Remove Business Model Remove Open Source Remove Valuation Remove Venture Capital
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. We detail below the major categories of VC: VENTURE CAPITAL TYPOLOGY. Yes, via conversion rights at a valuation cap.

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ESADE Business School Commencement Speech

Steve Blank

As the venture capital business has come roaring back in the last 5 years, startups are awash in available capital. Look at the valuations of companies like Tesla, Illumina, and Twitter. The first will be commodity businesses that are valued for their ability to execute their current business model.

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It’s Morning in Venture Capital

Both Sides of the Table

Many observers of the venture capital industry have questioned whether its best days are behind it. Looking ahead at the next decade I am excited by what I believe will be viewed as one of the best and most rational investment periods for venture capital due to seven discrete factors: 1. Bottom of the sales funnel.

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Snyk: How Freemium Can Help Your Start-up Grow from Series A to $2.6B in 30 Months

Cracking the Code

Snyk was founded with the mission to help developers make their code secure, providing a platform to automatically assess and remediate open source vulnerabilities. The company’s success has been largely driven by its developer-led freemium model, going from Series A funding to a valuation of $2.6B in just 30 months.

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The Other Amazon Deal this week. Drupal founder attracts over $100 Million in 3 months.

Scalable Startup

As further market proof of the power of Drupal in the enterprise, Acquia has received about $100 million in funding in the past 3 months, which puts its valuation at over $1 billion. is the for-profit company founded by Dries Buytaert, the inventor of Drupal, to support his open source project. Because they are open source.

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Big Data Investors Put a Premium on Proprietary Software

ReadWriteStart

Despite a meager track record for generating outsized returns, investors keep piling money into open source start-ups. As reported by The Wall Street Journal, a minimum of 110 “open source startups” had raised more than $7 billion from venture capitalists as of 2015, up over 100% since 2013.

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New Rules for the New Internet Bubble

Steve Blank

The signals are loud and clear : seed and late stage valuations are getting frothy and wacky, and hiring talent in Silicon Valley is the toughest it has been since the dot.com bubble. Underwriters realized that as long as the public was happy snapping up shares, they could make huge profits from the inflated valuations. Carpe Diem.

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