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Welcome to the Lost Decade (for Entrepreneurs, IPO’s and VC’s)

Steve Blank

Number of Venture Backed Liquidity Events 1991-2000. Number of Venture Backed Liquidity Events 2000-2010. During the decade between 1991 and 2000, nearly 2000 venture backed companies went public. Take a look at the chart below. (It It includes venture funded startups in all industries, from software to biotech.

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Connecting the Dots: How New Job Creation, IPO’s, and Venture Capital in America Are Intimately Linked

Pascal's View

Source: New York Times Opinion article, Inventing Our Way Out of Joblessness by Hank Nothaft and Paul Michel, August 5, 2010 ). For the detailed study behind (ix) and the two slides above, read “Market Structure Is Causing the IPO Crisis– And More”, by David Weild and Edward Kim , published by Grant Thornton in June 2010.

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New Rules for the New Internet Bubble

Steve Blank

Lean Startups/Back to Basics (2000-2010): No IPO’s, limited VC cash, lack of confidence and funding fuels “lean startup” era with limited M&A and even less IPO activity. The reward for doing so was a liquidity event via an Initial Public Offering. 2001 – 2010: Back to Basics: The Lean Startup.

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Sell at the top? Avoid the race to zero!

Berkonomics

LivingSocial took in $583 million in capital in 2010 and 2011 with little left in time to show for the investment and tremendous dilution to the founders. There are only a few Uber or AirBnB investments to point to – where the street value of the company may ultimately validate that amount of investment.

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What I *Would Have* Said at TechCrunch Disrupt

Both Sides of the Table

If the company is moderately successful, growing and has great prospects for the future than a small liquidity event will help founders & venture capitalists to be aligned. The hardest thing is deciding what the right time to allow founder liquidity is. It is such a disconnect.

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Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

As of August 2010, Paul Graham famously proclaimed , “Convertible notes have won. How to finance a new seed-stage startup? Convertible debt? Convertible equity? Every investment so far in this YC batch (and there have been a lot) has been done on a convertible note.”

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How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

The Series Seed documents were released in March 2010. The TechStars documents were released in February 2009. TheFunded released their “Plain Preferred&# term sheet in August 2009. Below are some of the material differences between the Series Seed, Y Combinator and TechStars documents. (I

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