asterisk2a + runway   42

As unicorn startups send customer service gigs to the hinterland, is Silicon Valley exporting its prosperity, or just dead-end jobs?
In the end, only a couple of the San Francisco Lyft staffers decided to go to Nashville. Some scrambled to find new jobs in the company, and the rest got severance and left. Six months later, two people I talked to are still looking for jobs, in a city that boasts a 3.4 percent unemployment rate. “I feel a little burned by this experience,” said one. “There’s just this understanding that if you work for customer service in the tech world you’re not valued. Those are soft skills, and associated with women, they’re not super valued.” [...] With their skills deemed better suited to Nashville, Lyft’s workers can’t help but internalize another message about whether they belong in increasingly Darwinian San Francisco. “It doesn’t make any fucking sense to live in one of the most expensive areas in the country and work in nonprofit development,” one told me.
Another customer service worker I’d talked to from a big software company decided that if she wanted to stick around the Bay Area, it was time to teach herself to code.
Service  Sector  Jobs  low  pay  working  poor  low  income  precarious  work  squeezed  middle  class  job  creation  job  market  job  insecurity  job  security  Silicon  Valley  part-time  Contractor  outsourcing  self-employment  customer  runway  operating  margin  cost  center  cost  of  living  standard  of  living  costcutting  tax  credit  Precariat  precarious  employment  career  ladder  career  advice  IT  Industry  labour  market 
march 2016 by asterisk2a
Zumper: One-Third Of San Francisco’s Rent Is Attributable To VC Funding | TechCrunch
[capital efficiency?] // the other 1/4th is bidding up via credit bubble riches, diversification. other 2/4ths from planning restriction and natural biz cycle of sv //&! http://www.thebolditalic.com/articles/7266-an-open-letter-to-anyone-moving-to-san-francisco-for-a-tech-job - For context, people are right to be angry; shit is certainly fucked up. Since 2010, rents have risen by 40%, and eviction rates have risen by 38%—two rapid changes that have had very visual consequences all across the city. Much of SoMa, for instance, looks like an elephant graveyard. Sidewalks look like the surface of the moon; alleys are littered with broken glass; and streets are strewn with sleeping persons and human shit. All of this can be observed from in the shade of the brand-new office buildings and luxury condos that now line the streets everywhere east of 4th Street. [...] those who move to San Francisco and don’t engage with the community dilute and adulterate San Francisco’s sense of character.
San  Francisco  Venture  Capital  cost  of  living  cost  of  entry  standard  of  living  city  living  burn  rate  New  York  Start-Up  Scene  London  Scene  runway  Networking  Network  economies  of  agglomeration  ecosystem  community  gentrification  Gentrified  speculative  bubbles  property  bubble  credit  bubble  BRIC  QE  ZIRP  hunt  for  yield  FOMO  NIRP  centralbanks  asset  allocation  alternative  investment  allocation 
september 2015 by asterisk2a
Pando: Good news! B rounds have doubled in value over five years!
B Round! doubling down on (to a certain point) proven ideas as they move to make themselves solid/viable (building business model & continued growth if not even putting some more gasoline on the fire with a B Round - allocation of resources). thus there is competition thus bidding up in a private market. BUT BUT also reflects the rising cost! Rising cost to grow, the war for talent to scale, and the cost in said hubs/ecosystems where the talent are already working on scaling other companies, where rent is sky high and space rare to expand office, ops, ramp up head count, ... // why, on a side note!, ? because global ZIRP, NIRP, QE, hunt for yield, FOMO, property speculation, alternative asset management and allocation (newly minted paper millionaers) have bid up prices in metropolitan and hot cities by credit bubbles around the world. bc financial markets are global, thus your allocation/diversification is global, not limited where ur home addr is. adding to volatiliy too bc of froth!
Silicon  Valley  Seed  Round  Party  Round  SPV  Venture  Capital  Private  Market  FOMO  hunt  for  yield  B  Round  A  Round  growth  Private  Equity  Hedge  Fund  Angel  Investor  Micro  VC  2015  cost  of  living  credit  bubble  cost  of  entry  aspirational  leverage  margin  trading  asset  bubble  asset  allocation  distortion  ZIRP  NIRP  QE  BOE  BOJ  Abenomics  PBOC  Fed  unintended  consequences  burn  rate  runway  ECB  Mutual  Fund  unknown  unkown  inflation  targeting  Fed  mandate  inflation  expectation  secular  stagnation  deflationary  deflation  economic  growth  speculative  bubbles  speculative  speculation  reflate  reflation  monetary  policy  unconventional  monetary  policy  financial  financial  repression  western  world  Developing  BRIC  emerging  complexity  incomplete  information 
september 2015 by asterisk2a
We’re gonna need a bigger round...
After 15 years of staggering declines, the cost of building a company in San Francisco is rising sharply // prohibitive! diluting too much too early. // China and other BRIC paper millionaers divesting into property speculators, around the world. every city that has seen substantial price appreciation +10-20% over last +5 years // hot money from monetary policy, excess reserves, flushing around the globe //
cost  of  entry  cost  of  living  living  standard  living  spaces  standard  of  living  city  living  commuting  London  Start-up  Scene  San  Francisco  burn  rate  runway  advice  lesson  urbanisation  urban  planning  Mountain  View  Palo  Alto  Redwood  growth  round  Venture  Capital  hunt  for  yield  FOMO  asset  allocation  asset  bubble  speculative  bubbles  property  bubble  hot-money  ZIRP  NIRP  QE  China  PBOC  2015  credit  bubble  Fed  ECB  BOJ  excess  reserves  economic  history  equity  bubble  bond  bubble  bubbles  speculative  speculation  Micro  VC  Limited  Partners  Angel  Investor  Seed  Party  valuation  globalization  globalisation  flat  world  borderless 
september 2015 by asterisk2a
Pando: In the Valley, pre-seed is a meme. In New York, it’s a necessity
// cost of entry? // unable to make it happen? // Can't you write software from anywhere? // problem, heavily diluted early on approaching A/B, traditional shops don't like the cap table of pre-seed, angels, seed, accelerator & Micro VC's already owning ~+40% ... you come to a traditional A/B shop and not one of the existing investors is actually leading the round or committed in paper do double down? // // from a financial perspective/investment/math --- in the PRIVATE MARKET thrown under the bus by NIRP, QE, hunt for yield and FOMO (looking for their female unicorn or own Zuck) everyone can run 100 burger stands with unlimited/stellar returns in their spreadsheet model (bc cost of capital being 0 or negative). Despite the deflation of price of software & hosting (marginal cost, economics of abundance), Talent got bid up heavily (+200k/y in LA by Snapchat) in certain cities (SV, NY, London) // &! Steen Jakobsen - youtu.be/fnp5ETnKylU - min 16 avg guy does not have access to credit!
