Growthink Blog

JANUARY 19, 2014

That changed in 2001, however, and GoDaddy.com quickly grew. In 2011, 65% of the company was sold to a group of private equity firms for approximately $2.25 GoDaddy was created in 1997 as Jomax Technologies by Bob Parsons who had recently sold his other company, Parsons Technology Inc.,

Technical Review 104

Technical Review Private Equity Hosting Advertising 104

Both Sides of the Table

JUNE 22, 2011

But this mania to not miss out on the next big thing is driving some investors to pay growth-equity prices for traditional market risk (as in, they’re paying up before it is clear there is product / market fit). And well they should be. And so on down then line.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

The Startup Magazine

NOVEMBER 13, 2018

Belnick founded BizChair.com with $500 in 2001. In 2014, the company raised $28 million in shareholder equity. What have entrepreneurs been up to since then? Well, here is a comprehensive list of 10 of the most successful investors of the last 10 years. Source: Pexels. Sean Belnick. He was 14 years old at the time. Patrick Collison.

Cofounder 142

Cofounder Venture Capital India Valuation 142

Both Sides of the Table

SEPTEMBER 29, 2009

Just ask anybody who was trying to close funding the fateful week of September 11, 2001 or even March 2000. This came in part due to the huge influx of money into VC but also because hedge funds and private equity shops with no VC experience wanted part of the action.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

Lightspeed Venture Partners

SEPTEMBER 13, 2013

Proof of this can be found in companies like Facebook who brought on Sheryl Sandberg from Google to run the company’s operations, Yelp, which attracted Geoff Donaker away from eBay, Netflix, which hired Leslie Kilgore away from P&G in its early days and even Google who named Eric Schmidt CEO in 2001.

Equity 94

Equity Salary Hiring Naming 94

Both Sides of the Table

SEPTEMBER 18, 2014

At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. And so forth.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Startup Lessons Learned

JUNE 22, 2020

The Economic Antidote to COVID-19 Eric Ries & Ryan Beck In 2001, Apple's revenue fell by 33% in the depths of the dotcom bust. That trend is exacerbated in a recession as day traders and hedge fund activists rush in to buy up equities from a market in free fall. The rest is history. This crisis could be different.

Silicon Valley 60

Silicon Valley Equity Stock Finance 60

Early Growth Financial Services

OCTOBER 23, 2014

This was the largest quarterly investment total since 2001’s first half. The trend continued in 2014: with activity during the six months through June the strongest since the comparable period of 2001. More … Continue reading → Equity / Debt / Venture Funding' But the number of investments is 37% lower.

Pre-Money Valuation 59

Pre-Money Valuation Equity Valuation Startup 59

K9 Ventures

SEPTEMBER 8, 2015

Another company which is going to have widespread impact is eShares, eShares is going to change the way the private companies manage their equity. In late 2000, early 2001 I started my second company to test whether I can build a successful company again. VN : What do you look for in companies that you put money in?

San Francisco 48

San Francisco Early Stage Portfolio Software Engineering 48

Both Sides of the Table

OCTOBER 14, 2015

The truth is that the brutal reality of public markets is that they self correct much more quickly than our shitty little private equity illiquid corner of the universe. We have an entire generation of startup founders who don’t have muscle memory from getting their burn rates back into shape from 2008/09 or 2001-2005.

Burn Rate 150

Burn Rate San Francisco Private Equity LP 150

Growthink Blog

MAY 14, 2012

Since the Internet bubble burst in 2001, the number of IPOs hasn’t recovered to even 1980s levels. For perspective, before 2001 over 40% of all venture capital exits were via initial public offerings. Because golly, when it comes to the IPO market and public market returns in general, help is needed in a big way. How bad is it?

IPO 78

IPO Private Equity Initial Public Offering Balance Sheet 78

rapidrollout.wordpress.com

JANUARY 15, 2011

And finally, you may be able to avoid diluting your equity. Preserve your equity by using a consulting CTO to ramp up your company before securing early-stage financing and hiring a permanent technology partner. Though after the dotcom collapse of 2000-2001, there are many more than there were! Why are consulting CTOs so scarce?

Fractional CTO 40

Fractional CTO CTO CTO Hire Fractional VPE 40

finance.fortune.cnn.com

AUGUST 21, 2012

Term Sheet The latest on private equity, M&A, deals and movements — from Wall Street to Silicon Valley. FORTUNE -- Its no secret that venture capitalists were hit hard by last decades dotcom bust, considering that median returns for 1998-2001 vintage funds are all underwater. Crosslink Ventures IV (2001): 246% (104%).

