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Posts Tagged ‘Liquidity’

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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June 3 2013
by Scott Johnson

Revenue Quality, Not Just Quantity!

Revenue growth (or sometimes active user growth) is an obvious necessity for venture backed companies.  But life is never quite that straight forward.  Just as all site traffic is not created equal, there is good revenue and great revenue (there is no such thing as bad positive margin revenue).  Importantly, prospective revenue “quality” can dramatically […]

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April 5 2013
by Scott Johnson

5 Habits of Great Startup CEOs

Being CEO of a startup is quite similar to being the parent of a newborn.  The neighbors see a clean cooing newborn with smiling proud parents.  But we all know what goes on inside the house.  Sleepless nights, stress, no time to attend to other relationships.  You are a slave to the new creature.  It […]

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March 30 2012
by Todd Hixon

An Insider Perspective On Carried Interest

Public dissection of Mitt Romney’s tax returns has put “carried interest” in the spotlight, but many people don’t know what carried interest is or why it’s there. A segment on the Marketplace radio program last week (link) brought this home for me. [IMHO, Marketplace is about the best business program on the radio.] I was […]

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February 3 2011
by Todd Hixon

When To Say Yes

2011 promises to be a good year for exits:  economy healthier, stock market up, IPO window open, big tech companies with strong earnings and cash piles. Expectations for sorely-needed big exits are rising.  I hope that happens.  But let’s stay sober. I’m struck by how often venture boards overplay their hands in M&A negotiations.  I’ve seen […]

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April 14 2010
by Todd Hixon

Three Ways To Sell A Business

Frequently entrepreneurs and investors come to the point where they want or need to find an M&A exit.  Is the time right?  What should they expect? Here’s a framework that I hope is helpful.  Buyers pay for three things:  strategic opportunity, growth, and earnings/cash flow.  Which of these you have to offer will influence who’s […]

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May 9 2009
by Todd Hixon

Liquidity Panel: TLH notes from NVCA annual meeting

Controversial suggestion:  extend lock-ups.  Data suggests that VC selling is a major drag on price during first two years (small cap IPO performance historically is pretty flat in first year, much better in second year).  Newhall from NEA:  average hold post IPO used to be 3 years, before the bubble.Few buyers for newly minted IPO […]

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