May 9, 2011
Beijing on May 9, according to foreign media reports, the venture capitalists 威廉奎格利 Clearstone Venture Partners is the general manager, yesterday he was well-known technology blog TechCrunch published a signed article says wind entrepreneurs venture capitalists, “the real golden age” has arrived.
The following abstracts:
venture capital industry is undergoing positive changes, the venture capital firms and start-ups, these changes will have a lasting impact.
It has been the so-called “golden age” been considerable discussion. “Golden age” refers to the late 1990s dot. Com era, Netscape, Yahoo, Amazon and eBay appeared.
risks and rewards are not proportional to the time
good for entrepreneurs and early investors, it really is a great time, but here I want to say is: Although entrepreneurs are known as the founder of these companies invested in the intelligence, ambition and hard work, but most of the capital gains have occurred in these companies is listed.
another way, a great company that founded real return, the head fell to the public shareholders. In other words, entrepreneurs and their companies create value, 99% were only “login to their e-trading account, then click the buy button” approach in the development of these companies who got all. This is a reality.
I do not want to complain to public investors, but think about it: If you can buy shares in the company after the listing of the way through to make more money, then the founder of the company early stage of the employee or Why should investors to take the company early stage venture it?
and we have to remember that the risk of a listed company is generally much smaller than the non-listed companies, does not need to pay a lot of sweat, risk is relatively low. This is the situation at that time, but that era is over. Now we take a look, since the period since the last high, the situation has changed much.
Amazon and eBay to market ultra-low valuation
the world largest Internet retailer Amazon.com, listed at $ 440 million valuation. Incredible. Amazon is now worth $ 90 billion, but only in 1997 when the market value of over $ 400 million. The valuation is lower than its 12-month total revenue doubled. Less than 1 times! This figure is more suitable for corrugated board manufacturer, not the past 100 years, the most important innovation in the retail business.
eBay to market valuation of $ 650 million, below its 12-month total revenue of 3 times. In fact, eBay listing, it is an outstanding auction site, but surprisingly, when we still think $ 650 million of this valuation is very good. Recalling the early 1990s, the situation only worse. Cisco, the computer network infrastructure in the dominant, to market valuation of 2.25 billion, just over its total annual revenue.
Please remember that this is a venture capital and entrepreneurial spirit of the era of high returns. But in fact, until recently, people who derive the greatest return, those who worked hard until the end of the period after the involvement of public investors.
Google is a catalyst for change
However, for those brave founder of the company, the courage to build a global business people, now we have entered a new era, a Great times. I think this is the entrepreneurs and private investors, “the real golden age”, because in this era, before a company can create a huge market value.
catalyst for this change is Google. The company listing in 2004, valued at $ 40 billion, many people thought it was the Internet bubble is back. Some things have changed, but not a new bubble mentality, but people began to understand that some companies are now able to speed much faster than the previous value. Google investors also feel that $ 40 billion before the over-estimated, but they soon realize that this is greatly underestimated. In 2010, Google gross margin is almost close to $ 19 billion in operating profit to $ 1.2 billion!
Of course, if investors know that things would be like this, listing in Google, they will buy large into Google shares. So, in six or seven years time span, what happened exactly, so investors valuation of technology companies from Amazon or eBay of mere hundreds of millions of dollars soared to $ 40 billion Google? I think, occurred during that time, three permanent changes.
The first two changes
The first is the greatly popular Internet access services. When my partner and I launched in 1997, consumer Internet Fund, idealab Capital Partners, we have that Internet use is a mainstream phenomenon. But we were wrong. Even in 2000, only one-third of Americans use the Internet access service. But today, almost every American family can access the Internet, high-speed broadband connection is also very much. And China the growth rate of Internet access services that the United States to shame. In 2000, China had approximately 20 million Internet users now number nearly 500 million.
high-tech in the last cycle, this growth is not fully reflected in company valuations. However, the existing different, investors believe that Facebook, Zynga such a company would take advantage of global Internet penetration rate of the value created.
followed by the rise of hedge funds. Since 2000, the number of hedge funds has doubled, and their assets under management almost tripled, reaching $ 2 trillion. Why is this important? Because hedge funds tend to focus on specific asset classes, such as technology stocks. And this focus will bring more knowledge and better predictability. But in the 1980s and 1990s, the birth of many well-known start-up companies, not the case.
