asterisk2a + mutual   26

The Growth Trap
[ growing for growth sake! vs growing in a world/area that is not conducive to grow ] When Twitter went public in 2013, its stock soared and its value jumped to $25 billion. Its founders and early investors got rich. But since then, the company has been considered a failure, despite the fact that it boasts 320 million active users, because it's not growing fast enough. Douglas Rushkoff, author of "Throwing Rocks at the Google Bus: How Growth Became the Enemy of Prosperity," talks to Steve Paikin about why he sees the push for more growth as dangerous. // true capitalists (shareholder, crony, greedy) w/o self-regulation or governance extract all the value there is to extract and then leave, dispersing it to the few who already have [...] WE MUST REWRITE THE RULES OF THE GROWTH GAME ITSELF! [...] you want to optimise the economy based on velocity of money (circulation of money), not share price and value extraction [...]
Venture  Capital  Unicorn  shareholder  capitalism  Greed  shareholder  value  profit  maximisation  profit  maximization  Wall  Street  Wall  Street  activists  Yahoo!  Google  Inc.  Alphabet  Inc.  Microsoft  IBM  Intel  Oracle  capitalism  exploitation  Super  Rich  short-termism  short-term  thinking  1%  plutocracy  oligarchy  M&A  economic  growth  growth  round  Mutual  Fund  macroeconomic  policy  secular  stagnation  Private  Equity  MBO  Pivot  IPO  dividends  prosperity  Start-Ups  Start-up  s&p500  pension  scheme  pension  finite  resources  resource  depletion  economic  history  creative  destruction  share  buyback  Apple  capitalism  in  crisis  capitalist  Uber  monopoly  oligopol  oligopoly  antitrust  corruption  western  world  squeezed  middle  class  emerging  middle  class  BRIC  business  cycle  company  book  cost  center  overhead  costcutting  operating  performance  operating  margin  globalisation  globalization  Universal  Basic  Income  artificial  intelligence  AI  augmented  intelligence  Robotics  automation  structural  unemployment  materialism  consumerism  status  anxiety  disenfranchise  disenfranchised  youth  unemployment  post-capitalism  Mobile  Banlieue  deprivation  poverty  trap  poverty  meritocracy  meritocratic  Gini  value  coefficie 
april 2016 by asterisk2a
German Banks Told To Start Hoarding Cash | Zero Hedge
In order to generate artificial economic growth, the ECB wants banks to make as many loans as possible, no matter how stupid or idiotic. They believe that economic growth is simply a function of loans. The more money that’s loaned out, the more the economy will grow. This is the sort of theory that works really well in an economic textbook. But it doesn’t work so well in a history textbook. Cheap money encourages risky behavior. It gives banks an incentive to give ‘no money down’ loans to homeless people with no employment history. It creates bubbles (like the housing bubble from 10 years ago), and ultimately, financial panics (like the banking crisis from 8 years ago). Banks are supposed to be conservative, responsible managers of other people’s money. When central bank policies penalize that practice, bad things tend to happen.
Richard  Koo  aggregate  demand  austerity  fiscal  policy  Pact  Schuldenbremse  economic  history  ZIRP  NIRP  QE  distortion  financial  repression  hunt  for  yield  speculative  bubbles  speculative  speculation  Venture  Capital  Mutual  Fund  Private  Equity  reflate  reflation  recovery  GFC  debtoverhang  liquidity  trap  zombie  banks  deleveraging  Debt  Super  Cycle  secular  stagnation  consumer  wage  stagnation  squeezed  middle  class  disposable  income  discretionary  spending  marginal  propensity  to  consume  tax  evasion  tax  avoidance  oligarchy  plutocracy  Super  Rich  1%  household  car  loan  credit  card  student  loan  student  loan  student  Bubble  generation  rent  OMT  job  creation  Service  Sector  Jobs  working  poor  precarious  work  Precariat  Zero  Hour  Contract  Contractor  Leiharbeit  Zeitarbeit  Agenda  2010  low  pay  low  income  TLTRO  LTRO  monetary  transmission  mechanism  velocity  of  money 
march 2016 by asterisk2a
Die Macht der Finanzkonzerne - Wie Blackrock mittels Geld die Welt regiert - YouTube
extraction of fat. no skin in the game. // Privatisation of housing stock - social and affordable, anglo saxon capitalism style; profit maximisation, dividends. // after Goldman Sachs the new vampiresquid // no skin in game; get money for speculation from pension funds, other investors, mutual funds. << that is the system! // nur wer geld hat, kann es vermehren. // nearly no governance, no guidelines regarding sustainability, ethics, transparency, morals. // no regulation = big profit and exploitation, corruption, bribery.