Naming 49

Naming Term Sheet Private Equity Equity 49

YoungUpstarts

MARCH 3, 2020

A successful venture capitalist, Chris and his team at JAMCO continue to consult with and maintain equity positions with a range of firms operating in his areas of expertise. Chris Kape: I established JAMCO in early 2001 in the wake of the dot-com bubble collapse.

Partner 147

Partner Uganda Angel Investor Bulgaria 147

Pascal's View

MAY 13, 2011

iii. Post bubble period 2001-2009 totals $218.2 My full answer to this question follows: Public companies with equity market capitalizations of less than $1 billion have been negatively impacted by these market changes—and within this group, companies with capitalizations of $500 million or less have suffered the most. cents or 6.25

Equity 31

Equity Securities and Exchange Commission IPO Marketing 31

VC Cafe

MARCH 18, 2010

million in an equity deal to an undisclosed investor. Varien was founded in 2001 by CEO Roy Rubin and is based in Los Angeles. million in an equity deal to an undisclosed investor. According to this SEC filing , Varien has raised $22.5 According to this SEC filing, Varien has raised $22.5

Los Angeles 84

Los Angeles SEC eCommerce Open Source 84

Both Sides of the Table

MARCH 11, 2010

But there are also problems / risks: - the funding environment might change dramatically – there may never be a next round (see: March 2000, September 11, 2001 and September 2008). - Let’s assume that the $2 million buys 25% of your company, which is the norm in an equity financing. .&# If it works you’re a hero.

Venture Capital 319

Venture Capital Startup Silicon Valley Warrant 319

Ben's Blog

OCTOBER 29, 2020

Interestingly the data for the 1990-98 and 2001-19 time periods are roughly the same – approximately one-quarter of deals priced above the initial filing range. Taken together, we can hypothesize that overall investor demand for IPOs was weaker in 1980-1989, in the middle in 1990-98 and again in 2001-2019, and highest in the dot-com bubble.

IPO 36

IPO Securities and Exchange Commission Demand SEC 36

Steve Blank

SEPTEMBER 14, 2009

3) invest in and take equity stakes in exchange for capital. My experience of 2001-2004 is very remote from what you are describing. Each VC firm/partner has a different spin on what to weigh more.) 4) help nurture and grow the companies they invest in. 5) liquidate their investment in each company at the highest possible price.

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

Pascal's View

AUGUST 12, 2009

Between 2001 and 2008 mergers and acquisitions (M&A) accounted for 87% of venture-backed company exits, up from an average of 44% in between 1992 and 2000. Second, emerging growth companies lose negotiating leverage in acquisitions when they have no other viable liquidity alternatives.

IPO 28

IPO Silicon Valley Merger Sweat Equity 28

David Teten

MAY 16, 2011

Geleerd began his career at Arthur Andersen in tax consulting before leaving to join Sam Zell’s Equity Group where he underwrote the acquisition of over $2 billion of real estate acquired by the Zell-Merrill Lynch Opportunity Funds (which ultimately went public as Equity Office Properties, LLC). Prior to joining Boeing, Mr.

Naming 122

Naming Government Intellectual Property LLC 122

Growthink Blog

MARCH 12, 2012

Stengel and Millward Brown surveyed brand equity data on over 50,000 brands around the world and identified those with the highest "loyalty, or consumer bonding score."

Equity 72

Equity Global Marketing 72

Gust

SEPTEMBER 17, 2014

Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. But lawyers will charge much more for equity.” And so forth.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Both Sides of the Table

AUGUST 24, 2015

I’ve seen friends (and family members) lose much of their savings that way over the years because “Black Swans” happen and in 1987, 2001, 2003 & 2008 (just to name a few from my memory) huge market gyrations caused much financial distress to people seeking short-term gains.

Stock 150

Stock Finance Marketing Valuation 150

Agile VC

JULY 19, 2012

Back in the 2000-2001 timeframe, a flood of LP capital was coming into the VC asset class given the strong returns of the mid-late 90s tech boom/bubble. For example FRC launched a founders equity exchange fund and various programmatic forms of knowledge sharing like list serves, CEO summits, conferences, etc.

