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What Does the Post Crash VC Market Look Like?

Both Sides of the Table

The market was down considerably with public valuations down 53–79% across the four sectors we were reviewing (it is since down even further). ==> Aside, we also have a NEW LA-based partner I’m thrilled to announce: Nick Kim. When you look at how much median valuations were driven up in the past 5 years alone it’s bananas.

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Cliff Notes S-1: Kayak ? AGILEVC

Agile VC

How They Make Money: Majority of Kayak’s revenue actually comes from advertising on their site (55%), not lead generation or referral fees to travel suppliers as you might think (more on this below). Financial Snapshot: 2010 Revenue: $170 million. Revenue growth: 51% YoY (2010), 1% YoY (2009), 131% YoY (2008).

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The Changing Structure of the VC Industry

Both Sides of the Table

Limited Partners or LPs (the people who invest into VC funds) have taken notice as 2014 is by all accounts the busiest year for LPs since the Great Recession began. pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights.

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The Great VC Ice Age is Thawing (for now) – Part 1 of 3

Both Sides of the Table

Also, it’s harder to pay a $30 million pre-money value on an unproved company when you see public companies with $100 million in sales trading for less than $20 million. Huge downturns have a real impact on the revenue line of start-ups and therefore the pressure on valuations. I argued for literally a year to slash burn.

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

Ah, but today’s Internet companies have real revenue! In addition to FOMO it is partly driven by massive increase in valuations for earlier-stage companies who raised money at bit seed prices but who still have product risk. So at GRP Partners we’re very active now. I said that at the Founder Showcase, too.

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Shark Tank Season 4 episode 2 breakdown

Lightspeed Venture Partners

The entrepreneurs had made $150k in revenue running classes for four months at a gym in New York, selling out the classes at $35/class. The right number to focus on is pre money valuation as that is how an investor is valuing the company before the investment. Post money valuation = Pre money valuation + Investment.

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A Great Discussion with @skupor @davemcclure @msuster on Changes in the VC Industry

Both Sides of the Table

Most of those industries are fee-based and are competing on revenue growth. Four years ago people paid $66m median pre-money valuation and are now paying $155m. Scott spoke about the a16z ethos to put more of the fees investors pay into “services” rather than partner pockets.

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