The Startup Magazine

FEBRUARY 6, 2020

In 2008, the city of Chicago, belabored by annual pension funding shortfalls, over-unionization, decaying infrastructure, and governed by a small group of incestuous alderman, moved to privatize the entire city’s parking meter operations. Of course, there are also cautionary examples that did not work out as well.

Private Equity 164

Private Equity New York City Chicago Investment Bankers 164

Berkonomics

NOVEMBER 21, 2013

The days of being able to trust that there will be an investor or lender on the other end of a call or email whenever needed ended with the 2000 and 2008 bursts of those respective bubbles. There is no longer a guarantee that VCs and later stage investors will be waiting at the run-out point of the angel money to pick up and grow the company.

Later Stage 83

Later Stage Early Stage Email Revenue 83

View from Seed

JANUARY 26, 2016

For reference, First Round Capital and Softech were founded in 2004 (although they were less institutional early on), Floodgate in 2006, Harrison Metal in 2008, etc. So, between 2008 and 2013, the early-stage landscape looked more like the middle segment of the chart.

Seed Stage 120

Seed Stage Early Stage Cofounder Finance 120

This is going to be BIG.

MARCH 30, 2015

Sam Altman of YC recently pointed out that pulling back during the downturn in 2008 would result in several big misses: In October of 2008, Sequoia Capital—arguably the best-ever in the business—gave the famous “RIP Good Times” presentation (I was there). A few months later, we funded Airbnb.

Hockey Stick 60

Hockey Stick Valuation Startup Maryland 60

Startup Lessons Learned

FEBRUARY 20, 2009

The sooner you pass your work on to a later stage, the sooner you can find out how they will receive it. If you can start getting ROI on a feature in month one of a twelve month project versus waiting until the end, youve comparatively reduced the cost of development by the revenue generated by that feature over 11 months.

San Francisco 161

San Francisco Software Review Continuous Deployment Development Team Review 161

Steve Blank

OCTOBER 24, 2017

— Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed: IPOs/M&A without a profit (or at times revenue) have become the norm. Typically, this caliber of bankers wouldn’t talk to you unless your company had five profitable quarters of increasing revenue. Board Control.

Founder 263

Founder Technical Review CTO Hire IPO 263

Altgate

MARCH 8, 2009

There are three types of venture investing (early stage, “growth&# stage and later stage. Early stage means the first real investors in a startup when the team could be as small as 5-10 people. So in the current collapse, the later stage investors will fare the best, or should I say least worst.

Later Stage 34

Later Stage Early Stage Venture Capital Portfolio 34

Both Sides of the Table

FEBRUARY 14, 2016

That was written in September 2008. forward revenue for SaaS businesses when in the years before it had been less than 5x. In September 2008 this was the bankruptcy of Lehman Brothers and the rippling effect was massive. So the multiples paid by publics matter and when they drop, the late-stage markets drop, too.

Valuation 150

Valuation Down Round Startup Later Stage 150

VC Cafe

NOVEMBER 9, 2011

October 2011 was the worst month for IPOs since 2008. If you don’t have over 100-150 million in revenue, then stay private, it is quite hard in the public market with that little revenue.” Josh: A lot of companies have IPO’d with less than 40 million in revenue, now you need a minimum of 70-100 million to IPO.

IPO 92

IPO Cofounder Europe 92

pandodaily.com

NOVEMBER 29, 2012

But at a macro level, widespread failure this early is far less painful than if it came at later stages. As a result, Pandora is nowhere near profitable at more than $103 million in quarterly revenue, paying more than half of this sum to labels for content licenses. ” On a micro level, failure is always painful.

Technical Review 93

Technical Review Silicon Valley Incubator Syria 93