MATTERMARK DAILY

Mattermark Daily – Thursday, February 11th, 2016

From the Investors

Archit Bise of Redpoint Ventures explains how every market in the world has cycles of highs and lows, including venture investing, in “The Patterson Cycle

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Shai Goldman of SVB Capital relates the current VC market to 2009 and wonders if firms will pull back or be opportunistic by increasing their number of investments in “2016, an Opportunity for VCs

Pawel Chudzinzki of Point Nine Capital identifies and categorizes four product and investment trends in the real estate market in “Software is Eating Real Estate

Scott Dorsey of High Alpha presents learnings from building ExactTarget, the importance of culture, and key advice for SaaS entrepreneurs in “Scott Dorsey at SaaStr Annual

Chip Hazard of Flybridge Capital Partners encourages founders to step back and listen more often in order to build better relationships, businesses and knowledge in “Listen Up!Read more.

© Mattermark 2016. Sources: Mattermark Research, Crunchbase, AngelList.

MATTERMARK DAILY

Mattermark Daily – Wednesday, February 10th, 2016

From the Investors

Fred Wilson of Union Square Ventures welcomes the tougher startup environment, as he says, ‘it will make all of us better’ in “When the Going Gets Tough, the Tough Get Going

Nino Marakovic and Steve Abbott of Sapphire Ventures believe ‘we all need to process the new reality, get on the same page and be realistic in our expectations for valuations and returns’ in “Bridging the Valuation Disequilibrium

David Skok of Matrix Partners presents his slides as an intro to SaaS metrics, unit economics, LTV and churn, variable price axes and more in “SaaStr Slides: The Key Drivers for SaaS Success

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Jonathan Hsu of Social Capital releases their “8-ball” framework for diligence as a free tool for all startups to measure early product-market fit in “Diligence at Social capital, Epilogue: Introducing the 8-ball and ‘GaaP for Startups’

Michael Gilroy of Canaan Partners explores the marketplace lending analog of e-commerce, with some guidance as to how to avoid a negative outcome in “A Look at the Marketplace Lending Originator Ecosystem

Angel Investor, Joanne Wilson expresses angst towards the fundraising process and praises founders that make it through the ‘slog’ in “Frustrations of Early Stage Investing

Guy Turner of Hyde Park Venture Partners explores his first HPVP 360 process, what he learned and how a 360 review can help scaling startups in “What do people really think of you?Read more.

© Mattermark 2016. Sources: Mattermark Research, Crunchbase, AngelList.

EDITORIAL

All This Has Happened Before

tl;dr: Journalist and editor Owen Thomas has a must-read take on what is going on in the public and private markets. He’s here to talk you down from the ledge.

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Is the bubble bursting? Are we even in a bubble? What’s going on with the stock market? Is the Era of Bullshit—the age when investors stop placing bets based on questionable, fake, or unrevealed financial metrics—over?

I have a hard time getting worked up over these questions, honestly. I understand that they matter in the same way that, say, people’s opinions about Beyoncé’s “Formation” matter: People talk about this stuff, and you want to seem smart about it.… Read more.

© Mattermark 2016. Sources: Mattermark Research, Crunchbase, AngelList.

EDITORIAL

Here’s Where Startups Raised Around The World In 2015

tl;dr Want to see where capital was deployed last year? Mattermark has you covered.

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If you are a regular Mattermark reader, I presume you spend more time than most inside spreadsheets and data sets. We feel your pain. Today, however, we’re here to help.

Instead of yet another normal graph or chart, we have something fun. We took nearly every 2015 funding event in our database and mapped it by city onto an interactive globe. So, if you want to see where capital was deployed around the world, this is your lucky day.… Read more.

© Mattermark 2016. Sources: Mattermark Research, Crunchbase, AngelList.

INSIGHTS

Mattermark at SaaStr Annual 2016: The State of Venture Capital

SaaStr Annual 2016 Live Stream Video

At this year’s SaaStr Annual event, Danielle Morrill will reflect on 2015’s State of Venture Capital & Startup Traction. She will highlight last year’s trends, with the goal of surfacing insights you can take into account this year. So what’s the data telling us for 2016? Will funding keep pace? How easy or difficult will it be for entrepreneurs to raise money this year? How long will these rounds take? These are the questions that Danielle will be answering tomorrow (February 10th at 9:15am PST) on the SaaStr stage, as she shares key data from Mattermark’s 2015 Venture Capital & Startup Traction report (50% discount code below).Read more.

