asterisk2a + termsheet   34

Börsenpläne von Spotify: Der Sound der Zocker
Eine Milliarde Dollar (880 Millionen Euro) leiht sich der Musikdienst laut "Wall Street Journal" bei Finanzinvestoren und der Großbank Goldman Sachs. Spotify verspricht den Geldgebern neben Zinszahlungen auch Anteile am Unternehmen. Wie viel Spotify zahlen muss und in welcher Größenordnung Anteile den Besitzer wechseln, hängt davon ab, wann die Schweden an die Börse gehen. Mit jedem Halbjahr, in dem das Start-up die Erstemission herauszögert, wird es jedenfalls teurer.

Das macht den Deal hochriskant für Spotify: Von Profitabilität ist der Dienst weit entfernt, 2014 fuhr der Dienst einen Verlust von 162 Millionen Euro ein. Die neuen Schulden könnten das Unternehmen in einen ruinösen Strudel von schrumpfenden Geldreserven, drückender Zinslast und immer mieseren Börsenaussichten reißen. [...] [ M&A out of question ] &! bit.ly/1MYHBK4 &! on.recode.net/1oo4GQ1
Spotify  IPO  growth  round  Private  Equity  Goldman  Sachs  liquidation  preferences  termsheet  Box  Aaron  Levie  Apple  Music  Apple  Google  Inc.  Google  Play  Music  Google  Play  Amazon  Prime  Amazon  M&A  Soundcloud  Deezer  Rdio  Pandora  Microsoft  Venture  Capital  Unicorn  business  model  subscription  model  freemium 
april 2016 by asterisk2a
Inside How Mutual Funds Value Private Tech — The Information
The sudden and sizable valuation markdowns of high-flying private companies like Snapchat, Dropbox and Zenefits by mutual fund investors has been one of the biggest stories in tech, sowing fears that the market is deflating. They’ve also caused consternation among founders, who have had to defend their companies’ earlier valuations to employees.
downround  growth  round  Mutual  Fund  SPV  Uber  Zenefits  Snapchat  Silicon  Valley  DropBox  hunt  for  yield  ZIRP  NIRP  QE  speculative  bubbles  risk  capital  liquidation  preferences  termsheet  asset  allocation  distortion  Lyft  equity  bubble  reflate  reflation  financial  repression  New  Normal  secular  stagnation  hot-money  BRIC  emerging  market  Frontier  Markets 
february 2016 by asterisk2a
Pando: Unicorns on fire: Funding falls dramatically in the fourth quarter, along with exits of all kinds
I predicted the second quarter of 2015 had to be peak mega round. Turns out, I was three months off. But now it’s official: The shit is hitting the fan. [...] In the third quarter, venture funding hit dot com funding levels with 2008 deals and $38.7 billion raised. In the fourth quarter, we saw the lowest deal tally since 2013, with just 1743 deals raising some $27.3 billion.
