article thumbnail

Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

Due to competitive markets we ended up with a pretty good term sheet until we needed to raise money in April 2001 and then we got completely screwed. Other founders, “as a privately held company we don’t disclose our valuation.&# Me, “dude, I’m not a journalist. Investors own 25%, the founders own 75%.

founder 405
article thumbnail

Should Founders Be Allowed to Take Money off the Table?

Both Sides of the Table

If a company has reached a level of success, has been around for a few years and you believe the company has potential to break out into a much bigger company then you should let the founders take money off of the table. Founders however are asked to take low salaries and never really get back the time they worked for free.

founder 329
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The Changing Venture Landscape

Both Sides of the Table

In 2001 companies IPO’d very quickly if they were working, by 2011 IPOs had slowed down to the point that in 2013 Aileen Lee of Cowboy Ventures astutely called billion-dollar outcomes “unicorns.” They might be ideas they hatch internally (via a Foundry) or a founder who just left SpaceX and raises money to search for an idea.

ventures 471
article thumbnail

What Everyone Should Take Away from Twitter’s 8% Staff Reductions

Both Sides of the Table

We have an entire generation of startup founders who don’t have muscle memory from getting their burn rates back into shape from 2008/09 or 2001-2005. When things are hard the best leaders have teams that will rally around them. Some companies have to go first. Others will follow. But many of us have been there.

VC 392
article thumbnail

The Twenty Year Itch: My Last VC Investment Out of Brooklyn Bridge Ventures

This is going to be BIG.

Last August, I passed the point at which I had spent literally half my entire life working in this asset class, having started at the General Motors pension fund doing institutional investments in venture funds and late-stage directs back in February of 2001. No more founder pitch meetings. No new investments.

ventures 545
article thumbnail

Angel Investing (1): Dealflow – Are You Sitting at The Right Poker Table?

Both Sides of the Table

This is exactly what happened in the broader VC industry between 1999-2001 as many people without the requisite skills entered the industry. But with its growth and success it will encourage many people to enter the market who will lack 5 critical success criteria for earning positive returns. I could obviously go on.

article thumbnail

Survivors

Both Sides of the Table

It’s my hypothesis of why so many founding teams have 3-4 founders. I’ve seen many first-time founders who had fallings out with their co-founders, had lawsuits, had investors bail on them, lost market momentum. I saw this in 2001-2003 and in 2008-2010. I fund both types all the time. Yet failure smells.