Both Sides of the Table

JULY 23, 2014

We are in a bubble (with so many private $1bn+ valuations). pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. 15 years ago we were at the peak of Internet hype with the launch of many over-capitalized businesses with a market size & opportunity was limited.

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

VC Cafe

JANUARY 24, 2021

billion gamers worldwide will help the global games market generate revenues of $189.3 billion in revenue last year. According to Ark Invest’s research , revenue from virtual worlds will compound 17% annually from roughly $180 billion today to $390 billion by 2025. Fortnite alone made $1.8 Twitch stats in 2020.

Technical Review 207

Technical Review Audio Forecast Social Media 207

Feld Thoughts

JULY 9, 2019

This was before the IPO Summer of 2019 when all conventional valuation metrics have entered the land of “suspension of disbelief” which is short-term good and long-term well-we-will-see-…-eventually. We ended up talking about using Gross Profit, instead of Revenue, to do valuation analysis.

Revenue 179

Revenue Valuation .Net IPO 179

ReadWriteStart

FEBRUARY 13, 2020

The problem most startups have — aside from reaching the critical mass necessary to support an initial public offering (IPO) — is deciding exactly when the conditions are exactly right to go public. Here are three IPO lessons and what they hold for today’s startups. Uber — May 9th, 2019.

IPO 147

IPO Startup Stock Initial Public Offering 147

Startup Professionals Musings

OCTOBER 14, 2016

The fact is that valuations are largely set by top venture capital investors and financial firms, and they all have their own proprietary formulas for assigning value. If your new venture is still in the idea or development stages, don’t even think about a high valuation. You have to earn a billion-dollar valuation, not declare it.

Intellectual Property 120

Intellectual Property Valuation Merger Exit Strategy 120

VC Adventure

AUGUST 31, 2017

So no surprise that when River Cities Capital released an overview of SaaS operating and valuation benchmarks, I hung on every juicy detail. The valuation metrics show this clearly. Companies in the study that scored 40% of greater had TTM revenue multiples of 6.4x If you read my blog regularly you know I love (LOVE) metrics.

IPO 113

IPO Vertical Balance Sheet Valuation 113

Both Sides of the Table

JUNE 5, 2011

2: As expected at least one person accused me of writing this post because I want to see lower valuations. As the risks below get eliminated the higher the valuation investors are prepared to pay. So rounds tend to be “range bound&# where the top end of the valuation spectrum often being done in boom markets (i.e.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Startup Professionals Musings

APRIL 17, 2023

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

VC Cafe

AUGUST 2, 2022

billion valuation) to invest in the Metaverse and build the future of digital entertainment Epic owns Fortnite, one of the most popular multiplayer games, enabling users to interact with each other online in an immersive way to play, socialise, attend to virtual concerts. billion revenue in 2021 for Epic Games and was played by 83.3

IP 206

IP Cofounder Valuation Acquisition 206

Steve Blank

APRIL 23, 2014

buy out an entire company for its revenue and profits. VCs like acquisitions as much as IPOs because the acquiring companies often can rationalize paying large multiples over the current valuation of the startup. However, these nosebleed valuations make it even more important in getting the acquired company integrated correctly.

Acquisition 332

Acquisition Intellectual Property Silicon Valley Startup 332

VC Cafe

JANUARY 15, 2024

A billion dollar valuation, the Unicorn status was once the holy grail for many VCs and founders. At zero interest rates with a seemingly never ending flow of capital to fuel growth, Unicorn creation rate hit a peak in 2021, but fast forward 3 years and justifying a billion dollar valuation seems more like a liability.

IPO 88

IPO Valuation Private Equity 88

Both Sides of the Table

JUNE 22, 2011

Ah, but today’s Internet companies have real revenue! In addition to FOMO it is partly driven by massive increase in valuations for earlier-stage companies who raised money at bit seed prices but who still have product risk. And this is happening in mezzanine (pre-IPO) deals as well. and profits! Why does all this matter?

