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Overheated Silicon Valley Is Headed for a Bust | MIT Technology Review
Since last year, Bill Gurley—a partner at the venture capital firm Benchmark, known for early investments in Uber, OpenTable, and Zillow—has stood out from his VC counterparts for his insistence that there’s a bubble in tech startup valuations. In particular, he says “unicorns”—startups valued at $1 billion or more—are the most visible sign of an explosion in valuations that he thinks will end in a bust just as surely as previous bubbles did.

Nonetheless, Gurley told contributing editor Robert Hof he remains optimistic that entrepreneurs will keep innovating even in a downturn. He highlighted innovations in his own field, such as Internet-­driven crowdfunding and early-stage startup incubators, that are opening entrepreneurship to more people.
BillGurley  interview  startup  bubble  critique  SiliconValley  TechnologyReview  2015 
4 days ago by inspiral
You may be more exposed to the tech bubble than you think » Quartz
Allison Schrager:
<p>First, you might have a stake in these companies if you own any actively managed mutual funds, perhaps through your retirement plan. According to Todd Rosenbluth, director of mutual fund research at Standard &Poor’s, large mutual funds have been investing in non-public companies for years. “Most people have no idea.” he says. The payoffs can be big if some of these firms successfully go public, but the risks are significant because it’s impossible to assign a consistent, accurate value to these investments, and they are hard to sell if the fund faces redemptions. However, regulation keeps mutual funds from holding large amounts of private shares, which would mitigate the impact. “It’s a tiny part of their portfolios,” Rosenbluth says. For example, only about 2% of the Fidelity Blue Chip Growth fund is made up of tech startup investments.

The second way you’re exposed is through public pensions, whether you’re a direct beneficiary or not.</p>

Feels like a stretch, to be honest. And certainly nothing like the dot-com bust.
tech  bubble 
5 days ago by charlesarthur
Venture Capital Funds - How the Math Works
"The Minimum Respectable Return on a VC Fund is 20% per year
A minimum 'respectable' return for a VC fund is 20% per year. This is set by the expectations of the investors in VC funds, the relative risk levels compared to other investment classes and the performance achieved by other venture capital fund managers.

Another way to look at this is that a ten-year venture capital fund needs to repay investors six times (6x) their investment.

This means that those two winner investments have to make a 30x return (on average) to provide the venture capital fund a 20% compound return – and that’s just to generate a minimum respectable return."
moneyfrommoney  vc  unicorns  bubble  sillyvalley  sparkfile 
11 days ago by sha
The Complete List of Unicorn Companies
Total Number of Unicorn Companies: 143
Total Cumulative Valuation: $507B
valuations  unicorn  startups  moneyfrommoney  sillyvalley  irememberwhen  bubble 
11 days ago by sha
Rdio is shutting down and Pandora is buying up the scraps | The Verge
"The sale is a big loss for Rdio investors. The company had raised $125 million in total and was once valued at around $500 million."
rdio  music  consolidation  startup  moneyfrommoney  bankruptcy  bubble 
13 days ago by sha
Facebook App Install Ad Spending Quadruples - Mobile Marketing
"Analysing mobile app ad performance across app types suggests that the CPC for ads supporting consumer apps ($0.19) is lower than for gaming ($0.61) and other apps ($0.58). While the wider appeal of consumer apps may be the reason why ads drive a higher CTR (1.55 per cent) than for gaming (0.97 per cent) and other apps (1.17 per cent).

However the likelihood that a user will actually install an app after clicking an ad (click-to-install rate) is 36 per cent for gaming apps compared with 19 per cent for consumer apps, implying that the broad appeal of consumer apps gives way to higher intent for gaming."

CPI, Cost Per Install for iOS non-gaming: $3.05
bubble  casually_googled  moneyfrommoney  advertising  appads  facebook  ios 
20 days ago by sha
Square is worth $2 billion less than it was a year ago. Is Uber next?
"This is very much an acknowledgement that 'the public will pay more' regardless of the private market valuation was both magical and misguided thinking," says Lise Buyer, an analyst with Class V Group, who helped plan Google's IPO.
quotes  sparkfile  moneyfrommoney  ipo  square  bubble  unicorn 
20 days ago by sha
VCs criticizing reporters for reporting - Business Insider
"Journalists don't set out to write takedowns of companies. But when a journalist begins investigating a company and finds something is amiss, and the story is well vetted and fairly reported, the venture community should welcome that reporting.

Because every faker, every charlatan, and every company whose product just isn't good enough to win is taking money that could have been invested in other companies that have a better chance. "
sillyvalley  bubble  press  sparkfile  investing  vc 
23 days ago by sha

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