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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. Almost no financings, many VCs and tech startups cratered for the second time in less than a decade following the dot com bursting. Until we weren’t.

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Good Times Ahead for VC-backed Tech Companies?

Both Sides of the Table

On the third Wednesday of every month I co-chair a meeting called the SoCal VCA (venture capital alliance), which represents participants from all of the top venture capital firms in Southern California as well as prominent members of the Tech Coast Angels (TCA). We feature a prominent speaker at every event.

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What Angel Investing & Florida Condos Have in Common

Both Sides of the Table

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% above inflation yet in many markets in the US & Europe prices were rising at 10-25% per year. 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

When you think about the trends of faster-growing startups due to social networking, credit card enable and mobile first consumers – the reality is that many startups are becoming very large financially before needing to go public. 2007 was the watershed year. From a technology perspective our journey is nowhere near over.

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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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Insights and Opinions: Returns From Southern California IPOs

socalTECH

Previously, we reviewed the performance of southern California technology IPO's from 1995 through the end of 2000. From 2003 until the crash of the financial markets in late 2007, 15 companies, an average of 3 per year, went public. Markets displayed a healthy rationality, pricing these IPO's at an average of $366 million.

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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.

Pricing 309