Startup Professionals Musings

MAY 25, 2020

Of course, if you are able to bootstrap your startup, and don’t anticipate the need for outside investors, you can technically ignore the first two points. IPO – public company initial public stock offering. Most experts don’t recommend this approach as your default strategy anymore. You can kick-off your next startup.

Exit Strategy 376

Exit Strategy Startup Private Equity Equity 376

Both Sides of the Table

FEBRUARY 16, 2017

Every tech or major news journal in the country is preparing to write their Snap, Inc (creators of Snapchat, Spectacles, etc) stories and many of them seem to want a “How does it feel to have missed this investment story.” And we feel great about the many companies in LA that have now reached serious revenue growth.

IPO 214

IPO Los Angeles Technical Review Silicon Valley 214

Steve Blank

SEPTEMBER 5, 2018

A version of this article first appeared in the Harvard Business Review. As a reminder, the Dot Com bubble was a five-year period from August 1995 (the Netscape IPO ) when there was a massive wave of experiments on the then-new internet, in commerce, entertainment, nascent social media, and search.

Lean 335

Lean Burn Rate Startup IPO 335

ReadWriteStart

OCTOBER 2, 2021

If you’re thinking about starting a tech startup you already know — there are a lot of things to consider. But what if a tech startup uses the LLC structure? And this is not only due to lack of liability protection, though it is a significant factor attracting investors. Most sole proprietorships remain small businesses.

Technical Review 158

Technical Review LLC IPO Stock 158

Steve Blank

OCTOBER 24, 2017

A version of this article is in the Harvard Business Review. — 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. 20th Century Tech Liquidity = Initial Public Offering.

Founder 245

Founder Technical Review CTO Hire IPO 245

Steve Blank

APRIL 10, 2019

A version of this article first appeared in the Harvard Business Review. In tech startups stock options were here almost from the beginning, first offered to the founders in 1957 at Fairchild Semiconductor , the first chip startup in Silicon Valley. Startup Compensation Changes with Growth Capital – 12 Years to an IPO.

Stock Options 333

Stock Options Stock Vesting Common Stock 333

David Teten

MARCH 14, 2018

Another example is Correlation Ventures ($300M+ AUM), a VC firm which co-invests in financings with at least one other new outside VC. The firm attracts deal flow by promising a decision (positive or negative) in under 2 weeks, with minimal paperwork and without repeating due diligence. BRK-A); and Prospect Capital Corp.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

Steve Blank

JANUARY 22, 2014

Dino Vendetti a VC at Bay Partners, moved up to Bend, Oregon on a mission to engineer Bend into a regional technology cluster. Today with every city, state and country trying to build out a technology cluster, following Dino’s progress can provide others with a roadmap of what’s worked and what has not. Tech investing is risky.

Early Stage 286

Early Stage Silicon Valley Oregon Technical Review 286

Both Sides of the Table

MARCH 1, 2016

At the Upfront Summit in early February, we had a chance to have many off-the-record conversations with Limited Partners (LPs) who fund Venture Capital (VC) funds about their views of the market. LPs Still Believe Strongly in Venture Capital as a Diverse Source of Returns.

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

Both Sides of the Table

JULY 23, 2014

There has been much discussion in the past few years of the changing structure of the venture capital industry. The rise of alternative sources of capital (crowd funding and the like). The overall trends in our industry have breathed a new life into the venture capital industry. 2007 was the watershed year.

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

Feld Thoughts

AUGUST 25, 2015

In January, Jerry Neumann wrote a long and detailed analysis of his view of the VC industry in the 1980’s titled Heat Death: Venture Capital in the 1980’s. So contrary to the piece, it wasn’t VC were good at early stage technology, it was that they had newfound capital and a big exit window. This isn’t true.

Venture Capital 70

Venture Capital SBIC Technical Review Silicon Valley 70

David Teten

MARCH 5, 2021

What can we learn from the best 40 venture capital investments of all time? We reviewed CB Insights’ global list of “40 of the Best VC Bets of all Time.” First Round Capital found that among its portfolio companies, startups with female founders outperformed those without by 63%.” .

