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

Is the Unicorn Endangered or Extinct?

Professor VC

I''m not about to compare the current state of private company valuations to the real estate bubble or even the dot-com bubble. No, the question today is not whether these unicorns are viable businesses. The question is whether the valuations can be supported. For the most part, they have proven that. or a market cap of $800M.

article thumbnail

It’s Morning in Venture Capital

Both Sides of the Table

Yes, it’s true that FOMO (fear of missing out) is driving some irrational behavior and valuations amongst uber competitive deals and well-financed VCs. In 1997, the year the Kauffman Report begins its analysis; there were 70 million users online globally. There are 20x more consumers online. Bottom of the sales funnel. 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