Seed  Round  Party  Round  Venture  Capital  Micro  VC  barriers  to  entry  cost  of  entry  London  Start-up  Scene  ecosystem  New  York  Scene  burn  rate  runway  traction  A  Round  seedfunding  funding  Angel  Investor  dilution  cap  table  lesson  advice  liquidation  preferences  hunt  for  yield  2015  distortion  FOMO  equity  bubble  credit  bubble  ZIRP  NIRP  QE  asset  allocation  Limited  Partners  monetary  policy  fiscal  policy  Wall  Street  asset  bubble  behavioral  finance  behavioral  economics  Silicon  Valley  Private  Market  Public  Market  reflate  reflation  cost  of  living  valuation  Unicorn  Decacorn  cost  of  leverage  financial  repression  financial  literacy  financial  financial  cycle  business  cycle  business  confidence  consumer  confidence  hubris  panic  irrational  exuberance  retail  banking  investment  banking  fractional  reserve  banking  banking  crisis 
september 2015 by asterisk2a
Gurley on Global Selloff: Bloomberg West (Full Show 8/21) - YouTube
'averting catastrophic events' - hard things about hard things - book // when taking on growth round to grow aggressively company (buying customer growth)... you might actually take on risk. especially when the sentiment and the market turns and you burned it all and weren't so good at allocating the money and 'growing' you have to maybe raise a flat/downround ... ooopsies. Or even have to accept a debt round and massive lay-off to get to cash flow even/positive. And run a tight ship with the user base/business you've got. // re: post-price correction after speculative China bubble burst and massive China weakness and still existing/persistent deflationary pressures in western world. // &! bit.ly/1NTc3GM - Public markets affect venture funding. Full stop.
growth  round  IPO  Bill  Gurley  Venture  Capital  Private  Market  Unicorn  Decacorn  Mutual  Fund  Private  Equity  Hedge  Fund  2015  speculative  bubbles  speculative  speculation  hunt  for  yield  burn  rate  runway  sentiment  business  confidence  consumer  confidence  China  recovery  bubble  reflate  reflation  book  Ben  Horowitz  Marc  Andreessen  business  model  cash  flow  cash-is-king  Start-Up  lesson  financial  model  Start-Up  advice  valuation  Mark  Suster  Wall  Street 
august 2015 by asterisk2a
Tech Stocks Rebound: Bloomberg West (Full Show 8/25) - YouTube
15:53 - you can build sw companies everywhere else. cost of living out of control as well dampens quality of life and standard of living. // lower burn rate, more time, more runway to find traction (product market fit) beyond MVP,
London  Start-up  Scene  San  Francisco  Palo  Alto  Bay  Area  Mountain  View  Oakland  Seattle  Portland  New  York  Scene  Los  Angeles  Scene  cost  of  living  cost  of  entry  cost  of  ownership  standard  of  living  living  standard  living  environment  noise  pollution  air  pollution  city  living  quality  of  life  urbanisation  urban  planning  California  public  transportation  commuting  well  being  chronic  stress  Oxidative  stress  stress  happiness  index  affordable  housing  social  housing  speculative  bubbles  speculative  speculation  Redwood  San  Jose  bootstraped  bootstrapping  bootstrapped  burn  rate  runway  Venture  Capital  growth  round  war  for  talent  lesson  advice 
august 2015 by asterisk2a
Why Billion-Dollar Valuations Don’t Matter | TechCrunch
I recently heard a story about one VC pushing a company to drive their burn up from $1 million a month to $2.5 million. Unfortunately, an inefficient sales force will always come back to bite you in the butt. We typically think of 60 percent as the benchmark for a healthy performing sales organization. Anything less and you don’t have a repeatable model. [ avc did write about that you need to find product/market fit, traction, self starter, great net promoting score, without spending marketing/advertising/pr ] [...] The goal of every entrepreneur and VC for that matter should be to build sustainable and scalable businesses. The only way to do that is to focus on the metrics that truly matter. The companies that nail many, if not all, of the above criteria will be the ones that make it to the finish line, and the balance will be wandering through the forest looking for someone to feed them.
Unicorn  SAAS  Slack  DropBox  Box  Venture  Capital  Silicon  Valley  growth  round  2015  KPI  metrics  accounting  user  churn  customer  retention  upselling  customer  acquisition  CAC  Decacorn  on-demand  convenience  Marketplace  business  model  user  acquisition  Product/Market  Fit  Share  Economy  middleman  scale  economies  of  scale  FOMO  hunt  for  yield  Start-Up  advice  Start-Up  lesson  burn  rate  runway  Homejoy  Net  Promoter  Score  consumer  product  business  product  B2C  B2B 
august 2015 by asterisk2a
E-Commerce is a Bear — Medium
Only two start-ups have properly challenged Amazon over the past decade: Zappos and Diapers. [...] Having spent time with Tony Hsieh and Alfred Lin, the leadership duo who built Zappos, and Marc Lore and Vinit Bharara, the founders of Diapers, I can tell you: these are intense competitors who recognized the best outcome was to join forces with the industry leader. So if Amazon is the low cost winner of selling brands online, if they are acquiring their best competitors, and if their everyday low prices are available to the entire country via a mechanical turk algorithm which is guaranteed to beat you, how do you compete? [...] [ eBay pure p2p marketplace ] [...] This next generation of e-commerce companies is as much about what you exclude as what you include. // &! only up for grabs (Amazon model) is in the developing world & emerging market - for entrepreneurs - & only possible double digit returns for investors. and the battle has already begun ... since like 05/09 China/India ...
e-commerce  Amazon  eBay  commodity  business  commoditization  differentiate  differentiation  vertical  category  Jet.com  business  model  subscription  model  distribution  model  discovery  Google  Shopping  commerce  Retail  Walmart  brick  and  mortar  business  Online  Shopping  mall  USA  Europe  Zalando  emerging  market  Developing  World  emerging  middle  class  consumer  choice  consumerist  materialism  consumerism  zombie  consumer  Etsy  Marketplace  Platform  Honest  Co.  Bonobos  Warby  Parker  Nasty  Gal  Branding  Zulily  flash  sale  Gilt  Groupe  ModCloth  Birchbox  corporate  strategy  business  strategy  closetphile  Rent  the  Runway  Zappos  tradesy  pure  play  Nordstrom  Macy's  H&M  Primark  Zara  Fast  Fashion  Fashion  Industry  ASOS  John  Lewis  Marks  &  Spencer 
august 2015 by asterisk2a
'Affordable' shared ownership flat in Hackney on the market for £1m | Money | The Guardian
>> Edinburgh is expensive too. Then comes Glasgow as option. But Manchester better because of start-ups already there and MediaCity UK-BBC and Northern Powerhouse initiatives.
