article thumbnail

Praying to the God of Valuation

Both Sides of the Table

I started my first company in 1999 and was admittedly swept up in all of this: Magazine covers, fancy conferences, artificial valuations and easy money. We had nascent revenues, ridiculous cost structures and unrealistic valuations. Until we weren’t. 2001–2007: THE BUILDING YEARS The dot com bubble had burst.

Valuation 466
article thumbnail

What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

by Michael Woolf that is worth any startup founder reading to get a sense of perspective on the reality warp that is startup world during a frothy market such as 1997-1999, 2005-2007 or 2012-2014. So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000.

Burn Rate 383
Insiders

Sign Up for our Newsletter

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

article thumbnail

Stop Thinking And Acting Local: Small Businesses Seeking Growth Should See Themselves As Global Enterprises

YoungUpstarts

For those that do, the benefits are a bigger customer base, higher revenues and higher profitability. There has been a tremendous revolution in software in the last 5+ years that has brought down the cost of setting up a full service, secure e-commerce store to roughly the cost of an bottle of wine (per month).

Global 145
article thumbnail

Startup Stock Options – Why A Good Deal Has Gone Bad

Steve Blank

We slept under the tables, and pulled all-nighters to get to first customer ship, man the booths at trade shows or ship products to make quarterly revenue – all because it was “our” company. In the 20 th century, the best companies IPO’d in 6-8 years from startup (and in the Dot-Com bubble of 1996-1999 that could be as short as 2-3 years.)

article thumbnail

Why Employer-Sponsored Health Insurance Is A Thing Of The Past And What You Should Do About It

YoungUpstarts

Even if your company is large enough to justify it, with health insurance costs today exceeding profits for many companies, it’s rare that the CEO and CFO of a Fortune 500 company don’t spend many hours managing their health benefits program,” notes Lindquist. Losing group health insurance clients due to cost or participation requirements?

article thumbnail

Market Like Its 1999 In 2015 – 9 Marketing Strategies That Worked Back Then & Still Work Now

YoungUpstarts

When it came to ROI in 1999, the bigger, brighter, and more noticeable your yellow pages’ ad was, the better. Yes, we know there was email marketing in 1999, but it was in its infancy. Print catalogs worked in 1999, and they still work today. In 1999, business buyers had stacks of corporate brochures and folders on hand.

Marketing 100
article thumbnail

10 Real World Hazards With Taking Your Startup Public

Startup Professionals Musings

Today the rate of startups going public (IPO – Initial Public Offering) is finally up from the dead zone of the last two decades, and is now double the rate back in 1999. Typical costs for startups today range from $250,000 to $1 million, even if the offering does not go through. Going public is an expensive process.

IPO 245