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Praying to the God of Valuation

Both Sides of the Table

20012007: THE BUILDING YEARS The dot com bubble had burst. We had nascent revenues, ridiculous cost structures and unrealistic valuations. SEEING THINGS FROM THE VC SIDE OF THE TABLE While I was a VC in 2007 & 2008 those were dead years because the market again evaporated due the the Global Financial Crisis (GFC).

Valuation 466
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Why Tim Cook is Steve Ballmer and Why He Still Has His Job at Apple

Steve Blank

If the Microsoft board was managing for quarter to quarter or even year to year revenue growth, Ballmer was as good as it gets as a CEO. Between 2001 to 2008, Jobs reinvented the company three times. Large companies and their boards live in fear of losing what they spent years gaining (customers, market share, revenue, profits.)

Azure 120
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Why Tim Cook is Steve Ballmer and Why He Still Has His Job at Apple

Steve Blank

If the Microsoft board was managing for quarter to quarter or even year to year revenue growth, Ballmer was as good as it gets as a CEO. Between 2001 to 2008, Jobs reinvented the company three times. Large companies and their boards live in fear of losing what they spent years gaining (customers, market share, revenue, profits.)

Azure 120
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What Just Happened

Feld Thoughts

Its revenue grew by 30%+. Another company had a revenue decline of 25%. 2001 was a dreadful year for me. 2004 was the beginning of what I now refer to as “the grind,” which ended for me around 2007. Each company is different, and the dynamics of the bubble bursting were not generic. Its EBITDA grew by 30%+.

Valuation 172
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Marketing and Growth Lessons for Uncertain Times

ConversionXL

“Value brands can also effectively reach out to pained-but-patient consumers who previously bought higher-end brands, a strategy Wal-Mart aggressively used with its ‘everyday low prices’ policy in the 2001 recession.” Hyundai’s Assurance program, which debuted during the 2007–08 financial crisis, is a great example.

Marketing 121
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The Great VC Ice Age is Thawing (for now) – Part 1 of 3

Both Sides of the Table

Just ask anybody who was trying to close funding the fateful week of September 11, 2001 or even March 2000. Huge downturns have a real impact on the revenue line of start-ups and therefore the pressure on valuations. But imagine a VC that did 12 deals per year in 2006, 2007 & 2008. The deal was done in late 2007.

Burn Rate 263
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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. Ah, but today’s Internet companies have real revenue! I believe a bubble occurs when a market is willing to pay greater than intrinsic value for an asset class.