Remove 1997 Remove Business Model Remove Cost Remove Valuation
article thumbnail

Startups Wait For the ‘Super Angels’ to Descend

Startup Professionals Musings

Venture capital dispensed quarterly to startups continues to decline, down to about $3 billion in the first quarter, which is the lowest level since 1997. It’s higher risk, but higher return, to pick the big winners early, before angels have set unreasonable valuations and restrictive terms.

article thumbnail

On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

I know that most people who are close to them tend to deny their existence, as we saw in the great housing bubble of 2002-2007 and the dot com bubble of 1997-2000. 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.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The Uber IPO – Imaginary Profits Only

Start Up Blog

But I do think this IPO is very instructive from a technology business strategy and investment perspective, so I thought I’d lay it out in clear terms why I don’t think Uber has a bright future as a publicly traded stock. The Valuation: Uber was priced at $45 USD per share giving it a valuation of around $82 billion USD.

IPO 48
article thumbnail

The rise of the “successful” unsustainable company

A Smart Bear: Startups and Marketing for Geeks

Freeloader — On $3m invested, sold for $38m in 1996 — shut down in 1997. So it IPO’ed at a $13b valuation but has dropped month-over-month to one-fourth that value and appears to be in “constant pivot mode” while they try to figure out a new, massive market for which their existing infrastructure is an asset.

IPO 240
article thumbnail

It’s Morning in Venture Capital

Both Sides of the Table

Cloud computing and the open source movements have brought down the costs of starting a company by more than 90%. They need a combination of capital and experience to separate from the rest of the pack – the low cost of starting a business means it is even more vital to become the market leader more quickly. And the future?

article thumbnail

What Most People Don’t Understand About How Startup Companies are Valued

Both Sides of the Table

Most venture capitalists who have been in this business for a long time foresaw this correction and have been talking about it privately for the better part of the last year or two. I have been talking about my concerns about valuations for the past couple of years because, well, they’ve been rising very rapidly the past two years!

Valuation 150
article thumbnail

The Future of Television & The Digital Living Room

Both Sides of the Table

Attempts at “moving up the stack&# – In 1997 I led a project to help senior management at British Telecom define its Internet strategy. and Excite in particular as well as all of the Internet companies with grandiose stock market valuations. At the time all telco’s were envious of Yahoo!