Both Sides of the Table

SEPTEMBER 15, 2022

Should SaaS companies trade at a 24x Enterprise Value (EV) to Next Twelve Month (NTM) Revenue multiple as they did in November 2021? We drew this conclusion after a meeting we had with Morgan Stanley where they showed us historical 15 & 20 year valuation trends and we all discussed what we thought this meant.

Technical Review 416

Technical Review Pre-Money Valuation San Francisco Valuation 416

Steve Blank

JANUARY 22, 2014

Dino Vendetti a VC at Bay Partners, moved up to Bend, Oregon on a mission to engineer Bend into a regional technology cluster. Today with every city, state and country trying to build out a technology cluster, following Dino’s progress can provide others with a roadmap of what’s worked and what has not.

Early Stage 286

Early Stage Silicon Valley Oregon Technical Review 286

YoungUpstarts

OCTOBER 23, 2017

This combinatorial model works because it’s diversified, can best withstand bear markets, benefits from technological synergies, and it’s the mix of products and services clients value. To dig deeper, let’s first review the influence of technology on the core components. However each component will change dramatically.

Technical Review 131

Technical Review Artificial Inteligence Software Review IPO 131

Agile VC

NOVEMBER 6, 2013

Twitter’s IPO has garnered a ton of attention in the tech and popular press. So their revenue figures, pre IPO financing and ownership, and other info is all widely available. If this were a math class, I’d just say the proof is evident but if you want some data on Twitter’s 2013 YTD revenue here you go.

IPO 194

IPO Aggregator B2B Internet 194

Steve Blank

SEPTEMBER 14, 2009

Posted on September 14, 2009 by steveblank Over the last 30 years Wall Street’s appetite for technology stocks have changed radically – swinging between unbridled enthusiasm to believing they’re all toxic. On top of all this it was considered very bad form not to have at least four additional consecutive quarters of profits after an IPO.)

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

VC Cafe

AUGUST 2, 2022

Is there an early mover advantage for being early on a technology trend? In the first five months of 2022, more than $120 billion have been invested in building out metaverse technology and infrastructure, according to McKinsey. billion revenue in 2021 for Epic Games and was played by 83.3 Fortnite generated $5.8 Also, their $1.6

IP 206

IP Cofounder Valuation Acquisition 206

The Startup Magazine

AUGUST 3, 2021

To assist his consulting firm clients with attracting investors willing to fund an unknown business, Luke Lazarus uses an IPO or acquisition model to ensure the highest possible value for his client’s organization. People also use voice recognition in their cars, on their home computers, and with their portable devices.

United States 167

United States Entrepreneur Angel Investor Social Media 167

Both Sides of the Table

DECEMBER 27, 2011

I find it amusing when a journalist writes an article about a prominent startup (either privately held or preparing for an IPO) and decries that, “They’re not even profitable!” They have have raised $2-3 million, built a product that has some amount of market traction and got to annualized revenues of around $1 million.

Startup 418

Startup Revenue Technical Review Flash 418

Steve Blank

APRIL 23, 2014

buy out an entire company for its revenue and profits. VCs like acquisitions as much as IPOs because the acquiring companies often can rationalize paying large multiples over the current valuation of the startup. The founding team is testing for the right combination of product, market, revenue, costs, etc.

Acquisition 332

Acquisition Intellectual Property Silicon Valley Startup 332

Both Sides of the Table

JULY 23, 2014

Cheap, mobile, social, global, massive, always-on, one-click-purchase has led to the most successful companies of our era hitting unprecedented scale early in their development and has massively shifted the value captured from post-IPO investors to pre-IPO investors as is demonstrated in the chart above.

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Flexible VC: Revenue -based. Of the Inc.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Steve Blank

MARCH 16, 2016

But for the last 40 years, it has provided the financial fuel for a revolution in Life Sciences and Information Technology and has helped to change the world. This happens when you either sell your company ( M&A ) or go public (an IPO.) If so, how is the revenue measured? Bookings, recurring revenue, lifetime value?)

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Venture Capital 120

YoungUpstarts

MARCH 24, 2017

Growth stocks provide the ideal opportunity as they see earnings and revenues rise at above-average speed. Investors, therefore, should be willing to sacrifice current return as long as the revenue keeps on increasing at an above-average rate. Snap Inc’s stock SNAP increased 44% from the initial IPO rate on the first trading day.

