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

Both Sides of the Table

SEPTEMBER 28, 2014

Gross Burn vs. Net Burn. Burn rate in case you don’t know is the amount of money a company is either spending (gross) or losing (net) per month. (it Net burn is the amount of money you are losing per month. I often see companies burning $100,000 per month (net) looking to raise $6-8 million.

Startup 383

Startup Company Companies .Net 383

Berkonomics

JUNE 8, 2017

[Email readers, continue here…] Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally-generated funds. 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.

Venture Capital 266

Venture Capital Class Invest Equity 266

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. Image Credits: Facebook. the big thing.

Marketing 246

Marketing Newsletter Technical Review News 246

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

Both Sides of the Table

JUNE 17, 2017

To grow faster businesses need resources in today to fund growth that may not come for 6 months to a year. Do you imagine eventually raising VC and trying to build a faster growing company?” They don’t want high burn rates but they will never fund slow growth. million to fund operations in their first year of operations.

Startup 227

Startup Venture Capital Sales Course 227

Berkonomics

AUGUST 10, 2017

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. It is not a strong bargaining position for the CEO to ask for money to complete a product promised for completion with the previous round of funding.

Venture Capital 243

Venture Capital Product Resource Marketing 243

InfoChachkie

NOVEMBER 23, 2015

VC's love to talk about their successes. Yet most VC's bury their failures under six feet of denial. In the startup world, the former happens when a VC makes a bad investment, and the latter occurs when they miss a great opportunity. In retrospect, our decision was both perfectly rational and completely lame. Unicornless.

Venture Capital 100

Venture Capital Technical Review Software Review Southern California 100

Both Sides of the Table

DECEMBER 27, 2011

To grow faster businesses need resources in today’s financial period to fund growth that may not come for 6 months to a year. 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.

Startup 418

Startup Venture Capital Sales Technical Review 418

InfoChachkie

FEBRUARY 29, 2016

Too bad, as the initial funding round has increased over 4,000 times in value, making a $250,000 investment worth more than $1,100,000,000. Two hundred and fifty thousand would have netted my firm more than one billion dollars. 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

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. The most common failures are solutions looking for a problem, lack of a defined market, or an inadequate revenue model. What is the need you fill or problem you solve?

Sales 102

Sales Custom Customer 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. I’m not even talking about your 12-page Powerpoint presentation that you need to raise venture capital or to talk with potential biz dev partners. Why do VC’s care about these years?

Web 2.0 334

Web 2.0 Venture Capital Web Technical Review 334

socalTECH

AUGUST 8, 2018

Saudi Arabian Price Al-Waleed Talal said on Tuesday that he has invested $250M in Snap, taking a 2.3 The investment injection comes as Snap announced its Q2 results, where the company reported a net loss of $353.3M Venice-based Snap Inc. , percent stake in the company. in the three months ended June 30, 2018, on revenues of $262M.

Venice 100

Venice Snapchat .Net Invest 100

Both Sides of the Table

OCTOBER 14, 2015

I spoke at Michael Kim’s excellent annual Cendana VC/LP conference today. One of the points I tried to make is that as venture capital investors as an industry we seem to have a healthy disdain for public market investors. ” It goes like this: What is your net burn rate? What is your cash balance?

Venture Capital 150

Venture Capital Slides Capital Funding 150

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. Why Shouldn’t Most Services Businesses Raise VC? It may be the right answer for you.

Services 332

Services Venture Capital IP Startup 332

Startup Professionals Musings

MAY 29, 2022

Thus, today around 90 percent of successful startups are still acquired by bigger companies versus an IPO, as the safer and preferred method of growth and funding. Because public shareholders usually take the short-term view, they want to see constant rises in the stock's price so they can sell their shares for a profit.

Startup 98

Startup Report IBM IBM 98

Berkonomics

JANUARY 20, 2010

Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally-generated funds. 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. There is a lot to say about retaining control.

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. An investor called the founder, spoke for 30 minutes on the phone and committed to funding having never met the team.

Venture Capital 267

Venture Capital Writing Blogging Startup 267

Berkonomics

MARCH 30, 2010

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. It is not a strong bargaining position for the CEO to ask for money to complete a product promised for completion with the previous round of funding.

Venture Capital 212

Venture Capital Product Resource Marketing 212

InfoChachkie

JULY 28, 2015

Even the eccentric King of Pop communicated the price he was willing to pay for Neverland. Our response was that there was no “price” as our company was not for sale. We then turned Citrix’s question around, saying, “You knocked on our door with an intent to buy so you obviously have some idea of the price you are willing to pay.

Company 100

Company Companies Santa Barbara Pricing 100

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. Greg Martin: I raised a fund called LiquidStock, with three partners. Tell us what you're up to now?

Startup 113

Startup Paramount Invest Capital 113

Both Sides of the Table

SEPTEMBER 17, 2017

Think for example if the people with whom you’re trading currency with can use huge piles of cash to drive up the value of your currency in a short period of time and then use coordinated groups to then drive down prices through trading and misinformation to destabilize people. It’s certainly food for thought.

