Steve Blank

MARCH 31, 2014

Since the financial crisis of 2008, policy makers have kept interest rates at near zero, flooding the market with cheap money in an attempt to restart growth. Today billions of dollars that companies could have invested in innovation are sitting in the hands of private equity funds. We legalized robbing the corporate treasury.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

Both Sides of the Table

JULY 16, 2010

So as of 2008 total LP commitments were still at nearly $250 billion. So even within the “alternative class&# our LPs are looking at other asset investment choices such as distressed buyout funds, private equity or hedge funds. Our current fund was raised in 2008/09.] VC will shrink. Oh yes it will.

LP 311

LP Technical Review Early Stage Silicon Valley 311

Both Sides of the Table

SEPTEMBER 29, 2009

This came in part due to the huge influx of money into VC but also because hedge funds and private equity shops with no VC experience wanted part of the action. Bu when you start to worry that the world is ending (as it seemed it was in late 2008 / early 2009) you tend to get worried about large burn rates.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

David Teten

JULY 14, 2014

Technology innovation, globalization of markets, and recent market volatility such as the 2008 market collapse are driving painful changes (for some) in the asset management industry. ETFs have become increasingly popular because of the lower cost, generally tax beneficial structure and a wide variety of products now available.

Management 114

Management Portfolio Institutional Investors Government 114

Altgate

SEPTEMBER 16, 2010

In some strange way, a big part of his competitive advantage is that he is able to outsource everything and maintain such a low cost structure. For example, you can barter for a service or you can negotiate payment terms or even equity for service. where you can leverage some internal “low cost&# time. So it can be done.

Software Review 65

Software Review Offshore Startup Boston 65

ReadWriteStart

OCTOBER 7, 2010

Bottom line, early stage equity is very, very expensive. As a thumb rule, try to get enough validation so that you can get to at least a $2 million pre-money valuation before raising equity capital. That is debt financing that converts into equity at the Series A valuation once the price for that is set. (I

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

YoungUpstarts

NOVEMBER 14, 2018

has grown by seventeen times between 2008 and now. Meanwhile, the cost of solar panels has dropped significantly over the years. Home Equity Loan. A home equity loan is a great way to turn the existing value of your home into even more value. This equity serves as collateral for the loan. Personal Loan.

Finance 109

Finance Equity Canada Cost 109

The Startup Magazine

FEBRUARY 6, 2020

The buyers (or lessees) in these transactions are pension funds, insurance companies, or private equity representing other institutions. Private Equity sees infrastructure investing as uncorrelated diversification and has the additional upside of correcting any operational inefficiencies. Public Good Concerns.

Private Equity 129

Private Equity New York City Chicago Investment Bankers 129

View from Seed

SEPTEMBER 14, 2021

Q: What is going to happen to the cost of capital? Q: What is the opportunity cost of not being in tech? At that time, the market had enjoyed a decent recovery from the economic crisis of 2008, but hadn’t quite fully recovered to its highs in 2007. Source: Cambridge Associates (VC) & TradingView (Equities).

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

View from Seed

SEPTEMBER 14, 2021

Q: What is going to happen to the cost of capital? Q: What is the opportunity cost of not being in tech? At that time, the market had enjoyed a decent recovery from the economic crisis of 2008, but hadn’t quite fully recovered to its highs in 2007. Source: Cambridge Associates (VC) & TradingView (Equities).

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

Agile VC

APRIL 17, 2011

Revenue growth: 51% YoY (2010), 1% YoY (2009), 131% YoY (2008). Historically more revenue came from distribution/lead-gen (57% in 2007), but this tipped in 2008 though appears to be steady from 2009 to 2010 at about 58% advertising and 42% distribution. Financial Snapshot: 2010 Revenue: $170 million. 2010 Net Income: $8 million.

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

rapidrollout.wordpress.com

JANUARY 15, 2011

And finally, you may be able to avoid diluting your equity. Preserve your equity by using a consulting CTO to ramp up your company before securing early-stage financing and hiring a permanent technology partner. Increasingly, people who were only available as full-time, equity-position founders or [.]

Fractional CTO 40

Fractional CTO CTO CTO Hire Fractional VPE 40

The Startup Magazine

SEPTEMBER 2, 2021

They provide an excellent way for startups to train their employees without incurring the cost of a physical location or hiring more staff members. Employee ownership gives these entrepreneurs this autonomy as well as equity in the startup! Employee-Owned Startups. Now it’s one of the most used social media sites in the world.