Stock 104

Stock United States China Technical Review 104

BeyondVC

MARCH 21, 2017

As we move to a cloud-only world with instant-on capabilities and low friction in onboarding customers, why does professional services revenue keep increasing year over year for these enterprise cloud businesses. Professional services drives subscription revenue. If interested, take a look at EnterpriseReady.io

IPO 88

IPO Cloud Azure Revenue 88

Both Sides of the Table

JUNE 5, 2011

Early-stage investors in technology startups are only looking for growth-oriented companies that can achieve an “exit&# someday – either via selling your company to a larger company or via an IPO. million post-money valuation with no revenue. The former is much more likely than the latter. It was early 2000.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

YoungUpstarts

JANUARY 3, 2019

When FireEye became my client, their revenues were stalled in the low millions of dollars a year. They had unique technology, but needed help better explaining why that mattered to buyers who were stuck in the old ways of thinking about network security risk, products and categories.

B2B 147

B2B Sales Cycle Technical Review IPO 147

Both Sides of the Table

NOVEMBER 9, 2012

There simply aren’t a lot of exits above $100m or even IPOs. You need to understand motives of buyer (talent, product, revenue, strategic purchase) and where you fit in. ” That’s b t. People justify winners after the fact. So entry price matters a lot. They are wrong there, too. Being a radar screen of a buyer helps.

Technology 323

Technology PR Startup IPO 323

Growthink Blog

DECEMBER 27, 2017

Demonstrate your team’s unique unfair competitive advantage, whether it is technology, stellar management team, or key partnerships. Detail all revenue streams. Be sure to include all revenue streams. Uses of funds could include expenses involved with marketing, staffing, technology development, office space, among other uses.

Venture Capital 129

Venture Capital Business Plan Technical Review Private Placement 129

Both Sides of the Table

JUNE 22, 2011

Ah, but today’s Internet companies have real revenue! Responses ranged from, “hey, they’re in a HUGE market&# to “it is an amazing company and their technology rocks.&# And this is happening in mezzanine (pre-IPO) deals as well. And post IPO deals, although these tend to correct more quickly.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

BeyondVC

APRIL 4, 2018

Look at the Dropbox IPO which priced above its initial value and came out white hot at the end of one of the worst weeks in stock market performance. Couple that with Mulesoft being bought for 21x TTM revenue ( see Tomasz Tunguz analysis ) at $6.5 Serverless technologies….

Cloud 60

Cloud Agile Architecture Azure 60

Duct Tape Marketing

JANUARY 25, 2023

Growing Your Audience (And Your Revenue) With A Book written by John Jantsch read more at Duct Tape Marketing Marketing Podcast with Matt Briel In this episode of the Duct Tape Marketing Podcast , I interview Matt Briel. And now I think it's definitely through technology, through, you know, a lot of advances in opportunities.

Audience 88

Audience Revenue Distribution Differentiation 88

NZ Entrepreneur

SEPTEMBER 29, 2021

If we want to maintain and support sustainable economic growth while meeting the broader needs of society, we will need an economy underpinned by innovation and new technologies. Addressing real world problems, they thrive in uncertainty, generating new jobs and new revenue streams in new markets. pivot the business. change the CEO.

Technical Review 88

Technical Review Software Review New Zealand Due Diligence 88

thebarefootvc

JANUARY 27, 2014

Some, such as Chinese mobile company Xiaomi, were founded less than five years ago while others such as Good Technology have been around for more than a decade. Information is more widely available, due to increased connectivity through technology platforms. Technology ubiquity. Demand for late stage VC-backed companies.

Technical Review 63

Technical Review Valuation Venture Capital Investment Bankers 63

BeyondVC

MARCH 25, 2004

So while I was at PC Forum, my partner, Ned Carlson, sent me an email on the recent IPO filing of Seven Networks. Having talked to a number of bankers, we always thought that one needed $6-8mm of quarterly revenue, profitability for at least 1-2 quarters, and good visibility for the rest of the year in order to go public.

IPO 60

IPO United States .Net Software Review 60

Both Sides of the Table

OCTOBER 1, 2009

Consumer spending is 70% of the economy and will continue to be stretched – We can look all we want at tech innovation, VC funding cycles and hot M&A deals, but ultimately growth and therefore investment must be underpinned by revenue. Bad stock markets mean less IPO’s and lower prices for M&A.

