonder the platform is rumored to be raising a round at a $150 million valuation or more. From 2004 to 2007, she helped lead Congresswoman Carloyn Maloney’s community outreach and relations efforts in New York City. → Learn More. Wednesday, April 24th, 2013.

SEC 61

SEC Accredited Investor San Diego New York City 61

Both Sides of the Table

SEPTEMBER 28, 2013

It’s 2003 and VCs aren’t exactly lining up to fund startup businesses. Dilution / valuation. I hate when companies publish too much information about the total stock option allocations, the company valuations, the dilution faced in every round, etc. Would now be a good time to buy a house? ” “Buy a house?

Startup 417

Startup Dilution San Diego Stock Options 417

David Teten

AUGUST 7, 2019

than comparable companies in the same sector that raised at a higher valuation. In 2000, LPs invested $104b into 638 funds, but by 2003, LPs’ commitment rate had dropped to just $11b into 161 funds. It doesn’t really matter what valuation you pay for the big winners, because the returns are so high in the megacorns.

Venture Capital 60

Venture Capital Valuation Stock NDA 60

Growthink Blog

OCTOBER 1, 2014

Last week , I wrote about the strong ambition across the globe to have a "Silicon Valley of One''s Own," and to replicate the otherworldly innovation of a region that has produced more than 75% of the World’s Unicorns - technology companies started since 2003 that now have valuations of more than $1 billion.

Silicon Valley 63

Silicon Valley Private Equity Venture Capital IPO 63

Duct Tape Marketing

DECEMBER 14, 2017

We started that company in 2003, and we sold it in the 2011, so you frame up the timing. Partly what I’m getting is a lot of people want to sell their business, but it’s actually very difficult for somebody to even valuate it. They were very much a luxury item. It was a different day and age.

Kansas City 40

Kansas City CTO Hire Las Vegas Software Developers 40

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. 3/31/2003: 44.6. And those are big companies with real earnings, so you can imagine how a private company’s valuation might fluctuate. In June of 2000, I raised money at an $820M post-money valuation.

Down Round 78

Down Round Marketing Preferred Stock Post-Money Valuation 78

Agile VC

NOVEMBER 6, 2013

1) Skepticism of Startup IPOs is Behind Us – A few years ago there was exceptional dubiousness of new technology companies, which along with the tech crash of ’01-02 and recession of ’08-09 strongly contributed to the IPO drought from 2003-2010. A couple things factor into this.

IPO 194

IPO Aggregator B2B Internet 194

Duct Tape Marketing

APRIL 28, 2011

Multipliers for the brand Valuation experts rely on certain data, such as revenue, profit and market conditions to attempt to assign a value to business being bought or sold. The deal ends this Saturday April 30. Note: There have been some updates since I published th. 5 Practical Tips for Gett. : 5 Steps to Successful Fac.

Marketing 65

Marketing Valuation Differentiation Lead Generation 65

Agile VC

NOVEMBER 13, 2012

There was a healthy amount of capital ($20-30B annually) invested in VC funds during the 2003-2008 timeframe. Yes, it was less than the $100B+ that came in ’99-00 but that was bubble driven aberration no matter how you look at it. In the mid 2000′s VC’s were largely prospering.

LP 154

LP Portfolio Venture Capital IRR 154

thebarefootvc

JULY 3, 2016

After spending time in Silicon Valley (from 1999-2003), Boston, London and Chicago, I moved back to NYC in 2004 and have been fortunate to witness the technology and startup growth for the past 10+ years. FPV is well positioned in 2016 given the Fund’s discipline around valuations and terms through the past year.

North America 40

North America Early Stage New York City Portfolio 40

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. 3/31/2003: 44.6 And those are big companies with real earnings, so you can imagine how a private company’s valuation might fluctuate. In June of 2000, I raised money at an $820M post-money valuation.

