Both Sides of the Table

FEBRUARY 6, 2019

This huge increase of capital is really just money that used to be invested post-IPO, so more value is captured by VCs who traditionally sold post-IPO In a way we see this late-stage capital as a different market segment than traditional venture capital but it gets lumped into the same classification. trillion in value. Still reading?

Venture Capital 292

Venture Capital IPO Mezzanine Early Stage 292

David Teten

JANUARY 19, 2021

The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). Eligible for favorable treatment under Qualified Small Business Stock exemption, if structured as equity. This applies if the investment converts into common stock; details are beyond this essay’s scope. Governance.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

ReadWriteStart

JULY 18, 2011

He says that one is too lonely, two is good and three is a great number if they can combine their skills to cover design, development and distribution. Kedrosky: "In the 90's I was an analyst through all this [tech investment and IPO] madness. They want to stock their shelves and they have nothing.

Investment Bankers 153

Investment Bankers Technical Review Cofounder Due Diligence 153

Diego Basch

JUNE 2, 2012

In the late nineties, internet IPOs were all the rage. Everyone wanted in on IPOs back then, because it was a given that you would multiply your money in a few days. A friendly voice greeted me and started a sales pitch: “Would you like to participate in the QuePasa dot Com IPO?” A Killer IPO.

IPO 62

IPO Argentina Stock .Net 62

Steve Blank

MARCH 18, 2011

Dot.com Bubble ( 1995-2000): “ Anything goes” as public markets clamor for ideas, vague promises of future growth, and IPOs happen absent regard for history or profitability. With Netscape’s IPO , there was suddenly a public market for companies with limited revenue and no profit. The New Bubble : (2011 – 2014): Here we go again…. (If

Internet 335

Internet IPO Silicon Valley Agile 335

Both Sides of the Table

JUNE 17, 2017

It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. Is the revenue dependent on a concentrated set of distribution partners or platforms that put future revenue at risk? Two-f **g-billion! What a disaster!

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

crowdSPRING Blog

AUGUST 24, 2012

Groupon’s Andrew Mason Talking About Daily Deals Site’s Stock Smack, Future Plans and IPO Regrets (Or Lack Thereof) – [link]. The Facebook distribution dilemma – [link]. Facebook adds 500 terabytes of new data to its databased every day – [link]. 7 Habits of Remarkably Charismatic Marketers – [link].

Social Media 92

Social Media Small Business Design Media 92

Startup Professionals Musings

JULY 27, 2018

I would expect to see specific plans for distribution, partnerships, and sales channels, as well as the use of social media and conventional marketing, with budgets for the major elements. Customized marketing strategy and realistic sales plans. “If Five-year financial projections of revenue and expenses.

Product 145

Product Intellectual Property Liquidity Event Exit Strategy 145

Gust

APRIL 11, 2014

Entrepreneurs frequently think of equity primarily in terms of percentages such as 50/50 or 40/40/20 — not necessarily a bad idea at inception, or even throughout the lifecycle of a traditional business, such as real estate, where cash distributions, capital contributions, and allocations of profit or loss for tax purposes can be made accordingly.

Dilution 162

Dilution Equity Pre-Money Valuation Prospectus 162

Mucker Lab

JANUARY 1, 2014

VC’s start investing in technology-enabled “offline” businesses (distribution, services etc) – most of whom would never have gotten venture money 3 years ago. Yahoo stock drops back to where it was BM (before Marissa) because no matter how much prettier and usable the site is, still no one clicks on banner ads.

Seed Stage 84

Seed Stage Early Stage Distribution Bootstrapping 84

Tim Keane

JANUARY 12, 2010

Next, they carefully consider the range of multiples being used today to value companies being acquired or doing IPOs in the market that the business is in. Term-sheets for preferred stock offerings are designed to protect the investor in case things don’t go as well as planned. times the investment.). here of 7.65 [2].

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

abovethecrowd.com

AUGUST 23, 2020

But in light of where we are in 2020, especially with regard to the degrading efficiency and sky-rocketing cost of capital through the structurally broken IPO process, SPACs may emerge as a legitimate third option for helping Silicon Valley companies efficiently and cost-effectively transition into the public markets.

IPO 118

IPO Silicon Valley Warrant Matching 118

ReadWriteStart

APRIL 26, 2012

There used to be the Four Horsemen of the IPO world, back in the '80s and '90s. The answer is, they couldn't make any money trading, [or on] giving analyst support for small stocks because the spread got too small.". When small fluctuations in stock value changed from 12.5¢ down to 1¢, the meaning of small stock got smaller.

