Above the Crowd

Posts Tagged ‘Investing’

Investors Beware: Today’s $100M+ Late-stage Private Rounds Are Very Different from an IPO

February 25, 2015:

[An edited version of the following blog post originally appeared in a modified form in the pages of the weekend edition of the Financial Times last Saturday.] Every successful technology company raises money throughout its lifecycle, perhaps starting with a seed investment and progressing through Series A, B, C, late-stage investments, and, for the most successful companies, an IPO. Historically, different financial institutions specialized in different stages, because the assessment of risk and opportunity was considered unique at each stage — for example, a seed investor was unlikely to do late-stage financing, and vice versa. Over the last few years, the late-stage (pre-IPO) market has become the most competitive, the most crowded, and the frothiest of […]

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On Bubbles …

January 24, 2014:

Over the past few months, many journalists have begun to ask the question that no one really wants to hear; “Is Silicon Valley in another technology bubble?” It’s a dangerous question to ponder – especially out loud and especially here at ground zero. Silicon Valley thrives on optimism, and anyone waving the bubble flag is auditioning for the title of nonbeliever or party pooper. There is another reason it is dangerous to predict the arrival of a bubble. It was 1996 when Federal Reserve Board Chairman Alan Greenspan first uttered the now historic phrase “ irrational exuberance .” Even though things were frothy […]

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Just Say No to a VC Bailout: A Green Government Venture Fund Is a Flawed Idea

February 18, 2009:

[Note: Update to this post, posted 2/22/09] A few weeks back, a friend mentioned an idea he had heard suggesting that the government consider entering the VC (venture capital) business as part of the overall stimulus plan.  Specifically, the argument was made for the government to provide excess venture capital funding to the green sector.  At first, I assumed this was just one individual’s idea, but the noise level has risen to the point where it is reasonable to assume there is a group pushing or lobbying for this outcome.  Last week, Thomas Friedman jumped on the bandwagon in a New York Times article titled Open Door Bailout .  Friedman […]

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Benchmark Capital: Open For Business

December 1, 2008:

“People see you having fun Just a-lying in the sun Tell them that you like it this way”      – BTO, Takin’ Care of Business The seemingly chronic state of our economy, combined with the thundering sound of dire financial news has left many in a state of shock.  This unprecedented moment in time has resulted in unprecedented questions, such as, “Do you think California Municipal bonds are safe investments?”  Hard to imagine in the past, but with the country’s richest state begging for a federal bail-out, who knows?  There have been similar questions raised about the VC industry, and […]

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