Course 280

Course Startup Framework Marketing 280

Startup Professionals Musings

AUGUST 31, 2019

Today around 90 percent of successful startups are still acquired by bigger companies, as the safer and preferred method of growth and funding. Because public shareholders usually take the short-term view, they want to see constant rises in the stock's price so they can sell their shares for a profit.

Startup 84

Startup Technical Review Report IBM 84

Tech Zulu Event

MARCH 21, 2014

The conversation moves into Zeroblock’s upcoming plans to implement trading API’s, a robust front-end interface for trading, as well as goals to create a standardized protocol in connecting different exchanges (thereby leveling out bitcoin prices across the board). Adam Draper – Of Boost VC, an SF Incubator/Accelerator.

Startup 104

Startup Venture Capital Draper Invest 104

InfoChachkie

OCTOBER 27, 2010

Take Home Pay – All that matters is the amount of money you net, not the size of the initial offer. Long Term Value – Look at your adVenture objectively, in the same manner as a Venture Capitalist (VC). VCs typically evaluate their investments based on their best guess as to the startup’s ultimate exit value.

Entrepreneur 124

Entrepreneur Venture Capital Acquisition Pricing 124

Startup Professionals Musings

SEPTEMBER 11, 2017

Today around 90 percent of successful startups are still acquired by bigger companies, as the safer and preferred method of growth and funding. Because public shareholders usually take the short-term view, they want to see constant rises in the stock's price so they can sell their shares for a profit.

Startup 87

Startup Technical Review Report Entrepreneur 87

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. The most common failures are solutions looking for a problem, lack of a defined market, and giving away the product. What is the need you fill or problem you solve?

Sales 97

Sales Custom Customer Outsource 97

InfoChachkie

OCTOBER 27, 2010

Take Home Pay – All that matters is the amount of money you net, not the size of the initial offer. Long Term Value – Look at your adVenture objectively, in the same manner as a Venture Capitalist (VC). VCs typically evaluate their investments based on their best guess as to the startup’s ultimate exit value.

Entrepreneur 124

Entrepreneur Acquisition Pricing .Net 124

Both Sides of the Table

OCTOBER 8, 2014

billion in venture capital to LA’s technology startups and 2014 will shatter that figure. Over the past 4 years LA’s tech fundings have growing at a 30% compounded annual growth rate (CAGR) which is > 4 times the US average VC CAGR (7%). In the last full year where we have data LA attracted $1.5

Entrepreneur 376

Entrepreneur Snapchat Startup Google 376

Startup Professionals Musings

FEBRUARY 1, 2015

Today 70 percent of successful startups are still acquired by bigger companies, as the safer and preferred method of growth and funding. Because public shareholders usually take the short-term view, they want to see constant rises in the stock''s price so they can sell their shares for a profit. Constant pressure to increase earnings.

Startup 98

Startup Technical Review Report Entrepreneur 98

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. The most common failures are solutions looking for a problem, lack of a defined market, and giving away the product. What is the need you fill or problem you solve?

Sales 98

Sales Custom Customer Outsource 98

InfoChachkie

JULY 11, 2011

In the past, venture debt was often viewed as a funding vehicle of last resort. When the current investors were tapped out and a bigger fool could not be brought into a venture, all eyes turn towards debt. However, when deployed judiciously, venture debt can mitigate investors’ and founders’ dilution. Enter venture debt.

Equity 235

Equity Startup Invest Funding 235

Startup Professionals Musings

SEPTEMBER 11, 2013

Because public shareholders usually take the short-term view, they want to see constant rises in the stock''s price so they can sell their shares for a profit. Thus most startups I know don’t even mention the IPO exit option, when applying for Angel funding, and most Angel investors will react negatively if you do mention it.

Startup 97

Startup Report Entrepreneur Statistics 97

Xconomy

NOVEMBER 4, 2016

—Boston startup creator Third Rock Ventures closed a $616 million fund , its largest to date, and also made former Eleven Biotherapeutics CEO Abbie Celniker the second female partner in its 10-year history. —Several other biotechs released ASH abstract data, and the net effect was a drop in most stocks.

Research 40

Research Report Pricing Journal 40

Both Sides of the Table

JANUARY 2, 2016

VCs also get large tax breaks. We invest large sums of our after-tax money into our funds and this gets a long-term capital gain tax rate when we make a profit. To me it favors people like me with capital over those that are purely labor. It is seldom ever mentioned. Everybody knows this. Most people think this is fair.

Startup 150

Startup Course Writing Capital 150

SoCal Delicious

OCTOBER 8, 2012

Venture capitalist and hedge-fund manager Peter Thiel—PayPals co-founder and Facebook s. Prices are soaring in the beachfront communities tech types favor, and rents in these. Prices have gone up dramatically on this beachfront strip. Wealthy Investors Flock to Puerto Rico. Gramercy Park Condo Goes Into Contract.

Los Angeles 44

Los Angeles Software Review Technical Review Journal 44