The Equity Kicker

APRIL 11, 2012

The question on everyone’s lips is, of course, ‘how come a two year old startup with no revenues is worth $1bn?’. Revenues from mobile are an important part of Facebook’s growth going forward and photo sharing on their mobile app is mediocre at best. I think that is the difference between 1999 and today.

IPO 110

IPO Valuation Forecast Acquisition 110

Startup Professionals Musings

JANUARY 10, 2016

Just because you would have loved to have your groceries picked out and delivered, doesn’t mean the mainstream customer was ready for Webvan in 1999. Or ask PlanetRx, an online service for prescriptions, before the Internet was pervasive. Falling victim to a magical mania or bubble.

Business Model 120

Business Model Intellectual Property Startup Bankruptcy 120

Startup Professionals Musings

JANUARY 9, 2015

Just because you would have loved to have your groceries picked out and delivered, doesn’t mean the mainstream customer was ready for Webvan in 1999. Or ask PlanetRx, an online service for prescriptions, before the Internet was pervasive. Falling victim to a magical mania or bubble.

Intellectual Property 120

Intellectual Property Startup Bankruptcy Viral 120

Both Sides of the Table

NOVEMBER 4, 2009

Let’s assume that the company raised it at a normal VC valuation, which means it gave up 33% of the company and thus $5 million / 33% = $15 million post-money valuation. It was 1999. Ventro was trading at $8 billion on sub $2 million of revenue. OK, you would own 0.25% of the stock. It was easy to do these calcs.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

This is going to be BIG.

NOVEMBER 7, 2011

Valuations. There are a ton of companies being funded at $500+ million valuations--seriously limiting exit opportunities. Facebook is doing billions in revenues. LinkedIn has great revenue growth. Are their valuations justified? The have actual revenues that are growing. stock market."

Angel Investor 104

Angel Investor Valuation Startup Revenue 104

thebarefootvc

DECEMBER 16, 2011

Discovery, in contrast to search, took center stage as Pinterest displayed hockey stick growth (and raised VC money near a $200M valuation in late 2011). Disruption in the Education Space: When I first started looking at education technology investments in 1999, very few VCs would go near the sector.

Technical Review 110

Technical Review India Mobile Hockey Stick 110

ReadWriteStart

AUGUST 26, 2022

So first, we were much more sort of with a high growth rate, and we did not even care about how we got the revenue when we got it. And now we are much more careful about revenue quality revenues. So the quality of growth has implications on the revenue stream’s sustainability. Would you say that? . David Zhang.

Partner 132

Partner Cofounder Retention Acquisition 132

Both Sides of the Table

MAY 23, 2012

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 1998 it was 150 million, 1999 250 million and by 2000 it had crossed 350 million. Web businesses can now grow revenue before they can even afford sales people.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

Ben's Blog

JULY 16, 2013

You probably thought that valuations would be roughly the same as they were the last time you raised money. Perhaps you are caught in the “Series A crunch” or perhaps you are a consumer company and expected that you would be valued on users rather than revenue like the last time. 3/31/1999: 49.7. But they most certainly are not.

Down Round 78

Down Round Marketing Preferred Stock Post-Money Valuation 78

Mike Michalowicz

FEBRUARY 14, 2019

The revenue driven by the website will be ten times the outlay and is crucial to driving revenue, so do not scrimp on the cost with a part-time nephew or friend, or one of those “free” website platforms who might not have you live at least a month before opening. Founded by Charlie in 1990, The Boston Restaurant Group, Inc.

Boston 120

Boston New York Hosting Cost 120

Seeing Both Sides

AUGUST 3, 2012

With over $1 billion in revenue, 2000 employees and a market capitalization of over $6 billion, Akamai has become a role model for scalable start-ups. billion in revenue, over $1 billion in gross profit and $500 million in EBITDA. The first year of revenue (1999) was $4 million – a remarkable achievement.

Distribution 49

Distribution Lean Massachusetts Cofounder 49

Both Sides of the Table

FEBRUARY 25, 2010

When I was raising money for my first company we had closed a seed round in 1999 and were working on our A round. We had many term sheets (it was 1999 and we had a pulse) and we were deciding which one to take. million at a $15 million pre-money valuation. It was December 1999. Let me start with a story.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Ben's Blog

JULY 16, 2013

You probably thought that valuations would be roughly the same as they were the last time you raised money. Perhaps you are caught in the “Series A crunch” or perhaps you are a consumer company and expected that you would be valued on users rather than revenue like the last time. 3/31/1999: 49.7 But they most certainly are not.