IPO  Unicorn  growth  round  ZIRP  NIRP  QE  distortion  Private  Market  Wall  Street  Fed  monetary  policy  USA  China  business  confidence  Silicon  Valley  Hype  Cycle  termsheet  liquidation  preferences  Private  Equity  Mutual  Fund  SPV  Venture  Capital  Angel  Investor  Seed  Oil  price  QT 
january 2016 by asterisk2a
When a Unicorn Start-Up Stumbles, Its Employees Get Hurt - The New York Times
Just how punishing that price was became clear in late September. In an investor document about the sale that was distributed to shareholders, employees discovered their Good stock was valued at 44 cents a share, down from $4.32 a year earlier. In contrast, preferred stock owned by Good’s venture capitalists was worth almost seven times as much, more than $3 a share. The paperwork also showed that Good’s board had turned down an $825 million cash offer just six months earlier, in March. // via https://redd.it/3yehai
Unicorn  liquidation  preferences  Venture  Capital  termsheet  Start-Up  advice  Start-Up  lesson  downround  Private  Equity 
december 2015 by asterisk2a
Option Games: Common Stock Values Get Murkier — The Information
Valuing common stock has gotten trickier for startups. The growing number and complexity of rights on preferred shares are causing companies to adjust their reasoning around how much their common stock is worth, according to firms providing the valuations and lawyers overseeing them. But companies still have a lot of discretion, a reminder that how startups calculate their value frequently bears little relation to big funding headlines. [...] Valuations of startup firms’ common stock for employee option grants has been complicated by increasing complexity of rights on preferred stock and secondary market transactions. [...] [ !!! Snapchat offered common stock only in recent (May 2015) investment, Alibaba & two hedge funds were ok with it. But further termsheet details (liquidation preferences) unknown. Existing holders of common stock (employees) could be diluted massively, in future, ie Snapchat has a down round in the future/eventual IPO - on.wsj.com/1KICv8H &! bit.ly/1iiJw3G ]
cap  table  liquidation  preferences  common  stock  employee  option  grants  Start-Up  advice  Start-Up  lesson  HR  human  resources  compensation  package  valuation  Unicorn  Decacorn  preferred  stock  termsheet  Venture  Capital 
september 2015 by asterisk2a
Secret’s Demise and Uber’s Next Potential Acquisition by The Jay & Farhad Show
Jay Yarow (Business Insider) talk abt Secret’s demise; Google Ventures partner compares failed startup Secret to 'a bank heist' - bit.ly/1h9RZFc &! Google Ventures partner sort of apologizes for comparing one of his portfolio companies to a 'bank heist' - bit.ly/1NQsFyI // 2012-mid 2015 Environment: FOMO! // @StartupLJackson - startupljackson.com/post/118338084025/secret-financing - "Their big issue was that they were Silicon Valley famous before product-market fit, which meant the failure was public and the hype cycle inescapable. That may have been their fault, may not have been. Journalists can sort that out. Other founders: don’t ever do this." what other names/co come 2 mind, being Hyped, feeding the hype & failing very publicly!? Kevin Rose - Digg, Dennis Crowley fights not to fail publicly with Foursquare, Twitter post-IPO, FriendFeed in its own way, ?Photo? 40m no product, Bebo post-AOL acquisition, Consumer Products are inherently hard and luck based. Path.
Secret  Venture  Capital  Google  Ventures  FOMO  Silicon  Valley  ethical  machine  termsheet  Whisper  anonymity  pseudonym  Trend  Hype  Cycle  Yik  Yak  Beme  Casey  Neistat  Dennis  Crowley  foursquare  Digg  Kevin  Rose  consumer  product  Product/Market  Fit  Bebo  AOL  Twitter  Friendfeed  Path  Dave  Morin  Friendster  StudiVZ 
august 2015 by asterisk2a
Private Tech Draws Wide Array of Mutual Funds — The Information
The number of traditionally public investors in Uber is higher than previously understood, according to regulatory filings. But questions about risk and liquidity remain.
Uber  growth  round  Silicon  Valley  Venture  Capital  Mutual  Fund  Private  Equity  Hedge  Fund  hunt  for  yield  liquidation  preferences  termsheet 
august 2015 by asterisk2a
Uber operating at big losses, suggests document leak - BBC News
They show operating losses of more than $100m (£65m) in the second quarter of 2014, albeit coupled with steady growth in revenue. In a statement, the company hit back at reports but did not deny them."Shock, horror, Uber makes a loss," it said. "This is hardly news, and old news at that," it added. "It's a case of business 101: you raise money, you invest money, you grow (hopefully), you make a profit and that generates a return for investors." [...] One positive note to emerge was the fact that the company increased its cash holdings from $263m in 2013 to over $1bn the following year. [ war chest ] [ growth round = do or die, no conservative mode ]
Uber  Venture  Capital  growth  round  Unicorn  Decacorn  2015  Lift  termsheet  liquidation  preferences 
august 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
Thoughts on Microsoft acquiring Berlin's 6Wunderkinder
[5x] Second of all, the purchase price range reported by the WSJ is very broad. There’s a world of difference between selling a company that has raised around $25 million in capital for $100 million or for $200 million – for the founders and its financial backers, no matter what stage they’ve invested in. [...] I agree with people who said this is a great deal for the early investors, the company’s founders, and the Berlin startup ecosystem in general. There’s absolutely no question that it is. At the same time, I can’t help but think 6Wunderkinder could (should?) have been bigger and bolder. [It is and will not be a unicorn, duh, if it were it would have shown. probably traction, m/m growth (incl churn) did taper off below double digit space while everything else stayed the same.] // My Q. from the posted cap table; It seems employees do not get a piece of the cake. Didnt get equity when they joined? Same 4 Rocket Internet, ppl got offered 2buy before IPO, everyone said no thanku.