London  Start-up  Scene  London  affordable  housing  cost  of  living  cost  of  entry  cost  of  ownership  barriers  to  entry  advice  lesson  UK  burn  rate  runway  Berlin  Scene 
august 2015 by asterisk2a
An Analysis Of Zirtual’s Reality And The Perils Of Debt | TechCrunch
[ SEC filings show it wanted to raise lots more money ] Think about the implications of this for a moment: we know the company wanted $2.75 million in June, and got most of it. But we also know that 35 days later, Zirtual had been looking for another $3 million, and only got $650,000. That is a meaningful shortfall, an 80% difference between the money they needed and the money they got. [...] In fact, you might have concluded they were in for some kind of serious financing and operational problem weeks in advance [ talked also in Jason's interview that they still have legacy customers who cost them too much but are sort of still keep on: book 'hard things about hard things'], when you connect the fairly clear dots between two attempts to raise capital within a month of each other, and which are increasingly unsuccessful. [...] We’re not talking about an equity financing here, we’re talking about debt. [...] debt is a harsh mistress, especially for a startup tech company.
Zirtual  burn  rate  runway  Venture  Capital  fundraising  operations  operation  convertible  note  debt  cash  flow  cash-is-king  Start-Up  lesson  Start-Up  advice  CEO  CFO  financial  literacy  accounting  accountability  execution 
august 2015 by asterisk2a
Growth vs Retention – AVC
"Retention was clearly bad, and that’s what killed us" [...] [...] This all comes back to stepping on the gas before finding product market fit. You might think you have product market fit and so you scale up your hiring, your marketing, your sales, and your capital raising and spending. But if you can’t retain a healthy percentage of your users past ninety days, you don’t have product market fit yet and all the investment you make in your business is just money down the drain. So focus first on your 90 day retention numbers and make sure to nail them and prove you have product market fit. Then scale. // find natural/organic marketing - advertising - instead of building a non-product related cost center like sales, marketing, and advertising. short-cuts like these don't fix the product per se.
user  churn  customer  acquisition  Product/Market  Fit  MVP  user  acquisition  business  strategy  product  strategy  strategy  Start-Up  lesson  Start-Up  advice  burn  rate  runway  Homejoy  distribution  model  discovery  content  distribution  content  discovery  Net  Promoter  Score  word  of  mouth  Tribe  1000  True  Fans  UI  UX  user  experience  user  engagement  customer  experience  customer  retention  customer  service  SAAS  marketing  growth  round  cost  center  short-term  view  short-term  thinking  feedback 
august 2015 by asterisk2a
Online Lenders Facing Marketing War — The Information
Too many companies offering similar services in online lending is driving up the cost of customer acquisition. Some feel higher marketing costs could lead to a shakeout in the industry, particularly affecting smaller competitors.
FinTech  customer  acquisition  NPL  wonga  burn  rate  traction  word  of  mouth  Net  Promoter  Score  banking  runway  LTCV  marketing  advertising 
august 2015 by asterisk2a
India's Snapdeal raises $500m from international investors - BBC News
In the Indian e-commerce sector, Snapdeal competes with rivals Flipkart and Amazon for market share. // burning cash, to buy customers, and with it being a private market, only board and founders know the numbers like LTCV and the puff they add with words and milestones. Chasing the emerging middle class. The new consumer is everywhere else, but not in the Western World which is struggling. http://www.breakingviews.com/indian-e-tailers-funds-will-disappear-in-a-flash/21212651.article
e-commerce  Flipkart  Snapchat  India  China  Amazon  commodity  business  commoditization  BRIC  Developing  World  emerging  middle  class  Frontier  Markets  growth  round  Venture  Capital  customer  acquisition  LTCV  customer  retention  user  churn  user  acquisition  burn  rate  runway 
august 2015 by asterisk2a
Pando: Lessons from the startup graveyard
The startup grim reaper is time. Money buys you time; burn rate takes it away. // & avc - investing money into distribution before MVP/Product/Market Fit (traction, great net promoter score, word of mouth, social media sharing, email sharing, steady self-runner) is a waste. why pour gasoline on a non-existing fire, down the drain, never recoverable, no ROI!?!?
Start-Up  lesson  Start-Up  advice  burn  rate  runway  MVP  Product/Market  Fit  Minimal  Viable  Product  traction  user  churn  user  acquisition  customer  retention  customer  acquisition  Net  Promoter  Score  word  of  mouth  Social  Media  KPI  OKR 
august 2015 by asterisk2a
Gründer-Interviews: Was London kann und Berlin nicht hat | Gründerszene
Auch sie hält es für wahrscheinlicher, nach San Francisco zu ziehen als zurück nach Deutschland. Eine Zeit lang habe sie zwar Jobs bei Startups in Berlin gesucht – aber niemand habe genug Geld gezahlt. Für ein Unternehmen mit einer starken Idee hätte sie das vielleicht in Kauf genommen, sagt sie. Aber: „Ich hatte damals den Eindruck, dass viele Startups in Deutschland nicht international skalierbar sind, oder sein wollten, und habe deshalb schnell das Interesse verloren.“ [...] Am Ende war Berlin der Standort, wo wir am meisten Entwicklungspotenzial gesehen haben.“ Es sei spannend, dass das Startup-Ökosystem in Berlin noch relativ jung ist [...] lobt die noch „sehr junge“ Berliner Szene. Die deutsche Stadt habe wahrscheinlich das „am schnellstwachsende Ökosystem Europas.“ Er ist überzeugt: „Wir werden hier sicherlich bald das Zentrum für Internet-Startups in Europa sein.“ [ copycats and wantrepreneurs chasing small ideas ]
Berlin  Start-Up  Scene  London  Scene  copycat  Silicon  Valley  FinTech  cost  of  living  cost  of  entry  burn  rate  runway  war  for  talent  quality  of  life  living  standard  standard  of  living 
august 2015 by asterisk2a
Why I'm Moving My Business From San Francisco to St. Louis | Need/Want
// one VC/Angel said, its not that you run out of money, you run out of time to find the magic that makes things for your product work, MVP, Product/Market Fit, that kick up in net promoter score, that multiple in q/q growth, etc etc. // If you’re trying to bootstrap, being based in San Francisco is awful. [ Same with London and New York followed by LA and Seattle. ] Cheap cities are startup friendly. [ don't opt for Edinburgh, if go to Glasgow or Manchester (which got already a small start-up scene plus Media City, Salford) ] We’re an internet company. We don’t need to be tied to a specific location. Hiring remote and having a distributed work force is far cheaper than hiring locally and making everyone come into an office. // &! bit.ly/1EvpTcY
San  Francisco  Palo  Alto  Mountain  View  growth  round  Google  Facebook  Venture  Capital  hunt  for  yield  Silicon  Valley  barriers  to  entry  cost  of  living  cost  of  entry  burn  rate  runway  Start-Up  lesson  Start-Up  advice  Seed  Angel  Investor  Micro  VC  bootstraped  bootstrapping  bootstrapped  New  York  Start-Up  Scene  London  Scene  Los  Angeles  Start-Up  Scene  asset  allocation  ZIRP  NIRP  QE  unintended  consequences  unknown  unkown  Taper  Unicorn  Decacorn  2015 
august 2015 by asterisk2a
Why Homejoy Failed … And The Future Of The On-Demand Economy | TechCrunch
The fundamental “on-demand marketplace” model has come into question by investors, the media and even consumers. [...] However, because Homejoy acted as a platform “middle man,” taking a 25 percent cut of the transaction, the wage economics for pros did not make sense. Thus, this attracted young, inexperienced and low-quality pro labor (at times even homeless people), leading to inconsistent and lower-quality work. This mix doesn’t quite cut it for the average homeowner who wants a spotless home, thus leading to platform churn. [ low lifetime customer value that does not cover the cost of ops and customer acqusition ] It wasn’t all bad for homeowners. Homejoy did match some skilled pros with homeowners, driving them to form real business relationships. The issue was these relationships were typically taken “offline” (i.e., platform leakage). [...] Full-service on-demand platforms have been seeing success among more commoditized types of services.
