True Value

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Uber co-founder and CEO Travis Kalanick. Photo by Bloomberg.
True Value

The Math Behind Uber’s $18 Billion Valuation

By Katie Benner · Jun 17, 2014 8:11am PDT
When the ride-dispatching company Uber announced recently that it had raised $1.2 billion in a deal that valued that company at $18.2 billion, a casual observer might have assumed that the company would need to be worth that much or more for the investors to make money. In fact, an analysis of Uber’s multiple rounds of financing shows... When the ride-dispatching company Uber announced recently that it had raised $1.2 billion in a...
GoPro CEO Nick Woodman. Photo by Bloomberg.
True Value

Tech IPO Market Rebounds, with Less Froth

By Katie Benner · Jun 12, 2014 8:01am PDT
Remember when investors shunned tech IPOs? This spring’s tech offering drought felt like a thing of the past when network equipment maker Arista Networks debuted last week at $43 a share, well above its $40 target. Security software maker MobileIron priced at the middle of its range and gained 22.4% to end its first day of... Remember when investors shunned tech IPOs? This spring’s tech offering drought felt like a...
Athenahealth CEO Jonathan Bush. Photo by Bloomberg.
True Value

For Investors, ‘Cloud Computing’ Moniker Demands Scrutiny

By Katie Benner · Jun 5, 2014 7:46am PDT
Hedge fund manager David Einhorn's 66-slide attack on Athenahealth hasn't done much to change the company's share price, which dipped briefly but is now up nearly 2% from where it traded when Mr. Einhorn called the healthcare tech company wildly overvalued.   Investors may be shrugging off the short seller, but he raises... Hedge fund manager David Einhorn's 66-slide attack on Athenahealth hasn't done much to...
Square founder Jack Dorsey. Photo by Bloomberg.
A New Skillset for Tech Startups: Managing Credit Risk
By Katie Benner · May 29, 2014 7:58am PDT
Square founder Jack Dorsey. Photo by Bloomberg.
True Value

A New Skillset for Tech Startups: Managing Credit Risk

By Katie Benner · May 29, 2014 7:58am PDT
When Cafe Grumpy, the coffee shop featured in the HBO series Girls, needed money to open up a Grand Central Station outpost, it got funds from Square as part of an initiative to give capital to small businesses. Square Capital, which gives cash advances to companies in exchange for a flat fee and was formally introduced this week after a trial... When Cafe Grumpy, the coffee shop featured in the HBO series Girls, needed money to open up a...
Photo by Bloomberg.
True Value

Real Estate Crowdfunding Brings Promise and Peril

By Katie Benner · May 22, 2014 7:28am PDT
As a financial reporter a few years ago, I watched real estate morph from the great creator of Main Street riches to the primary weapon of global economic mass destruction, all in the course of about 18 months. So few things trigger my skepticism like the proliferation of real estate crowdfunding sites that promise amazing investment... As a financial reporter a few years ago, I watched real estate morph from the great creator of...
Venture capitalist Marc Andreessen. Photo by Bloomberg.
True Value

With Billion-Dollar Funds, Venture Firms Stay Bullish

By Katie Benner · May 15, 2014 7:55am PDT
Public markets may be souring on Internet companies, but a wave of fresh cash flowing into the venture capital business will go a long way in keeping many parts of the startup ecosystem afloat. While late-stage fundraising will get complicated, a broad pullback in traditional venture investing does not appear to be in the offing. “If I... Public markets may be souring on Internet companies, but a wave of fresh cash flowing into the...
David Bonderman, founding partner of TPG. Photo by Bloomberg.
True Value

Private Equity Investors Press for Control

By Katie Benner · May 8, 2014 11:41am PDT
As the public markets become less friendly to high-growth tech companies, private equity firms will loom large in more ways than one. These investors tend to do large, late-stage investments that help companies avoid having to go public, which could be a great alternative if the IPO window closes. But the terms on private equity-led deals... As the public markets become less friendly to high-growth tech companies, private equity firms...
Y Combinator President Sam Altman. Photo by Bloomberg.
Startup Employees in the Dark on Equity
By Katie Benner · May 1, 2014 4:51am PDT
Y Combinator President Sam Altman. Photo by Bloomberg.
True Value

Startup Employees in the Dark on Equity

By Katie Benner · May 1, 2014 4:51am PDT
A few years ago, a venture-backed ad tech company was sold for about three times the amount that investors had put into the company—but employees got a rude surprise. The VCs who held preferred stock got $6.80 per share, while employees who held common stock got about $1.40, according to documents related to the sale. One employee... A few years ago, a venture-backed ad tech company was sold for about three times the amount that...
Brian Rogers, chairman of T. Rowe Price, with Dick Costolo, CEO of Twitter. Photo by Bloomberg.
True Value

Surge in Late-Stage Investing Crimps Post-IPO Gains

By Katie Benner · Apr 24, 2014 12:45pm PDT
It’s almost every week now that another private company takes late-stage funding from hedge funds, mutual funds, private equity firms and lenders, even amidst a jittery stock market. On Wednesday Pure Storage announced a $225 million investment led by asset managers T. Rowe Price, Tiger Global and Wellington Management. Tiger recently... It’s almost every week now that another private company takes late-stage funding from hedge...
Peter Thiel. Photo by Reuters/ Yuri Gripas.
True Value

Palantir Faces Challenges on Revenue Growth

By Katie Benner · Apr 17, 2014 9:00am PDT
Palantir, the much-hyped data analytics company co-founded by investor Peter Thiel, has raised more than $800 million and was valued at about $9 billion in a recent funding round, making it one of the highest-priced venture-backed companies in the world. But those big numbers, while lending prestige, can also be a burden: Palantir needs to show... Palantir, the much-hyped data analytics company co-founded by investor Peter Thiel, has raised...
Matthew Vascellaro
True Value

Biotech IPOs Begin to Show Cracks

By Katie Benner · Apr 10, 2014 7:28am PDT
Despite recent declines in high-flying growth stocks, bankers remain uniformly optimistic that the IPO window will be open for many quarters to come. But one important bellwether—the biotech sector—suggests that investor appetite for the riskiest startup companies may indeed be starting to wane. Certainly 2014 so far has been a great... Despite recent declines in high-flying growth stocks, bankers remain uniformly optimistic that...
Photo by Reuters/ Ralph Orlowski
IPOs in Focus as High-Flying Stocks Wobble
By Katie Benner · Apr 3, 2014 12:55pm PDT
Photo by Reuters/ Ralph Orlowski
True Value

IPOs in Focus as High-Flying Stocks Wobble

By Katie Benner · Apr 3, 2014 12:55pm PDT
As investors and tech executives nervously scan the horizon for any signs of bursting bubbles, they may be missing an important indicator that’s sitting in plain sight: The most speculative tech stocks have fallen by double-digit percentages in just the past month, even as broad market indexes have held steady. The incipient correction,... As investors and tech executives nervously scan the horizon for any signs of bursting bubbles,...
True Value

For Startup Investors, Flood of Growth Capital Changes the Math

By Katie Benner · Mar 27, 2014 8:38am PDT
The arrival of hedge funds, mutual funds and private equity firms as major players in startup investing is one of the primary reasons that tech company valuations have soared over the past several years—and new data suggest that these non-traditional sources of money are changing the tech investing landscape in other ways too. Late-stage... The arrival of hedge funds, mutual funds and private equity firms as major players in startup...