Comments on: Venture Valuations http://brontemedia.com/2007/07/10/venture-valuations/ There are those who experiment and those who follow the formula Wed, 07 Jan 2009 08:24:47 +0000 http://wordpress.org/?v=2.5 By: amisare http://brontemedia.com/2007/07/10/venture-valuations/#comment-20878 amisare Thu, 12 Jul 2007 12:26:39 +0000 http://brontemedia.com/2007/07/10/venture-valuations/#comment-20878 Jason Calacanis missed entirely the core of Jeremy’s thesis: which is to “pay attention to the risks of having valuations both too high and too low, and understand the asymmetries in those risks”. Using ridicules as a tool to advance an argument is puerile and should have no place in a rational discussion. It is pure argumentum ad hominem. Jason Calacanis missed entirely the core of Jeremy’s thesis: which is to “pay attention to the risks of having valuations both too high and too low, and understand the asymmetries in those risks”.

Using ridicules as a tool to advance an argument is puerile and should have no place in a rational discussion. It is pure argumentum ad hominem.

]]> By: jeremy liew http://brontemedia.com/2007/07/10/venture-valuations/#comment-20770 jeremy liew Wed, 11 Jul 2007 03:27:48 +0000 http://brontemedia.com/2007/07/10/venture-valuations/#comment-20770 G'day Niki. Fair cop on using "asymmetric risk" unnecessarily. As an Aussie boy myself I should know better Cheers J G’day Niki.

Fair cop on using “asymmetric risk” unnecessarily. As an Aussie boy myself I should know better

Cheers

J

]]> By: Alex Mather http://brontemedia.com/2007/07/10/venture-valuations/#comment-20764 Alex Mather Tue, 10 Jul 2007 19:42:35 +0000 http://brontemedia.com/2007/07/10/venture-valuations/#comment-20764 good train analogy. what really bugs me is that, through all of this conversation about valuations, exits, and raising large sums of money, the effect that these decisions have on the actual product being funded hasn't been mentioned. not only does a huge raise at a very high valuation put you on the express train in terms of exits but it could have very serious effects on the product. it could railroad (ha) the company into losing focus. a company worth 250M needs to be acquired for 500M-750M per Josh's rule of thumb. I worry that companies will be forced to stray from the core of their business to build the size of company required to make VCs happy. I see it all the time, really cool products turn into massive clusterfucks of crap. good train analogy. what really bugs me is that, through all of this conversation about valuations, exits, and raising large sums of money, the effect that these decisions have on the actual product being funded hasn’t been mentioned.

not only does a huge raise at a very high valuation put you on the express train in terms of exits but it could have very serious effects on the product. it could railroad (ha) the company into losing focus.

a company worth 250M needs to be acquired for 500M-750M per Josh’s rule of thumb. I worry that companies will be forced to stray from the core of their business to build the size of company required to make VCs happy. I see it all the time, really cool products turn into massive clusterfucks of crap.

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