Comments on: Updated: The relationship between exit value, money invested and how well the founders make out http://www.theequitykicker.com/2010/06/30/the-relationship-between-exit-value-money-invested-and-how-well-the-founders-make-out/ Nic Brisbourne's view from London on venture capital and exploiting change in technology and media Sat, 11 Feb 2012 20:08:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: brisbourne http://www.theequitykicker.com/2010/06/30/the-relationship-between-exit-value-money-invested-and-how-well-the-founders-make-out/#comment-13924 brisbourne Sun, 17 Apr 2011 13:58:00 +0000 http://www.theequitykicker.com/?p=2355#comment-13924 I will be out of the office until April 18th and will only be checking email periodically until I return. If you need to get hold of me urgently before then please call on 07990 567 993. thanks, Nic ______________________________________________________________________ This email has been scanned by the MessageLabs Email Security System. For more information please visit http://www.messagelabs.com/email ______________________________________________________________________ I will be out of the office until April 18th and will only be checking email periodically until I return. If you need to get hold of me urgently before then please call on 07990 567 993. thanks, Nic

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]]> By: Leonardo Acevedo http://www.theequitykicker.com/2010/06/30/the-relationship-between-exit-value-money-invested-and-how-well-the-founders-make-out/#comment-13923 Leonardo Acevedo Sun, 17 Apr 2011 13:57:00 +0000 http://www.theequitykicker.com/?p=2355#comment-13923 Gane $18.00 usd. por cada email que procese desde su Casa Se necesitan personas para trabajar desde su casa. Si usted tiene acceso a un ordenador personal con conexión a internet y conoce la forma de enviar emails, usted puede ganar dinero procesando emails. Nuestro programa va a mostrarle tres pasos a seguir para procesar emails. Usted ganara $18.00 por cada email que usted procese y recibira su pago dentro de 24 horas. ¡Si, en solo 24 horas! Si puede procesar sólo 5 emails al día entonces ganará $90.00 diarios. Las ganancias son ilimitadas. Una de las mejores cosas de este programa es que toma en cuenta la situación financiera de muchas personas y está preparado para funcionar en tiempos de crisis, aun cuando la economía no sea saludable, dedicándole el tiempo que usted desee y las horas que sean mas convenientes para usted. ¡Comience a procesar emails hoy mismo! Contáctenos directamente, solicite mayor información y podrá empezar de inmediato a ganar dinero. Leonardo Acevedo leo_251988@hotmail.com Gane $18.00 usd. por cada email que procese desde su Casa

Se necesitan personas para trabajar desde su casa. Si usted tiene acceso a un ordenador
personal con conexión a internet y conoce la forma de enviar emails, usted puede ganar
dinero procesando emails. Nuestro programa va a mostrarle tres pasos a seguir para procesar
emails. Usted ganara $18.00 por cada email que usted procese y recibira su pago dentro de 24
horas. ¡Si, en solo 24 horas!
Si puede procesar sólo 5 emails al día entonces ganará $90.00 diarios. Las ganancias son
ilimitadas. Una de las mejores cosas de este programa es que toma en cuenta la situación
financiera de muchas personas y está preparado para funcionar en tiempos de crisis, aun
cuando la economía no sea saludable, dedicándole el tiempo que usted desee y las horas que
sean mas convenientes para usted.
¡Comience a procesar emails hoy mismo! Contáctenos directamente, solicite mayor
información y podrá empezar de inmediato a ganar dinero.
Leonardo Acevedo
leo_251988@hotmail.com

]]> By: Christian Musfeldt http://www.theequitykicker.com/2010/06/30/the-relationship-between-exit-value-money-invested-and-how-well-the-founders-make-out/#comment-8998 Christian Musfeldt Sun, 11 Jul 2010 21:39:44 +0000 http://www.theequitykicker.com/?p=2355#comment-8998 Great. Thanks for the extra background info. Cheers. Great. Thanks for the extra background info. Cheers.

