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Praying to the God of Valuation

Both Sides of the Table

2001–2007: THE BUILDING YEARS The dot com bubble had burst. In those years I learned to properly build product, price products, sell products and serve customers. Until we weren’t. Nobody cared about our valuations any more. We had nascent revenues, ridiculous cost structures and unrealistic valuations. The tide has gone out.

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Sundae snags $36M to build out its distressed property marketplace

TechCrunch LA

With those two funding rounds all equity-based, to buy up property itself and provide $10,000 cash advances to all sellers, Sundae previously also raised a debt fund from high net worth individuals, and it has a “very large” debt facility from Goldman Sachs that it also non-dilutive, Stech said.

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Want to Raise Venture Capital More Easily? Clean Up Your Own Shite First

Both Sides of the Table

That means that they likely raised money at a particularly high price relative to 2010 prices. It’s a bit like if you bought a $1 million home in 2007 and want to sell it for $1 million today. Dealing with an artificially high price can make fund raising hard. There are other problems with “legacy&# deals.

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

Both Sides of the Table

Three reasons: There is a relative valuation between the price a VC pays and their expectations of what it will exit for in an IPO or trade sale. This came in part due to the huge influx of money into VC but also because hedge funds and private equity shops with no VC experience wanted part of the action. Short answer – yes.

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

I know that most people who are close to them tend to deny their existence, as we saw in the great housing bubble of 2002-2007 and the dot com bubble of 1997-2000. But that doesn’t mean that people are paying rational prices as investors based on intrinsic value. That asset class need not represent the broader market.

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This Week in VC: Michael Montgomery (President, Montgomery & Co.)

Both Sides of the Table

Michael is a very accomplished corporate executive in his own right having run Sega Gameworks and helped IPO EuroDisney as well as having been on the founding team of DreamWorks SKG (where he helped them raise their first $900 million in equity). They can also help raise larger rounds of capital and often at higher prices. TechCrunch.

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Interview with Greg Brogger, SharesPost

socalTECH

We allow them to post their requests, with the highest price posting for shares at the top of the list for buyers, and the reverse for sellers. That makes it easy, so that when someone comes to a page and wants to transact in shares, they can see what the most attractive bid and ask prices are. He's also a member of our board.

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