Microsoft example
Microsoft in 1986 listed. At that time it has been established for 11 years, valued at $ 640 million, three times annual revenue. Microsoft IPO, it Windows is the world dominant operating system. But then few technology-based mutual funds, and now, this mutual fund is a high-tech companies have been the main buyers.
was almost no growth investors prefer the speed and scale of Microsoft, so Microsoft investment bankers for valuation are more conservative. And the public shareholders can get Microsoft to bring almost all of the concession value. Do you think Facebook public shareholders will have such good luck do?
If investors in the IPO, when Microsoft purchased its shares, and hold for 11 years, they won the hundreds of billions of dollars in capital appreciation, think Bill Gates, Paul Allen and other early employees of Microsoft, they work hard 11 years, received only $ 650 million capital gains only. Here we have Microsoft, Cisco, Amazon and eBay with the “post-Google” the situation of the times to be compared.
and “post-Google” age compared
VMWare listing in 2006, valued at $ 12 billion. Soon, its market value soared to $ 30 billion. Therefore, it early investors received one-third of the final value VMWare possible. Google co-founder, the company pre-IPO employees and early investors are also very good, Google may get a final value of 25%. And Microsoft, Cisco, Amazon and eBay do these early high-tech giant? Founders and early investors received less than 1%.
As for now the leader in non-listed technology companies, I think the final value of these companies will be those involved in 50-75% of the actual work and take a real risk of people get. These people have quit their jobs, begging and lured to coax the way to friends, family and angel investors to borrow money, so they gave themselves that seems far-fetched idea at that time investment.
game-changing stocks were the focus: great if you want to participate in the wealth creation process, the technology cycle, you must be a founder of the early employees or private investors. Before listing the company, will have a so-called “Easy come, easy money.” This is the last technology cycle has been a fundamental change.
third change
for non-listed companies receive a higher valuation of the third factor is the start-up company into the global market rate. In the 1990s when I idealab, we have approached almost all start-ups considered in the first few years the international market. Was not yet available for many companies, the international market is not a main object of attention. But times have changed.
Now, in the international market and domestic growth have been as fast as things can be achieved. The global development costs have been dramatically reduced, and revenue opportunities are increasing exponentially.
think about it, and now three huge economies 10 years ago look like?, 2000 India is a $ 500 billion economy is now 1.4 trillion. Brazil is 600 billion 10 years ago, is now 2 trillion. China economic growth in the last 10 is very impressive, rising from 1.2 trillion 5.7 trillion. Since 2000, just 10 years, the three economies of the world contribution to GDP increased by 6.8 trillion dollars.
public investors aware of this growth, and therefore more inclined to those at an early stage company dedicated to the global market. Groupon is an example. It is only 4 years old, but has operations in 35 countries and is likely within two years will have 20,000 overseas employees. As Groupon buy site faster than the other towards the international market, a valuation may be $ 25 billion IPO is waiting for it.
In the past few years, there are a lot of venture capital limited partnership has been evacuated, and this is understandable, because this area ten years before the return is low. But now the situation has changed, the return has been from the need to turn to public shareholders for the benefit of private investors, but the limited partner eyes, but into other places to go. I think this is a mistake.
In the future, those involved in the establishment of new companies, and provide seed money to help the development of these companies who will receive unprecedented lucrative. Beijing time on May 9, according to foreign media reports, the venture capitalists 威廉奎格利 Clearstone Venture Partners is the general manager, yesterday he was well-known technology blog TechCrunch published a signed article says wind entrepreneurs venture capitalists, “the real gold era “has arrived.
The following abstracts:
venture capital industry is undergoing positive changes, the venture capital firms and start-ups, these changes will have a lasting impact.
