Both Sides of the Table

APRIL 12, 2018

We would have gladly followed Jamie (and Josh Roth, the CTO who is phenomenal and we’ve also known for a decade) right through an IPO if we could have. Having recurring revenue allows you to keep the original purchase price down, which in turn increases sales. Jamie is truly a visionary and a focused executioner.

Security 247

Security Los Angeles Silicon Valley Video 247

Both Sides of the Table

JUNE 22, 2011

Ah, but today’s Internet companies have real revenue! And this is happening in mezzanine (pre-IPO) deals as well. And post IPO deals, although these tend to correct more quickly. And as you probably guessed the data aren’t any better on IPOs with less than 20 / year average for the past 10 years. and profits!

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Both Sides of the Table

MAY 7, 2011

Juno IPO’d while Joel was there, and it was the first “broken&# IPO of the dot-com era. As an example, Joel says that there is a chief revenue officer who is solely responsible for bringing in revenue to StackExchange. He is responsible for bringing in revenue from advertising and their careers offering.

Software Review 285

Software Review Software St. Louis API 285

Both Sides of the Table

JUNE 29, 2014

Time to massive revenue is the most compressed in history due to scale and Deflationary Economics. When companies DO IPO they are worth much more at IPO time than in the past. More value is captured more by VCs prior to an IPO. VCs used to IPO and then sell. This is the opportunity set for venture capitalists.

Venture Capital 362

Venture Capital IPO LP Jordan 362

Both Sides of the Table

MARCH 11, 2011

I thing I’ve learned over the years is that technology purists hate advertising even when it is that revenue stream that truthfully drives much of our industry. In 1995 Netscape IPO’d and browsers started to become more prevalent. He created GoTo.com (later renamed Overture) out of a frustration with search.

Product 350

Product Tuvalu Dilution Incubator 350

Both Sides of the Table

JUNE 18, 2015

Success often comes from doing a few things extraordinarily well and noticeably better than the competition and is measured in customer feedback, product engagement, growth in usage and ultimately in revenue growth. They’re doing how much in SaaS revenue? I offer the same advice for many of my friends who are newer VCs.

Software Review 150

Software Review Turkey Portfolio Syndicate 150

Both Sides of the Table

SEPTEMBER 2, 2009

At some point, this breaks if their isn’t an exit or IPO. We should end the year with a few million in fully recurring revenue and we’re projected to double next year. But more spend = more viral opps = more revenue down the road. >50% of our revenue in now viral. Probably revenue based.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

Both Sides of the Table

DECEMBER 13, 2010

On July 27th, 2001 Accenture IPO’s and many of the partners grew fabulously wealthy. Since that date the S&P 500 is up 2.45% while Accenture stock is up 206% with revenue of $23 billion and a market cap of $32 billion. Arthur Andersen was embroiled in the Enron scandal and forced out of business.

Turkey 302

Turkey Differentiation IP Technical Review 302

Both Sides of the Table

MAY 24, 2021

It has historically been the case that VCs would rather fund the promise of 100x in a company with almost no revenue than the reality of a company growing at 50% but doing $20+ million in sales. Luckily there was also a talented executive team led by Phil Schraeder , who wanted to “go long” and build an industry leader that can IPO.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

Both Sides of the Table

AUGUST 28, 2009

Goldman Sachs (an investor in our company) told us we’d IPO within 18 months for $1 billion so not to take any offers. I know that we haven’t brought in revenue as quickly as we had hoped. They haven’t hit their revenue targets. Our company was completely euphoric. We drank our own Kool Aid. Believe me.

PR 331

PR Software Review Ireland Germany 331

Both Sides of the Table

OCTOBER 1, 2009

Consumer spending is 70% of the economy and will continue to be stretched – We can look all we want at tech innovation, VC funding cycles and hot M&A deals, but ultimately growth and therefore investment must be underpinned by revenue. Bad stock markets mean less IPO’s and lower prices for M&A.

Technical Review 269

Technical Review Stock Hawaii Early Stage 269

Both Sides of the Table

NOVEMBER 13, 2014

Helped merge company with Seedling – on track to do $20 million combined revenue in 2015 – will now become Chairman). billion IPO), Envestnet (Chicago, $1.25 billion IPO), HealthDataInsights (Las Vegas, $400 million) as well as LA (Maker Studios $1 billion, TrueCar $1.3

Partner 408

Partner Las Vegas Los Angeles Baltimore 408

Both Sides of the Table

SEPTEMBER 16, 2010

As I’ve highlighted I believe we’re in a unique period similar to 2005-08 where the biggest tech firms of Silicon Valley (and some media companies) are scooping up small software companies as “talent acquisitions&# versus accretive revenue / profit generators. This is actually the norm.

Cap Table 283

Cap Table Angel Investor Liquidation Preference Deal Flow 283

Both Sides of the Table

JULY 27, 2014

Most of those industries are fee-based and are competing on revenue growth. Scott pointed to B-round SaaS valuations in excess of $100 million in $15m+ financing rounds with companies with very limited proof of customer traction or revenue. I don’t totally agree with that view.

Valuation 309

Valuation Pre-Money Valuation Later Stage Non-Compete 309

Both Sides of the Table

JUNE 17, 2017

70–80% of the costs of most startups are employee costs so what you’re really talking about when a company is unprofitable is that they are growing their staff ahead of their revenue. Revenue When I look at an income statement I start by focusing on the revenue line. You need to understand the “quality” of the revenue.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Both Sides of the Table

NOVEMBER 9, 2012

There simply aren’t a lot of exits above $100m or even IPOs. You need to understand motives of buyer (talent, product, revenue, strategic purchase) and where you fit in. ” That’s b t. People justify winners after the fact. So entry price matters a lot. They are wrong there, too. Being a radar screen of a buyer helps.

