In the name of getting big quick, it seems like some of the most valuable private tech companies are turning to mergers and acquisitions (M&A) as a way to accelerate business growth. So-called “unicorns”—privately-held technology companies which achieve billion-dollar valuations sometime before (or as a direct result of) going public or exiting via M&A—are chomping […]
View More To get big faster, younger unicorns start buying startups soonerCategory: valuation
Eventbrite’s IPO should encourage tech companies to get out while they still can
Eventbrite is having one hell of a debut on the New York Stock Exchange this morning. Shares of the ticketing startup, founded back in 2006, have shot up over 50% in trading on the NYSE. After pricing its shares at $23 in its initial offering, investors have bid up the stock to a whopping $37, […]
View More Eventbrite’s IPO should encourage tech companies to get out while they still canRedefining dilution
Eric Paley Contributor Eric Paley is a managing partner at Founder Collective. More posts by this contributor The plague of rationalization Learning to embrace conflict as a part of startup culture Everyone generally agrees that dilution should be avoided. VCs insist on pro-rata rights to avoid the dreaded “D” word. Executives often complain, after a […]
View More Redefining dilutionThe formula behind San Francisco’s startup success
Why has San Francisco’s startup scene generated so many hugely valuable companies over the past decade?
View More The formula behind San Francisco’s startup success‘Unicorn’ price tags aren’t all they’re cracked up to be
A $1 billion valuation was until recently a significant badge of honor for a tech company, marking it as an unusually successful outlier. Now, though, as membership of the club has swollen to as many as 200 globally, the “unicorn” epithet given to these billion-dollar companies on account of their rarity has become less apt and attracted considerable skepticism as to whether they can justify their sky-high price tags.
View More ‘Unicorn’ price tags aren’t all they’re cracked up to beThe mystery of the public marketplace
The two most highly valued private tech companies (outside of China) are Uber and Airbnb. Both also happen to be marketplace businesses, and their success has helped encourage a rush of VC investment in similar business models over the past sever…
View More The mystery of the public marketplaceRaise softly and deliver a big exit
In the world of venture capital, the prospect of a successful “exit” looms large in the minds of investors. A VC’s business model is less about the money that goes into a startup than it is about what comes out. It’s true that most companies fail to exit gracefully, and of those that do, surprisingly few exit by going public. Read More
Getting to the root of the revenue multiple
Valuation concerns are top of mind for many investors. For those in tech investing, this concern is perhaps most acute, given the generally high multiples assigned to the sector. There are good articles addressing how revenue multiples have moved over time or why this methodology even came to be, but I’m still curious as to how a revenue multiples ties to some fundamental unit of… Read More
Squarespace reportedly raises about $200 million at a $1.7 billion valuation
Squarespace, the 14-year-old platform that makes it easy for essentially anyone to build their own website, is raising about $200 million from General Atlantic, valuing the company at a $1.7 billion valuation, Bloomberg reports. The plan with the funding is to buy stock from early employees and investors, giving them a way to cash out if they’re not trying to wait around for an… Read More