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Praying to the God of Valuation

Both Sides of the Table

In those years I learned to properly build product, price products, sell products and serve customers. Between 2006–2008 I sold both companies that I had started and became a VC. Almost no financings, many VCs and tech startups cratered for the second time in less than a decade following the dot com bursting.

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What Angel Investing & Florida Condos Have in Common

Both Sides of the Table

And so it happened that between 2000-2008 I was the biggest buzz kill at dinner parties. I pointed to several Economist articles I had read that mapped historical prices of real estate for 400 years and how on average property values grow at no more 1.5% And it’s driving up prices beyond their inherent value.

Invest 299
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The Changing Structure of the VC Industry

Both Sides of the Table

Just 3 years ago there was talk of institutional investors “not being able to write small enough checks.” Many pension funds are simply too large to write small checks and favor the ability to write $50-100 million checks to funds. From a technology perspective our journey is nowhere near over. Why is this?

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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. You can be pissed off, but I don’t set prices. That’s stupid.

Startup 336
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VC Confessions: We Passed On Twilio’s Seed Round

InfoChachkie

There were no unicorns in sight on April 14th, 2008 when Kevin O'Connor, my Partner Jim Andelman and I met Twilio's Founder and CEO, Jeff Lawson. A true Internet Pioneer, by 2008, Kevin had already founded or co-founded two Unicorns in his own right, DoubleClick (sold to Google $3.1 Tech Diligence - Consider The Source.

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

I will write more about this in the next 2 weeks. But that doesn’t mean that people are paying rational prices as investors based on intrinsic value. Rational people can disagree and some may argue that today’s prices are rational and under-pinned by economic drivers. I believe that. That’s fine.

Pricing 309
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What Do LPs Think of the Venture Capital Markets for 2016?

Both Sides of the Table

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.