Remove 2011 Remove Competition Remove Pricing Remove Product
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The Changing Venture Landscape

Both Sides of the Table

On the other hand, the biggest winners will turn out to be much larger than the prices people paid for them and this will happen faster than at any time in human history. The market today would barely be recognizable by a time traveler from 2011. On the one hand, you’re over paying for every investment and valuations aren’t rational.

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Sell at the top? Avoid the race to zero!

Berkonomics

Competitors, seeing a successful development of a niche, flock into the competitive void with products or services built with a fresh view of the current environment. LivingSocial took in $583 million in capital in 2010 and 2011 with little left in time to show for the investment and tremendous dilution to the founders.

Pricing 156
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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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Pharma’s Productivity Problem: Finding More Blockbuster Drugs

Xconomy

A recent Wall Street Journal article that raised the possibility of Biogen as the target of another huge pharma buyout cited the lack of productivity as a major driver of M&A in the pharmaceutical industry. The industry can only go so far with growth through hyper-inflated pricing and mega-M&As.

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Avoid the race to zero…

Berkonomics

Competitors, seeing a successful development of a niche, flock into the competitive void with products or services built with a fresh view of the current environment. LivingSocial took in $583 million in capital in 2010 and 2011 with little left in time to show for the investment and tremendous dilution to the founders.

Pricing 120
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Should Startups Focus on Profitability or Not?

Both Sides of the Table

While Google and Facebook will buy “acquihires” (at least as of Dec 2011), many acquirers hate the idea of buying companies that aren’t profitable. When they look at buying your company they often think in terms of “how long will it take until I earn back the profits to pay for my acquisition price?”

Startup 418
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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

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. All of that might be true, but the 2006 price might still be over-valued. That’s fine.

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