Homejoy  on-demand  convenience  Share  Economy  1099  Economy  Service  Sector  Jobs  marketplace  commodity  business  commoditization  Niedriglohnsektor  burn  rate  runway  customer  acquisition  user  churn  middleman  repeat  business 
august 2015 by asterisk2a
Facebook: Gewinn sinkt im zweiten Quartal deutlich - SPIEGEL ONLINE
[FB] kämpft mit hohen Kosten. Die Anleger reagierten skeptisch. // [ Hohe Kosten!? Was wie!? ] // [...] Die Ausgaben stiegen kräftig um 82 Prozent auf 2,8 Milliarden Dollar. Der Konzern hatte bereits eine Investitionsoffensive angekündigt: Er steckt unter anderem viel Geld in Rechenzentren. Facebook treibt außerdem die Werbung auf mobilen Geräten wie Smartphones oder Tablet-PCs voran. Auch Angebote wie der SMS-Ersatz WhatsApp oder der Fotodienst Instagram werden weiterentwickelt. Dass die Kosten so stark zulegen würden, hatten Analysten aber nicht kommen sehen. [ Cost of hiring more developers for WhatsApp and Instagram and building data centers ] [...] "Es war ein weiteres starkes Quartal für unsere Community", kommentierte Facebook-Chef Mark Zuckerberg die Zahlen. [ LOL, you mean for Wall Street ] &! 1.49bn MAU, 76% of advertising now from mobile! //&! bbc.in/1IsEOKj
Facebook  Silicon  Valley  burn  rate  runway  Palo  Alto  Mountain  View  London  Start-up  Scene  Venture  Capital  operations  Wall  Street  mainstreet.org  San  Francisco  war  for  talent 
july 2015 by asterisk2a
Cities for Tomorrow 2015 - The Next Silicon Valley - YouTube
SV had intrinsic motivation and drive of counter culture. Berlin & Co. do not have that. Wannabes, copycats, lawyers (Samwer Brothers). // Need next to capital and talent also cheerleaders. // Ability to Fail publicly! Problem in Germany and Europe. Socially and by law. Disastrous bankruptcy laws depending on company formation. // &! expensive cities! cost of living. prohibitive! burn rate thus runway shorter, more pressure on all to meet milestones before money runs out. companies die because of such, not enough time to find the magic formula. &! mercenary culture in hiring engineering, switching after 2 years.
Silicon  Valley  London  Start-up  Scene  Berlin  Scene  Israel  ecosystem  counter  culture  economic  history  technological  history  Failure  Germany  society  Gesellschaft  burn  rate  runway  war  for  talent  cost  of  living  lesson  advice  Fred  Wilson 
july 2015 by asterisk2a
SoundCloud will Apple, Spotify und Google angreifen - SPIEGEL ONLINE
SoundCloud plant einen eigenen Bezahldienst für Musik aus dem Internet - und greift damit Spotify und Apple an. Der Gründer des Berliner Start-ups erklärt, wie er trotzdem eine Milliarde Nutzer erreichen will. [...] Zusammengefasst: Der Streamingdienst SoundCloud aus Berlin startet noch in diesem Jahr einen eigenen Bezahlservice. Gründer Eric Wahlforss glaubt, dass seine Community von Künstlern und Musikliebhabern stark genug ist, um gegen die Angebote von Apple und Spotify zu bestehen.