It has been the so-called “golden age” been considerable discussion. “Golden age” refers to the late 1990s dot. Com era, Netscape, Yahoo, Amazon and eBay appeared.
risks and rewards are not proportional to the time
good for entrepreneurs and early investors, it really is a great time, but here I want to say is: Although entrepreneurs are known as the founder of these companies invested in the intelligence, ambition and hard work, but most of the capital gains have occurred in these companies is listed.
another way, a great company that founded real return, the head fell to the public shareholders. In other words, entrepreneurs and their companies create value, 99% were only “login to their e-trading account, then click the buy button” approach in the development of these companies who got all. This is a reality.
I do not want to complain to public investors, but think about it: If you can buy shares in the company after the listing of the way through to make more money, then the founder of the company early stage of the employee or Why should investors to take the company early stage venture it?
and we have to remember that the risk of a listed company is generally much smaller than the non-listed companies, does not need to pay a lot of sweat, risk is relatively low. This is the situation at that time, but that era is over. Now we take a look, since the period since the last high, the situation has changed much.
Amazon and eBay to market ultra-low valuation
the world largest Internet retailer Amazon.com, listed at $ 440 million valuation. Incredible. Amazon is now worth $ 90 billion, but only in 1997 when the market value of over $ 400 million. The valuation is lower than its 12-month total revenue doubled. Less than 1 times! This figure is more suitable for corrugated board manufacturer, not the past 100 years, the most important innovation in the retail business.
eBay to market valuation of $ 650 million, below its 12-month total revenue of 3 times. In fact, eBay listing, it is an outstanding auction site, but surprisingly, when we still think $ 650 million of this valuation is very good. Recalling the early 1990s, the situation only worse. Cisco, the computer network infrastructure in the dominant, to market valuation of 2.25 billion, just over its total annual revenue.
Please remember that this is a venture capital and entrepreneurial spirit of the era of high returns. But in fact, until recently, people who derive the greatest return, those who worked hard until the end of the period after the involvement of public investors.
Google is a catalyst for change
However, for those brave founder of the company, the courage to build a global business people, now we have entered a new era, a Great times. I think this is the entrepreneurs and private investors, “the real golden age”, because in this era, before a company can create a huge market value.
catalyst for this change is Google. The company listing in 2004, valued at $ 40 billion, many people thought it was the Internet bubble is back. Some things have changed, but not a new bubble mentality, but people began to understand that some companies are now able to speed much faster than the previous value. Google investors also feel that $ 40 billion before the over-estimated, but they soon realize that this is greatly underestimated. In 2010, Google gross margin is almost close to $ 19 billion in operating profit to $ 1.2 billion!
Of course, if investors know that things would be like this, listing in Google, they will buy large into Google shares. So, in six or seven years time span, what happened exactly, so investors valuation of technology companies from Amazon or eBay of mere hundreds of millions of dollars soared to $ 40 billion Google? I think, occurred during that time, three permanent changes.
The first two changes
The first is the greatly popular Internet access services. When my partner and I launched in 1997, consumer Internet Fund, idealab Capital Partners, we have that Internet use is a mainstream phenomenon. But we were wrong. Even in 2000, only one-third of Americans use the Internet access service. But today, almost every American family can access the Internet, high-speed broadband connection is also very much. And China the growth rate of Internet access services that the United States to shame. In 2000, China had approximately 20 million Internet users now number nearly 500 million.
high-tech in the last cycle, this growth is not fully reflected in company valuations. However, the existing different, investors believe that Facebook, Zynga such a company would take advantage of global Internet penetration rate of the value created.
followed by the rise of hedge funds. Since 2000, the number of hedge funds has doubled, and their assets under management almost tripled, reaching $ 2 trillion. Why is this important? Because hedge funds tend to focus on specific asset classes, such as technology stocks. And this focus will bring more knowledge and better predictability. But in the 1980s and 1990s, the birth of many well-known start-up companies, not the case.