BlackRock  MBO  LBO  M&A  Private  Equity  financial  product  Hedge  Fund  Black  Swan  blackswan  Nassim  Taleb  self-regulation  Mutual  Fund  Venture  Capital  risk  governance  corporate  governance  lobbyist  lobby  Lobbying  Wall  Street  shareholder  value  profit  maximisation  activist  investor  Main  Street  accountability  transparency  mainstreet  arbitrage  squeezed  middle  class  wage  stagnation  bonuses  bonus  speculation  revolving  door  regulation  regulators  Career  Politicians  CEO  pay  dividends  Heuschrecken  ROI  speculative  sustainability  tax  code  ethics  corporate  scandal  accounting  scandal  oligarchy  plutocracy  Super  Rich  1%  GFC  sovereign  debt  crisis 
february 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
The "Tourist" Investors Flooding Silicon Valley With Money Will Go Home One Day - BuzzFeed News
The tourist analogy comes from Mohamed El-Erian, chief economic advisor at the German financial company Allianz and former CEO of mutual fund giant Pimco. He fleshes out his theory of “tourist dollars” in his new book, The Only Game in Town: Central Banks, Instability, and Avoiding the Next Collapse, describing what happens in emerging economies like Brazil and India when investors from the developed world respond to slow economies at home by seeking more profitable climates abroad. Ranjan Roy, a former emerging-market currencies trader who now runs a tech startup, wrote a Medium post this week connecting El-Erian’s “tourist” theory to the mutual fund investors that have flooded Silicon Valley with cash in recent years. The post was pretty convincing, so we decided to see if El-Erian agreed. He does. And he worries about what those tourist dollars are doing to the locals. [...] they don’t re-up [ like VC's and real Angels would do ] [...] push to stretch for return.
hunt  for  yield  distortion  speculative  bubbles  asset  allocation  Silicon  Valley  Party  Round  Angel  Investor  Seed  Round  ZIRP  NIRP  QE  hot-money  Mutual  Fund  growth  risk  capital  Venture  Frontier  Markets  emerging  market  credit  bubble  China  BRIC  2015  2016  2014  Unicorn  reflate  reflation  economic  history  equity  bubble  bond  bubble  property  bubble  asset  bubble  secular  stagnation  emerging  middle  class  India  financial  repression  behavioral  finance  behavioral  economics  psychology  fiscal  policy  monetary  policy  austerity  Richard  Koo 
february 2016 by asterisk2a
Pando: Two slides that could predict a worse quarter for venture capital is coming
All of 2015’s totals lived and died on mega-deals. Mega-deals were the reason that the total amount invested in the year was one of the highest on record, even though the actual number of deals fell. It’s the reason the fourth quarter’s venture capital total fell so sharply when mega deals declined some 45%. //&! As America faces the techpocalypse, how are things going in Europe? - bit.ly/1ndNFZt //&! If Doordash is struggling to close funding with Sequoia as a lead, how bad are things at your startup? - bit.ly/1njD8v9 - Doordash is a fundable company, just not at the prices originally discussed… and maybe not even at $600 million. //&! Asian venture capital in 2016: This could get ugly… - It has the farthest to fall, and the newest investors - bit.ly/1Pg8vla
growth  round  Venture  Capital  ZIRP  NIRP  QE  distortion  Silicon  Valley  Private  Equity  Mutual  Fund  Angel  Investor  Seed  Party  Private  Market  Hype  Cycle  Unicorn  China  credit  bubble  monetary  policy  liquidity  trap  speculative  bubbles  asset  bubble  asset  allocation  QT  Software  Is  Eating  The  World  mobile  homescreen 
january 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
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
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
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
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
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
German Startups sagt Börsengang ab - SPIEGEL ONLINE
Following Rocket Internet. Trying to go public as investor. Like a KKR for Start-ups. Ups. Is this a symptom of the irrational exuberance and hubris? // Der Börsengang des Berliner Risikokapitalfinanzierers German Startups Group ist geplatzt. Auch eine Verlängerung des Angebotszeitraums in der vergangenen Woche brachte nicht die erhoffte Nachfrage nach den Aktien, teilte das Unternehmen am Dienstag nach Ablauf der Zeichnungsfrist mit. [...] German-Startups-Gründer Christoph Gerlinger wollte mit dem Börsengang 54 bis 72 Millionen Euro einsammeln. Die Erlöse sollten zum größten Teil in den Kauf weiterer junger Firmen gesteckt werden. Bei der German Startups Group handelt es sich um eine Beteiligungsgesellschaft mit Fokus auf jungen, schnellwachsenden Unternehmen. // [ Interesting to want to go IPO instead of asking Private Equity or Mutual Funds for a "growth round" like participation in the realm of 50-70m Euros. ]
