Comments on: Enterprise Software Startup Valuation http://exeedtechnology.com/enterprise-software-startup-valuation Thu, 09 Sep 2010 00:09:47 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: Jacob Ukelson http://exeedtechnology.com/enterprise-software-startup-valuation/comment-page-1#comment-344 Jacob Ukelson Wed, 20 Feb 2008 07:22:03 +0000 http://exeedtechnology.com/enterprise-software-startup-valuation#comment-344 Interesting. I can't tell you the number of times that I have seen a VC backed startup turn down an interesting offer - not a blockbuster one, just a comfortable one, only to end up with a firesale a bit later. It is one of downsides of VC money - VC's need the blockbuster sale, not a comfortable one - and sometimes end up throwing out the baby with the bathwater. From a VC perspective - the chance of a blcokbuster is worth the risk of a possible firesale. Interesting. I can’t tell you the number of times that I have seen a VC backed startup turn down an interesting offer - not a blockbuster one, just a comfortable one, only to end up with a firesale a bit later. It is one of downsides of VC money - VC’s need the blockbuster sale, not a comfortable one - and sometimes end up throwing out the baby with the bathwater.

From a VC perspective - the chance of a blcokbuster is worth the risk of a possible firesale.

]]> By: Joe Drumgoole http://exeedtechnology.com/enterprise-software-startup-valuation/comment-page-1#comment-342 Joe Drumgoole Tue, 19 Feb 2008 20:43:32 +0000 http://exeedtechnology.com/enterprise-software-startup-valuation#comment-342 The problem with Cape Clear is they raised too much money too fast and failed to convert that capital into a significant sales or technology advantage. From first mover in the Webservices space the declined into a "me too" player and then turned down several earlier and more attractive acquisition offers by other companies. In the end the Workday acquisition will be at a firesale price which will leave very little for the earlier investors and/or common stock holders. The problem with Cape Clear is they raised too much money too fast and failed to convert that capital into a significant sales or technology advantage. From first mover in the Webservices space the declined into a “me too” player and then turned down several earlier and more attractive acquisition offers by other companies.

In the end the Workday acquisition will be at a firesale price which will leave very little for the earlier investors and/or common stock holders.

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