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Spectacles and $SNAP’s $20B Valuation

Austin Startup

Had Facebook not purchased Instagram, Facebook’s aggregate numbers likely would have dipped as millennials have largely abandoned Facebook for Instagram and Snapchat. In summary: Snap’s current business doesn’t justify a $20B valuation. How can one justify a $20B valuation for Snap? Now she’s on it every day!

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5 ways to cope with hard times as a startup founder

VC Cafe

The VC markets have contracted almost overnight and last round’s valuations may no longer hold. In May 2022, I published a post on ‘ advice for startups in a downturn ‘ which is more business oriented advice aggregated from the top pundits. This is an incredibly tough time to a lot of founders.

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Airbnb S-1 (Part 1): So How Profitable Is This Thing Really?

View from Seed

Airbnb’s availability as a marketplace and its aggregation of substantial consumer demand has actually meant certain forms of lodging have been newly built or converted into rooms for the primary purpose of listing on Airbnb.

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The Coming Brick Wall in Venture Capital & Why This is Good for US Innovation

Both Sides of the Table

We all know the result of the over-funding of the asset class – poor returns in aggregate for the industry. A normalization of the venture capital market will bring more rational valuations over time but should produce more stable companies and better returns for VCs and LPs. The best firms have still delivered results, though.

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A New Era For Entrepreneurs And Startups Has Begun

Startup Professionals Musings

There is additional encouraging news for aspiring entrepreneurs on many fronts, just in case you are thinking about joining the existing ranks: Valuations of successful startups have hit an all-time high. in 2013, with aggregate proceeds of over $38 billion. Thus a record number of entrepreneurs (and employees) are getting rich.

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What’s a Fair 409A Discount?

VC Adventure

However the board could determine what that fair market value was and, generally speaking, there wasn’t a practical way that these valuations could be challenged. Over night a cottage industry was created to conduct these valuations. So what should this discount be? I was wrong.

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The Legal Side of Entrepreneurship

YoungUpstarts

“And if you have a valuation cap; a higher cap is always better than a lower cap.” The primary terms for these types of transactions are the valuation cap and the conversion discount. ” The Cost of Financing. Startups bear the costs of their financing, from the first seed investment to the sale of Series A stock.