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.

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?

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.

Peter Bauer, CEO & Founder of Mimecast, Founding principles vs Scaling principles

Business of Software Blog

This is a talk about some of the big challenges founders face when their ideas take off. Peter Bauer is the founder and CEO of Mimecast, a cloud-based enterprise email management system. In this talk, Peter discusses his entrepreneurial journey and the principles that he and his co-founders have tried to apply to the growth, development and scale of their business. But I think I’ve also heard a lot of conversations over the years over whether a founder can scale.

Gordon Gekko 2.0: Flipping is GOOD. (aka Memo to Jason Fried.

500 Hats

Memo to GOOG/YHOO/MSFT/AOL: How to Turn 500M email logins into Facebook Platform & Crapload of Revenue Resumes are for Sh*t. i was not directly involved in the Founders Fund investment in Mint's C round a few months ago.

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.

Stock 140

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.

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.).

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.

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.

Tonight We're Going to Party Like It's 1999

Platforms and Networks

The table below compares the market value at the end of 2001 —the trough of the valuation cycle that began in the mid-1990s—to total capital raised since inception (private and public) for all 2,121 U.S-based Enterprise values were estimated as of December 31, 2001.

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.

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 :-).

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.

Media 180

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.

GrubHub and Seamless to Become One Company

Inc Startups

Seamless, on the other hand, launched in 1999, was acquired in 2000, and then became its own entity in 2001. Today it''s in 12,000 restaurants, and reportedly generated $85 million in revenue last year, according to Reuters. As GrubHub''s co-founder Matt Maloney told Inc.

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.

Tonight We're Going To Party Like It's 1999

Launching Tech Ventures

The table below compares the market value at the end of 2001 —the trough of the valuation cycle that began in the mid-1990s—to total capital raised since inception (private and public) for all 2,121 U.S-based Enterprise values were estimated as of December 31, 2001.

Lean 36

Meet the Money Makers: Top 10 Largest Inc. 5000 Companies

Inc Startups

5000 is only for start-ups with fast growth but relatively modest revenue figures. Here''s proof that the list is also home to a number of big-revenue companies, many of them long-established businesses, that are still managing to grow. 5000 list that generated the most revenue in 2012.

Inc. 5000: 5 Stories of Grit & Resilience

Inc Startups

2,499 2011 Revenue: $136.5 3,254 2011 Revenue: $7.9 President Brian Martin says that after a period of slow growth in the early 1990s, the company's founders retired, and passed the torch to a younger group of executives. 3,341 2011 Revenue: $4.5

Allen's Blog: Keep the Faith

Allen's Blog

« The Problem of the Forgotten Founder | Main. Accordingly, a $10 million - $30 million sale price can be a terrific outcome for the founders and angel investors – but terrible for a VC (who depends on a few grand slam home runs to stay in business). End note : the actions by the Federal Government (Congress, the President and the SEC) aimed at the financial scandals of 2000 – 2001 (Enron, WorldCom, Tyco, et al.) Allens Blog.

IPO 40

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.

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?

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.

Trendy Club for the Youngest New Yorkers

Inc Startups

New York Kids Club founder Pam Wolf built a $13 million business by giving New York tots and their moms five-star treatment. Since launching in 2001, the company has grown from an enrollment of 500 students in its original Upper West Side location to 40,000 company-wide.

Q1 VC Numbers Are In.Here's the Good, the Bad, and mostly, The.

Seed Stage Capital

For example, way back in 2001, I worked at JP Morgan pitching PIPES -- "private investment in public equities"-- to VCs, which is about as late stage as you can get (the VCs are literally buying public stock, but at a discount).

SBIC 130

Where will the next ad network breakthrough come from.

Lightspeed

However, as Anand Rajaraman (co-founder of Kosmix , a Lightspeed portfolio company) points out, more data usually beats better algorithms. Note that this observation comes from a guy who was a co-founder of Revenue Science’s Ad Network business! Home About Lightspeed Team jump to navigation Where will the next ad network breakthrough come from? September 24, 2009 Posted by jeremyliew in ad networks , advertising.

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.

Aspen Aerogels S-1 Analysis

Secret Formula

Aspen took its first VC money in May 2001, so it’s been north of a decade. Whenever my partners and I assess a manufacturing company, we always ask for the revenue-to-capex ratio: the annual revenue from a manufacturing facility divided by the capital expenditure required to build it.

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.

GBP | Dirk Paessler | How to Grow & Stay Agile. Part 1: Top 6 Business Decisions

Business of Software Blog

I have been founder and CEO of this company for almost 20 years. In 2001 the dot-com bubble had just burst. Since then, the revenues from one month have always paid for our wages and the development of the products that we would sell in the following month—and we soon made profits, too.

Agile 45

Unshackle the Middle Class

Marc Andreessen

Why should we care if the world has fewer billionaire public company founders and CEOs? To put the job numbers in context, the number of total US employees in 2001 was just shy of 138 million people; 10 years later, that number was only 139 million. Arguably the most significant among the changes was the 2001 move to decimalization. This is a guest post by Scott Kupor, managing partner, Andreessen Horowitz. We are holding back the middle class in America.

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.

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.

Editors' Picks: Our Top Videos of 2012

Inc Startups

The Emotional Story of Reddit's Start & Sale Reddit founder Alexis Ohanian set out to revolutionize the Internet. She sold the Corcoran Group for $66 million in 2001. In 2010, Thrillist founders Ben Lerer and Adam Rich knew it was time to diversify revenue streams.

Video 53

Why Money Isn't Always Your Biggest Problem

Inc Startups

Sometimes, money just hides the real problems," says Caroline Ceniza-Levine, co-founder of SixFigureStart, a New YorkCity-based business-coaching firm. "If Your chair budget exceeds annual revenue. When it went bankrupt in 2001, the chairs were auctioned.

4 Ways to Get a Celebrity Endorsement

Inc Startups

The payoff: a revenue increase of more than 300% during the past three years, Neff says. You want to preserve as much cash as possible,” said Chris Hayes, Barc founder and CEO. In 2001, Uri Minkoff and his wife were at a party in Los Angeles.

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.