]]> By: Andrew Romans http://www.theequitykicker.com/2010/06/30/the-relationship-between-exit-value-money-invested-and-how-well-the-founders-make-out/#comment-8892 Andrew Romans Tue, 06 Jul 2010 15:19:50 +0000 http://www.theequitykicker.com/?p=2355#comment-8892 the big takeways are: 1) more VC backed entrepreneurs making zero than most people think and 2) more VC backed entrepreneurs make a big fortune than most people think. it is a game of extreme winners and losers....much the way I view the VCs also. Most VCs in Europe will never see carry and they will never return the fund. if they do it will take a long, long time and may be small. In contrast a few VCs, mostly in the US do get into carry and they make a lot of dinero! the big takeways are: 1) more VC backed entrepreneurs making zero than most people think and 2) more VC backed entrepreneurs make a big fortune than most people think. it is a game of extreme winners and losers….much the way I view the VCs also. Most VCs in Europe will never see carry and they will never return the fund. if they do it will take a long, long time and may be small. In contrast a few VCs, mostly in the US do get into carry and they make a lot of dinero!

]]> By: Andrew Romans http://www.theequitykicker.com/2010/06/30/the-relationship-between-exit-value-money-invested-and-how-well-the-founders-make-out/#comment-8881 Andrew Romans Mon, 05 Jul 2010 23:45:50 +0000 http://www.theequitykicker.com/?p=2355#comment-8881 Nic Brisbourne asked me about the source of the data. I have more research on this topic including IPO data. The source is listed on each slide. for the data Nic published:<br><br>Source: Thomson Reuters & National Venture Capital Association *Only accounts for deals with disclosed values<br>** Includes all companies with at least one U.S. VC Investor that trade on U.S. exchanges, regardless of domicile<br><br>So this is mostly US vc backed companies plus all the Euro and Israeli companies that become American companies prior to exit like MySQL, etc. <br><br>Note that only one third to 50% of exits are disclosed from 2002 through to 2008. I do know founders that made millions on undisclosed exits, but for the purpose of my research one can assume that they are not making anything or very little. Like Nic mentions a 10% carve out / management incentive plan falls below what most hoped for, but it is something and this helps the VCs get something back to push closer to getting into carry. Also keeps the relationship alive between VC and entrepreneur making a working relationship hopefully survive to the next deal. <br><br>The two take aways here are 1) more founders and VC backed entrepreneurs fail than most seem to think. 2) more entrepreneurs are making 10x exits than one might think. One must give these percentages a hair cut when you consider this is "disclosed exits" only and that is only 33-50% of the M&A deals. IPO data also attached. <br><br>It is hard to get good data for Europe, but in general European companies raise less cash than US VC backed companies. The costs of running a business in the UK and expanding beyond the UK are much higher than the US. Exits in the US are higher than Europe too. So the true data in Europe would not be as bright at these US figures.<br><br>Andrew Romans, General Partner, The Founders Club Nic Brisbourne asked me about the source of the data. I have more research on this topic including IPO data. The source is listed on each slide. for the data Nic published:

Source: Thomson Reuters & National Venture Capital Association *Only accounts for deals with disclosed values
** Includes all companies with at least one U.S. VC Investor that trade on U.S. exchanges, regardless of domicile

So this is mostly US vc backed companies plus all the Euro and Israeli companies that become American companies prior to exit like MySQL, etc.

Note that only one third to 50% of exits are disclosed from 2002 through to 2008. I do know founders that made millions on undisclosed exits, but for the purpose of my research one can assume that they are not making anything or very little. Like Nic mentions a 10% carve out / management incentive plan falls below what most hoped for, but it is something and this helps the VCs get something back to push closer to getting into carry. Also keeps the relationship alive between VC and entrepreneur making a working relationship hopefully survive to the next deal.