IPO 115

IPO Stock San Francisco Lean 115

Mucker Lab

JANUARY 1, 2014

VC’s accelerate investments in “internet of things” except sometime in Q4, wake up and realize it’s no different than “consumer electronics” – and that we still need to innovate around the manufacturing infrastructure, distribution economics, and consumer liability of the consumer goods business to really make this a venture fundable category.

Seed Stage 60

Seed Stage Early Stage Distribution Bootstrapping 60

Growthink Blog

JUNE 4, 2012

Why the full future for Facebook and the performance of its stock is yet to be written, as of today it is selling at prices significantly less than at which it traded on popular, private secondary markets like SharesPost and Second Market as recently as three months ago. Compare that to today's financial markets. read more.

Private Equity 72

Private Equity Stock IPO Equity 72

Reid Hoffman

MARCH 19, 2019

And from a financial perspective, any investor would be better off buying stock in Amazon than buying and share of a corner bookshop; if you invested $100 in Amazon’s 1997 initial public offering (IPO), those shares would have been worth about $120,000 in 2018. For example, Amazon’s market is, well, everything.

Cofounder 28

Cofounder Business Model IPO Non-Compete 28

Gust

OCTOBER 17, 2012

as well as a more detailed description of the distribution of outcomes: Kauffman Foundation Angel Returns Study and NESTA Angel Investing Study. The distribution of returns from the different U.S. A little less than one-third of IPOs are of venture capital-backed firms. Let’s take a look at the actual data. (If and the U.K.,

Angel Investor 152

Angel Investor Venture Capital Seed Stage Silicon Valley 152

abovethecrowd.com

JULY 10, 2014

As a result, most models are used as a rough guide to see if you are “in the ball park,” or to see if a particular stock is either wildly under-valued or over-valued. What Professor Damodaran thinks, or what anyone who is not a buyer or seller of stocks thinks, is fairly immaterial. So here is the objective of this post. New Use Cases.

San Francisco 111

San Francisco San Jose Marketing Technical Review 111

Hearpreneur

JUNE 18, 2016

Everyone mistakenly thinks of Twitter as a distribution channel for witty snark and links to off-site content. Usually those reports talk about it’s falling stock price, or even its relative lack of growth in new users. Twitter shareholders are panicking as TWTR stock has fallen 65% since their IPO in November 2013.

Entrepreneur 48

Entrepreneur Social Network Channel Social Media 48

techcrunch.com

OCTOBER 13, 2012

as well as a more detailed description of the distribution of outcomes: Kauffman Foundation Angel Returns Study and NESTA Angel Investing Study. The distribution of returns from the different U.S. A little less than one-third of IPOs are of venture capital-backed firms. Let’s take a look at the actual data. (If and the U.K.,

Angel Investor 103

Angel Investor Venture Capital Seed Stage Silicon Valley 103

ithacaVC

DECEMBER 14, 2011

As most of you probably know, LP is one of the fundamental economic attributes of preferred stock that preferred shareholders enjoy. Yes, it is possible to issue preferred stock without liquidation preference, but that is rarely done. Series B round = $5mm and the Series B preferred stock is participating with a 2x LP.

Liquidation Preference 49

Liquidation Preference LP Preferred Stock Liquidity Event 49

The Equity Kicker

APRIL 13, 2012

Throughout our evolution, from privately held start-up to large, publicly listed company, we have managed Google for the long term — enjoying tremendous success as a result, especially since our IPO in 2004. Effectively a Stock Split: And a New Class of Stock. Effectively a Stock Split: And a New Class of Stock.

Dilution 87

Dilution Stock Government SEC 87

Growthink Blog

APRIL 25, 2010

million shares of Google stock. At Google’s IPO that represented a stock share position worth over $280 million! While Bezos does not disclose how many of those shares he still holds, at the current price of Google stock they would represent an investment position of over $1.5 So was it luck? Talk about leverage.

IPO 48

IPO Stock Affiliate California 48

Version One Ventures

OCTOBER 1, 2020

In addition, UNI arrived and was probably one of the largest token distribution events ever with 15% of all tokens going to nearly 300K liquidity providers and users. Just imagine a company going public hands out 15% of their stock to their users at IPO – for free! .

Portfolio 94

Portfolio Software Review Cofounder Canada 94

Scott Edward Walker

JULY 7, 2011

A redemption right is another feature of preferred stock and permits the investors to require the company to repurchase their shares after a specified period of time; it is, in effect, a “put” right – that is, the investors may elect to put their shares back to the company. Redemption Rights What Are Redemption Rights?

