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. I am having fun again.

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

Lessons Learned: Hugh Molotsi

Startup Lessons Learned

One of the highlights of my time at Intuit was being part of a skunkworks team in 1999 that developed Intuit’s first payment service, the QuickBooks Merchant Account Service. I was generously rewarded the Intuit Founders Award in 2011 for helping get it started.

Incubator 121
article thumbnail

The Great Coding School Rollup of 2015

Feld Thoughts

When I saw the proposal, I immediately thought of the web consulting rollups of 1999. Companies were being bought (and valued) at 10x forward revenue only to be valued at between 0.5x revenue several years later. Do you remember US Web, iXL, Scient, and Viant? I’d argue the 0.5x Anyone remember the web hosting rollup?

article thumbnail

Start-ups are all Naked in the Mirror

Both Sides of the Table

I started my first company in 1999 in London at the height of the dot com craze. As the economy soured and people grew wary of buying Internet software (we were SaaS as early as 1999 – our buyers were certainly “early adopters&# ) and life grew more difficult. They haven’t hit their revenue targets.

PR 331
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. Friendly or hostile takeover attempts are just a couple of the many ways that company founders sense a loss of control of their own destiny.

IPO 245
article thumbnail

Why Buying A Small Business Now Is A Bad Idea

YoungUpstarts

by Terry Monroe , founder and president of American Business Brokers & Advisors (ABBA) and author of “ Hidden Wealth: The Secret To Getting Top Dollar For Your Business “ Normally, I am a proponent of buying small businesses. The data shows they make the world go round. Changing buying habits. .