irrational  exuberance  hubris  Silicon  Valley  Private  Equity  IPO  Germany  Rocket  Internet  Venture  Capital  hunt  for  yield  asset  allocation  alternative  investment  SPV  Mutual  Fund  growth  round  2015  Wall  Street  bubble  NASDAQ 
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
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
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
[PreMoney MIAMI] Upfront Ventures, Mark Suster, "Venture Outlook 2015 - Goldrush or Fool's Gold" - YouTube
(1) Change from Sales Funnel to Funnel of Intent on Mobile and Social Media. Lower Marketing/Early user acquisition cost at scale. And tap to credit cards to with one click through third party Platforms. And also Open Source Software Stacks and buying 'by time' the hardware stack on Google, AWS or Azure is paradigm shift. Results also in noise one has to break through first - raising the bar (by user choice) for everyone. (2) min10 - Value Creation held inside Private Market through growth & late-stage investing instead of IPO with single-class share structure with wobbily business numbers 'help you god that you aren't out 24m later' because of impatient Wall Street. (3) min14 Series D valuations show Private Market highest bidder wins phenomenon. But Valuations are up across the board. And with more Seed/Angel Investors, Seed Valuations are also bid up higher compared to ABC. // &! min29 youtu.be/25TxrhsXFvs - 500 Startups, Dave McClure "4 Years of Moneyball - What Have We Learned"
Silicon  Valley  Seed  Round  A  Round  growth  Venture  Capital  Sales  Funnel  Funnel  of  Intent  mobile  first  mobile  homescreen  mobile  phone  Social  Media  Start-Up  lesson  Start-Up  advice  hunt  for  yield  ZIRP  NIRP  QE  secular  stagnation  productive  investment  Private  Market  Platform  TOS  2000  dot.com  bubble  2008  IPO  Wall  Street  single-class  share  structure  SPV  short-term  thinking  short-term  view  Hedge  Fund  Mutual  Fund  Private  Equity  late-stage  funding  Unicorn  seedround  seedfunding  angelinvestor  angel-list  Angel  Investor  angelinvestors  incomplete  information  complexity  unintended  consequences  Dave  McClure  Mark  Suster  UpFront  Ventures  500  Start-ups  paradigm  shift 
april 2015 by asterisk2a
Gillmor Gang: Money for Nothing - Gillmor Gang | TechCrunch TV
min 42 // A Round is now a "post-traction" investment aka proven product & business model. A Round is an investment to scale it up, put it up a bunch of gears. // Keith Teare from chat.center (tcrn.ch/1IWFQ1X) people now doing pre-seed, seed, seed prime & bridge funding via existing investors; figuring out Product/Market fit, traction, funnel, etc. Now more than ever a hits driven business. // see also tcrn.ch/1c54UpN // Complexity of phenomenon - symptoms, causes and tangents; biases, selection bias, pattern matching, bidding up hot deals in the private market where the highest bidder will get the deal - irrationality of accepting those valuations and the founders Unicorn-status need, hunt for yield, trendy - the future, when doing 'hard things' becomes fashionable (ie Reality TV, TV Series & a shallow Channel 4's How To Be A Young Billionaire) then beware, negative yields for secure investments (bonds and corp debt), perceived 'conservative' value vs private bid up bubble potential.
Seed  Round  A  Round  traction  hunt  for  yield  ZIRP  NIRP  QE  unintended  consequences  Silicon  Valley  asset  bubble  asset  allocation  behavioral  finance  bond  bubble  bubbles  equity  bubble  demographic  bubble  secular  stagnation  complexity  growth  Start-Up  lesson  Start-Up  advice  pattern  matching  selection  bias  confirmation  bias  bias  Unicorn  Wall  Street  Private  Mutual  Fund  Hedge  Fund  Venture  Capital  savings  glut  productive  investment  business  model  Snapchat  WhatsApp  Instagram  Slack  Uber  productivity  output  gap  STEM  Share  Economy  Services  Industry  Niedriglohnsektor  incomplete  information  economic  history  marginal  cost  liquidity  trap  sovereign  debt  crisis  debt  bubble  zombie  banks  zombie  consumer  zombie  corporations  structural  imbalance  global  imbalances  faultlines  Product/Market  Fit  value  creation  1000  True  Fans  Core  Product  Proposition  differentiate  differentiation 
april 2015 by asterisk2a
What Etsy’s stellar debut doesn’t say about the IPO market | PandoDaily
markets so distorted [...] demand has grown strong enough investors are willing 2 overlook fact that most of tech companies IPOing still losing money. Last year 2/3 of tech companies that raised $100 million or more in IPOs went public with losses. This year, Box, GoDaddy & Etsy all received warm welcomes in public markets while awash in red ink. [bc there is so little alternative 4 actual earning any yield, money managers take on the risk anywy, bc otherwise they would look bad & get fired if they would not deploy the money. its always bad if u have 2 act in order 2 get not fired & not abel 2 say 'I will sit this 1 out.'] [day-one pop values etsy @18x revenue]. &! bit.ly/1HyfxNW [CEO Dickerson] & tcrn.ch/1G0ybi5 >> its abt shareholder value creation going forward >> bloom.bg/1E0H9br >> Founder "maximizing shareholder value is "ridiculous." // Cant marry WallStreet & long-term view, internal values, true 10x better customer value creation fwrd //&! bit.ly/1b08aC3 on.recode.net/1JNUY
