Both Sides of the Table

JULY 16, 2010

Lots of discussion these days about the changes in the VC industry. The VC industry grew dramatically as a result of the Internet bubble - Before the Internet bubble the people who invested in VC funds (called LPs or Limited Partners) put about $50 billion into the industry and by 2001 this had grown precipitously to around $250 billion.

Venture Capital 311

Venture Capital Startup Seed Funding Rustic Canyon 311

TechCrunch LA

FEBRUARY 6, 2022

The Facebook parent-company saw its stock price get bludgeoned after a bad earnings report showcased that Apple’s ad-blocking changes are shaving billions off its books and the company’s crown jewel — the Facebook platform — has stopped growing and actually shrank this quarter.

Marketing 246

Marketing Newsletter Technical Review News 246

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. The abundance of late-stage capital is good for us all. My first ever investment as a VC was Invoca. Maker Studios?—?sold

Venture Capital 363

Venture Capital Capital Funding Startup 363

socalTECH

JUNE 28, 2021

The publicly traded company--which trades on the Nasdaq as OBLG--said it sold 4,000,000 sahres of its common stock at a purchase price of $3.10 Oblong said it intends to use the net proceeds for general corporate purposes. in a registered direct offering, from both pre-existing and new institutional investors.

.Net 113

.Net Equity Los Angeles Pricing 113

Berkonomics

JUNE 8, 2017

You will realize much more from the ultimate sale of your business even if at a considerably lower price than if splitting the proceeds with investors. But few businesses grow into the sweet spot of $20 million to $30 million in worth to an ultimate buyer without the injection of outside capital.

Venture Capital 266

Venture Capital Class Invest Equity 266

Both Sides of the Table

JUNE 17, 2017

70–80% of the costs of most startups are employee costs so what you’re really talking about when a company is unprofitable is that they are growing their staff ahead of their revenue. Are you looking to potentially sell the company in the next year or two? Do you plan to run this as a smaller business but maintain healthy profits?

Startup 227

Startup Venture Capital Sales Course 227

Berkonomics

AUGUST 10, 2017

Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies. Although young companies rarely measure profitability this repeatedly, more mature companies usually can bring from five to ten percent of revenues to the bottom line in the form of net profit.

Venture Capital 243

Venture Capital Product Resource Marketing 243

InfoChachkie

JULY 28, 2015

Even the eccentric King of Pop communicated the price he was willing to pay for Neverland. However, in many cases, acquiring companies behave less rationally than Mr. Jackson. Citrix politely approached us, told us they had an interest in acquiring our company and then asked us, “How much?”. What is your price?”.

Company 100

Company Companies Santa Barbara Pricing 100

InfoChachkie

NOVEMBER 23, 2015

VC's love to talk about their successes. Yet most VC's bury their failures under six feet of denial. This latest round valued the company in excess of a billion dollars, entering them into the overly-hyped Unicorn Club. In retrospect, our decision was both perfectly rational and completely lame. What’s The Worst Mistake?

Venture Capital 100

Venture Capital Technical Review Software Review Southern California 100

Both Sides of the Table

DECEMBER 27, 2011

You have to understand whether they’re likely to yield revenue growth in the near term OR whether you have access to cheap enough capital to fund your losses until your investments pay off. Exec Summary: Most companies (98+%) in the world (even tech startups) should be very profit focused. ” Harsh, but reality.

Startup 418

Startup Venture Capital Sales Technical Review 418

socalTECH

AUGUST 8, 2018

the parent company of Snapchat , has raised $250M in the publicly held company from the Saudi royal family. Saudi Arabian Price Al-Waleed Talal said on Tuesday that he has invested $250M in Snap, taking a 2.3 percent stake in the company. Venice-based Snap Inc. , READ MORE>>.

Venice 100

Venice Snapchat .Net Invest 100

InfoChachkie

FEBRUARY 29, 2016

Two hundred and fifty thousand would have netted my firm more than one billion dollars. As discussed in Why I Passed On Twilio , VC's love to talk about their successes, but seldom publicly acknowledge their mistakes. It is far more detrimental to one’s returns to make investments in companies which fail to return capital.

Venture Capital 100

Venture Capital Email Invest Services 100

Both Sides of the Table

JUNE 27, 2021

What we discuss internally and what I discuss with my LPs is outlined as follows: We back 36–38 Series Seed / Series A companies per fund (we have a separate Growth Fund) Our median first check is $3.5 the sale of the company for $1 billion. You need shots on goal as not every one will go in the back of the net.

