The Mess of Success

A fascinating Wired magazine article about craigslist.  Everyone one knows craigslist - it is the lead suspect in the death of the newspaper industry, has more job postings that Monster, CareerBuilder and HotJobs combined, and gets more online traffic than eBay or Amazon, all with just 30 employees. Highly successful, except truth be told, the site soft of, um, sucks.  Craigslist is one of the least innovative and user-friendly sites on the web - using it (which I still do)…

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2Q Venture Investments: Is this the new normal?

Most media coverage of Venture Capital investments in the second quarter split the baby: the $3.7 billion invested in 612 companies was either way down (from the $7.6B raised by 1,048 companies in 2Q 2008) or heading up (from the $3.2 billion invested in 601 companies in 1Q 2009).  Neither half takes the long view. Looking back at the last decade of venture financing, if one discards the bubble years from 1999-2001 and assumes a slight exuberance from the recent…

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The “Promote”

Flybridge's Jeff Bussgang has a nice blog piece where he coins a new word in the venture lexicon: the "promote" (not the Prestige).  Entrepreneurs too often fixate on their pre-money valuation (the "pre"), instead of focusing on what their equity is worth after the venture check has hit the bank account. For Jeff, the "promote" is where an entrepreneur should focus: the founding team's equity ownership percentage multiplied by the post-money valuation. In other words: after you've received a venture…

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