Startup 127

Startup Social Media Global Incubator 127

Cracking the Code

MARCH 12, 2010

The SaaS growth recovery does not seem to take a "V" shape 2) Sales productivity is ramping up: bottom was hit in the first half of 2009 However, the sales and productivity of the group, measured by the median "Customer Acquisition Cost ratio" or "CAC ratio", seems to be recovering more steeply. 1st 2008 with a base value of 100.00

Software Review 63

Software Review Technical Review Cloud Forecast 63

David Teten

SEPTEMBER 5, 2014

This is particularly true in New York, where their traditional financial services industry client base has sustained significant damage since the 2008 financial crisis. And on the periphery, we like to help our members with some basic resources, at no additional cost. In that way, we see the value from both sides.

New York 114

New York Technical Review Networking Advisory Board 114

Startup Professionals Musings

NOVEMBER 4, 2013

They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control. IPOs in 2008, the market was up to a still trivial 128 in 2012 (compared to 675 in 1996).

IPO 224

IPO Founder Exit Strategy Investment Bankers 224

The Next Web

JANUARY 14, 2014

Back in 2008, investor Peter Thiel posited that a low CEO salary was the best predictor of startup success: “The lower the CEO salary, the more likely it is to succeed. It aligns his interest with the equity holders. Average salaries around the world vary from a low of $30,208 in India to a high of $72,363 in Australia.

Salary 167

Salary Silicon Valley San Francisco Founder 167

Both Sides of the Table

APRIL 28, 2010

It seems the focus on “virtual&# goods has been both the demo of the consumer as well as the fact that by definition virtual goods have almost no marginal costs to the seller so giving a huge slice to the carrier (and Zong) isn’t a problem since actual costs are ~ $0. 15mm in Series A. 4mm in Series A. Read more: PEHub.

Venture Capital 270

Venture Capital Cofounder Spain San Diego 270

YoungUpstarts

APRIL 29, 2018

It means you can cover unexpected costs, replace equipment, buy more stock to increase sales, or simply boost cash flow during a difficult month. Where once the bank would have been the first port of call for a loan, the 2008 recession all but closed off this option for independent businesses – and it’s never fully re-opened.

Security 197

Security Small Business Equity Stock 197

Austin Startup

NOVEMBER 25, 2018

It was there that I met Eric Simone (one of the first investors in Bazaarvoice) as well as Josh Baer (one of the first investors in Bazaarvoice through his team building our first solution and getting paid primarily in equity versus cash). 2008 Harvard Business Review. Below is a post I wrote on their Yahoo! That is a ton of money.

Bootstrapping 48

Bootstrapping Austin Equity Cofounder 48

Startup Professionals Musings

SEPTEMBER 30, 2012

They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control. IPOs in 2008, the market was up to a still trivial 159 in 2011. After a record low of 39 U.S.

Exit Strategy 239

Exit Strategy IPO Investment Bankers Entrepreneur 239

View from Seed

SEPTEMBER 14, 2021

Q: What is going to happen to the cost of capital? Q: What is the opportunity cost of not being in tech? At that time, the market had enjoyed a decent recovery from the economic crisis of 2008, but hadn’t quite fully recovered to its highs in 2007. Source: Cambridge Associates (VC) & TradingView (Equities).

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

Cracking the Code

JANUARY 22, 2009

What is my cost of capital and how much is worth an incremental upfront payment? If you assume that the cost to renew a contract costs you 20% of the MRR, then adding increasing the commission by 10% for each additional year seems reasonable. Accelerating bonuses for upfront cash payment depends on your cost of capital.

Software Review 91

Software Review Clawback Sales Salary 91

YoungUpstarts

MAY 7, 2015

In reality, many businesses are a perfect fit for ESOPs, but the business owners will never know because they think selling to a private equity or other third-party buyer are their only legitimate alternatives: Discussed below are some of the most common myths associated with ESOPs (sometimes referred to as “ESOP Fables”): 1.

Stock 100

Stock Employee Private Equity Valuation 100

Both Sides of the Table

OCTOBER 14, 2015

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. I encouraged them to stay in shorter-term space, higher per-unit costs but no capital outlays. I put up this slide as part of my discussion. Does this suck?

