Above the Crowd

Archive for the ‘Venture Capital’ Category

How to Miss By a Mile: An Alternative Look at Uber’s Potential Market Size

July 11, 2014:

On June 18, Aswath Damodaran , a finance professor at NYU’s Stern School of Business, published an article on FiveThirtyEight titled “ Uber Isn’t Worth $17 Billion. ” This post was a shortened version of a more detailed post he had written for his own blog titled “ A Disruptive Cab Ride to Riches: The Uber Payoff .” Using a combination of market data, math, and financial analysis, Professor Damodaran concluded that his best estimate of the value of Uber is $5.9 billion, far short of the value recently determined by the market. This estimate of value was tied to certain “assumptions” with respect to TAM (total available market) as well as Uber’s market share within […]

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Welcoming Jason Kilar, Richard Tom and the Vessel team to the Benchmark family

June 24, 2014:

Today Benchmark is excited to announce that we will be partners with Jason Kilar and Richard Tom on their next exciting project — Vessel . Working with amazing entrepreneurs is the number one reason we enjoy venture capital, and rarely do you have the opportunity to work with a team that has a track record like these two. While they are not planning to disclose any specifics today about the company, you can rest assured that they plan to bring their amazing product instincts and cultural leadership that were at the heart of Hulu’s success. We are also excited to be partnering again […]

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Disrupting Finance From Above: Wealthfront

June 18, 2014:

Many entrepreneurs in Silicon Valley believe that the financial services industry in the United States is “ripe for disruption. ” The basis of this argument is really two fold. First, they believe that the current offerings from the financial incumbents are lacking. They would argue that credit card fees are too high, that there is a lack of true competition amongst American financial institutions, and that the ACH process is borderline asinine. They also believe that today’s technologies, most notably the smartphone, should allow for remarkably simpler one-click paperless transactions that have transaction costs that are a fraction of the status quo. Consumers want faster, simpler, and cheaper transactions, and entrepreneurs want to give it to them. The problem […]

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HackerOne: A Superior Solution for Solving Web Vulnerabilities

May 28, 2014:

In early April, Neel Mehta of Google first publicly reported the web vulnerability that we now refer to as the Heartbleed bug . Early analysis suggested that 17% of the servers on the Internet were vulnerable, which represents about half a million unique computers. This list included some of the world’s most heavily trafficked sites including Facebook, Google, and Yahoo. On Monday May 5th, Target Corporation removed Gregg Steinhafel from his role as CEO as a result of his unsatisfactory response to a cyber security threat that compromised millions of user accounts at the retail giant. The Boston Globe suggested that “ Target’s data theft leaves CEOs everywhere on the hot seat .” The Seattle Times declared […]

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A Deeper Look at Uber’s Dynamic Pricing Model

March 11, 2014:

Over the course of the past year, many writers have offered their perspectives on Uber’s dynamic pricing strategy. Perhaps the only consistency is that people have deeply passionate views on this topic. However, there are still many misperceptions about how the model works, and the purpose of this post is to clarify some of those misperceptions. I am an Uber investor and board member, and therefore expect that many will dismiss these thoughts as naked bias. But consider that as a result of my role I have access to more information that might enable a deeper perspective. I also have […]

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