Soundcloud  Spotify  Apple  Music  subscription  model  business  model  Music  Industry  DMCA  copyright  infringement  Remix  Culture  differentiate  differentiation  audience  Social  Media  Platform  burn  rate  runway  cash  flow  niche  Content  pageviews  advertisement  YouTube  Pandora  Rdio  Deezer 
july 2015 by asterisk2a
The only stat about unicorns that should worry Silicon Valley
Now theres a new reason 2 fear the ‘corn: They are insanely capital inefficient. And over the last year, they’ve gotten even more so at an alarming rate... // dead Unicorn (their own making) because of burn rate w expensive offices ('we are successful'), developers, aggressive drive ('acquiring market share in a new market') to acquire customers (and not even making the math long term - life time customer value), ... with each round they have 2 be more aggressive, especially with these liquidity preferences inked in, actually keeping the risk level instead of reducing/mitigating the risk. All 2 blow out the IPO & not end up lower on day 1/compared 2 the last growth round. Box couldnt make a higher valuation after day 1 post-IPO than their last growth round via Private Equity. Existing investors got diluted in order to meet last rounds term sheet liquidity preferences/guarantees. // &! Either u risk more, or the other (competition) will, will outspend, overtake u. &! bit.ly/1Ji536P
burn  rate  Unicorn  Decacorn  runway  Silicon  Valley  growth  round  San  Francisco  Palo  Alto  Bill  Gurley  Start-Up  lesson  Start-Up  advice  Blue  Ocean  Venture  Capital  termsheet  liquidation  preferences  SPV  Mutual  Fund  Private  Equity  IPO 
july 2015 by asterisk2a
Fear Trumps Greed in Silicon Valley as Some Venture Firms Hedge - Bloomberg Business
[... high ops cost associated w SF/Palo Alto ... fancy office (and expensive (rarefied) developers from Google or Facebook) in SF as a sign of success while burning +2m per year at least with no cash flow in sight ... and with all consumer products being free and hoping to finance themselves in the future with advertising ... ] Some VCs are urging their companies to build a rainy day fund to ensure their survival. [...] It’s a constant battle deciding whether to invest in a potentially lucrative deal, said Philadelphia financier Rudy Karsan: “Greed versus fear.” [ Softbank Capital just last week came out publicly with a shift in strategy, to invest now ONLY in proven winners, at slightly premium to get in (and with preferred liquidation preferences in writing), &focus resources on those portfolio companies ... than to compete in a crowded, distorted, muggy, in transparent, very speculative (with lots of ifs and luck and bet on CEO to execute well) A-, B- (and C-Round) market. ]
Silicon  Valley  burn  rate  runway  cash  flow  cash-is-king  hunt  for  yield  distortion  ZIRP  NIRP  QE  growth  round  SPV  war  for  talent  Private  Market  Private  Equity  Hedge  Fund  Mutual  Fund  bubble  USA  Fed  Taper  asset  bubble  asset  allocation  Angel  Investor  Seed  business  model  advertising  VC  Venture  Capital  Greed  FOMO  bubble  speculative  bubbles  speculative  speculation  SoftBank  Capital  IPO  NASDAQ  A  Unicorn  Decacorn  termsheet  liquidation  preferences  exit  strategy  M&A  acquisition  acquihire  acqui-hire  business  cycle  business  plan  business  investment  business  confidence  consumer  confidence  leverage  debtoverhang  irrational  exuberance 
july 2015 by asterisk2a
Homejoy Is Shutting Down At The End Of The Month | TechCrunch
tcrn.ch/1CO0OOU / 7:10 $VC subsidized early business. Could not get 2 cash flow even. Lets not speak of cash flow positive. // If u dont have a cash flow even/positive business, u are dependent on $VC 2 keeping it afloat. If u dont have massive growth, VCs like 2 see & not hitting ur milestones & ur still not able 2 turn the business arnd towards cash flow even. Ur dead in the pan. AND 4 digital only consumer & entertainment products, scale is important +10m users. Because then only advertisers might ... might consider placing an add/natively if the conversion & engagement metrics are attractive. Advertisers & brands cant spread resources thin across 1000 apps. Its overhead & waste in ops. That is why BIG like TV (still), Daily Paper/Magazine (still) and FB (owning +70% of Social) are the MAIN HUBS. >> THUS [Freemium] the Free On Phone Version 4 closetphile (wont cost u much except dev) & the Customer paying 4 Cloud Convenience,Security, more features (ie analytics). &! bit.ly/1CSygUA
Start-Up  lesson  Start-Up  advice  on-demand  convenience  scale  economies  of  scale  Venture  Capital  burn  rate  runway  business  model  closetphile  wardrobemalfunction  freemium  Homejoy  added  value  value  creation  Perception  Silicon  Valley  Unicorn  speculative  bubbles  speculative  speculation  Appification  mobile  homescreen  mobile  first  mobile  phone  irrational  exuberance  Rocket  Internet  Uber  Lyft  customer  acquisition  customer  acquisition  cost  customer  retention  customer  lifetime  value  SAAS  Postmates  Service  Sector  Jobs  1099  Economy  uncertainty  self-employment  Niedriglohnsektor  Niedriglohn  marketplace  efficiencies  marketplace  commodity  business  commoditization  price  sensitive  price  insensitive  price  sensitivity  behavioral  economics  behavioral  finance  status  symbol  status  anxiety  socioeconomic  status  social  status  craigslist  sustainable  sustainability  metrics  KPI  Circa  Share  Economy  marketshare  unit  economics 
july 2015 by asterisk2a
Sacca: Bad Deals Are Being Done in Silicon Valley - Bloomberg Business
min 3 - normal people have been prices out of SV, SF, Palo Alto and around the region. sw engineers with entitelment and very little compassion. // bloom.bg/1I8NCAM &! bloom.bg/1Hzb5za &! bloom.bg/1BaVBji &! bloom.bg/1Fd2zQf (Amazon, Fb, Google, eBay, all had cash flow during its growth past IPO, Twitter ops too expensive compared to scale, living beyond its means. does not need to invest in warehouses (Amazon) nor data centers (Google)) // &! bloom.bg/1e8mFGd &! bloom.bg/1L2Accs &! bloom.bg/1INBZ7N &! bloom.bg/1TgmWqi &! http://lowercasecapital.com/2015/06/03/what-twitter-can-be-2/ &! http://lowercasecapital.com/2015/05/21/i-bleed-aqua/ - Sarah Lacy from pando argues, he bleeds green - pando.com/2015/06/11/the-icahn-was-coming-from-inside-the-house-why-dick-costolos-ouster-changes-the-valley/ &! pando.com/2015/06/12/im-more-similar-to-elon-the-5-silliest-things-chris-sacca-said-yesterday/
Chris  Sacca  Silicon  Valley  ecosystem  Twitter  runway  burn  rate  cash  flow  business  model  San  Francisco  Palo  Alto  hunt  for  yield  distortion  growth  round  SPV  Hedge  Fund  Mutual  Fund  late-stage  funding  Private  Market  Private  Equity  ZIRP  NIRP  QE  cash-is-king  Bill  Gurley  Unicorn  Hype  Cycle  inflation  Venture  Capital  Micro  VC  Angel  Investor  war  for  talent 
june 2015 by asterisk2a
Who Will Be Hurt Most When The Tech Bubble Bursts? Not VCs | TechCrunch
In a nutshell, FOMO is driving many investors in a hustle to be a part of the next Facebook or Twitter and put in huge investments for a fraction of stake. And, they don’t see much risk in it as long as they get the downside protection. [ growth round = rocket fuel splashed onto stuff to acquire more customers and market share (basically, but not always) ] [...] Someday, pretty soon, these will be put to the test, and valuations based on visibility of earnings will matter again. A few will succeed of course, but several others will fall – it remains to be seen how miserably. VCs will most likely walk away with their invested money, if not more. It’s the employees and founders who will see their million-dollar dreams crash and burn. [living beyond ur means & betting dollars you dont have on a time that seems further away than u can even guess (secular stagnation)] [lack of income growth (across the western world) thus disposable income (discretionary spending) is also not helping]
Silicon  Valley  burn  rate  operations  Bill  Gurley  Unicorn  runway  FOMO  Venture  Capital  growth  round  termsheet  liquidation  preferences  Private  Market  Private  Equity  SPV  bubble  distortion  QE  ZIRP  NIRP  disinflation  secular  stagnation  deflationary  deflation  western  world  business  model  revenue  revenues  fiscal  policy  income  growth  USA  OECD  sovereign  debt  crisis  austerity  disposable  income  policy  error  Taper  policy  folly  monetary  policy  productive  investment  underinvestment  infrastructure  investment  1%  Super  Rich  on-demand  convenience  Share  Economy  labour  labour  economics  discretionary  spending  Schuldenbremse  PIGS  Brexit  Grexit  currency  war  macroeconomics  Pact  Europe  productivity  Lohnzurückhaltung  job  creation  globalisation  globalization  Niedriglohn  Niedriglohnsektor  Service  Sector  Jobs  flat  world  borderless  competitive  Future  of  Work  Industrial  Revolution  2.0  economic  history  speculative  bubbles  speculative  speculation  demographic  bubble  Super  Cycle  consumer  debt  zombie  consumer  zombie  banks 
may 2015 by asterisk2a
Are we too nice when a company fails? Out of money and fresh ideas, Homejoy and CustomMade find cushy landings | PandoDaily
https://www.youtube.com/results?search_query=Homejoy+Adora+Cheung // "GET USERS, BURN MONEY." // https://www.crunchbase.com/organization/homejoy // brother sister start-up, maybe they did too many things (burning too much money) mediocre instead of one thing really well! getting to the next milestone or even surpassing it and some, and able to go to investors and say "look here, lets pure more rocket fuel on it."
