Why is Dropbox valued so high given that Google Drive is such a strong competitor? Who uses Dropbox anyway? Does Dropbox have any USP that makes them so valuable?
Because it is at a $1,500,000,000 revenue run-rate, growing quickly, and generating significant free cash flow. It is a very, very, very good business. Irrespective of who and what the competition is and does. View original question on quora
Would you hire an investment banker to buy or sell a tech company with valuation less than $100m? Who would you recommend in Silicon Valley?
Always hire a banker if you can. Yes, it will seem expensive, especially on a smaller deal. And yes, they almost never will bring a great second offer in with a bona fide, written, better offer. Unless that second offer was already sort of in play anyway. But they do...
How will Spotify’s direct IPO listing disrupt the business model of Wall Street, given that investment bankers have been bypassed and will not be able to earn any fees if future listings follow Spotify?
Not yet. Spotify’s direct listing took advantage of 3 factors: They did not need or want the money an IPO brings in. An IPO brings in money, often hundreds of millions or even more to invest. Most companies want the capital, at least as a cushion. The large brand...
Why is Dropbox eight to 10 times more valuable than Box?
Box is an amazing company. It is at $600m-ish ARR and $800m annualized bookings, and cash-flow positive. Amazing. Truly. https://www.boxinvestorrelations… But Dropbox is >2x larger by revenue, at ~$1.3b in ARR vs. $500m for Box. Both are huge success stories....
What are the SaaS IPO prospects for 2018?
About the strongest in the history of Forever. Between Dropbox’s huge debut, Mulesoft’s $6b+ acquisition right after its IPO, Okta’s impressive IPO, and the recent filings for Zuora, Docusign, Pluralsight, Smartsheet, etc. … times could hardly be much better, even...
What happens when an IPO is undersubscribed?
Exactly what you’d expect — the round size, price, or both are cut. It is a bummer. But — it has happened to some very good companies. Like Google: An IPO that is done (x) electively (i.e., the company does not need money now) and (y) in a strong,...
Did Elizabeth Holmes manage to cash out from Theranos?
I think this is a super-interesting question. Because it helps show you how she was thinking about the company. It appears she did not cash out any shares (or take a dividend) from Theranos. If she had, I can only assume the SEC would have forced her to pay more than...
Was Microsoft’s acquisition of LinkedIn a success?
It’s too early to know. If the goal was to buy “the Facebook of Business”, I’d argue probably yes. LinkedIn’s feed and engagement continue to grow and it does seem to have become a daily destination, not just an intermittent one for hiring and research. If the goal...
Can a company go into an IPO if the founders own 70-80% of the company?
Sure. When Atlassian IPO’d, the founders owned 75%: And Atlassian is the 5th largest public cloud company by market cap: (In the case of Workday the founders also owned 75% at IPO. But that was different, as they were billionaires and millionaires already.) Atlassian...
What impact will Dropbox’s down-round IPO have on employees?
Probably none or close to none. First, I highly doubt Dropbox will end up trading at < $10b so it won’t be a “down-round”. IPOs are priced conservatively. If we’re at $8b pricing at the IPO, I would be shocked if Dropbox trades below $10b its first week. It’s...
What are typical vesting schedules and terms for founders after an acquisition (ie, negotiated by the acquirer) in internet startups?
The “post-acquisition” vesting periods have lengthened over the past years. Acquirers these days typically want key founders to stay at least 2 years, and often 3. This can often include “reverse vesting” of shares or other holdbacks that retain a significant amount...
What have you always wanted to do but never have done it before?
Build a unicorn. I had two good “exits” and have had some measure of success. I built products that have saved hundreds of lives in one case and created and defined a category in another. I built amazing relationships I cherish for life. We did amazing things. I got...
Is Tesla overvalued?
Not if it dominates the automotive market in 2027. Tesla bet early on two trends where it clearly was / is the market leader: Electric. No one else still has a competitive product. Yet. Everyone will catch up here in terms of an 85 kWh+, 300+ mile aspirational...
As an angel investor or VC, how do you feel when you know one of your portfolio CEOs is making angel investments while they are also growing their own company?
It’s like a sauce or a spice — a little can be good, a lot creates concerns. It’s important for CEOs, especially once you are post-traction, to engage with other CEOs. You can’t be too isolated, especially after the early days. One of the best ways to grow as a...
CEO & Founder
Related Posts
Industry News
- Thoma Bravo on why cybersecurity biz models are "broken"
- Cloud and AI Service Provider DigitalOcean Stock Soars - Here's Why
- Google Cloud accidentally deletes UniSuper’s online account due to ‘unprecedented misconfiguration’
- Klaviyo shares gains as earnings beat forecasts, revenue outlook tops estimates
- Klaviyo CEO: Our AI helps users run more experiments and optimize campaigns
- Gusto is cash flow positive–and it got there by sticking to mom-approved values
- Earnings call: Docebo reports a YoY growth of nearly 20%
- Earnings call: JFrog leaps ahead with strong Q1 2024 performance
- Why now is the best time to start a SaaS company
- Oracle’s $28 Billion Cerner Health Tech Bet Sputters With Lost Customers and Slipping Sales