Cofounder 193

Cofounder Limited Partner Early Stage LP 193

500hats.com

AUGUST 2, 2012

Or, as my friend Marc Andreessen might say, Software Eats the Private Equity World. While a flood of new VCs came into existence during the late 90’s internet boom, many had difficulty raising new funds after the crashes of 2000-2001 and 2008 , and as a result significantly fewer fund managers exist now compared to a decade ago.

Silicon Valley 74

Silicon Valley Early Stage Venture Capital Valuation 74

The Equity Kicker

JULY 3, 2013

They are why I stayed in the venture industry through a difficult decade 2001-2011 and why I’ve now moved to a place where we can make earlier stage investments. And in fact the two forces are related: the decreasing cost of starting a startup is one of the reasons startups are becoming a more normal thing to do.

Startup 100

Startup Venture Capital Operations Cost 100

Altgate

APRIL 28, 2012

—————————————– I’ve been collecting data about startups and compensation since 2001. The big difference is in equity: Startup CEOs who are not founders get 6.2 times as much equity as the lowest-paid member of their team. Myth number 2.

Silicon Valley 50

Silicon Valley Vesting New York City Equity 50

www.noamwasserman.com

MARCH 26, 2012

I’ve been collecting data about startups and compensation since 2001. The big difference is in equity: Startup CEOs who are not founders get 6.2 times as much equity as the lowest-paid member of their team. One exception is the Midwest, where startups tend to strike a different balance between cash and equity compensation.)

Silicon Valley 40

Silicon Valley Vesting New York City Equity 40

The Equity Kicker

JANUARY 11, 2017

Around nine years ago I read Nicholas Taleb’s seminal texts The Black Swan (2007) and Fooled by Randomness (2001) and I loved them both.

Framework 60

Framework Advertising Web Startup 60

Startup Lessons Learned

JULY 26, 2011

Now even though us old pros know that there are different kinds of antidilution provisions, are you absolutely sure you remember which one is the good kind and which is the horrible kind that caused all those problems in 2001? Are you sure your lawyer will catch it if the formula isn't quite right?

Antidilution 148

Antidilution Term Sheet Silicon Valley Widget 148

Venture Chronicles

OCTOBER 31, 2010

Don Dodge wrote about a very dry but critically important issue facing private companies that issue equity to employees… 409A valuations : IPO bump? – If private investors have already bid up the valuation, will there be an IPO jump in the stock price? This breaks the conventional wisdom about pre-IPO stock options.

Valuation 42

Valuation Stock Options Lock-up Period IPO 42

The Next Web

OCTOBER 10, 2013

Of course, Excite also went bankrupt in 2001, so maybe five is a terrible number? Your company needs to be worth three times more for your equity to be worth the same. Backblaze has to be worth five times more than if any of us had founded the company itself for our equity to be worth the same. Starting with three people total?

Cofounder 143

Cofounder Technical Cofounder Kenya Dilution 143

The Equity Kicker

AUGUST 19, 2016

When I was at Reuters Venture Capital, for example, we worked like crazy to raise our second fund in the tech nuclear winter of 2001-2003 and kept believing, but there came a point when we flipped the switch and gave up. However, we need the switch when that irrational optimism stops serving us well.

Venture Capital 60

Venture Capital Metrics Sales Startup 60

This is going to be BIG.

JULY 30, 2015

One of the first things I did when I joined the venture asset class as a lowly institutional LP analyst in 2001 was to build the VC fund cashflow model. If you could return investors nearly triple their money and mid 20's returns consistently, compared to the 8% long term return in the public equities market, they'd more than accept that.

Venture Capital 60

Venture Capital Pre-Money Valuation IRR Valuation 60

Hearpreneur

SEPTEMBER 16, 2020

Unfortunately, he was fired and all of that potential equity disappeared. Conant joined the team in 2001, just as sales were declining for the company and its market value was decreasing. Thanks to Paige Arnof-Fenn, Mavens & Moguls ! #2- 2- Noah Kagan. Photo Credit: Bruce Harpham. Thanks to CJ Xia, Boster Biological Technology ! #6-

Entrepreneur 104

Entrepreneur China Incubator Philippines 104

The Startup Magazine

MARCH 3, 2020

By 2001, he was invested in the stock market and witnessed a unique situation where the stock market was in a tumble and, simultaneously, real estate was going up. This sharing economy-inspired rise in home equity sharing platforms will soon make it possible for investors to connect directly with buyers—and possibly each other.

New York City 106

New York City Marketing Technical Review New York 106