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What’s Really Going on in the VC Industry? What Does it Mean for Startups?

Both Sides of the Table

But VC is an “illiquid asset&# so funds didn’t disappear quickly - In 2000/01 the stock market quickly adjusted punishing investors in the NASDAQ and in individual public technology stocks. It takes less to start a business these days – We all know that it takes less to start a technology company these days.

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The Value of Paying Down Technical Debt

OnlyOnce

The Value of Paying Down Technical Debt. Our Engineering team has a great term called Technical Debt, which is the accumulation of coding shortcuts and operational inefficiencies over the years in the name of getting product out the door faster that weighs on the company’s code base like debt weighs on a balance sheet.

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How can startups engage Amazon and AWS

VC Cafe

A few months ago, VC Cafe launched a series on startup engagement and outreach programs of large tech companies. Amazon Corporate Development – Notable acquisitions include Whole Foods ($13.7B), smart doorbell system Ring ($1.2B, 2018) and autonomous mobility technology Zoox ($1.2bn). AI startups in the Alexa Fund portfolio.

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Why large companies acquire small companies

A Smart Bear: Startups and Marketing for Geeks

In terms of acquisition, they ask more specifically: “How can we trade balance sheet assets (cash, equity) in exchange for executing our strategy better?”. Even if this costs more than 2 years of in-house assembly, it’s still worth it, due to accelerating revenue growth due to up-sales and market-differentiation.

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Why GE’s Jeff Immelt Lost His Job – Disruption and Activist Investors

Steve Blank

This article first appeared on the Harvard Business Review blog. He sold off slower-growth, low-tech, and nonindustrial businesses — financial services, media, entertainment, plastics, and appliances. GE’s gross margin was 21% last year, compared with 28% at United Technologies and 30% at Siemens.

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Revenue Recognition’s Effect On M&A

YoungUpstarts

A change in revenue recognition means a change in the due diligence process, specifically accounting diligence, modeling, quality of earnings and cost of integration. Additionally, certain contract acquisition costs, such as commissions, may be added to the balance sheet, thus impacting the timing of expense recognition.

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[Review] Warren Buffett’s Management Secrets

YoungUpstarts

Here, we’re told that the best companies to invest in and to work for are those with strong financials and balance sheets (as opposed to the touchy feely stuff like values, vision and so on). It is divided into five key sections: 1. Pick the Right Business (and Business Model). Quoting from the book: “.if