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Agile VC

JANUARY 13, 2016

A realignment of valuations by late stage investors? It used to take 5-10 years for a great startup to go from $0 to $75-100M+ in annual revenue. Revenue is revenue, right? Both of these companies grew revenue at what was then unprecedented rates. What happened? The beginning of a tech downturn?

Technical Review 157

Technical Review .Net Revenue Software Review 157

Agile VC

APRIL 17, 2011

GameFly filed in 2010 and remains in registration, though 2011 has seen a positive start for VC-backed IPOs with 14 in Q1 2011. Now that Google’s acquisition of ITA is closed, following lenghty FTC review, it would appear Kayak is poised to proceed with their IPO in the coming months. =. Quinstreet priced at $15.00/sh

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

YoungUpstarts

OCTOBER 23, 2017

PC and mobile interfaces dynamically display portfolio valuations and exposures, along with system-generated investment recommendations tailored to a specific client’s financial goals and risk appetite. According to research from JP Morgan, revenues from investment banking peaked in 2009 at $207.7

Technical Review 131

Technical Review Artificial Inteligence Software Review IPO 131

YoungUpstarts

JANUARY 10, 2018

How do you find the balance between not too small to prove itself but not too big to have an off-putting valuation? You’ll find exceptions to this rule, like Snapchat, which was operating at a loss at its IPO, when it experienced high initial trading prices due to its huge popularity and untapped monetization capabilities.

Valuation 122

Valuation Technical Review Exit Strategy Metrics 122

ReadWriteStart

JULY 15, 2020

New talk of capital efficiency is gratifying, but there was another lesson from pre-COVID-19 valuation struggles. Venture capitalists and early-stage investors have told all of us, founders are critical to a startup’s valuation. WeWork’s founder was been accused of self-dealing, which in turn has thrown the company’s IPO into question.

Valuation 91

Valuation South Carolina San Jose Balance Sheet 91

Agile VC

NOVEMBER 6, 2013

Twitter’s IPO has garnered a ton of attention in the tech and popular press. So their revenue figures, pre IPO financing and ownership, and other info is all widely available. If this were a math class, I’d just say the proof is evident but if you want some data on Twitter’s 2013 YTD revenue here you go.

IPO 194

IPO Aggregator B2B Internet 194

Startup Professionals Musings

JULY 22, 2020

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

Agile VC

NOVEMBER 9, 2015

Square filed its S-1 several weeks ago and is now in the middle of its IPO road show process. A bunch of articles came out saying that Square had “priced” their IPO below last round and this was something terrible ranging from the bursting of a tech bubble to the coming of the apocalypse. Revenue Composition.

IPO 165

IPO .Net Revenue Acquisition 165

VC Cafe

JANUARY 2, 2023

The ten biggest exits of the year included a mix of IPOs and acquisitions. There are 85 Israeli unicorns, but only about 50% them justify a billion Dollar valuation, according to Viola’s report. As growth investments (and valuations) go down, unicorns might struggle to survive, according to Globes. ” Fred Wilson.

Valuation 158

Valuation Down Round Venture Capital 158

Steve Blank

SEPTEMBER 14, 2009

Five Quarters of Profitability During the 1980’s and through the mid 1990’s startups going public had to do something that most companies today never heard of – they had to show a track record of increasing revenue and consistent profitability. There was now a public market for companies with no revenue, no profit and big claims.

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Flexible VC: Revenue -based. Of the Inc.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

YoungUpstarts

MARCH 11, 2015

With the daily demands of running a business along with the financial pressures and challenges inherent in early-stage companies, a business valuation may not be the first thing an entrepreneur thinks of when he awakes each morning. When does a startup company need a business valuation? The timing will vary depending on the purpose.

Valuation 100

Valuation Stock Options CPA Merger 100

VC Cafe

SEPTEMBER 24, 2021

billion a 125% increased compared to the equivalent period in 2020, the number of Unicorns, private companies valued at $1 billion or more has grown significantly, with several companies achieving “Decacorn” status – achieving valuations of $10 billion and up, including eToro , soon to complete a SPAC merger, and Rapyd payments.

