valuation

  • Pay To Play: How Investors Get Burned Fast In A Downturn

    Pay To Play: How Investors Get Burned Fast In A Downturn

    Earlier this year, the law firm Fenwick & West published a report analyzing the financing terms of 37 U.S.-based venture-backed companies that raised money at valuations of $1 billion or more in the 12-month period ending March 31. The report’s headline-grabbing conclusion was that in all cases, the investors had received significant downside protection in case the… Read More

  • Are We Struggling To Value Unicorns? Crunch Network

    Are We Struggling To Value Unicorns?

    We’ve abandoned time-honored valuation techniques from the past because they didn’t work for new rapid-growth, tech-driven businesses. But what if the new rule book was equally inept? As a lover of technology, creativity and great business ideas, I should feel more optimistic about the near-term future than I do. I worry that the current valuations of companies reflects dubious… Read More

  • What’s The Value Of Your Data? Crunch Network

    What’s The Value Of Your Data?

    On September 18, 2015, Comcast reached a $33 million settlement over claims that it published personal information of more than 75,000 customers — even though those customers had specifically paid a fee for their information to be kept private. As a consequence, the company will pay a $100 compensation to each victim. This case is particularly interesting because, for the first time… Read More

  • How Do You Value A Company Like Uber? Crunch Network

    How Do You Value A Company Like Uber?

    Each week brings more Uber stories, with some containing good news for those who believe that the company is on a glide path to a $100 billion IPO, and some containing bad news, which evoke predictions of catastrophe from Uber doubters. For me, the test with each news story is to see how that story affects my narrative for Uber, and by extension, my estimate of its value. Read More

  • Setting The Right Valuation For A Competitive Series A Round Crunch Network

    Setting The Right Valuation For A Competitive Series A Round

    Founders are often puzzled by how VCs derive valuations for competitive Series A rounds. A competitive Series A round is an equity round where a company generally raises greater than $5 million led by a top-quartile venture capital firm. During these Series A rounds, it is not uncommon for founders to receive multiple term sheets from lead investors at different valuations, and to feel… Read More

  • That’ll Fly: Kayak Closes IPO Day With Shares Up Nearly 30% And Market Cap Over $1.2B

    That’ll Fly: Kayak Closes IPO Day With Shares Up Nearly 30% And Market Cap Over $1.2B

    It’s been a long time in coming. After first filing to go public in late 2010, Kayak finally came to market today debuting as a public company on NASDAQ, trading under “KYAK.” The travel bookings company has hit its fair share of bumps along the way, thanks to unsteady market conditions, erratic earnings, and a departing CFO. All that has been washed away over the last 48… Read More