asterisk2a + decacorn   13

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
Not All Unicorns Are Created Equal | Re/code
A “brick” unicorn doesn’t need to rely on conceptual thinking (like straw), or a set of projection data (like stick) to earn its status. Brick unicorns have history to rely on. They’ve already proven themselves. There is no big, bad wolf in the world that is going to blow them down. What does that translate into in reality? Profitability is a key contributor. Years of maximizing profits successfully, while still displaying extremely rapid growth. Often this can be traced back to market opportunity — is this organization adaptable enough to create and service an enormous market? If they’re solving problems for wide-reaching verticals such as life sciences or financial services, the answer is likely yes.
Unicorn  Decacorn 
september 2015 by asterisk2a
Priceline's Lessons for Uber, Airbnb and Other Unicorns - Bloomberg View
But it was its market valuation that drove the fascination, and after the stock price collapsed from a high of $974.25 a share in April 1999 to $6.75 in December 2000, people mostly stopped talking about Priceline.com. [...] First, that the huge valuations being attached to today’s leading digital startups probably aren’t all crazy. Second, that those valuations may make it hard for late-round private investors, or the rest of us after the eventual IPOs, to make much money off the insight that Uber or Airbnb or Snapchat is in fact built to last. And finally, the big lesson for these companies may be to set aside a bunch of that investor cash for when times get tough -- and maybe hire a CEO, or at least a general counsel, who is really good at making acquisitions.
Uber  Private  Market  AirBnB  Unicorn  Decacorn  hunt  for  yield  growth  round  Private  Equity  Mutual  Fund  Silicon  Valley  dot.com  Snapchat  IPO  Wall  Street  shareholder  value  profit  maximisation  Twitter 
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
Twitter works just fine – but for investors, anything except total market domination is a disaster | Comment is free | The Guardian
Nothing better illustrates capitalism’s addiction to illogic than the mismatch between Twitter’s workability and its unpopularity with Wall Street [...] Any company that cannot demonstrate a clear route to monopolising its space, monetising its users’ data on a vast scale, is to be discarded, targeted for acquisition, consigned to perpetual dowdiness. [...] When I’ve pointed to Wikipedia, Apache or Linux as harbingers of a new, non-market, open source economics, one of the stock responses is: “now show us something more spectacular.” The problem is, these modest, functional and free products are already in their own way spectacular. Wikipedia is the biggest information product in the world; Apache runs half the world’s web servers; and Linux is the system of choice for at least a third of all servers (the computers that run businesses) and 97% of the world’s supercomputers.
Twitter  Wall  Street  shareholder  value  profit  maximisation  short-term  short-term  thinking  short-term  view  crony  capitalism  capitalism  exploitation  post-capitalism  monopoly  monopsony  oligopoly  oligopol  Facebook  IPO  Google  Open  Source  Share  Economy  Open  Data  Wikipedia  GNU/Linux  Apache  Wordpress  creative  destruction  Software  Is  Eating  The  World  3D  printing  Robotics  automotive  self-driving  cars  disrupting  markets  disruption  Marketplace  commodity  business  commoditization  marginal  cost  differentiate  differentiation  economics  of  abundance  autonomous  car  automation  Future  of  Work  Mobile  Creatives  Mobile  21stcentury  Collaborative  collaboration  cooperation  user  generated  content  crowdsourcing  Industrial  Revolution  2.0  policy  Industrial  Revolution  economic  history  trickle-down  economics  Universal  Basic  Income  winner  take  all  Amazon  SAP  Salesforce  inequality  Thomas  Piketty  Super  Rich  1%  mainstreet.org  tax  evasion  tax  avoidance  Gini  coefficient  deregulation  neoliberalism  neoliberal  self-regulation  regulators  regulation  utility  public  utility  Good  Silicon  Valley  Unicorn  Decacorn  Private  Market 
august 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
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
[ AMAZON's culture ] by USA TODAY Tech (podcast)
Amazon, Silicon Valley, Unicorns and Decacorns - go go go even for broke. making things happen. winning the category. // vs Google and Facebook are those that won sort of automatically and had not that much internal and external pressure growing up. had not to fight surviving dot.com crash. Facebook sort of became a self-runner despite of its many missteps. Amazon had to fight all the way, and still has to fight because now it faces antitrust on both sides of the Atlantic. That creates, inadvertently, a specific culture that has been cited by personal examples in the NYT piece.
Amazon  Silicon  Valley  Unicorn  Decacorn  corporate  culture  corporate  values  work  environment  environment  perks  benefits  beyond  workplace  drama  Office  Politics  career  ladder  career  advice  Leadership  CEO  Jeff  Bezos  Millennials  peer  pressure  people  management  business  management  team  management  HR  human  resources  hiring  burnout  chronic  stress  stress  work  life  balance  workplace 
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
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

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