Burn Rate 150

Burn Rate San Francisco Private Equity LP 150

Growthink Blog

SEPTEMBER 23, 2013

Now, as to what it means that the Fed has, since 2008, expanded the U.S. Money Supply almost 400% - from $800 billion in 2008 to over $3.5 Well, with its price increasing from $500,000 to $5 million - while the amount owed on it remains fixed - all of a sudden the house’s equity to debt ratio skyrockets from 20% to 92%!

Valuation 85

Valuation Equity Finance Acquisition 85

www.reincubate.com

FEBRUARY 1, 2010

Contribute to development of primary business plan, with input on focus, costing and approach (platform, build vs. buy, resourcing, hosting strategy, time & cost). Where necessary, produce cost-benefit and risk justifications for IT initiatives to win budgetary support from the board.

Fractional CTO 40

Fractional CTO CTO Technical Review CTO Hire 40

Pascal's View

AUGUST 12, 2009

economy: “… Sarbanes-Oxley compliance costs, Eliot-Spitzer’s stock analyst settlement and the economic downturn have created an historic drought in venture-backed companies going public. . years as of year-end 2008. The median age of a venture-backed company at the time of its IPO has increased from 4.5 years in 1998 to 9.6

IPO 28

IPO Silicon Valley Merger Sweat Equity 28

Startup Company Lawyer

MARCH 14, 2010

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). under $500K).

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Both Sides of the Table

SEPTEMBER 5, 2012

This time by the efforts of Adeo Ressi to introduce a new kind of structure called “ convertible equity.” My initial reaction to Adeo when we spoke was that while it may have solved some issues (debt versus equity) it didn’t solve the ones that I’ve been warning entrepreneurs about most loudly.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

Both Sides of the Table

JULY 10, 2010

Michael is a very accomplished corporate executive in his own right having run Sega Gameworks and helped IPO EuroDisney as well as having been on the founding team of DreamWorks SKG (where he helped them raise their first $900 million in equity). Revenue of ~$160mm in 2008. We discussed: 1. TechCrunch.

IPO 242

IPO Venture Capital Private Placement Cofounder 242

Pascal's View

OCTOBER 9, 2011

On November 24, 2008 I wrote A Case Study in the Unintended Consequences of Financial Regulation: The Death of the U.S. in 2011 is not statistically meaningful and irrelevant to the thousands of startups that are finding it impossible to reach the much greater critical mass necessary to access the public equity capital markets today.

Equity 28

Equity IPO Venture Capital United States 28

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 23, 2012

After I sold Smart Bear, that division has increased revenue and profit every year, for five years, even through the 2008/2009 economic disaster. After all, before the house of cards inevitably tumbles, private equity investors get a tidy return. And the same thing happened after we sold IT WatchDogs in 2005.

IPO 240

IPO Flash Bootstrapping Private Equity 240

David Teten

MAY 8, 2012

Currently, these Crowdfunding sites don’t give donors any equity in the companies. Danae Ringelmann, Slava Rubin and Eric Schell co-founded Indiegogo in 2008 to enable anybody with a great idea to make that idea happen. For small businesses, registering a company is timely and costly in management fees, accounting fees, and legal fees.

Securities and Exchange Commission 148

Securities and Exchange Commission IRR Entrepreneur Angel Investor 148

The Startup Magazine

MARCH 3, 2020

From this time through 2008, real estate profits continued to climb, and Vagnozzi ended up repeating this process 15 more times with other fixer uppers, and also purchased 9 parcels of land and constructed and sold 9 individual homes. Save your money because there is a much larger startup cost to invest in commercial real estate.

New York City 106

New York City Marketing Technical Review New York 106

The Startup Magazine

MAY 4, 2017

Other metrics include marketing efforts, cost of production, business figures and more. million valuation ($150,000 for 10 percent equity) in 2008. Use any metrics that demonstrate the traction your startup has made in the market. Provide a call to action for your investors. Airbnb was valued at $30 billion in August 2016.

Silicon Valley 62

Silicon Valley Startup Maryland Angel Investor 62

500hats.com

AUGUST 2, 2012

Or, as my friend Marc Andreessen might say, Software Eats the Private Equity World. While a flood of new VCs came into existence during the late 90’s internet boom, many had difficulty raising new funds after the crashes of 2000-2001 and 2008 , and as a result significantly fewer fund managers exist now compared to a decade ago.

Silicon Valley 74

Silicon Valley Early Stage Venture Capital Valuation 74