Technology 323

Technology PR Startup IPO 323

Both Sides of the Table

SEPTEMBER 29, 2009

Three reasons: There is a relative valuation between the price a VC pays and their expectations of what it will exit for in an IPO or trade sale. Huge downturns have a real impact on the revenue line of start-ups and therefore the pressure on valuations. I argued for literally a year to slash burn.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

Both Sides of the Table

MARCH 1, 2016

This strangely may come even more quickly in the more successful funds, because any funds (ours included) who still hold some public stock from a recent IPO will likely be seeing write-downs sooner due to the immediacy and transparency of public stocks being repriced.

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

Both Sides of the Table

MAY 4, 2010

They’ve had a total of 12 deals that have IPO’d. We discussed whether investing in the second largest player in a category makes sense given that Groupon is 10x the revenue, 3.5x But LivingSocial is reportedly doing around $180,000 per day in gross revenue. Raising $75mm in IPO, values company at $515mm.

IPO 236

IPO .Net Venture Capital Strategic Investors 236

Both Sides of the Table

JULY 10, 2010

For entrepreneurs who want to learn about how to work with investment banks, how to position yourself to be acquired and what the IPO markets look like this is the episode to watch. You have to be selected to present and it is typically reserved for companies that have already raised early-stage capital and are well into revenue growth.

IPO 242

IPO Venture Capital Private Placement Cofounder 242

Both Sides of the Table

DECEMBER 9, 2010

Google bought Gil’s company in 2003 (pre IPO) for $100+ million and this business now represents about 30% of all of Googles revenue. Factual was created in 2007 by Gil Elbaz, the founder of Applied Semantics. In case you don’t know Applied Semantics it’s Google AdSense.

Cloud 343

Cloud Technical Review Database Semantic 343

Both Sides of the Table

JUNE 25, 2015

We grew 100% in SaaS revenue year-over-year and 650% over the past three years. We now have 150 people across three offices, tens of millions in recurring revenue, inbound demand from investors, opportunities to acquire related startups and demands on Jason’s time to speak at conference, do press interviews and so on and so on.

Silicon Valley 150

Silicon Valley IPO Demand Revenue 150

Both Sides of the Table

JULY 16, 2010

You invest low amounts of capital and the company gets to IPO (96-99) or trade sale (05-08) without raising too much capital and certainly not on punishing terms. Revenue must come from a primary source (as opposed to advertising or other third party sources). But in bad economies many angels get burned. Team must be purely technical.

LP 311

LP Technical Review Early Stage Silicon Valley 311

Both Sides of the Table

OCTOBER 18, 2015

“Trade in an asset at a price that strongly deviates from an asset’s intrinsic value” The arguments against that, “This time the startups have real revenues!” They must either eventually IPO or they must be bought by larger companies who almost certainly themselves are public. ” ring hollow.

IPO 150

IPO Venture Capital LP SEC 150

Both Sides of the Table

SEPTEMBER 28, 2013

A cautious person wouldn’t try to pry people out of Twitter right before their IPO to” join my cause!!” Sure, our revenue is growing, but is that enough to raise an internal round? There are merger discussions, board debates, product miscues, revenue misses and a litany of delicate topics. “We. .”

Startup 417

Startup Dilution San Diego Stock Options 417

Both Sides of the Table

MARCH 30, 2016

Many had started IPO’ing and we started to think about our future. Invoca was raising at the tail end of this market phenomenon at this time doing tens of millions in SaaS recurring revenue and growing at a nice clip. CMRR (contracted monthly recurring revenue) grow 100% y/y. forward sales with some as high as 12x sales.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

Both Sides of the Table

MAY 21, 2011

Are we seeing a time in which pre-revenue companies are more valuable than our offline institutional brands? Why had it endured though market machinations and become this year’s darling IPO? It seems almost incomprehensible that only 2.5 years ago we read the “ RIP Good Times &# presentation from Sequoia.

Churn Rate 309

Churn Rate IPO Open Source PR 309

Both Sides of the Table

SEPTEMBER 18, 2014

Revenue multiple? Maybe an IPO – who knows? How will you price the next round? Your A round? Him: On metrics. We’ll have some proof points by then. What proof points? How will the lead determine a value? EBITDA multiple? Cashflow projections? I’m not sure. A few M&A transactions. Employment. Stock Option plans.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Both Sides of the Table

AUGUST 21, 2011

Their last company was in the telephony meets Internet infrastructure space and the three RR founders were there through the IPO. 3) Publishers (media companies) are missing out on this revenue by not bridging the offline / online component. Why Pay-Per-Call? It’s just a couple of minutes and done in a humorous way.

Mobile 329

Mobile Advertising Affiliate Internet 329

Both Sides of the Table

FEBRUARY 23, 2010

I’ve seen way too many startups spend all their energy getting channel deals done only to find out that they don’t produce ANY revenue. Also, channel partners are often your best potential acquirers and let’s be honest – most companies end up selling rather than IPO’ing these days.

Channel 293

Channel Startup Sales Partner 293

Both Sides of the Table

FEBRUARY 21, 2010

They had previously all worked together at a very successful company in the “telecoms meets Internet&# space, CallWave, which IPO’d 5 years ago or so. There are also people like Clicker and OVGuide who are trying to capture the “video portal&# space where they can command referral revenues in the way that Yahoo!

Advertising 284

Advertising Las Vegas Affiliate RSS 284