Remove 2005 Remove Equity Remove Events Remove Revenue
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How to Raise Money – It’s a Journey Not An Event

Steve Blank

There are two reasons to raise money: You have a killer idea that is only partially validated, that you think can get to $50M+ of revenue in 5 years with 80%+ gross margins (if margins are lower, you need a lot more revenue)and you need money to get to product-market fit, or. Not all startups need outside investment to grow.

Cofounder 429
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Stock Market Drops. Then It Rallies. What Happens Next for Funding?

Both Sides of the Table

Companies with less than $2 million in revenue were asking for $50-60 million valuations and getting them. It was many events that led to the crash but perhaps this was the pin that pricked the market. Companies raised too much money in 2005-08 and had high burn rates. And the equity in their house isn’t rising.

Stock 305
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A Few Key People Really Can Make a Huge Difference

Both Sides of the Table

When I saw what BuddyTV is working on and how long they’ve been the market (since 2005) I realized that this has huge potential to help disrupt the television market. They can then direct staff, allocate budgets, talk to the press, connect you with politicians and attend events. Every region needs its local media & events.

Seattle 317
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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

Ah, but today’s Internet companies have real revenue! But this mania to not miss out on the next big thing is driving some investors to pay growth-equity prices for traditional market risk (as in, they’re paying up before it is clear there is product / market fit). I said that at the Founder Showcase, too. and profits!

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What Everyone Should Take Away from Twitter’s 8% Staff Reductions

Both Sides of the Table

The truth is that the brutal reality of public markets is that they self correct much more quickly than our shitty little private equity illiquid corner of the universe. What is your revenue growth rate and what does this imply about your number of months of capital remaining? I put up this slide as part of my discussion.

Burn Rate 150
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The rise of the “successful” unsustainable company

A Smart Bear: Startups and Marketing for Geeks

You can stand up at VC events and say, ‘Color,’ and people literally laugh without anything else being said.” After I sold Smart Bear, that division has increased revenue and profit every year, for five years, even through the 2008/2009 economic disaster. And the same thing happened after we sold IT WatchDogs in 2005.

IPO 240
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This Week in VC with Mo Koyfman of Spark Capital

Both Sides of the Table

Spark Capital is relatively new to VC (founded in 2005) yet has become one of the hottest new VCs having invested in Twitter, Tumblr, AdMeld, Boxee, KickApps and many more companies. Metrics: 2.5mm members, 1,000 brands, 2,500 sale events to-date. RockYou (US) was founded in Redwood City in November 2005 by Lance Tokuda and Jia Shen.