Trimming The Hedges, Planning For A Rainy Day

Haystack

However, I have picked up on some disparate signals over the past week which lead me to believe, while we live in a perpetual loop uncertainty, there are some self-imposed changes coming across the startup tech ecosystem in the Bay Area. But, what I am saying is, the leaders of recruiting firms, VC firms, and pre-IPO companies are grabbing their clippers to tidy up the yard and most certainly planning for that rainy day.

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Looking Back On Tech, Startups, And VC In 2019

Haystack

These companies exemplify the compounding network effects, lock-in, and lopsided economics that accrue to technologies generally and software specifically. Or, the burgeoning private markets, which now fuel private companies with so much cash there’s been a new push to go for “Direct Listings” as companies become publicly-traded, allowing more shareholders to trade freely quicker without traditional lock-up periods?

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Looking Ahead, Predictions For 2019

Haystack

Ok, let’s move on…for 2019’s prediction, I tried to keep it simple and cook up big questions that are on most peoples’ minds, and offer my two cents on them. If things hold up through lock-up periods, waves of cash will wash up in northern California. And with that, we wrap up 2018. Alright, here we go. My predictions for 2019. I am not great at these “looking ahead” posts. We all know the unknown will happen.

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Share options are key to Valley culture; the UK is getting close, but not there yet

The Equity Kicker

Once these businesses and others come out of their lock-up periods many of their option holders will cash in, more people will know somebody whose options have worked for them, and startup employees will place more value on those options. It sometimes seems that in the Valley that everyone is an angel investor and the streets are paved with gold.

The Corrosive Downside of Acquihires

Both Sides of the Table

And to keep up with the Jones’s it seems that Yahoo! And they might give a premium if the team has been around a longer period of time, has built some hard-to-build proprietary technology or has some customer traction. Most founders stick around for their lock-up period (1-2 years) before going on to found their next company. et al really have to keep up with the Jones’s to build its future?

Difference Between ICO, IEO and STO

Kodorra

The difficulty to set up an ICO project is rather low where companies with only an idea (inked on a whitepaper), a website and a star-studded team and advisors could raise hundreds of millions of dollars. Due to its simplicity to set up, the cost is obviously lower than IEO and STO. Securities and Exchange Commission (SEC) requires a lock-up period in their Regulation S where investors are unable to cash out their investment for up to one year.

Slack S-1: Will ARPU Drive Long Term Value?

View from Seed

One of the key questions for me was how might Slack stack up against other great SaaS companies when it comes to average revenue per user (ARPU), and how ARPU and total addressable market (TAM) might drive Slack’s long run market cap. But it does mean that traditional 180 day lock-up periods won’t generally apply to existing Slack shareholders. Slack dropped their S-1 a couple weeks ago.

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Slack S-1: Will APRU Drive Long Term Value?

Agile VC

One of the key questions for me was how might Slack stack up against other great SaaS companies when it comes to average revenue per user (ARPU), and how ARPU and total addressable market (TAM) might drive Slack’s long run market cap. But it does mean that traditional 180 day lock-up periods won’t generally apply to existing Slack shareholders. Reading Time: 6 minutes. This post also appears on NextView’s blog. Slack dropped their S-1 a couple weeks ago.

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What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

The problem was that he was still working out the lock-up period in his big company. If this idea was so big then why would they risk not being first to market, not building defensible IP for the sake of a few hundred thousand dollars extra in lock-up money at a big company? Partners in VC funds only wanted to fund entrepreneurs who had a certain percentage of their net worth tied up in their venture. It’s lost salary for a period of time.

409A Valuations

Venture Chronicles

– If private investors have already bid up the valuation, will there be an IPO jump in the stock price? We are in a really interesting period where tech IPOs are few and far between and the effect has been for a secondary market to develop for employees of high growth companies to tap into in order to realize actual value from their stock options. The secondary market that has emerged in our current period is simply a response to market conditions that frustrate liquidity.

ProfessorVC: The Most Important Venture Capital Statistic

Professor VC

Dont miss Plan - This may seem obvious, but Ive seen a number of CEOs shot for missing the first quarters numbers after going public, which is a great way to shrink your market cap well before the lock-up period is up. Baby's All Grown Up. The best way to describe my work is probably start-up CFO guy. I spend my days working with cool start-ups in a variety of capacities. ProfessorVC. The last blogger in Silicon Valley.