Berkonomics

JULY 10, 2014

I can’t tell you how many times I’ve walked away from deals where the entrepreneur insists on a start-up premoney valuation that is so high, no angel could expect to make a return upon the investment, even with a reasonable sales price for the company down the road. Why fight about valuation, or disappoint the founder at the outset?

Valuation 71

Valuation Cofounder Founder Revenue 71

Agile VC

MAY 26, 2011

Google is still a private company (their IPO was Aug 2004). conference happened at the end of 2004). LinkedIn’s product had only been live for a couple months, we only had tens of thousands of registered users, and wouldn’t start generating revenue for more than a year after this point. It was a $4.7M link] leehower.

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

Gust

NOVEMBER 4, 2011

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. Valuation caps can come into play in settings other than seed-stage convertible note financing rounds. Read on for a fuller explanation.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

This is going to be BIG.

MAY 9, 2022

5) Is the post-money on your last round north of $30mm and you’ve yet to show meaningful and repeatable revenue traction that comes with positive contribution margins? So, yeah, that’s going to come down—especially because they likely got over their skis on valuation. 3) Do you need to raise a large amount of growth capital in 2022?

Stock 97

Stock Marketing Valuation Later Stage 97

Scalable Startup

AUGUST 26, 2014

As further market proof of the power of Drupal in the enterprise, Acquia has received about $100 million in funding in the past 3 months, which puts its valuation at over $1 billion. It gained recognition during the 2004 presidential campaign when Howard Dean’s IT director decided to use it as a platform for community and campaigning.

Founder 42

Founder Los Angeles PHP Open Source 42

Ben's Blog

AUGUST 17, 2020

OH in South Park, San Francisco (or on Zoom from Big Sky, Montana): “OMG, crazy – that firm just paid 100x revenue to invest in [insert hot startup here] – what could they be thinking?” How valuation multiples work Why did multiples become a shortcut-heuristic for estimating valuations in the first place?

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

This is going to be BIG.

MARCH 30, 2015

Would you be surprised to know that almost half of the dot com companies founded when the boom started in 1996 were still around in 2004--four years after the peak of the NASDAQ? But at what valuation? Because companies today have way more revenues than the companies that went public or had huge up rounds back then.

Hockey Stick 60

Hockey Stick Valuation Startup Maryland 60

Jeff Hilimire

MAY 6, 2014

10 years ago (2004) I was 28 years old and my company, Spunlogic, was just starting to really grow. We had finally hit $1 million in revenue and would double our revenue every year after until we would eventually sell in March of 2008. Build more sustainable revenue. 10 things I wish I knew 10 years ago.

Atlanta 62

Atlanta Retention Revenue Valuation 62

View from Seed

JANUARY 26, 2016

For reference, First Round Capital and Softech were founded in 2004 (although they were less institutional early on), Floodgate in 2006, Harrison Metal in 2008, etc. This means that it has rewarded Series A and B investors for chasing momentum and made it less important for these investors to focus on valuation or sound, early unit economics.

Seed Stage 120

Seed Stage Early Stage Cofounder Finance 120

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. 3/31/2004: 31.6. But they most certainly are not.

Down Round 78

Down Round Marketing Preferred Stock Post-Money Valuation 78

Agile VC

FEBRUARY 2, 2012

Founded : Spring 2004, incorporated July 2004. How They Make Money : Facebook’s primary revenue stream is of course selling advertising on Facebook.com, which in total accounts for 85% of revenue. Financial Snapshot : 2011 Revenue: $3.71 2011 YoY Revenue Growth: 88%. 2011 YoY Revenue Growth: 88%.

IPO 100

IPO South Korea Venezuela Revenue 100

Duct Tape Marketing

APRIL 28, 2011

Convergent streams The most effective marketing strategy not only focuses on a core market and differentiators, it also finds ways to build multiple streams of recurring revenue. The deal ends this Saturday April 30. Note: There have been some updates since I published th. 5 Practical Tips for Gett. : 5 Steps to Successful Fac.

Marketing 64

Marketing Valuation Differentiation Lead Generation 64

Both Sides of the Table

MAY 24, 2021

It has historically been the case that VCs would rather fund the promise of 100x in a company with almost no revenue than the reality of a company growing at 50% but doing $20+ million in sales. Case in point, Procore just went public and is trading at an $11 billion valuation. This “overnight success” was first financed in 2004.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

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. 3/31/2004: 31.6 But they most certainly are not.

Marketing 46

Marketing Preferred Stock Post-Money Valuation Down Round 46

Software By Rob

AUGUST 18, 2010

The only thing that seemed to be consistent about my growth was that my revenue was relatively flat while my user base kept growing. This turned out to be a good move since it doubled their revenue that month. He has a great stats page that shows everything from monthly revenue to the breakdown of users by plan type.

Software Review 78

Software Review Software Revenue Cofounder 78

Both Sides of the Table

MARCH 1, 2011

Around 2003, Quigo was doing tens of millions of dollars in revenue with two main products: a ready-to-use, search engine marketing solution for advertisers called FeedPoint and a contextual advertising platform for publishers called AdSonar. They sold in December 2007, but he started selling Quigo in 2004. Contest details here :

Semantic 302

Semantic Acquisition Valuation Angel Investor 302

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.

IPO 60

IPO SEC Valuation Revenue 60

Professor VC

JUNE 20, 2011

Since the iControl system chronicles all meetings, I was able to find the automatic picture snapped from my first meeting with the founders, Reza Raji and Chris Stevens on April 22, 2004. I took a look back at our original financial model we presented to VCs in 2004.

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

BeyondVC

OCTOBER 25, 2003

According to many investment bankers I have met with, today’s companies, unlike yesterday’s, need to have $10-20mm of revenue a quarter, be profitable now and not in 8 quarters, come from an established and not an emerging sector, and have a valuation based on real earnings and growth and not one on revenue.

IPO 60

IPO Investment Bankers Venture Capital Valuation 60

Both Sides of the Table

DECEMBER 5, 2010

billion in annual subscription revenues not including advertising or eCommerce). MySpace would liked to have owned YouTube but didn’t have the public stock valuation to purchase them at the price that Google did. Google acquired YouTube for $1.65 billion, which at the time seemed laughably high and now seems prescient.

Social Network 318

Social Network Networking Internet Technical Review 318

NZ Entrepreneur

JULY 8, 2019

Soon after that first investment, I started my first business, and am now on my fifth (all $1m+ in revenue, but not all ‘successful’). Valuations. A simple metric – when I registered my first company in 2004, the naming space was wide open. to-date, since we launched in 2017.

New Zealand 42

New Zealand Entrepreneur Valuation Dilution 42

Both Sides of the Table

FEBRUARY 12, 2017

(there’s a great story from Jonah in the video but you have to watch to hear it :)) But it’s undeniable that it has become a digital media powerhouse having raised around $500 million in capital with a valuation reported at $1.7 billion and revenues likely exceeding $250 million (Wikipedia lists 2015 revenue at $167 million).

Media 210

Media Los Angeles Russia Viral 210