Cofounder 78

Cofounder Founder Technical Cofounder Technical Review 78

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Every Flexible VC structure allows founders to access immediate risk capital while preserving exit, growth trajectory, and ownership optionality. . Our categorization is not a technical one. Flexible VC 101: Equity Meets Revenue Share.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

ReadWriteStart

OCTOBER 2, 2021

If you’re thinking about starting a tech startup you already know — there are a lot of things to consider. But what if a tech startup uses the LLC structure? And this is not only due to lack of liability protection, though it is a significant factor attracting investors. Most sole proprietorships remain small businesses.

Technical Review 78

Technical Review LLC IPO Stock 78

Startup Professionals Musings

SEPTEMBER 12, 2014

Of course, if you are able to bootstrap your startup, and don’t anticipate the need for outside investors, you can technically ignore the first two points. IPO – public company initial public stock offering. entrepreneur exit IPO lifestyle m&a startup' Most experts don’t recommend this approach as your default strategy anymore.

Exit Strategy 289

Exit Strategy Entrepreneur IPO Startup 289

Gust

MAY 24, 2012

Dual-class voting structures are receiving a lot of attention these days along with intense publicity related to the Facebook IPO , following in the wake of other recent tech IPOs with a similar structure such as Zynga and LinkedIn. Options and warrants, when issued, are also typically exercisable for shares of Common Stock.

IPO 159

IPO Equity Common Stock Stock 159

VC Cafe

APRIL 29, 2020

Source: NVCA , “Startup Ecosystem Faces Capital Crunch over Coming Months” USA – SBA Loans and PPP. The $349 billion aid package issued by the US Government and distributed in the form of SBA loans was quickly gobbled up by a large number of applications, many of which were from venture-backed or PE-backed startups.

SBA 124

SBA Technical Review Startup 124

Steve Blank

SEPTEMBER 14, 2009

Posted on September 14, 2009 by steveblank Over the last 30 years Wall Street’s appetite for technology stocks have changed radically – swinging between unbridled enthusiasm to believing they’re all toxic. One of the biggest mistakes entrepreneurs make is misunderstanding the role of venture capital investors. What Do VC’s Do?

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

Both Sides of the Table

DECEMBER 27, 2011

I find it amusing when a journalist writes an article about a prominent startup (either privately held or preparing for an IPO) and decries that, “They’re not even profitable!” Exec Summary: Most companies (98+%) in the world (even tech startups) should be very profit focused. Simplifying: Revenue -.

Startup 418

Startup Revenue Technical Review Flash 418

Startup Professionals Musings

JUNE 2, 2013

Within the venture community, the first rule to remember is that opportunities abound these days, due to the increasing pace of technology evolution, and the scope and creativity of the global community. The same hold true for venture capital investors. They bet on the jockey, not the horse. Funding risk.

Cram Down 269

Cram Down Angel Investor Intellectual Property Venture Capital 269

VC Cafe

FEBRUARY 15, 2017

Don’t take my word for it – in the roundup of venture capital predictions for 2017 , I found it to be the top recurring theme. Security will shift from defensive to predictive AI-powered security (Norwest Venture Partners). Chris Rust, Clear Ventures). All key technologies for autonomous driving.

Artificial Inteligence 122

Artificial Inteligence Technical Review Startup 122

YoungUpstarts

JANUARY 3, 2019

Due to the free-flow of information, buyers have become fiercely independent. They get data from traditional sources, such as analysts and industry publications, but they’re also connected with social media, peer networks and review sites. When FireEye became my client, their revenues were stalled in the low millions of dollars a year.

B2B 170

B2B Sales Cycle Technical Review IPO 170

online.wsj.com

SEPTEMBER 23, 2012

Loading… Tech. SIGNIFICANCE PROMINENT. --> The Venture Capital Secret: 3 Out of 4 Start-Ups Fail. An entrepreneur with a hot technology and venture-capital funding becomes a billionaire in his 20s. The National Venture Capital Association estimates that 25% to 30% of venture-backed businesses fail.