acquisition  acquihire  acqui-hire  burn  rate  runway  Silicon  Valley  HomeJoy  Handy  Helpling  operations  on-demand  convenience 
may 2015 by asterisk2a
One Thing All the Billion-Dollar Unicorns Have in Common | Re/code
[Granting liquidation preferences ie 2x or 3x to your investors/private equity/spv just so to get this growth round (covering burn) closed, is showing you not believing in your ability and product and company to make a profit now or in the very near future. Really? Liquidation preferences are anti VCish, everyone is not in the same boat. An addicts behaviour. Box granted in its last private round by PE, liquidation preferences and a guaranteed timeline to IPO both punitive, also bc timeline for IPO could not be met, both hurt the company and existing shareholders bc of dilution of their existing shares value.] “It turns out that for companies of a certain size, it’s not that hard to get to unicorn status, provided they’re willing to give their investors a lot of assurances that essentially cover their potential losses. The one thing common in every one of these funding deals, the firm says, that in every case — all 37 of them — investors demanded a ‘liquidation preference.'”
Unicorn  Start-Up  lesson  Start-Up  advice  Silicon  Valley  SPV  growth  round  hunt  for  yield  Private  Equity  burn  rate  runway  business  model  Venture  Capital  Mutual  Fund  Hedge  Fund  termsheet  liquidation  preferences 
may 2015 by asterisk2a
Building A Moat In A Bubble: Navigating Today’s Financing Environment | TechCrunch
But building an operating plan that depends on successively larger and higher-priced rounds to materialize in the future could mean disaster. If you find yourself too fixated on that deep moat you’re building around your business, you may just fall right into it yourself. Too often, entrepreneurs let the amount of capital available to them determine how to operate their business rather than the other way around. Every company has a natural cadence of growth that needs to be respected, regardless of the external fundraising environment. There’s a limit to how many high-caliber engineers, salespeople, and marketing executives companies can recruit and train in a given period – trying to hire too much faster could mean the quality bar gets lowered on new employees. For consumer-facing services, attempting to launch into hyper-growth mode through paid marketing — when basic things like user experience and retention still need to be addressed — could prove harmful in the long run. << !!!
Silicon  Valley  burn  rate  runway  2015  growth  round  Seed  Angel  Investor  hunt  for  yield  MVP  Product/Market  Fit  Start-Up  lesson  Start-Up  advice  fiduciary  responsibility  Private  Market 
may 2015 by asterisk2a
You Need To Be A Billion Just To Make A Million | TechCrunch
[ especially consumer apps being hit driven business, already, that can go out of fashion as quickly as they came, might be a flash in a pan like Secret & work only on the SV/SF ] Competition in the Valley has started reaching a new peak, with candidates demanding all kinds of accoutrements just to change jobs. But it’s not just recruiting that has become more challenging. Sales, marketing, public relations — essentially every task that a startup has to do is just more difficult today given this cutthroat environment. The only way to respond to the higher threshold has been to raise ever more capital, and earlier as well. We now have the rise of the “instant unicorn” that can raise hundreds of millions of capital in just the first months of a company’s existence. That means companies are already worth billions, before they may have made their first million dollars in revenue or gotten their first million users. That’s the new normal, and founders have to be ready to adapt.
Silicon  Valley  San  Francisco  barriers  to  entry  distortion  NIRP  ZIRP  QE  A  Round  Seed  Round  Angel  Investor  hunt  for  yield  Private  Market  competitive  advantage  ecosystem  burn  rate  runway  MVP  Product/Market  Fit  Start-Up  lesson  Start-Up  advice  unintended  consequences  bubble  speculative  bubbles  speculative  speculation  Venture  Capital  Private  Equity  growth  growth  hacking  growth  hacker  structural  imbalance  Impediments  creative  destruction  Unicorn  competitiveness  competition  competitive  Signal  vs.  Noise  allocation  attention  span  New  York  Start-Up  Scene  Silicon  Alley  HR  human  resources 
may 2015 by asterisk2a
When should you “turn on” revenue with your startup? | Calacanis.com
@Jason says enterprise, hardware & marketplace startups must 'turn on' rev from the start but ad-driven businesses should wait until they've hit scale; generating rev too early draws resources that should be dedicated to product & growth; growth ensures funding; ads diminish product quality to some degree & charging customers reduces feedback needed to achieve scale; some say rev reduces acquisition valuations, better to let buyer apply own model to large user base
Start-Up  lesson  Start-Up  advice  burn  rate  runway  revenue  business  plan  business  model 
february 2015 by asterisk2a
DLD15 - What Matters Most in Startup Success (Bill Gross) - YouTube
