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Praying to the God of Valuation

Both Sides of the Table

Something happened in the past 7 years in the startup and venture capital world that I hadn’t experienced since the late 90’s — we all began praying to the God of Valuation. How might our next phase of the journey seem brighter, even with more uncertain days for startups and capital markets? What happened? There was no money train.

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Startups Without Business Plans Are Expensive Hobbies

Startup Professionals Musings

If you sold your last startup for $800 million, you probably already know how to build a business, and even conservative investors won’t worry about the quality of your next business plan. Most investors tend to think of startups without a plan as expensive hobbies. Marty Zwilling ** First published on Entrepreneur.com on 1/16/2015.

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What I’ve Learned About Venture Funding

Both Sides of the Table

We love capital efficiency until we love land grabs until we abhor over funding until we get huge payouts and ring the bell for more funding until we attract every non-VC on the planet to invest in startups until it crashes and we start the cycle all over again none the wiser. the more money you give a startup the faster they grow.

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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. That’s money that fuels our startup ecosystems.

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When Should You Allow Exclusivity in Deals?

Both Sides of the Table

I must admit I discuss this very frequently with portfolio companies but hadn’t thought to write about it. PR Malloy (@diddly_do_indy) June 13, 2015. Although the carriers made a lot of money initially by selling dial-up Internet services, customers never took their software because, well, it sucked.

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Some Thoughts on Leadership Going into 2016

Both Sides of the Table

Having time to think about “leadership” at most startups feels like a luxury. The reality of most startups is about survival. If people don’t know the mission there is no way to achieve the objective and you end up with a team pulling in 100 different directions – even if only by small amounts.

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Don’t Let Faux Unicorns Screw Up Your Financing

InfoChachkie

It is no secret that the number of private companies with valuations in excess of one billion dollars has skyrocketed since the start of 2014. The duct tape securing the faux unicorns’ horns won’t hold up to the market’s scrutiny forever. Follow John’s startup-oriented Twitter feed here: @johngreathouse. Image: CBInsights.com.

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