Term Sheet 49

Term Sheet Redemption Venture Capital Preferred Stock 49

Jeff Hilimire

FEBRUARY 3, 2014

You would control the product, processing, and distribution. When the time is right you would announce an IPO and sell your company stock to the public and become very rich, you would make millions!”. Instead of selling your catch to a middleman you would sell directly to the processor, eventually opening your own cannery.

New York City 54

New York City Investment Bankers Mexico IPO 54

Hearpreneur

DECEMBER 11, 2017

Think; custom stock photography. Influencer collaborations: Clients will contract an influencer to leverage their social expertise in creating a piece of content but will also have them distribute it to their organic following. Influencers do not post the content.

Software 49

Software Marketing Entrepreneur North America 49

Startup Lessons Learned

MAY 31, 2019

It’s meant to support and grow a business until an “exit” in the form of an IPO, a merger or acquisition, or in less than ideal scenarios, a company shutdown. And, if you’re a public company, you get daily real-time feedback on at least the perception of your progress, as measured by the stock price. What about in the public markets?

Lean 108

Lean Venture Capital Conversion IPO 108

YoungUpstarts

NOVEMBER 24, 2020

The platform matches companies in need of cash with investors looking for solid returns, and in the middle is a securitization scheme with distributed ledger technology at its core. The process works via a “true sale” of a client company’s stock inventory to special purpose vehicles (SPV) incorporated by SYME. Oil and Gas.

Balance Sheet 290

Balance Sheet Stock Europe IPO 290

Pascal's View

MAY 13, 2011

This enabled consolidation among the brokerage houses and banks, which led to the loss of multiple distribution channels for securities and reduced the ability for small players to survive. And let’s remember that, at the time of these IPO’s, few if any of these companies were household names. cents or 6.25

Equity 31

Equity Securities and Exchange Commission IPO Marketing 31

Seeing Both Sides

AUGUST 3, 2012

Incorporated in 1998 in Cambridge, Massachusetts, the company’s network of over 100,000 globally distributed servers provides an infrastructure layer that accelerates the distribution and delivery of content, media and applications. Many people know Akamai as the purveyor of the Internet’s backbone. Founding Akamai.

Distribution 49

Distribution Lean Massachusetts Cofounder 49

abovethecrowd.com

APRIL 20, 2016

The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate. The same thing happened to many Internet stocks.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

online.wsj.com

JULY 11, 2012

Virtual Stock Exchange. To order presentation-ready copies for distribution to your colleagues, clients or customers, use the Order Reprints tool at the bottom of any article or visit www.djreprints.com. Stock Quotes. Zynga went public last December with three classes of stock. MarketWatch. SmartMoney. SmartMoney.

Silicon Valley 42

Silicon Valley Founder Software Review Technical Review 42

Ben's Blog

AUGUST 31, 2020

IN THIS EDITION Fintech products ease more Americans into the stock market In defense of the IPO, and how to improve it What’s inside your (mobile) bank? Among the most interesting is Stash’s “stock back” program, which is essentially an alternative form of rewards. Thanks for signing up. in addition to home ownership.

IPO 36

IPO Stock Software Review API 36

online.wsj.com

SEPTEMBER 23, 2012

Virtual Stock Exchange. To order presentation-ready copies for distribution to your colleagues, clients or customers, use the Order Reprints tool at the bottom of any article or visit www.djreprints.com. Stock Quotes. Less than 1% are currently in IPO registration. AllThingsDigital. AllThingsDigital. Financial News.

Venture Capital 107

Venture Capital Software Review Rhode Island North Dakota 107

Austin Startup

AUGUST 1, 2017

This is most clearly highlighted in the “unicorn” boom we all saw over the past few years, where founders raised very large rounds, with terms very onerous to the underlying common stock, hoping they could eventually justify billion dollar valuations to skeptical acquirers or public market investors.

Liquidation Preference 48

Liquidation Preference Common Stock Valuation Silicon Valley 48

Scott Edward Walker

JUNE 9, 2011

As many of you know, VC investors are typically issued shares of preferred stock, not common stock. Indeed, preferred stock, as the name suggests, is preferable to (and more valuable than) common stock because it grants certain key rights to the holders, one of which is a conversion right.

Term Sheet 60

Term Sheet Conversion Rights Venture Capital Liquidation Preference 60