Mar 7 - Mar 13 Flashcards Preview

Startup > Mar 7 - Mar 13 > Flashcards

Flashcards in Mar 7 - Mar 13 Deck (15):
1

Kapor Capital

Diverse firm

2

Investors - transition from last round to IPO

IPO valuations in 2015 55% higher than final private round valuations so so investors still have a large cushion before post-IPO declines erase gains.

Later round investors face more risk particularly when IPO valuations are below final round valuations (zynga, square, box)

3

Blocking rights

Allow an investor to prevent public offering if IPO price is not above the implied valuation from prior round of fundraising.

4

Ratchet

Provide additional shares to certain investors if the IPO is below predetermined level, diluting other investors

5

Liquidation preference

The way sales proceeds are distributed among different investors.

Senior liquidation preference moves a recipient to the top of the queue

6

Ratchets, senior liquid preferences, and blocking rights

These shareholder provisions can hamper future fund-raising or impede M&A exits to strategic buyers at lower, more realistic valuations.

A way to get new capital, so could be lend to deceptive valuations in an optimistic market

7

VC Funnel

Each year: 4000 startups seek capital -> 200 startups secure funding from a top tier VC firm -> 15 achieve $100 million in revenue -> these 15 represent 97% of earnings

8

Cruise automation

Self-driving car-startup acquired by GM for over $1B

Backed by YC, Spark capital, and Signia Venture Partners

9

WeWork

Provider of shared working spaces

Valued at $16B

WeWork Labs - incubator

CEO- Adam Neumann

10

Toast

Cambridge-based startup making inexpensive tablets that run android operating system.

Their hope- automatic upgrades once a moth can help it outmaneuver and out-innovate the giants.

11

DataRobot

Enables scientists to post data to their cloud. Datarobots software then automatically preprocesses the data and identifies algorithms that are optimized to solve the problems the user has.

Investors include Atlas Ventures, New Enterprise Associates, and Intel Capital

12

Savioke

Their robot, Relay, makes deliveries, with a current focus on hotels.

Intel capital is an investor.

13

Chargifi

Wireless charging that enables a venue to gather customer information, push promotions, advertising, and other content in exchange for offering wireless charging to its guests

Intel capital invested

14

LISNR

Helps devices connect through high-frequency audio tones

CEO- Rodney Williams

Intel capital invested as part of their diversity fund

15

Intel capital diversity fund

Largest VC fund yet ($125 M) dedicated to female and underrepresented minority entrepreneurs.

Managing director - Lisa Lambert