Marketing 46

Marketing Preferred Stock Post-Money Valuation Down Round 46

YoungUpstarts

APRIL 22, 2018

Founded in 1999, Etail was one of the first conferences devoted to e-commerce, and it remains one of the biggest. He is a respected expert in the industry with particular expertise in due diligence, online business valuation and strategic exit planning. eTail East. Boston, USA. August 6th – August 9th, 2018.

Las Vegas 124

Las Vegas Software Review Affiliate Cofounder 124

BeyondVC

DECEMBER 20, 2004

This reminds me of a conversation I had this summer with a Veritas executive who said how difficult it was to scale beyond $1-2 billion in revenue and that size matters. There were a number of companies in that revenue band but very few above it like Microsoft, SAP, and Oracle. received its first round of funding between 1999 and 2000.

IPO 60

IPO SEC Valuation Revenue 60

abovethecrowd.com

APRIL 20, 2016

One key to this population growth has been the remarkable ease of the Unicorn fundraising process: Pick a new valuation well above your last one, put together a presentation deck, solicit offers, and watch the hundreds of million of dollars flow into your bank account. If 1999 was a wet (read liquid) bubble, 2015 was a particularly dry one.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

SoCal CTO

OCTOBER 5, 2010

5 great viral marketing campaigns (and what small businesses can learn from them!) - crowdSPRING Blog , September 13, 2010 At crowdSPRING we talk a great deal about how we can leverage our limited marketing resources to drive traffic and revenues and build strong community. Except they won’t be called Product Managers. That crazy chicken.

Technology 191

Technology Product San Francisco CTO Hire 191

Ben's Blog

OCTOBER 29, 2020

Once again, the 1999-2000 dot-com bubble period shows the highest percentage of pricing above the initial filing range – 44% of deals were priced above. As a result, they are much more mature at the time of IPO (median revenue is about 10x what it was in the dot-com bubble) and thus often higher valued.

IPO 36

IPO Securities and Exchange Commission Demand SEC 36

Austin Startup

FEBRUARY 24, 2019

They will bring you revenue, delight your clients (the right salespeople care about the ultimate value delivered?—?not not just the sale), and ultimately increase the valuation of your company and your ability to create jobs and realize your entrepreneurial dreams. Salespeople are a very unique breed of people, and I love them for it.

Software Review 48

Software Review Sales Cofounder Analytics 48

Seeing Both Sides

SEPTEMBER 15, 2015

Only a handful of so-called unicorns — companies that have achieved a valuation of over $1 billion in the last 10 years — come from Israel, and only one Israeli firm, Teva, ranks in the world’s 500 largest companies by market capitalization. That’s the good news. The bad news is that Israeli startups are struggling to scale.

Cofounder 20

Cofounder Technical Review United States 20

Both Sides of the Table

AUGUST 9, 2011

Valuations were enormous relative to progress in companies. Companies with less than $2 million in revenue were asking for $50-60 million valuations and getting them. I spent my days meeting companies, figuring out what areas of the market interested me and trying to get a sense for how VCs thought about fair valuations.

Stock 305

Stock Technical Review Marketing Greece 305

Ben's Blog

MAY 24, 2021

Small” IPOs — companies with less than $50m in annual revenue at the time of IPO – have declined from more than 50% of all IPOs in the 1980-2000 timeframe to about 25% of IPOs from 2001-2016; Companies are staying private much longer — the median time to IPO from founding hovered around 6.5 1999-2000 51.6% 1999-2000 37.5%

SEC 36

SEC Accredited Investor IPO Technical Review 36

abovethecrowd.com

JUNE 2, 2021

The primary argument Chris is making is that Procore ended up at a better relative valuation (from his perspective) to its peers than did Squarespace, and that the clear reason this happened was the choice of an IPO (his preferred decision) over a Direct Listing (which he implies is a bad choice). Party A is locked up at time T+1.

IPO 82

IPO Customer Matching Silicon Valley 82

Both Sides of the Table

SEPTEMBER 17, 2017

I believe the massive valuation increases in cryptocurrencies we’ve witnessed of late are not based on any fundamentals other than speculation and a drive for a quick profit by many who have gained from the market hype. Why would pouring hundreds of millions into even earlier stage startups with even less or no oversight be a good idea?

Government 280

Government Distribution Stock United States 280