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Observations on finance, economics, venture capital, entrepreneurship, technology, start-ups, business strategy and anything else that's sort of related…
Browsing All Posts filed under »private equity«
Secondary Market for Private Equity
Interesting post from Joanna Glanser at PEHUB about the number of private equity partnership shares trading hands. From the brief article: The forecast released this week by secondary market maker NYPPEX predicts that sales of limited partner stakes in private equity partnerships will soar by 68% to $27 billion in 2009. This highlights the stratosphere […]
The Venture Capital Confidence Index – A Leading Indicator
April 30, 2008
Mark Cannice, Chair of the University of San Francisco Entrepreneurship Program, provided some great insight about how venture capital and venture capital activites may foreshadow overall financial market activity. In his video interview on The Wall Street Journal Online, Mark pointed out that venture capital operates at the “intersection of public and private finance,” providing […]
$236 million? Bear Stearns, Valuations, and Train Wrecks
March 17, 2008
An astonishing train wreck. That’s all that comes to mind in reading about Bear Stearns’ collapse and J.P. Morgan’s purchase of the Wall Street mainstay since 1923. According to the Wall Street Journal – “J.P. Morgan Rescues Bear Stearns.” “Rescues?” Seems more like Cousin Vinny bailing out the “two youts” somewhere in Alabama after being […]
Venture Capital – Moving up the Ladder
March 10, 2008
In an article earlier this month, I examined an interesting trend in venture capital based on data provided by PWCMoneyTree. In short, the data appears to indicate that venture capital is moving away from investments in the “Start-up/Seed stage” and more towards later stage companies – those companies in “Expansion” or “Later Stage.” A recent […]
Venture Capital Investment Trends since 1995 (Deals by Stage)
March 3, 2008
Doing some research about Venture Capital trends, I came across some interesting data provided by PWCMoneyTree.showing convergence in the number of venture capital deals between Early Stage, Expansion, and Later Stage deals, while the Start-up/Seed Stage dropped considerably over the past 12-13 years: Reading nothing more than the data presented in these graphs, I’m hypothesizing […]
Venture Capital is not the end goal
February 24, 2008
It’s interesting when talking to start-up CEOs and entrepreneurs how often they are enamored with landing venture capital, as if receiving the funding itself is their main business objective. Venture capital is the beginning of any start-up’s journey- a vehicle to speed product development, expand market reach, and grow the firm more rapidly than what […]
Company Value = Benefit to Customers
February 11, 2008
A common way to value a company is to look at the company’s total revenues and then take a some multiple such as “1x” or “2x” in conservative industries, with “10x” as an acceptable standard in the technology industry, and an incredible “100x” as witnessed in Microsoft’s valuation of Facebook. We’ll call this the “Revenue […]
Market Value vs. Intrinsic Value
February 9, 2008
I’d like to tackle the issue of firm valuation. Determining a firm’s value is especially important for start-up firms under consideration for venture funding. Establishing, maintaining, and increasing a start-up’s value is central to the reason the firm was founded and for utilizing venture capital and investment provided to it. This introduces an item that […]
Venture Capital – late vs. early stage
July 19, 2007
An interesting article in the San Jose Mercury News by Mark Boslet discusses the higher valuations of venture capital deals – “Venture capital funding, valuations rise.” (links to PDF file of the article on the Saints Capital website).Some thoughts on the article to consider: 1. The investors that compose the continuum of private equity, ranging […]
Private Equity in Education?
June 8, 2007
Laureate Education accepted a $3.5+ bln offer from an investor group that includes KKR. With regard to Laureate, I am curious to see if and how private equity begins to creep into the public education arena – private equity is already purchasing mega-sized infrastructure projects such as toll roads and bridges. It is not much […]
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