Microsoft example
Microsoft in 1986 listed. At that time it has been established for 11 years, valued at $ 640 million, three times annual revenue. Microsoft IPO, it Windows is the world dominant operating system. But then few technology-based mutual funds, and now, this mutual fund is a high-tech companies have been the main buyers.
was almost no growth investors prefer the speed and scale of Microsoft, so Microsoft investment bankers for valuation are more conservative. And the public shareholders can get Microsoft to bring almost all of the concession value. Do you think Facebook public shareholders will have such good luck do?
If investors in the IPO, when Microsoft purchased its shares, and hold for 11 years, they won the hundreds of billions of dollars in capital appreciation, think Bill Gates, Paul Allen and other early employees of Microsoft, they work hard 11 years, received only $ 650 million capital gains only. Here we have Microsoft, Cisco, Amazon and eBay with the “post-Google” the situation of the times to be compared.
and “post-Google” age compared
VMWare listing in 2006, valued at $ 12 billion. Soon, its market value soared to $ 30 billion. Therefore, it early investors received one-third of the final value VMWare possible. Google co-founder, the company pre-IPO employees and early investors are also very good, Google may get a final value of 25%. And Microsoft, Cisco, Amazon and eBay do these early high-tech giant? Founders and early investors received less than 1%.
As for now the leader in non-listed technology companies, I think the final value of these companies will be those involved in 50-75% of the actual work and take a real risk of people get. These people have quit their jobs, begging and lured to coax the way to friends, family and angel investors to borrow money, so they gave themselves that seems far-fetched idea at that time investment.
game-changing stocks were the focus: great if you want to participate in the wealth creation process, the technology cycle, you must be a founder of the early employees or private investors. Before listing the company, will have a so-called “Easy come, easy money.” This is the last technology cycle has been a fundamental change.
third change
for non-listed companies receive a higher valuation of the third factor is the start-up company into the global market rate. In the 1990s when I idealab, we have approached almost all start-ups considered in the first few years the international market. Was not yet available for many companies, the international market is not a main object of attention. But times have changed.
Now, in the international market and domestic growth have been as fast as things can be achieved. The global development costs have been dramatically reduced, and revenue opportunities are increasing exponentially.
think about it, and now three huge economies 10 years ago look like?, 2000 India is a $ 500 billion economy is now 1.4 trillion. Brazil is 600 billion 10 years ago, is now 2 trillion. China economic growth in the last 10 is very impressive, rising from 1.2 trillion 5.7 trillion. Since 2000, just 10 years, the three economies of the world contribution to GDP increased by 6.8 trillion dollars.
public investors aware of this growth, and therefore more inclined to those at an early stage company dedicated to the global market. Groupon is an example. It is only 4 years old, but has operations in 35 countries and is likely within two years will have 20,000 overseas employees. As Groupon buy site faster than the other towards the international market, a valuation may be $ 25 billion IPO is waiting for it.
In the past few years, there are a lot of venture capital limited partnership has been evacuated, and this is understandable, because this area ten years before the return is low. But now the situation has changed, the return has been from the need to turn to public shareholders for the benefit of private investors, but the limited partner eyes, but into other places to go. I think this is a mistake.
In the future, those involved in the establishment of new companies, and provide seed money to help the development of these companies who will receive unprecedented lucrative. Beijing time on May 9, according to foreign media reports, the venture capitalists 威廉奎格利 Clearstone Venture Partners is the general manager, yesterday he was well-known technology blog TechCrunch published a signed article says wind entrepreneurs venture capitalists, “the real gold era “has arrived.
The following abstracts:
venture capital industry is undergoing positive changes, the venture capital firms and start-ups, these changes will have a lasting impact.