timing, execution, idea. ... funding is no differentiator as business model. if you have customer demand for your idea (product/market fit) then you can use one business model of the shelve. good timing can crossover with product/market fit - ie come up with something people all the sudden need (ie extra income renting out bed, driving on the weekend and evenings). // timing - is the market really ready (reach/penetration)?! ie Oculus Rift (VR) is not yet mass market compatible. rise of casual gamer, ... mainstream media wrote about it when the market sort of peaked (3-5 break out hits hit mainstream usage. ie your mom). // longer version - https://www.youtube.com/watch?v=OZS-NCSJ9Zo
Start-Up  lesson  Start-Up  advice  Product/Market  Fit  differentiation  differentiate  execution  focus  focused  timing  burn  rate  runway 
january 2015 by asterisk2a
Foreign Founders Should Look Beyond Silicon Valley | TechCrunch
Put your start-up tent up at expensive places = less runway for your start-up = competitive disadvantage (burn rate). To get a MVP minimally viable product out the door, you don't need a $120k/y full-stack dev, for 90% of "ideas," Start-ups fail because they run out of time (= money to pay bills) to find traction, the formula for their "idea." Sure, there are bad ideas. But sometimes you need time to fix all the problems and test and optimise etc etc. A marathon of sprints. // "Burning Money For The Roof Above Your Head" &! So Silicon Valley is an extraordinarily competitive and expensive place to hire; the risks are high for you as a founder – and yet you have to hire faster than you ever have. Candidates are gone if you don’t catch them in a day. &! RE TECHCITY UK - RETS ARE ALREADY WAY UP IN THE AREA AND LONDON IS EXPENSIVE. AS IS NY. AND LA IS AWEFUL, always in the car and the pollution. // http://techcrunch.com/2014/04/14/sf-housing/
Silicon  Valley  Start-Up  lesson  Start-Up  advice  Berlin  Start-Up  Scene  Europe  Start-Up  Scene  London  Scene  burn  rate  runway  Venture  Capital  seedround  seedfunding  angelinvestor  angelinvestors  San  Francisco  Palo  Alto  San  Jose  Mountain  View  war  for  talent  New  York  Start-Up  Scene  Los  Angeles  Start-Up  Scene 
january 2015 by asterisk2a
Reddit CEO Resigns, Alexis Ohanian Returns As Chairman | TechCrunch
http://techcrunch.com/2014/11/13/ex-reddit-ceo-wanted-to-move-the-company-to-daly-city-instead-of-sf/ & http://recode.net/2014/11/13/reddit-ceo-yishan-wong-is-out/ & http://fortune.com/2014/11/13/reddits-new-ceo-may-not-be-interim-for-long/ & https://news.ycombinator.com/item?id=8605847 >> http://www.quora.com/Why-did-Yishan-Wong-resign-as-Reddit-CEO/answer/Yishan-Wong?srid=X&share=1 >> "but we had a strategic disagreement wherein I felt that locating an office in San Francisco proper is an incredibly difficult thing given the strains the city is facing and the high rents it imposes on employees who wish to live close to the office." >> http://www.quora.com/Why-did-Yishan-Wong-resign-as-Reddit-CEO "The reason was a disagreement with the board about a new office (location and amount of money to spend on a lease)."
Reddit  San  Francisco  Silicon  Valley  cost  center  Start-Up  advice  Start-Up  lesson  frugal  burn  rate  runway 
november 2014 by asterisk2a
Fab Was Burning Through $14M/Month Before Its Layoffs And Pivot | TechCrunch
[operational cost low in Berlin. 'running out of cash before traction and revenue starts to climb'] “We have years and years of cash left,” Goldberg notes. It seems that even if there may be new kinds of overhead with the design, building, selling and distributing of furniture, it’s nothing compared to the burn of a startup with hundreds of employees and the challenges of grappling with inventory from dozens and dozens of suppliers. Real estate is one part of that cost base: in New York, Fab paid $250,000 per month for two floors of office space. In Berlin, the company spends $125,000 per year on rent. [min11 ... a choice you have to make about your business; scale with low margin ie Amazon, Zalando&co *commodity business. or the reverse. tight curated sought out offering with high margins with a shelf life of very few months *ie seasonal high end fashion, designer items of any kind, hand manufactured stuff] & techcrunch.com/2014/10/20/justin-kan-disrupt/ & youtu.be/CyIMNDCyuBM
Fab.com  Hem  Jason  Goldberg  Berlin  Start-Up  Scene  New  York  Start-Up  Scene  Silicon  Valley  burn  rate  runway  Lean  Start-Up  commodity  business  commoditization  Zalando  margin  Europe  Start-Up  Scene 
october 2014 by asterisk2a
Peter Thiel on why Airbnb should be valued way higher than Uber… and why it’s not | PandoDaily
Rather than explaining how two companies locked in such a battle could possibly justify nearly $2 billion in collected investment and sky high valuations, he made the point that Airbnb in contrast is wildly undervalued at least relative to Uber. Thiel is also an investor in Airbnb– yet another darling of the sharing economy, valued at a “mere” $10 billion compared to Uber’s $18 billion. Unlike Uber and Lyft, Thiel argued, there is no obvious competitor to Airbnb. That in and of itself makes it a more valuable company because of the distraction and profit erosion that he describes throughout his book. So why doesn’t the market reflect that thinking? Thiel gave an amusing answer to that too: VCs like to invest in things they like to use. VCs love getting in black town cars, but they typically stay in five star hotels. Fewer still open up their homes to strangers for extra cash. Uber gets a “yeah! I like this one!” valuation boost.