Private  Equity  Hedge  Fund  Mutual  Fund  pension  Wall  Street  hunt  for  yield  distortion  QE  ZIRP  NIRP  secular  stagnation  Western  World  IPO  Unicorn  market  Silicon  Valley  incomplete  information  complexity  bubble  bond  bubble  asset  bubble  bubbles  demographic  bubble  speculative  bubbles  burn  rate  shareholder  value  profit  maximisation  crony  capitalism  community 
april 2015 by asterisk2a
NEA Raises North Of $3B For Its New Fund | TechCrunch
I consistently hear that venture groups raising capital are oversubscribed. That directly implies that the firehose of cash fueling the venture capital and technology markets has yet to abate in any meaningful sense, if at all. The music is still playing, and at a furious pace. But with interest rates at zero and NASDAQ 5,000 back in our norm, who can be surprised? Regardless of how the technology industry apportions the risk created by that level of spend, we can feel secure in the fact that the same risk is concentrated in the private sector. This helps to protect the average person from investing in something more ephemeral than a Snapchat ad. So if it all goes to hell, it’s mostly the rich kids who will take it in the gut. Viva la tech.
hunt  for  yield  ZIRP  NIRP  QE  distortion  incomplete  information  unintended  consequences  bond  bubble  equity  bubble  Private  growth  round  Mutual  Fund  Hedge  Fund  Silicon  Valley  burn  rate  economic  history  savings  glut  productive  investment  Super  Rich  1%  Wall  Street  liquidity  trap  complexity  recovery  GFC  speculative  bubbles  asset  bubble  secular  stagnation  borderless  flat  world  globalisation  globalization  Software  Is  Eating  The  output  gap  Western  productivity  STEM  Robotics  automation  algorithm  AI  artificial  intelligence  marginal  cost  3D  printing  augmented  intelligence  Share  Economy  Services  Industry  service  monetary  policy  austerity  IMF  OECD  debt  bubble  sovereign  debt  crisis  Gini  coefficient  inequality  Career  Politicians  Makers 
april 2015 by asterisk2a
Would you rather be a real millionaire or a paper billionaire? The psychology of unicorns and the toll on Q1 returns | PandoDaily
And yet total cash going to venture backed companies was a whopping $17.7 billion– up over the $12.6 billion raised in the same period last year. But here’s the thing: Only $11.3 billion of that came from venture firms, throwing into question whether we should even still keep using the adjective “venture-backed” to describe the category. The disparity shows just how much more money is coming from non-VCs like hedge funds, private equity, mutual funds, and sovereign wealth funds, who have watched the private valuation growth of Facebook and the rest of the deca-corns and are desperately trying to get a stake in private companies before they IPO. [...] Things have gotten strange for VCs — and in turn, entrepreneurs — and the climate doesn’t seem to be improving
Private  Equity  Hedge  Fund  Mutual  Fund  growth  round  Venture  Capital  Silicon  Valley  Unicorn  hunt  for  yield  Sovereign  Wealth  Fund  distortion  ZIRP  NIRP  QE  bubble  bond  bubble  debt  bubble  zombie  corporations  zombie  banks  Super  Cycle  savings  glut  liquidity  trap  productive  investment  speculative  bubbles  Wall  Street  incomplete  information  market  confirmation  bias  pattern  matching  pattern  recognition  selection  bias  bias  behavioral  finance 
april 2015 by asterisk2a
Big Valuations Come With Dangerous Small Print | TechCrunch
[FOCUS on strategy, product, management, world class org] & then came in the PE guys (HedgeFunds & PrivateMutualFunds) & other non-traditional investors in start-ups, when investing in startups, want 2 protect the downside & want guaranteed upside minimum. 2 have that cake, it has 2 be in the term sheet via preferred liquidation preference. 2 have that in case of a suboptimal next round (ie IPO) that is only slightly up or even a down round, existing investors have & will be diluted by issuing more shares for the last investor, the PE guys, 2 guarantee them their upside minimum. // Start-up lesson & advice is stick with traditional VC (which is high risk high return) and maybe Special Purpose Vehicles organized from existing investors and their network for growth rounds. // PS the intro speaks abt a company taking term-sheet that gave them the 1bn valuation; could be Slack & the guy complaining abt it could have been either Chris Sacca or AVC
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april 2015 by asterisk2a

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