Lessons From The Internet Bubble: Growth vs. Profitability

Feld Thoughts

Between the spring of 2000 and the end of 2001, I had the worst, most stressful, and most painful business period of my life. Instead, I, like many of my colleagues (investors, board members, founders, and CEOs), operated in a state of blissful denial until everything blew up. There’s a special bonus in Mark’s post, which is in the section titled Revenue is Not Revenue is Not Revenue.

Should Founders Be Allowed to Take Money off the Table?

Both Sides of the Table

If a company has reached a level of success, has been around for a few years and you believe the company has potential to break out into a much bigger company then you should let the founders take money off of the table. On a panel that I sat on with Ron in LA in 2008 he stated that there were no circumstances in which the founder should take money off of the table. Founders however are asked to take low salaries and never really get back the time they worked for free.

The Other Amazon Deal this week. Drupal founder attracts over $100 Million in 3 months.

Scalable Startup

Drupal was launched in 2001, and Acquia started in 2007. the original products can’t generate revenue, so when these OS projects occassionally blow up into phenomenons like Drupal and WordPress have over the past few years, it’s gratifying but also quite frustrating to watch others derive so much value from your baby while you toil away to lead its growth with no financial return.

My story and support for the Founders Visa

K9 Ventures

In the past few days there has been a lot of discussion on the topic of a Founders Visa. The credit for starting this fire goes to Paul Graham from Y Combinator , who wrote a great essay titled The Founders Visa in April 2009. Brad Feld (Brad is an advisor to K9) from the Foundry Group was instrumental in keeping the flame alive by posting about it on his blog ( The Founders Visa Movement ) in September. I got my greencard approval in 2001, a few months after 9/11.

Evolution of a Founder: Lessons I have learned

om.co

Om Malik is the founder of GigaOM. He is the founder of Desiparty.com. Evolution of a Founder: Lessons I have learned. Being a startup founder is hard, tough, frustrating and rewarding – possibly all within the space of a nanosecond. Are You Winning As a Founder?

Is the Lean Startup Dead?

Steve Blank

Jeff Katzenberg has a great track record – head of the studio at Paramount, chairman of Disney Studios, co-founder of DreamWorks and now chairman of NewTV. Tech IPO prices exploded and subsequent trading prices rose to dizzying heights as the stock prices became disconnected from the traditional metrics of revenue and profits. Lean was designed to inform the founders’ vision while they operated frugally at speed.

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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. When visionary founders depart (death, firing, etc.),

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We Will Never Need Another Financing

Feld Thoughts

But even if you, as the founder, believe it, you are still probably deluding yourself. Imagine being an investor and being approached by a business SaaS company that has raised $5 million, has $100k / month of revenue, has been growing at about 5% per month, and is doing a $10 million round. Your revenue growth flattens out for a few quarters but you didn’t get ahead of the cost dynamic. Ask one of your friends who was a CEO of an Internet company in 2001.).

Episode 47: Growing A Colossal Business with Donna Leyens

Mike Michalowicz

She started her first business, a handmade jewelry company, in 2001, where she learned that an MBA doesn’t even begin to prepare you for life as an entrepreneur. – 80% of your revenue or profit comes from 20% of your clients. Also Available On. Show Summary.

How to Out Amazon, Amazon

Both Sides of the Table

We seed funded a company a few years ago called Parachute Home that has grown 180% CAGR (compounded annually) and is now doing tens of millions of revenue with very little capital raised.

Why GE’s Jeff Immelt Lost His Job – Disruption and Activist Investors

Steve Blank

After the dot.com crash in 2001 and the financial crisis of 2008, traditional investors who previously held their shares for the long-term — public pension funds, institutional investors and money managers — are now more interested in short-term gains. At GE the biggest problem in 2017 was major revenue misses in their Power business.) capture the imagination of investors and can focus on revenue and user growth instead of on the bottom line.

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The Trap of Relative Value

Feld Thoughts

He had just read my post on being uncomfortable with the phase of the current cycle and told me an anecdote from the great Internet bubble of 2001 that I hadn’t heard. This morning I woke up to an email thread from a founder of a company I’m an investor in. And, is multiple of revenue really the correct long term metric? Yesterday, at The Calloway Way event at MIT , I ran into Joe Caruso.