Peter  Thiel  Venture  Capital  pattern  recognition  pattern  matching  Lyft  Uber  AirBnB  valuation  competition  Fred  Wilson  Bill  Gurley  burn  rate  runway  Silicon  Valley  unintended  consequences  ZIRP  bond  bubble  equity  bubble  NIRP  QE  hunt  for  yield 
october 2014 by asterisk2a
Andreessen: High burn rates risk more than just running out of cash | PandoDaily
Bill  Gurley  Venture  Capital  hunt  for  yield  ZIRP  NIRP  QE  negative  real  interest  rate  equity  bubble  asset  bubble  bubble  speculative  bubbles  bubbles  Silicon  Valley  burn  rate  runway  Start-Up  advice  Lean  Start-Up  Start-Up  lesson  Berlin  Start-Up  Scene  London  Scene  Europe  Start-Up  Scene  New  York  Start-Up  Scene  cost  of  living  living  standard  living  spaces  living  environment  standard  of  living  Benchmark  Capital  San  Francisco  Palo  Alto  distortion  risk  taking  centralbanks  trust  trustagent  confidence  Wall  Street  Taper  discounting  risk  discounted  risk  risk  discount  timing  business  cycle  financial  cycle  GFC  unintended  consequences  unknown  unkown  unknown  unknowns  cash  flow  business  model  monetization  monetisation  Fred  Wilson  AVC  bootstrapped  bootstrapping  growth  round  Expenditure  Fab.com  sustainability  sustainable  a16z  Marc  Andreessen  Ben  Horowitz  SF  war  for  talent  labour  economics  labour  market 
september 2014 by asterisk2a
Winter Is (Probably) Coming (Soon) | TechCrunch
"The more you boost your burn, the more risk you take on. [...] The underlying point of Gurley’s and Wilson’s respective riffs is that many companies will have to reduce their burn in the future. And it won’t be easy. And the pair likely won’t be willing to give larger sums to companies that just torched their prior round in ways that they didn’t precisely approve of. Cash is the oxygen of business. When it runs out, the company dies." ... being nimble, frugal, Lean, conservative ... via https://news.ycombinator.com/item?id=8338411
Bill  Gurley  Venture  Capital  hunt  for  yield  ZIRP  NIRP  QE  negative  real  interest  rate  equity  bubble  asset  bubble  bubble  speculative  bubbles  bubbles  Silicon  Valley  burn  rate  runway  Start-Up  advice  Lean  Start-Up  Start-Up  lesson  Berlin  Start-Up  Scene  London  Scene  Europe  Start-Up  Scene  New  York  Start-Up  Scene  cost  of  living  living  standard  living  spaces  living  environment  standard  of  living  Benchmark  Capital  San  Francisco  Palo  Alto  distortion  risk  taking  centralbanks  trust  trustagent  confidence  Wall  Street  Taper  discounting  risk  discounted  risk  risk  discount  timing  business  cycle  financial  cycle  GFC  unintended  consequences  unknown  unkown  unknown  unknowns  cash  flow  business  model  monetization  monetisation  Fred  Wilson  AVC  bootstrapped  bootstrapping  growth  round  Expenditure  Fab.com  sustainability  sustainable 
september 2014 by asterisk2a
Burn Baby Burn – AVC
From one of the comments: "f you're backing companies that have bootstrapped their start, you get a different, focussed culture & attitude on burn rates and costs. It forces you to think twice about every cost item. You're running as fast as you can to get traction, customers, product, team, everything aligned within tight costs. It's not about frugality but more aligned to reality. " +++ via https://news.ycombinator.com/item?id=8324047 +++ !!! Fancy Offices - bit.ly/1piSnxO +++ !!! +++ "Gurley and Wilson point to sky high burn rates, not valuations as the red flag in Silicon Valley [...] Gurley and Wilson are lamenting the exorbitant burn rates that have become the norm among venture-backed startups and the lack of fear and accountability signaled by this hyper-aggressive approach." - bit.ly/1m93G0M +++ !!! +++ bit.ly/YQY2WS +++ !!! +++ "Which VCs Have the Most Portfolio Companies with $100M+ of Funding?" - bit.ly/1wo7BHF
Bill  Gurley  Venture  Capital  hunt  for  yield  ZIRP  NIRP  QE  negative  real  interest  rate  equity  bubble  asset  bubble  bubble  speculative  bubbles  bubbles  Silicon  Valley  burn  rate  runway  Start-Up  advice  Lean  Start-Up  Start-Up  lesson  Berlin  Start-Up  Scene  London  Scene  Europe  Start-Up  Scene  New  York  Start-Up  Scene  cost  of  living  living  standard  living  spaces  living  environment  standard  of  living  Benchmark  Capital  San  Francisco  Palo  Alto  distortion  risk  taking  centralbanks  trust  trustagent  confidence  Wall  Street  Taper  discounting  risk  discounted  risk  risk  discount  timing  business  cycle  financial  cycle  GFC  unintended  consequences  unknown  unkown  unknown  unknowns  cash  flow  business  model  monetization  monetisation  Fred  Wilson  AVC  bootstrapped  bootstrapping  growth  round  Expenditure  Fab.com  sustainability  sustainable 
september 2014 by asterisk2a
Venture Capitalist Sounds Alarm on Silicon Valley Risk - WSJ
"Be fearful when others are greedy and greedy when others are fearful." And then you wrote: "Although we may have not reached the level of observing obvious greediness, there is most certainly an absence of fear. Those that managed companies in 2008, or 13 years ago in 2001, know exactly how fear feels. And this is not it." [...] Right now youve got private companies raising $200, $400, $500 million. If youre in a competitive ecosystem & you raise that amount of money, the only way you use it—because these companies are all human-based, theyre not like building stores—is to take your burn up. [2 things: exorbitant high burn rates like '99 & the allure of working for $ loosing companies. &the justification is 'it's Landgrab time,it's still day 1'] &living cost, employee cost &perk &rent cost in SV/SF &surroundings isnt helping either. rising cost is fuelling burn rates &valuations w/ big ABC-Rounds. Didnt we have the glorification of Lean ~3 years ago? A bubble is one WHEN IT POPS!
Bill  Gurley  Venture  Capital  hunt  for  yield  ZIRP  NIRP  QE  negative  real  interest  rate  equity  bubble  asset  bubble  bubble  speculative  bubbles  bubbles  Silicon  Valley  burn  rate  runway  Start-Up  advice  Lean  Start-Up  Start-Up  lesson  Berlin  Start-Up  Scene  London  Scene  Europe  Start-Up  Scene  New  York  Start-Up  Scene  cost  of  living  living  standard  living  spaces  living  environment  standard  of  living  Benchmark  Capital  San  Francisco  Palo  Alto  distortion  risk  taking  centralbanks  trust  trustagent  confidence  Wall  Street  Taper  discounting  risk  discounted  risk  risk  discount  timing  business  cycle  financial  cycle  GFC  unintended  consequences  unknown  unkown  unknown  unknowns  cash  flow  business  model  monetization  monetisation 
september 2014 by asterisk2a
Path’s kiss of death compliment: “It’s hugely popular in Indonesia!” | PandoDaily
[+ Raising Too Much Money for a too small product and market!?] It may be the beginning of the end for a company that was once offered $125 million to sell to Google – in a high priced acquihire – less that six months into its existence and before the company even launched. [...] So, what went so wrong? The answer seems to be a combination of poor execution, an excessive focus on design over utility (not to mention differentiation), and a keeping up with the Joneses desire to spend lavishly. [...] The company has always been a reflection of Morin, including his obsessiveness over design and his proclivity for spending. For example, Path reportedly built its team with a designer to developer ratio of 1-to-2, as compared to an industry average that is likely closer to 1-to-20 (or even lower, although precise figures are hard to come by). [[ ~ Spending for the wrong means to an end. ~ ]] [[ ... Inside the bubble that is the Valley and the Fetish ... ]]
Path  Dave  Morin  acquihire  acqui-hire  Start-Up  Start-Ups  Product/Market  Fit  Venture  Capital  Timing  Hype  Cycle  execution  Focus  focused  Lean  Start-Up  Start-Up  advice  Utility  bloat  design  systems  design  system  design  designer  product  design  burn  rate  runway  corporate  culture  Snapchat  Instagram  Silicon  Valley  Fetish  Digg  Kevin  Rose  Dennis  Crowley  foursquare  Consumer  Internet  Space  Start-Up  Lesson 
may 2014 by asterisk2a

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