This is going to be BIG.

MAY 5, 2023

It will be the 105th deal out of Brooklyn Bridge Ventures, the firm I started back in September 2012, and it will be the last deal I’ll be making out of my third fund. It will also be my last venture capital deal. To think, I almost didn’t take that 2004 meeting because it was a NYC-based fund.

Later Stage 218

Later Stage Venture Capital Term Sheet Limited Partner 218

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. This “overnight success” was first financed in 2004. This is true in consumer but it’s also true in enterprise software.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

Feld Thoughts

JANUARY 29, 2015

AmeriData was a public company, a voracious acquirer (we acquired 40 companies in three years), and a very fast growing business (they were less than $50 million in revenue when they acquired Feld Technologies and over $2 billion in revenue three years later when GE acquired them.) And very, very little got done.

Venture Capital 70

Venture Capital Reputation Affiliate Conversion 70

Scalable Startup

AUGUST 26, 2014

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.

Founder 42

Founder Los Angeles PHP Open Source 42

Both Sides of the Table

JULY 10, 2010

This episode of This Week in Venture Capital featured Michael Montgomery, president of Montgomery & Co. You have to be selected to present and it is typically reserved for companies that have already raised early-stage capital and are well into revenue growth. Should you use investment banks to raise venture capital?

IPO 242

IPO Venture Capital Private Placement Cofounder 242

Seeing Both Sides

AUGUST 16, 2012

Last week, I wrote about Akamai , a company with strong network effects that successfully transitioned from a single product to build a platform that garners over a billion dollars in revenue and is now a core part of the Internet’s fabric. Expedia grew to account for roughly one third of the company’s revenues. Think about that.

Part-Time VPE 54

Part-Time VPE Software Review Costa Rica Technical Review 54

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? Because most internet business concepts were not capable of productively employing tens of millions of dollars of venture capital does not mean they were bad ideas."

Hockey Stick 60

Hockey Stick Valuation Startup Maryland 60

www.chubbybrain.com

SEPTEMBER 28, 2011

If you are an entrepreneur seeking funding, try our free Funding Recommendation Engine to identify a list of angels, venture capital and state grant programs that best match your business. spent $20 million to get back to the same revenue that I had when I was CEO. Think of it as 7 bonus post-mortems on the house.

Software Review 79

Software Review Startup Technical Review Vesting 79

Both Sides of the Table

APRIL 27, 2010

My company had raised venture capital in April 2001 but we were told that there may never be any more coming. I was paid less in salary in 2004 than I was paid at the job I quit in 1999 (a job I had held 8+ years). and we ultimately sold when we hit $14 million and had more than $30 million in backlog revenue.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

Gust

NOVEMBER 4, 2011

The early history of MySpace is inextricably intertwined with that of Intermix, a small-cap publicly traded Internet company in Los Angeles where I worked as corporate counsel from 2004-06. Intermix was in a turnaround situation when I arrived in mid-2004, having been delisted from Nasdaq and nearly bankrupt.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Both Sides of the Table

SEPTEMBER 2, 2009

We should end the year with a few million in fully recurring revenue and we’re projected to double next year. But more spend = more viral opps = more revenue down the road. >50% of our revenue in now viral. Probably revenue based. I think a couple of million or revenues is probably a reasonable goal.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

Reid Hoffman

MARCH 19, 2019

Google realized that being the way to find the world’s information was a blitzscalable market, thanks to the network effects in its AdWords revenue engine. Yet despite literally patenting ride-hailing in 2000, his own venture, Sidecar, lost out to the more aggressive scaling of Uber and Lyft. To blitzscale, or not to blitzscale?

Cofounder 28

Cofounder Business Model IPO Non-Compete 28

BeyondVC

JANUARY 29, 2009

Business/Revenue model – show me that the economics of your business work – note that single digit gross margins will get you thrown out the door pretty quickly (1 slide).   Take a look at this post from April 2004 titled What Aisle, What Shelf.   (1 slide).

Advisory Board 125

Advisory Board Startup Early Stage Social Network 125

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. The Most Important Venture Capital Statistic.

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

VC Cafe

FEBRUARY 1, 2011

Israel’s Koor Industries, an investment company with holdings in Israeli telecom, defense electronics, agro-chemicals and venture capital markets, will retain 40% of the maker of fungicides, pesticides and herbicides. Intel Corporation (Nasdaq: INTC) had revenue of $43.6 Intel Israel exported $2.7 billion in 2008, and $1.54

Architecture 92

Architecture Dividend Minneapolis 92

www.ericsink.com

SEPTEMBER 22, 2011

2004-07-08 15:59:32 Hazards of Hiring. Many venture-capital-funded companies work this way. But in a small company that is funded by its own revenues, it is almost always a mistake to hire for a position before it is absolutely clear that hiring is the right thing to do. About Eric. twitter.com/eric_sink.

Hiring 40

Hiring Software Review Coder Illinois 40

abovethecrowd.com

DECEMBER 18, 2017

Most large healthcare IT systems are chosen based on one primary objective: revenue management. healthcare system is complex and difficult, and most of these large EHR systems’ number one purpose is to deliver revenue. From 2004 to 2014, the average payments for coinsurance rose 107% from $117 to $242. healthcare market.

Customer 59

Customer Technical Review Venture Capital Software Review 59

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

Gust

MAY 24, 2012

This is nothing new; long favored by family-controlled media empires such as Rupert Murdoch’s News Corporation , among Internet firms alone, Google took a dual-class approach when going public in 2004. Options and warrants, when issued, are also typically exercisable for shares of Common Stock.

IPO 159

IPO Equity Common Stock Stock 159

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

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.

Semantic 302

Semantic Acquisition Valuation Angel Investor 302

Both Sides of the Table

FEBRUARY 3, 2011

What is the mix of revenue between ads, subscriptions, digital downloads & ecommerce. My favorite quote of the show, “Gregg, what’s the mix of revenue types?&# JibJab doesn’t do ad revenue at all. If you have this sort of need – check ‘em out. </end of plug> 4. It changed everything.

Viral 303

Viral Investment Bankers Video Business Model 303

Scalable Startup

MAY 16, 2015

is mostly sanguine, claiming that the market’s standards for viability have increased since the 2000 bust and citing Twitter (revenue but no profit) as the model for the new public tech company. A Wired article entitled “Will 2014 Be the Year the Tech Bubble Bursts?”

San Francisco 20

San Francisco Silicon Valley California Oakland 20