Venture Capital 107

Venture Capital Software Review Rhode Island North Dakota 107

abovethecrowd.com

FEBRUARY 24, 2015

Every successful technology company raises money throughout its lifecycle, perhaps starting with a seed investment and progressing through Series A, B, C, late-stage investments, and, for the most successful companies, an IPO. Lost in this conversation are the dramatic differences between a high priced private round and an IPO.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40

Berkonomics

DECEMBER 17, 2020

In most cases, these applicants for equity funding must be rooted in technology to apply to this limited discussion. The advantage to getting the attention of a super angel is that most operate informally and make quick decisions with little due diligence. Then there is venture capital. Accelerators.

Equity 62

Equity Finance Liquidity Event Angel Groups 62

Startup Professionals Musings

APRIL 27, 2016

Of course, if you are able to bootstrap your startup, and don’t anticipate the need for outside investors, you can technically ignore the first two points. IPO – public company initial public stock offering. Most experts don’t recommend this approach as your default strategy anymore. You can kick-off your next startup.

Equity 120

Equity Exit Strategy Private Equity Startup 120

The Startup Magazine

AUGUST 3, 2021

As the owner of his own consulting firm, Lazarus knows that new businesses do not fail due to a lack of passion or effort. To assist his consulting firm clients with attracting investors willing to fund an unknown business, Luke Lazarus uses an IPO or acquisition model to ensure the highest possible value for his client’s organization.

United States 167

United States Entrepreneur Angel Investor Social Media 167

thebarefootvc

JANUARY 27, 2014

Last week, a chart in the Wall Street Journal listed private companies globally that have raised capital at $1 billion-plus valuations from venture capital firms. Some, such as Chinese mobile company Xiaomi, were founded less than five years ago while others such as Good Technology have been around for more than a decade.

Technical Review 63

Technical Review Valuation Venture Capital Investment Bankers 63

Cracking the Code

MARCH 28, 2022

While the average forward revenue multiple has declined slightly since its February 2020 peak (19x), it’s still higher today than last year at 17x vs 15.8x The cloud IPO market has also been very active with 32 IPOs vs. 17 in 2020. 60% of the cloud IPOs had a market cap of $5B+ vs. only 28% this year. in Sept 2020.

Global 62

Global Europe Software Review 62

Both Sides of the Table

JUNE 22, 2011

Ah, but today’s Internet companies have real revenue! Responses ranged from, “hey, they’re in a HUGE market&# to “it is an amazing company and their technology rocks.&# And this is happening in mezzanine (pre-IPO) deals as well. And post IPO deals, although these tend to correct more quickly.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Ben's Blog

MAY 24, 2021

. “…thank you very much for the opportunity to submit written testimony regarding capital formation and the state of the U.S. IPO market. billion multi-stage venture capital firm focused on IT-related investments… I also serve on various investment committees, including for the St.

SEC 36

SEC Accredited Investor IPO Technical Review 36

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

APRIL 12, 2018

The minute your company reaches its peak acceleration in terms of growth is when all of the sleeping giants wake up to compete with you and will spend massive amounts of money to keep you from capturing a growth market and other talented entrepreneurs will raise large amounts of venture capital as people start to see value in the market.

Security 247

Security Los Angeles Silicon Valley Video 247

Both Sides of the Table

JULY 16, 2010

But VC is an “illiquid asset&# so funds didn’t disappear quickly - In 2000/01 the stock market quickly adjusted punishing investors in the NASDAQ and in individual public technology stocks. After all, most people don’t understand that “venture capital is a get rich slowly&# scheme.

LP 311

LP Technical Review Early Stage Silicon Valley 311

Both Sides of the Table

MAY 7, 2011

Sometime around 2003/04 my technology team turned me on to “Spolsky on Software&# a periodic newsletter served up blog style from Joel Spolsky of FogCreek Software, a maker of bug-tracking software. Juno IPO’d while Joel was there, and it was the first “broken&# IPO of the dot-com era. 15 minutes.

Software Review 285

Software Review Software St. Louis API 285

Ben's Blog

MARCH 24, 2011

Lately, everybody seems to be talking about a new technology bubble. A Comparison Between Today’s “Bubble” and the Last Tech Bubble. Let’s look at public market comparables and venture capital flows to see if we can find a match. Venture capital flows. Are the prognosticators correct? I don’t think so.

Technical Review 78

Technical Review Venture Capital Valuation Database 78

Both Sides of the Table

JUNE 5, 2011

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. This article originally appeared on TechCrunch. I acknowledged this in the article.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336