© Mattermark 2016. Sources: Mattermark Research, Crunchbase, AngelList.

MATTERMARK DAILY

Mattermark Daily – Monday, February 8th, 2016

From the Investors

Joseph Floyd of Emergence Capital visualizes decreasing valuations for public SaaS companies, the impact of compressing multiples, and lessons for SaaS founders in “Was Black Friday a DiSaaSter or Simply Reversion to the Mean?

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Angel Investor, Mark Cuban believes the momentum of the ‘stay private’ movement is devastating our economy and outlines why in “The Pre-Cognitive Anti-Trust Violation: How the Decimation of the IPO Market has Hurt the Economy and Worse

AngelList reveals that they helped facilitate over $160 million raised online, more than 250K job candidates seek employment, and more stats in “AngelList 2015

Ali Hamed of CoVenture shares his end of year update with LP’s, reflecting on 2015 and making predictions for 2016 in “CoVenture 2015/2016 Letter to LP’s

Semil Shah of Haystack Fund shares his key takeaways about the ‘mood of LPs’, Troy Carter’s interview, and Fred Wilson’s thoughts on IPOs, generational change at VC firms and more in “Investing Notes from the Upfront Summit (2016)

Mark Suster of Upfront Ventures expands on the resetting of startup valuations, timescales, winners/ losers, capital sources and the relative emphasis of growth rates vs.… Read more.

© Mattermark 2016. Sources: Mattermark Research, Crunchbase, AngelList.

EDITORIAL

Stumbling Unicorns

TL;DR: Markets are a mess, and some public tech companies you know and love are at risk of becoming non-icorns.

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Have you heard about the stock market? It is not doing what it did for the past few years. It’s going down, and that’s causing panic and confusion among nearly everyone.

The rough take you can read all over Twitter is you shouldn’t worry too much—companies that are healthy will remain healthy. That was always true. What seems to be different now is the impact of falling markets on companies that are a bit less salubrious.… Read more.

© Mattermark 2016. Sources: Mattermark Research, Crunchbase, AngelList.

MATTERMARK DAILY

Mattermark Daily – Thursday, February 4th, 2016

From the Investors

Philipp Moehring of AngelList walks founders through the building blocks a startup should achieve before and during seed fundraising in “This is How You Raise a Seed Round in 2016.

Hadley Harris of Eniac Ventures opines on the evolution of mobile and the importance of follow on funding in “20VC: Hadley Harris” (podcast)

Ron Conway of SV Angel responds to answers about startups, entrepreneurship, fundraising, technology and more in “Product Hunt Live: Ron Conway

Matthew Bradley of Forward Partners shares some of the outputs of his investment strategy work and talks through 5 subsectors he believes are promising in “eCommerce is Dead, Long Live eCommerce

Jeffrey Carter of Westloop Ventures finds drive to be the characteristic that’s hardest to measure in founders in “Do You Have the Drive, Or Don’t You?Read more.

© Mattermark 2016. Sources: Mattermark Research, Crunchbase, AngelList.

EDITORIAL

Here’s Why LinkedIn Shares Tanked 25%

tl;dr Investors pre-paid too much for expected future growth.

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Taking a break from our usual focus on markets and not individual participants, let’s dig into what in the heck is going on at LinkedIn. The company’s shares are down roughly 25 percent today in late trading after reporting strong fourth quarter earnings.

If that makes little or no sense, don’t worry. We’ll get there. First up, let’s see how the company did compared to investor expectations in the fourth quarter.

Expectations:

  • Revenue: $857.6 million
  • Adjusted per-share profit: $0.78

Results:

  • Revenue: $861.9 million
  • Adjusted per-share profit: $0.94

That’s a solid beat.… Read more.

© Mattermark 2016. Sources: Mattermark Research, Crunchbase, AngelList.

EDITORIAL

Bitcoin Investment Is Back From The Dead (As Expected)

tl;dr As expected, investment into bitcoin-related startups is not dead. *insert panic among the haters.

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Investment into bitcoin startups appears healthy this year, reversing a noted slowdown that occurred towards the end of 2015. Several recent rounds indicate that investor sentiment about bitcoin, and related technology, is healthy.

As you can imagine, that’s good news for bitcoin fans and believers, and a likely shot in the arm for the cryptocurrency. Bitcoin has made news in recent weeks concerning its internal soul-searching about the future of its core technology.… Read more.

© Mattermark 2016. Sources: Mattermark Research, Crunchbase, AngelList.