The two take aways here are 1) more founders and VC backed entrepreneurs fail than most seem to think. 2) more entrepreneurs are making 10x exits than one might think. One must give these percentages a hair cut when you consider this is “disclosed exits” only and that is only 33-50% of the M&A deals. IPO data also attached.

It is hard to get good data for Europe, but in general European companies raise less cash than US VC backed companies. The costs of running a business in the UK and expanding beyond the UK are much higher than the US. Exits in the US are higher than Europe too. So the true data in Europe would not be as bright at these US figures.

Andrew Romans, General Partner, The Founders Club

]]> By: brisbourne http://www.theequitykicker.com/2010/06/30/the-relationship-between-exit-value-money-invested-and-how-well-the-founders-make-out/#comment-8878 brisbourne Mon, 05 Jul 2010 22:14:47 +0000 http://www.theequitykicker.com/?p=2355#comment-8878 Hi Christian. You raise some good questions. I suspect that liquidations are excluded, as are deals where terms are not disclosed. If I think about our experience my guess is that companies falling into these categories might make up 20-30% of the enlarged total.<br><br>The data was prepared by Andrew Romans and I will put your questions to him. Hi Christian. You raise some good questions. I suspect that liquidations are excluded, as are deals where terms are not disclosed. If I think about our experience my guess is that companies falling into these categories might make up 20-30% of the enlarged total.

The data was prepared by Andrew Romans and I will put your questions to him.

]]> By: Christian Musfeldt http://www.theequitykicker.com/2010/06/30/the-relationship-between-exit-value-money-invested-and-how-well-the-founders-make-out/#comment-8866 Christian Musfeldt Sun, 04 Jul 2010 15:03:53 +0000 http://www.theequitykicker.com/?p=2355#comment-8866 These numbers really got me thinking. They look surprisingly good. Do you know what kind of deals went into the data? UK deals? US deals? And, more importantly: You seem to have used M&A data. Does that mean liquidation does not qualify as an exit in this context? These numbers really got me thinking. They look surprisingly good. Do you know what kind of deals went into the data? UK deals? US deals? And, more importantly: You seem to have used M&A data. Does that mean liquidation does not qualify as an exit in this context?

]]> By: James Burke http://www.theequitykicker.com/2010/06/30/the-relationship-between-exit-value-money-invested-and-how-well-the-founders-make-out/#comment-8796 James Burke Thu, 01 Jul 2010 11:50:34 +0000 http://www.theequitykicker.com/?p=2355#comment-8796 Hi Nick, I normally read on a Windows PC so have never noticed the .bmp images before as they render fine; only noticed when using OSX the other day. Thanks. Hi Nick, I normally read on a Windows PC so have never noticed the .bmp images before as they render fine; only noticed when using OSX the other day. Thanks.

]]> By: brisbourne http://www.theequitykicker.com/2010/06/30/the-relationship-between-exit-value-money-invested-and-how-well-the-founders-make-out/#comment-8574 brisbourne Thu, 01 Jul 2010 00:52:06 +0000 http://www.theequitykicker.com/?p=2355#comment-8574 Hi James - changed to a PNG file, which is consistent with my usual image format. Let me know if you still have problems and thanks for pointing out the change. Hi James – changed to a PNG file, which is consistent with my usual image format. Let me know if you still have problems and thanks for pointing out the change.

]]> By: brisbourne http://www.theequitykicker.com/2010/06/30/the-relationship-between-exit-value-money-invested-and-how-well-the-founders-make-out/#comment-8565 brisbourne Thu, 01 Jul 2010 00:46:08 +0000 http://www.theequitykicker.com/?p=2355#comment-8565 Hi James - sorry about that - do my images usually render OK?<br><br>I am having problems with my regular blog editor at the moment wrote this post direct from Wordpress, which might have caused a change. I will see if I can change the .bmp to a .jpg. Hi James – sorry about that – do my images usually render OK?

I am having problems with my regular blog editor at the moment wrote this post direct from WordPress, which might have caused a change. I will see if I can change the .bmp to a .jpg.

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