Marketing 46

Marketing Preferred Stock Post-Money Valuation Down Round 46

thebarefootvc

FEBRUARY 3, 2016

After spending time in Silicon Valley (from 1999-2003), Boston, London and Chicago, I moved back to NYC in 2004 and have been fortunate to witness the technology and startup growth for the past 10+ years. FPV is well positioned in 2016 given the Fund’s discipline around valuations and terms through the past year.

North America 40

North America Early Stage New York City Portfolio 40

VC Cafe

AUGUST 15, 2011

Dotomi, which was founded in 2003, raised $17 million in funding since its inception from Globespan Capital, US Venture Partners, Investor Capital and Velocity. a privately held maker of at-home dermatological products, is merging with US company Photomedex in a share swap deal that gives Radiancy a $175 million valuation.

China 90

China Cofounder India 90

pandodaily.com

NOVEMBER 29, 2012

Lastly, seed-stage entrepreneurs who have pushed for the maximum valuation possible haven’t done themselves any favors. Meanwhile, their seed investors aren’t particularly incentivized to get them a Series A that crams the previous valuation down. Jeff Zucker to be new president of CNN Worldwide.

Technical Review 93

Technical Review Silicon Valley Incubator Syria 93

Campus Entrepreneurship

JANUARY 18, 2012

Including the current class of fellows, 138 awards have been made since the program was created in 2003. Egan, University of California, Berkeley “Rights to Valuations in Venture Capital Backed Startups: The Effects of Reputations” Erik P. Gilje, Boston College “Does Local Access to Finance Matter?: Evidence from U.S.

North Carolina 43

North Carolina Maryland Michigan Los Angeles 43

reidhoffman.org

NOVEMBER 12, 2013

Friendster was at its height, strongly battling MySpace after raising its premium round from Benchmark and Kleiner in the fall of 2003. Friendster’s valuation set the tone for the entire social networking space. Friendster raised a big round in 2003; MySpace started gaining traction.

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111

Bryce Dot VC

SEPTEMBER 28, 2015

What that meant is that six companies a year could achieve a hundred million in revenue or a billion in valuation. So last year Eileen Lee, did this amazing study where she dug into data going back to 2003. When I got started in venture capital conventional wisdom said there are really six companies a year that mattered.

Venture Capital 40

Venture Capital Valuation Los Angeles Chicago 40

Altgate

DECEMBER 11, 2008

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← Great Startup Event In Boston A Squeeze On Boston Venture Valuations → White Collar Crime Spree Posted on December 11, 2008 by fnazeeri What is going on with the rash of “white collar&# crime? Bernie Madoff.

SEC 28

SEC Boston Nashville Illinois 28

Scalable Startup

JULY 19, 2011

In 2003 Electronic Arts actually moved their headquarters from Silicon Valley to Playa Vista, an crazy move at the time, and accelerated their growth as a result. If you seek maximum scalability, the best capital providers, the best people, the highest valuations, you gotta be in Cali. tomnora @cowlow.

California 20

California Southern California San Francisco Silicon Valley 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. In response to the problem of worthless common stock, some companies have implemented employee retention plans, which are also referred to as M&A carveout plans.

Retention 31

Retention Liquidation Preference Employee Common Stock 31

www.readwriteweb.com

OCTOBER 18, 2010

Her Entrepreneur Journeys book series, Entrepreneur Journeys , Bootstrapping: Weapon Of Mass Reconstruction , Positioning: How To Test, Validate, and Bring Your Idea To Market Innovation: Need Of The Hour , as well as Vision India 2020 , are all available from Amazon.

Marketing 52

Marketing Bootstrapping Incubator Angel Investor 52

www.readwriteweb.com

OCTOBER 18, 2010

Her Entrepreneur Journeys book series, Entrepreneur Journeys , Bootstrapping: Weapon Of Mass Reconstruction , Positioning: How To Test, Validate, and Bring Your Idea To Market Innovation: Need Of The Hour , as well as Vision India 2020 , are all available from Amazon.

Marketing 52

Marketing Bootstrapping Incubator Angel Investor 52