BLOG STARTUPS, VENTURE AND THE TECH BUSINESS

Posts Tagged ‘exits’

February 12 2015
by Todd Hixon

Why Bother To Invest In Venture Capital If You’re Not In WhatsApp?

[This post first appeared at blogs.forbes.com/toddhixon on March 3, 2014.] WhatsApp’s dramatic exit to Facebook last week vividly illustrates how the U.S. venture capital industry is dividing into two worlds, which you might call “Super-Unicorns” and “ShadowFaxes.” Unicorns* refers to $1 billion + exits; Super Unicorns are spectacular successes like WhatsApp: $16 billion of exit […]

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February 12 2015
by Todd Hixon

There Are No Base Hits For Startups Today

[This post first appeared at blogs.forbes.com/toddhixon on February 12, 2015.] Once upon a time, like ten years ago, entrepreneurs could make decent money building a business that hit milestones but never got big and sold for $10 – $20 million. These exits would pay entrepreneurs enough to sends kids to college and return 1x-2x capital […]

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January 7 2015
by Todd Hixon

Unicorn Hunting Is Not The Only Way To Make Money In Venture Capital

[This post first appeared at blogs.forbes.com/toddhixon on December 18, 2014.] The U.S. venture industry has been fascinated by “Unicorns” (companies with a $1 billion exit or private valuation) in recent years. The term Unicorn, coined by Aileen Lee of Cowboy Ventures in a TechCrunch post three years ago, suggests a rare and magical thing. The […]

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December 17 2014
by Todd Hixon

Twitter, The Morning After: Why Entrepreneurs Love … And Hate … Huge Exits

[This post first appeared at blogs.forbes.com/toddhixon on November 8, 2013.] Welcome To The Unicorn Club: Learning From Billion-Dollar Startups | TechCrunch. Huge exits (“unicorns”) are a dilemma for entrepreneurs: they make the venture world work, but they are so rare that the great majority of entrepreneurs can’t realistically expect to achieve one. For investors, the […]

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November 6 2014
by Todd Hixon

Seeking Alignment Between Management And Investors

[This post first appeared at blogs.forbes.com/toddhixon on October 22, 2012.] It’s All About The Money?    I sat in a board meeting last week where we talked about closing a deal to sell the company. This company will sell for substantial money, but far less than investors have put in over nine years. As we […]

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October 23 2014
by Todd Hixon

Venture Capital Bounces Back

[This post first appeared at blogs.forbes.com/toddhixon on April 12, 2012.] Venture capital has been getting a lot of support from politicians and the press recently, notably the passage of the JOBS (“Jump-start Our Business Start-ups”) Act. A key provision, much mentioned by President Obama, lets Joe Ordinary become a venture capital investor via legalization of […]

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October 9 2014
by Todd Hixon

What To Do When Hope Is The Enemy

[This post first appeared at blogs.forbes.com/toddhixon on October 8, 2014.] A wise and experienced VC colleage, talking about a mutual portfolio company, remarked: “I feel sorry for Bob [the CEO]; he’s trapped trying to make AnyCo successful, but it’s going nowhere.” That was three years ago. AnyCo struggles on. Entrepreneurs and investors alike get committed […]

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November 8 2013
by Todd Hixon

Tough Truth About Defensive Exits

A few weeks ago I was talking with a co-investor in a company that is missing its numbers seriously, and he said, “Let’s just sell this thing!” I often have that urge too, when progress is slow and cash keeps burning. Sisyphus: Greek king condemned to perpetually push a rock up a hill. Image from […]

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October 8 2013
by Thanasis Delistathis

A Transaction Worth the Wait

Today one of our portfolio companies reached a pivotal milestone – GlobalLogic, which operates design and engineering centers around the world, agreed to be acquired by Apax Partners.  This is a bittersweet moment for me as I have been involved with this company as an investor for 13 years.  Yet this is not the end […]

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September 27 2011
by Todd Hixon

What the Political Crisis Means For Entrepreneurs

The recent downgrade of U.S. sovereign debt, and the ongoing debt crisis in Europe stem from a century-in-the-making political crisis, which is creating big economic uncertainty: inability to borrow could throw major countries into recession, and interest rates, tax rates, and government spending will see major change that is hard to predict. The crisis will […]

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