valuation

  • Context is key for valuations Crunch Network

    Context is key for valuations

    For most of the past five years, investors in software companies prized revenue growth above all else. Investors were more than willing to overlook near-term profitability (or lack thereof) in favor of an acute focus on growth. As a result, entrepreneurs were encouraged to invest in building massive sales teams as quickly as possible to accelerate revenue growth, regardless of the cost. Read More

  • Valuation metrics show weakening for the fourth straight quarter

    Valuation metrics show weakening for the fourth straight quarter

    The law firm Fenwick & West quietly released its third-quarter venture capital survey this past Friday, and its findings aren’t exactly shocking. At the same time, they hint at problems to come for some startups. The survey, which analyzed the valuations and terms of financings for 149 Bay Area companies that raised capital in the third quarter, showed that 71 percent of those… Read More

  • Determining the worth of your SaaS company Crunch Network

    Determining the worth of your SaaS company

    The opaque, confusing and highly volatile practice of valuing a private SaaS business is frustrating for entrepreneurs and investors alike. Furthermore, the lack of transparency adds a tremendous amount of friction to a capital raise or the sale of a company. The reality is, it’s not all that hard to get a quick read on your SaaS company’s valuation. Read More

  • Palantir acquires data visualization startup Silk

    Palantir acquires data visualization startup Silk

    Silk‘s co-founder and CEO, Salar al Khafaji, announced today that private data analytics unicorn Palantir would be acquiring the company. The transaction appears to be an acqui-hire, with members of the Silk team directly joining Palantir in new roles. Founded in 2010, Silk helps data journalists, activists, NGOs and businesses produce data visualizations in the cloud without the need… Read More

  • Signs point to a contraction, but no one’s bursting venture capital’s bubble Crunch Network

    Signs point to a contraction, but no one’s bursting venture capital’s bubble

    Regardless of the economic climate, the real job of any investor is to help entrepreneurs build meaningful companies and technologies. The best investors that we know don’t try to time the market, and neither do the best entrepreneurs. We have to keep at it. Read More

  • Bed Bath & Beyond acquires One Kings Lane for undisclosed sum

    Bed Bath & Beyond acquires One Kings Lane for undisclosed sum

    Home furnishings site One Kings Lane has found a home of its own, with  Bed Bath & Beyond. The retailer announced a cash acquisition of the e-commerce startup, but the price was not disclosed. Bed Bath & Beyond is a public company, so that means it needs to announce acquisition prices if the purchase is considered material. That could be up to about 15% of the company’s $6.5… Read More

  • A New, Standardized Way For Employees To Keep Their Vested Stock Options Longer

    A New, Standardized Way For Employees To Keep Their Vested Stock Options Longer

    Amid headlines about billion-dollars valuations are many employees who remain trapped unless their employers eventually go public or else sell to an acquirer in a cash deal. The problem centers on the option plan structure that startups use. Owing to a decades-old tax provision, employees have to exercise their options within 90 days of leaving or else lose them to the company. It’s… Read More

  • Doomed-i-corns: Unicorns Seemingly Reach a Tipping Point

    Doomed-i-corns: Unicorns Seemingly Reach a Tipping Point

    This morning, the law firm Fenwick & West published new findings about all the U.S.-based unicorn financings that took place during the last nine months of 2015. It’s rife with interesting nuggets, but perhaps most fascinating is that in the fourth quarter of last year, half of the 12 rounds it tracked featured valuations in the $1 billion to $1.1 billion range — and with… Read More

  • Tech Valuations In 2016: The End Of The Line For Sloppy Growth Crunch Network

    Tech Valuations In 2016: The End Of The Line For Sloppy Growth

    What’s going on in technology investing right now? Is this another 2001, when tech imploded? Another 2008, when the wider world crashed but tech powered through? Or is it like Facebook in 2012, a valuation blip and a chance to buy? Anecdotes about dead unicorns are not enough. An explanation has to start with a framework and a qualitative description of what is driving the markets… Read More