New Rules for the New Internet Bubble

Steve Blank

VC’s worked with entrepreneurs to build profitable and scalable businesses, with increasing revenue and consistent profitability – quarter after quarter. With Netscape’s IPO , there was suddenly a public market for companies with limited revenue and no profit. Carpe Diem.

Spolsky on Software on Both Sides of The Table

Both Sides of the Table

Blogs weren’t popularized yet so it was an oddity for me to read the founder of a software company spewing out advice. Joel met his co-founder for Fog Creek software and learned a valuable management lesson. Lesson: Joel had been building a community of readers since 2001.

Entrepreneurs are Everywhere Show No. 35: Jessica Mah and Peggy Burke

Steve Blank

How founders cope with startup challenges was the focus of today’s Entrepreneurs are Everywhere radio show. The show follows the journeys of founders who share what it takes to build a startup – from restaurants to rocket scientists, to online gifts to online groceries and more.

What Jonah @Peretti, CEO of BuzzFeed, Sees in the Future of Digital Media

Both Sides of the Table

billion and revenues likely exceeding $250 million (Wikipedia lists 2015 revenue at $167 million). That is why I invited the Founder & CEO, Jonah Peretti , to come talk at the 2017 Upfront Summit and make the case himself. BuzzFeed.

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Startup Funeral: Honoring The Lessons Of Failure [Video]

ReadWriteStart

The dead startups honored were mobile social-networking company Addieu, mobile game and activity locator Get-a-Game and the late, seldom-lamented but often-derided Kozmo.com, which failed way back in 2001 but to this day is held up as the embodiment of dotcom-era foolhardiness.

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How Customer Development Failed Us

Steve Blank

Well, it just so happens that we’ve fitted Ross’s 2001 Subaru with a flux capacitor, gotten our hands on some plutonium and we’re about to hit eighty eight miles per hour! The founders do. Focus on revenue from day one. Temptation to focus on growth and worry about revenue later. Making revenue your first priority does so many good things for you as an entrepreneur – saves cash, validates customers, and tells you if you have a real business.

JVP Raises $25 Million Annex Fund to Support Existing Portcos

VC Cafe

J erusalem Venture Partners successfully raised $25 million for an annex fund to strengthen the portfolio companies in the Israel-focused JVP IV which closed in 2001. In the official press release , Erel Margalit, Managing Partner and Founder of JVP, said: “JVP IV and its Annex Fund are able to create and develop companies with tens to hundreds of millions of dollars in revenues focusing on companies targeting the Media, Internet and end user markets.

Plank’s Cupid Cup Business Contest at U of Maryland is Open

Campus Entrepreneurship

Notice, this competition is for those who have launched businesses and reaches to alumni since 2001. You are invited to apply to participate in the Sixth Annual UMD Business Competition: Cupid’s Cup , judged and sponsored by successful Terp entrepreneur Kevin Plank ’96, founder and CEO of Under Armour. All current UMD students and recent alumni (graduated in 2001 or later) with operating companies that have generated at least $5,000 in revenues are eligible to apply.

Atlas Venture makes 20X return on Isilon sale to EMC

Fred Destin

Sujal Patel and Paul Mikesell founded Isilon back in early 2001. Now, just shy of 10 years later, the founders can proudly celebrate an awesome $2.25bn exit to EMC. The story is noteworthy in part because Patel came back to the top spot after the company repeatedly missed its revenue guidance. Not to take anything away from the work done by the rest of the team including IPO-CEO Steve Goldman, but next time someone asks you whether this founder can scale, just say yes :-).

Startup Funeral: Honoring The Lessons Of Failure [Video]

ReadWriteStart

The dead startups honored were mobile social-networking company Addieu, mobile game and activity locator Get-a-Game and the late, seldom-lamented but often-derided Kozmo.com, which failed way back in 2001 but to this day is held up as the embodiment of dotcom-era foolhardiness.