Technical Review 269

Technical Review Stock Hawaii Early Stage 269

Up and Running

AUGUST 18, 2014

The thing is, a tech startup or any type of startup for that matter (doesn’t have to be technology focussed) and a traditional, new business venture, are different for a number of reasons, most notably: the way they think about growth. Key difference #1 – how these entities think about growth.

Small Business 154

Small Business Exit Strategy Cofounder Angel Investor 154

Version One Ventures

DECEMBER 14, 2016

forward revenue in February 2016 (the low), they appreciated by 6% each month for the following six months. Of course, upcoming IPOs like Snapchat will bring some added excitement to the industry. And, funding moves entirely to production capital, with little to no focus on next-wave technologies. for the last two years.

Technical Review 60

Technical Review Early Stage Portfolio Valuation 60

YoungUpstarts

DECEMBER 29, 2014

Here at WePay, 2014 was a big year for us as well — we pivoted fully into our API business, introduced the industry’s first risk API, launched the first white label payments product with complete protection from fraud, and more than doubled our revenue. The IPO market for financial technology companies will start to heat up.

IPO 218

IPO API Silicon Valley Mobile 218

Gust

JANUARY 31, 2013

Public companies have dealt with financial disclosure in ways that evolved over time with markets and technologies. Before the commercial Internet, the primary tools of disclosure included: Prospectus and related registration statement (“S-1″) for an IPO.

SEC 158

SEC Prospectus United States Technical Review 158

David Teten

MARCH 14, 2018

We particularly help companies in winning revenue from our LP network and raising capital for subsequent rounds from top-tier late-stage investors. For more on this, see The 9 Steps of Using Technology to Improve Investing in Private Companies. I see a small number of other VCs at our stage pursuing a similar, expensive strategy. .

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

Steve Blank

JULY 15, 2010

The collapse of the IPO market and dysfunctional math in the venture capital community has stacked the odds against you. Startup lifecycle in an IPO Market. Until 1995 startups going public typically had a track record of revenue and profits. Netscape’s 1995 IPO changed the rules. Here’s why. Free At Last.

Venture Capital 297

Venture Capital IPO Liquidity Event Entrepreneur 297

Austin Startup

MAY 10, 2021

a full 60x trailing twelve month revenues. For context, UiPath’s revenue last year was reported at $607 million and grew 81% over the prior year?—?so The IPO netted $500M for UiPath (and another $700M for shareholders). but then going public and rising 23% on day one to… drumroll please… a $36B valuation ?—?a

Silicon Valley 113

Silicon Valley IPO Venture Capital Valuation 113

Steve Blank

MARCH 18, 2011

Dot.com Bubble ( 1995-2000): “ Anything goes” as public markets clamor for ideas, vague promises of future growth, and IPOs happen absent regard for history or profitability. VC’s worked with entrepreneurs to build profitable and scalable businesses, with increasing revenue and consistent profitability – quarter after quarter.

Internet 334

Internet IPO Silicon Valley Agile 334

Both Sides of the Table

MARCH 1, 2016

We All Know That Dollars into Venture Have Gone Up … As a starting point, we know that the dollars into venture have steadily rebounded to pre great-recession levels, with just under $30 billion committed to US technology venture capital in 2015. …But LPs Have Been Putting Out More Money Than They Are Getting Back. .”

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

Austin Startup

NOVEMBER 16, 2010

Calxeda is on track with its business and ARM-based product development plans, moving toward providing first samples of its industry-changing technologies in 2011. This is within our reach with technologies we are developing at Calxeda. The response from customers and technology partners validates we are onto something big.

Naming 59

Naming Hiring Technical Review Virginia 59

Feld Thoughts

AUGUST 25, 2015

The key reason for the explosion in capital flowing into the industry, and therefore the large increase in practitioners, had nothing to do with 1970’s performance, early stage investing, or technology. So contrary to the piece, it wasn’t VC were good at early stage technology, it was that they had newfound capital and a big exit window.

Venture Capital 70

Venture Capital SBIC Technical Review Silicon Valley 70

VC Cafe

OCTOBER 19, 2010

P eerTV , a veteran Israeli startup company which enables Content Providers, ISPs and Operators to deliver OTT (Over-the-Top) TV services, has filed for IPO in the London AIM market today. The IPO is underwritten by Libertas Capital Corporate Finance. This is the first Israeli company to go public in London in the last three years.

IPO 68

IPO Internet Channel Operations 68