Funding 294

Funding Startup Writing Invest 294

Startup Professionals Musings

DECEMBER 2, 2022

You can’t succeed in business without an operational model that delivers value to customers at a reasonable price, with an underlying cost that allows you to make a profit. Test your projections against actual published reports from similar companies. What is the need you fill or problem you solve? Target market. Revenue model.

Sales 102

Sales Customer Custom Outsource 102

Both Sides of the Table

NOVEMBER 3, 2009

This is part of my ongoing series of posts and I need to file this one under both Raising Venture Capital and Startup Advice. Ajax was the new buzzword and many companies went overboard. and the subsequent acquisition sprees of companies like Google, Yahoo!, Why do VC’s care about these years? portfolios.

Web 2.0 334

Web 2.0 Venture Capital Web Technical Review 334

Both Sides of the Table

APRIL 25, 2011

This thinking is largely driven by the venture capital industry (and subsequently Wall Street) who are in search of high margin, highly scalable businesses. It’s nearly impossible to get a services company financed by VCs. And stop effing around trying to create a product company.&#. But it might not.

Services 332

Services Venture Capital IP Startup 332

Both Sides of the Table

JULY 19, 2011

And yes, VC’s, too. We had the final terms of our agreement fairly well boxed in within a range of about 5-7% on price and within 30 days on move-in date. I obviously preferred the lowest price and I wanted the latest move-in date. She told me, “start with the price you want but the move in date he wants.&#.

Venture Capital 319

Venture Capital Pricing Startup Outsource 319

Both Sides of the Table

OCTOBER 14, 2015

I wish all of them well and feel confident that anybody employed at one of the most innovative companies of the past 10 years will land on his or her feet. I spoke at Michael Kim’s excellent annual Cendana VC/LP conference today. The truth is that Twitter is an amazing company and still has an amazing opportunity in front of it.

Venture Capital 150

Venture Capital Slides Capital Funding 150

Startup Professionals Musings

MAY 29, 2022

Smart entrepreneurs are now starting to look at this option again, as well as the challenges of running a public company. Last year was quite a year for IPOs, largely influenced by the significant rise in the number of special purpose acquisition companies (SPACs) who went public, despite almost uniformly negative returns.

Startup 98

Startup Report IBM IBM 98

socalTECH

DECEMBER 12, 2014

One Los Angeles company-- OneStop Internet (www.onestop.com) has created a growing business handling exactly that. John Tomich: OneStop Internet is an e-commerce services company. The way we get compensated, is we receive a percent of net sales that flow through the website. Who are your ideal customers and market?

Commerce 203

Commerce Venture Capital Internet Brands Startup 203

Berkonomics

MARCH 30, 2010

Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies. Although young companies rarely measure profitability this repeatedly, more mature companies usually can bring from five to ten percent of revenues to the bottom line in the form of net profit.

Venture Capital 212

Venture Capital Product Resource Marketing 212

Berkonomics

JANUARY 20, 2010

You will realize much more from the ultimate sale of your business even if at a considerably lower price than if splitting the proceeds with investors. It’s an option, even though an expensive one Strategic investors validate a business, by their presence creating the very value they pay for with increased price per share purchased.

Venture Capital 174

Venture Capital Invest Class Entrepreneur 174

Both Sides of the Table

FEBRUARY 27, 2011

Still, as a VC I value proprietary dealflow & long term relationships. I know it was over heated when a deal where I wrote one of the first checks on (as an angel, not VC) went out on AngelList. Mostly, I don’t believe that a VC not being on AngelList is “anti entrepreneur&# – it is not. My personal use.

Venture Capital 267

Venture Capital Writing Blogging Startup 267

socalTECH

APRIL 13, 2020

Our interview today is with Greg Martin , co-founder of LiquidStock (www.liquidstock.com), an investment fund which offers up a way for employees of private companies to exercise their stock options before an IPO or acquisition. Why did you start LiquidStock rather than a more traditional venture fund? We closed in January of 2019.

Startup 113

Startup Paramount Invest Capital 113

Startup Professionals Musings

AUGUST 31, 2019

Smart entrepreneurs are just now starting to look at this option again, due to its unpredictability and the challenges of running a public company. Today around 90 percent of successful startups are still acquired by bigger companies, as the safer and preferred method of growth and funding. Constant pressure to increase earnings.

