On May 20th, Yahoo confirmed that it will buy Tumblr for $1.1 billion with mostly cash and will close in the second half of 2013. One notable aspect of the deal, however, is that Yahoo’s price and Tumblr’s implied valuation is 85x Tumblr’s $13M of revenue. Makes one wonder what other sort of valuations are reasonable for other up and coming startups. To read more about the deal, click here.
When a hurricane or tornado hits, what are the trees most likely to survive? The ones with the deeper roots naturally. And so too is the case when it comes to an entrepreneur’s relationship with his/her VC. Entrepreneur-turned-VC Mark Suster details the critical value that broadening one’s relationship with a VC firm can have for a startup in his latest blog post. To read it in full, click here.
Just as the technology behind the startup landscape changes, so too have the venture capitalists. The most prevalent trend within venture capitalism has been an increasing emphasis on operating experience–in other words, people who have scaled up a startup of their own and are intimately familiar with the field. To read more about this shift, click here.
Mark Heesen recently announced his resignation as president from the National Venture Capital Association, which he headed for the past 14 years and acted as the industry’s voice in Washington. Following his announcement, he briefly he discusses how the industry has changed and where it’s going. To read the interview, click here.
The average angel is 47 years old, makes $90,000 a year, invests in one out of every 10 deals he sees, shovels $37,000 into each deal, and lives in California. The halo and the wings? Those are just for show. And since 2002, the amount invested by angels has increased by 84%. To read and see the infographic, click here.
Since 2010, Resonant has been interested in the B2B Cloud space and have amassed a portfolio full of B2B cloud companies. However, not all other VCs have been so fortunate to recognize this huge advantages B2B has over B2C, including outperformance, investment opportunity and B2C’s reliance on B2B. To read the analysis in more depth, click here.
The rise of crowdfunding has many positive implications for the ever-changing startup landscape–but will this disruption also be felt by VCs? Resonant does not believe it will not impact dealflow because top-tier startups VCs target gain more from a VC fundraising round over crowdfunding. To read more about why this is and why crowdfunding is bad news for angel investors, click here.
The Social Network movie and Bravo’s Silicon Valley TV show–society has romanticized startups to say the least. Having created a venture firm for scratch for the past two years, Resonant can attest that entrepreneurship is still uncomfortable and grueling, not the sleek and sexy celebritization popularized by media. To read more about the “Starstruck Entrepreneur” epidemic, click here.
Angels are all over Silicon Valley. It’s not that I think becoming an angel is a bad idea; it’s just that most people who expect to make money as angel investors are fooling themselves. It’s not because they’re not intelligent but rather because they lack the proprietary knowledge of the characteristics of winning companies that premiere, seasoned venture capital firms possess. To read more, click here.