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Valuations 101: Scorecard Valuation Methodology

Gust

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Such comparisons can only be made for companies at the same stage of development, in this case, for pre-revenue startup ventures. The first step in using the Scorecard Method is to determine the average pre-money valuation of pre-revenue companies in the region and business sector of the target company. million for pre-revenue companies. Is the founder coachable?

What I *Would Have* Said at TechCrunch Disrupt

Both Sides of the Table

And people like Jeff Clavier, Aydin Senkut, Dave McClure, Chris Sacca & Eric Paley (at Founder Collective) are leading the charge. Chris Sacca talked about how a $20 million exit can change a founder’s life and that shouldn’t be scoffed at.

Never Hire Job Hoppers. Never. They Make Terrible Employees

Both Sides of the Table

It’s still important advice for startup founders and something that I’m passionate about. You’re a startup founder. You start fighting with your co-founder whom you thought you understood. This is part of my startup advice series.

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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.

Venture Capital Q&A Session

Both Sides of the Table

The A round was done in February 2000 (end of the bull market) and my B round was done in April 2001 (bear market). But most importantly I lectured founders that you can’t avoid the admin of setting up your ESOP.

Scaling is Hard, Case Study: Akamai

Seeing Both Sides

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. Revenue.

Meet Manu Kumar, Chief Firestarter at K9 Ventures

K9 Ventures

Manu Kumar is Founder and Chief Firestarter at K9 Ventures. Kumar was the Founder, President and CEO of SneakerLabs, a company which developed software and services for web-based customer interaction. Founders create the future — not on the basis of what area is going to be interesting, but based on solving a problem and fulfilling a need. Direct Revenue, meaning no three-way business models and no advertising, media, or content.

From email scams to e-commerce wins: How online shopping is helping Nigeria fix its Internet reputation

The Next Web

Monty Munford is the founder of Mob76 , a company that helps companies become investible and prepares them for exit. It has made and wasted billions of dollars in oil revenues and outside Lagos the country is corrupt and doesn’t even run a Postal service for its people.

Ten Highly Successful Bootstrapped Startups

Software By Rob

In October of 2001, Webster, McCarthy, and Graff decided to do just that and GoldStar was born. Looking back on their previous experiences working at startup companies, the founders decided to bootstrap their business in lieu of seeking outside funding. Photo by earthlightbooks.

Time is the Enemy of All Deals

Both Sides of the Table

My co-founder and other management team members wanted us to hold off and see whether we could get the deal done at a higher price. I lived through this again September 2001. I lived through this again September 2001.

PriceMinister: a beautiful startup story and a great exit

Fred Destin

First a few words on the deal: Speed to exit : €200M in consideration for a company created in 2001 that went through two downturns, not bad IMO. Numbers floated include €40M in net revenues and €7M EBIT in 2009.

What’s Really Going on in the VC Industry? What Does it Mean for Startups?

Both Sides of the Table

The VC industry grew dramatically as a result of the Internet bubble - Before the Internet bubble the people who invested in VC funds (called LPs or Limited Partners) put about $50 billion into the industry and by 2001 this had grown precipitously to around $250 billion.

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35 Entrepreneurs Explain How They Came Up With Their Business Name

Hearpreneur

I am the Founder of Sonjara, Inc – a woman owned small business in Northern Virginia. When I actually started my PR firm in 2001, I had the name and the LLC already, so that’s what I went with, and in 2009 we rebranded to simply be The Eisen Agency.

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37 Entrepreneurs Explain Why They Started Their Businesses

Hearpreneur

I am founder on an unconventional online gallery, The Art and Craft Gallery. Ajay Prasad, the founder of GMR Web Team < [link] > #15) Take Advantage of an Opportunity. In 2001, I came home to find my apartment on fire. Each business has a story.

Transcript of Honest Startup Advice From Somebody Who’s Been Through It

Duct Tape Marketing

John Jantsch: If you’re a founder of a startup, maybe you need some brutally honest advice from somebody who’s been there. He is the founder and former CEO of Moz , and he’s written a book that you’re going to want to get into because it’s got some really practical and heartfelt advice of what he learned along the way. He is the founder and former CEO of Moz. In many cases, a mature business, the founders are not involved anymore.

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