It has been the so-called “golden age” been considerable discussion. “Golden age” refers to the late 1990s dot. Com era, Netscape, Yahoo, Amazon and eBay appeared.
risks and rewards are not proportional to the time
good for entrepreneurs and early investors, it really is a great time, but here I want to say is: Although entrepreneurs are known as the founder of these companies invested in the intelligence, ambition and hard work, but most of the capital gains have occurred in these companies is listed.
another way, a great company that founded real return, the head fell to the public shareholders. In other words, entrepreneurs and their companies create value, 99% were only “login to their e-trading account, then click the buy button” approach in the development of these companies who got all. This is a reality.
I do not want to complain to public investors, but think about it: If you can buy shares in the company after the listing of the way through to make more money, then the founder of the company early stage of the employee or Why should investors to take the company early stage venture it?
and we have to remember that the risk of a listed company is generally much smaller than the non-listed companies, does not need to pay a lot of sweat, risk is relatively low. This is the situation at that time, but that era is over. Now we take a look, since the period since the last high, the situation has changed much.
Amazon and eBay to market ultra-low valuation
the world largest Internet retailer Amazon.com, listed at $ 440 million valuation. Incredible. Amazon is now worth $ 90 billion, but only in 1997 when the market value of over $ 400 million. The valuation is lower than its 12-month total revenue doubled. Less than 1 times! This figure is more suitable for corrugated board manufacturer, not the past 100 years, the most important innovation in the retail business.
eBay to market valuation of $ 650 million, below its 12-month total revenue of 3 times. In fact, eBay listing, it is an outstanding auction site, but surprisingly, when we still think $ 650 million of this valuation is very good. Recalling the early 1990s, the situation only worse. Cisco, the computer network infrastructure in the dominant, to market valuation of 2.25 billion, just over its total annual revenue.
Please remember that this is a venture capital and entrepreneurial spirit of the era of high returns. But in fact, until recently, people who derive the greatest return, those who worked hard until the end of the period after the involvement of public investors.
Google is a catalyst for change
However, for those brave founder of the company, the courage to build a global business people, now we have entered a new era, a Great times. I think this is the entrepreneurs and private investors, “the real golden age”, because in this era, before a company can create a huge market value.
catalyst for this change is Google. The company listing in 2004, valued at $ 40 billion, many people thought it was the Internet bubble is back. Some things have changed, but not a new bubble mentality, but people began to understand that some companies are now able to speed much faster than the previous value. Google investors also feel that $ 40 billion before the over-estimated, but they soon realize that this is greatly underestimated. In 2010, Google gross margin is almost close to $ 19 billion in operating profit to $ 1.2 billion!
Of course, if investors know that things would be like this, listing in Google, they will buy large into Google shares. So, in six or seven years time span, what happened exactly, so investors valuation of technology companies from Amazon or eBay of mere hundreds of millions of dollars soared to $ 40 billion Google? I think, occurred during that time, three permanent changes.
The first two changes
The first is the greatly popular Internet access services. When my partner and I launched in 1997, consumer Internet Fund, idealab Capital Partners, we have that Internet use is a mainstream phenomenon. But we were wrong. Even in 2000, only one-third of Americans use the Internet access service. But today, almost every American family can access the Internet, high-speed broadband connection is also very much. And China the growth rate of Internet access services that the United States to shame. In 2000, China had approximately 20 million Internet users now number nearly 500 million.
high-tech in the last cycle, this growth is not fully reflected in company valuations. However, the existing different, investors believe that Facebook, Zynga such a company would take advantage of global Internet penetration rate of the value created.
followed by the rise of hedge funds. Since 2000, the number of hedge funds has doubled, and their assets under management almost tripled, reaching $ 2 trillion. Why is this important? Because hedge funds tend to focus on specific asset classes, such as technology stocks. And this focus will bring more knowledge and better predictability. But in the 1980s and 1990s, the birth of many well-known start-up companies, not the case.
Microsoft example
Microsoft in 1986 listed. At that time it has been established for 11 years, valued at $ 640 million, three times annual revenue. Microsoft IPO, it Windows is the world dominant operating system. But then few technology-based mutual funds, and now, this mutual fund is a high-tech companies have been the main buyers.
was almost no growth investors prefer the speed and scale of Microsoft, so Microsoft investment bankers for valuation are more conservative. And the public shareholders can get Microsoft to bring almost all of the concession value. Do you think Facebook public shareholders will have such good luck do?