Lock-up Period 218

Lock-up Period Merger IPO 218

thebarefootvc

JANUARY 27, 2014

Do I think we are in a valuation bubble? I think that later stage valuations are frothy (for reasons I explain below) while earlier stage valuations are starting to stabilize from previous highs (with the exception of the superstar serial entrepreneur) - turns out scaling in a sea of competition (both startup and entrenched) is not so easy.

Technical Review 63

Technical Review Valuation Venture Capital Investment Bankers 63

Both Sides of the Table

MARCH 1, 2016

LPs See The Over-Valuations and Don’t Like It. LPs have followed the recent press about the over-valuation and over-funding of the startup industry, and they experience these phenomena first hand. All isn’t completely rosy in the LP views of the venture industry. The Biggest Area of Concern is Late Stage Investments.

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

Both Sides of the Table

SEPTEMBER 29, 2009

They should heed the age old advice that raising slightly more money while you can is always better than trying to optimize future valuations. Should VC’s really be impacted by public market valuations when the money that they’re investing today should be for returns in 7-10 years? Short answer – yes.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

VC Cafe

NOVEMBER 30, 2022

According to Pitchbook’s Q3 2022 European VC Valuations Report , Europe minted 40 unicorns in the first 3 quarters of 2022. Atomico’s founder Nicklas Zennstrom recently called the end of the high valuations era and urged founders and VCs to remove the stigma from down rounds. In 2021, a new unicorn was created every 3 days.

Europe 97

Europe Balance Sheet Valuation 97

Startup Professionals Musings

MARCH 13, 2020

Find some credible opportunity statistics that can support your own revenue expectations of between $20 million and $100 million in the fifth year. > Market penetration and revenue targets related to opportunity size. Companies that get investor attention usually double their revenue or more every year.

Liquidity Event 308

Liquidity Event Forecast Exit Strategy Bootstrapping 308

The Equity Kicker

SEPTEMBER 27, 2013

That was before Twitter filed their S1 with a valuation of c$15bn. The good news is that Twitter gave themselves a relatively conservative valuation of $10.5bn, which is about 15% up from the valuation that Blackrock paid to buy into the company at the beginning of the year.

IPO 98

IPO Valuation Stock Advertising 98

David Teten

AUGUST 20, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching Revenue-Based Investing and other new approaches to VC. The question I’m asking myself: should a new VC fund use Revenue-Based Investing, traditional equity VC, or possibly both (likely from two separate pools of capital)? Greater transparency to limited partners.

Revenue 60

Revenue SBIC Cofounder Venture Capital 60

The Equity Kicker

AUGUST 29, 2013

I’m rather late to this, but this morning I was pointed towards an eMarketer projection of Twitter revenues from March this year which has them hitting $950m in 2014, up from $583m this year. That’s some growth given the scale they are at and explains why people are talking more and more often about Twitter’s IPO.

Revenue 109

Revenue IPO API Valuation 109

Ben's Blog

MAY 24, 2021

IPO market. There are a number of trends concerning IPOs and capital formation to note: First, the raw number of IPOs has declined significantly: From 1980-2000, the US averaged roughly 300 IPOs per year; from 2001-2016, the average fell to 108 per year. In the first quarter of 2021 alone, SPACs raised $87.9

SEC 36

SEC Accredited Investor IPO Technical Review 36

Both Sides of the Table

JULY 27, 2014

We both agree that the later-stage valuations are being driven up to a point that feels irrationally priced [he uses b-round SaaS valuations as an example and I am willing to be even more broad based]. Most of those industries are fee-based and are competing on revenue growth. I don’t totally agree with that view.

Valuation 309

Valuation Pre-Money Valuation Later Stage Non-Compete 309

Version One Ventures

JULY 20, 2015

I often get asked about how to determine the valuation for a marketplace startup that is starting to scale. Our rule of thumb is that marketplaces at scale are valued at roughly 1x annualized GMV (typically about 6-8x annual revenue). Our assumptions for this valuation: Scale: > $1b GMV. immediately following its IPO).

Valuation 60

Valuation Early Stage IPO eCommerce 60