Startup 84

Startup Technical Review Report IBM 84

InfoChachkie

OCTOBER 27, 2010

A similar experience occurred at a cloud computing company where I acted as an addVisor. The company was approached by a Big Dumb Company (BDC) who made a nominal acquisition offer within months of the company’s founding. Take Home Pay – All that matters is the amount of money you net, not the size of the initial offer.

Entrepreneur 124

Entrepreneur Venture Capital Acquisition Pricing 124

Tech Zulu Event

MARCH 21, 2014

The transaction is considered the largest public acquisition in Bitcoin history with both companies exhibiting impressive growth numbers since their respective beginnings. Overall, he remains optimistic towards Bitcoin prices and cues the Dogecoin community’s phrase “to the moon! The ultimate plan?

Startup 104

Startup Venture Capital Draper Invest 104

Startup Professionals Musings

SEPTEMBER 11, 2017

Smart entrepreneurs are just now starting to look at this option again, due to its unpredictability and the challenges of running a public company. Today around 90 percent of successful startups are still acquired by bigger companies, as the safer and preferred method of growth and funding. Constant pressure to increase earnings.

Startup 87

Startup Technical Review Report Entrepreneur 87

InfoChachkie

OCTOBER 27, 2010

A similar experience occurred at a cloud computing company where I acted as an addVisor. The company was approached by a Big Dumb Company (BDC) who made a nominal acquisition offer within months of the company’s founding. Take Home Pay – All that matters is the amount of money you net, not the size of the initial offer.

Entrepreneur 124

Entrepreneur Acquisition Pricing .Net 124

Startup Professionals Musings

MAY 14, 2012

You can’t succeed in business without an operational model that delivers value to customers at a reasonable price, with an underlying cost that allows you to make a profit. Test your projections against actual published reports from similar companies. What is the need you fill or problem you solve? Target market. Revenue model.

Sales 97

Sales Customer Custom Outsource 97

Startup Professionals Musings

FEBRUARY 1, 2015

Smart entrepreneurs now avoid this option like the plague, due to its unpredictability and the challenges of running a public company. Today 70 percent of successful startups are still acquired by bigger companies, as the safer and preferred method of growth and funding. Public companies are always at risk for takeovers.

Startup 98

Startup Technical Review Report Entrepreneur 98

Both Sides of the Table

OCTOBER 8, 2014

” in 2014 the data seems pretty conclusive because LA has now become the fastest growing tech startup region by numbers of companies being started and those of us here have noticed this pace accelerating. Given how efficient markets are when a large market like LA starts to blossom it attracts capital pretty quickly.

Entrepreneur 376

Entrepreneur Snapchat Startup Google 376

Startup Professionals Musings

SEPTEMBER 11, 2013

Today the rate of startups going public (IPO – Initial Public Offering) is at an all-time low, and most entrepreneurs avoid this option like the plague, knowing the process is painful, and public company executives are seen as greedy sharks. Public companies of any size must comply immediately with the full reporting requirements of the SEC.

Startup 97

Startup Report Entrepreneur Statistics 97

Startup Professionals Musings

JANUARY 29, 2011

You can’t succeed in business without an operational model that delivers value to customers at a reasonable price, with an underlying cost that allows you to make a profit. Test your projections against actual published reports from similar companies. What is the need you fill or problem you solve? Target market. Revenue model.

Sales 98

Sales Customer Custom Outsource 98

InfoChachkie

JULY 11, 2011

The nature of the company’s business model requires it to fund certain costs before it is paid by its customers. Thus, even though the company is cash flow positive, its growth is constrained by the amount of payables it can fund. Enter venture debt. I also participated in a small convertible debt round.

Equity 235

Equity Startup Invest Funding 235

Xconomy

NOVEMBER 4, 2016

But a new poll this week shows support has dropped sharply since the summer as drug companies have poured near-record amounts into an anti-61 campaign. The firms will sell the data, stripped of patient identities, to drug companies looking for insights as they develop new cancer drugs or plan clinical trials. MONEY IN, MONEY OUT.

Research 40

Research Report Pricing Journal 40

SoCal CTO

MARCH 22, 2007

I have to say that it has netted far more than I would have thought. Technology Advisor Technology Roles in Startups Pricing Customer Acquisition Sunk Costs and More -. Weve also found that potential clients find us through LinkedIn. Im very happy with the time Ive spent building up my LinkedIn network.

Blogging 150

Blogging CTO Coach CTO Hire Southern California 150