6Wunderkinder  Wunderlist  Microsoft  Berlin  Start-Up  Scene  ecosystem  SAAS  subscription  model  freemium  termsheet  dilution  liquidation  preferences  Rocket  Internet  IPO 
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
Unicorn sugar crash | PandoDaily
liquidation preferences // // &! http://www.bothsidesofthetable.com/2015/05/14/the-most-important-advice-i-could-give-you-about-unicorns/ - So here’s advice I give people all the time when they’re raising money. Narratives matter. Narratives are memorable. I’m not talking about raising money at a billion dollars. I’m talking about making your company memorable by describing it with a narrative that people will later remember. Showing people your features or even your recent performance lacks context and won’t be memorable. Your business needs to be cast in a story that puts it into perspective. Why is your market broken? Why is your solution 10x better? Why are you the unique person to solve this problem? Why is it a really big market? Why is it ready for disruption? Why is now the right time? How do you remain defensible?
Unicorn  termsheet  liquidation  preferences  growth  round  Start-Up  lesson  Start-Up  advice  Silicon  Valley  pitch  deck  valuation  speculative  speculation 
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
CEO Supper Club: Why Box.net's Aaron Levie Has So Much Gray Hair - YouTube
3:00 - when you are profitable and bootstrapped, you have the bigger lever to negotiate a growth round "make us your best offer."
bootstraped  bootstrapping  bootstrapped  Venture  Capital  Start-Up  lesson  Start-Up  advice  termsheet  growth  round 
april 2015 by asterisk2a
With bullying app Secret on life support, investors learn the risk of investing in assholes | PandoDaily
Oh, and there’s one more lesson for investors about investing in assholes: If they seem to be heading for the door after a just a few months, you probably should do the same. At the same time as Secret asked investors to pony up $25m to fund the company’s “growth”, Byttow and his co-founder Chrys Bader-Wechseler personally cashed out $6m. That big payday came just six months after Secret launched, and less than a month before Byttow told the world he didn’t care about the victims of bullying.
Venture  Capital  hype  Cycle  governance  Secret  Uber  corporate  governance  corporate  values  corporate  culture  personal  values  termsheet  Platform  Start-Up  advice  Start-Up  lesson  Silicon  Valley  subculture 
december 2014 by asterisk2a
Comparing term sheets « HighContrast
Jeff correctly points out that the pre-money valuation of the company is not what entrepreneurs should focus on exclusively because the pre-money includes an option pool, which is under board control. Instead, he suggests that entrepreneurs should look at “the promote” which is the ownership of the founders * the post money as an indication of how good a deal they got. In his example he compares a 6 on 7 offer with a 20% pool with a 6 on 9 offer with a 30% pool. The promote in the first case is $4.4M (34% of 13M post) and in the second it is $4.5M (30% of $15M post).
option-pool  pre-money  Valuation  termsheet 
november 2009 by asterisk2a
The Funded Publishes Ideal First Round Term Sheet
entrepreneurship funding vc legal termsheet startup start-up finance business
entrepreneurship  funding  vc  legal  termsheet  startup  start-up  finance  business 
november 2009 by asterisk2a
Fred Wilson - The Ideal First Round Term Sheet
entrepreneurship funding vc legal termsheet startup start-up finance business
entrepreneurship  funding  vc  legal  termsheet  startup  start-up  finance  business 
november 2009 by asterisk2a

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