If investors in the IPO, when Microsoft purchased its shares, and hold for 11 years, they won the hundreds of billions of dollars in capital appreciation, think Bill Gates, Paul Allen and other early employees of Microsoft, they work hard 11 years, received only $ 650 million capital gains only. Here we have Microsoft, Cisco, Amazon and eBay with the “post-Google” the situation of the times to be compared.
and “post-Google” age compared
VMWare listing in 2006, valued at $ 12 billion. Soon, its market value soared to $ 30 billion. Therefore, it early investors received one-third of the final value VMWare possible. Google co-founder, the company pre-IPO employees and early investors are also very good, Google may get a final value of 25%. And Microsoft, Cisco, Amazon and eBay do these early high-tech giant? Founders and early investors received less than 1%.
As for now the leader in non-listed technology companies, I think the final value of these companies will be those involved in 50-75% of the actual work and take a real risk of people get. These people have quit their jobs, begging and lured to coax the way to friends, family and angel investors to borrow money, so they gave themselves that seems far-fetched idea at that time investment.
game-changing stocks were the focus: great if you want to participate in the wealth creation process, the technology cycle, you must be a founder of the early employees or private investors. Before listing the company, will have a so-called “Easy come, easy money.” This is the last technology cycle has been a fundamental change.
third change
for non-listed companies receive a higher valuation of the third factor is the start-up company into the global market rate. In the 1990s when I idealab, we have approached almost all start-ups considered in the first few years the international market. Was not yet available for many companies, the international market is not a main object of attention. But times have changed.
Now, in the international market and domestic growth have been as fast as things can be achieved. The global development costs have been dramatically reduced, and revenue opportunities are increasing exponentially.
think about it, and now three huge economies 10 years ago look like?, 2000 India is a $ 500 billion economy is now 1.4 trillion. Brazil is 600 billion 10 years ago, is now 2 trillion. China economic growth in the last 10 is very impressive, rising from 1.2 trillion 5.7 trillion. Since 2000, just 10 years, the three economies of the world contribution to GDP increased by 6.8 trillion dollars.
public investors aware of this growth, and therefore more inclined to those at an early stage company dedicated to the global market. Groupon is an example. It is only 4 years old, but has operations in 35 countries and is likely within two years will have 20,000 overseas employees. As Groupon buy site faster than the other towards the international market, a valuation may be $ 25 billion IPO is waiting for it.
In the past few years, there are a lot of venture capital limited partnership has been evacuated, and this is understandable, because this area ten years before the return is low. But now the situation has changed, the return has been from the need to turn to public shareholders for the benefit of private investors, but the limited partner eyes, but into other places to go. I think this is a mistake.
In the future, those involved in the establishment of new companies, and provide seed money to help the development of these companies who will receive unprecedented lucrative. Beijing time on May 9, according to foreign media reports, the venture capitalists 威廉奎格利 Clearstone Venture Partners is the general manager, yesterday he was well-known technology blog TechCrunch published a signed article says wind entrepreneurs venture capitalists, “the real gold era “has arrived.
The following abstracts:
venture capital industry is undergoing positive changes, the venture capital firms and start-ups, these changes will have a lasting impact.
It has been the so-called “golden age” been considerable discussion. “Golden age” refers to the late 1990s dot. Com era, Netscape, Yahoo, Amazon and eBay appeared.
risks and rewards are not proportional to the time
good for entrepreneurs and early investors, it really is a great time, but here I want to say is: Although entrepreneurs are known as the founder of these companies invested in the intelligence, ambition and hard work, but most of the capital gains have occurred in these companies is listed.
another way, a great company that founded real return, the head fell to the public shareholders. In other words, entrepreneurs and their companies create value, 99% were only “login to their e-trading account, then click the buy button” approach in the development of these companies who got all. This is a reality. This is a reality. This is a reality.
