Do we have a ticking time bomb on hand? The debate over whether Silicon Valley is sitting on another tech bubble rages on. It is being fueled by many celebrated “unicorns” that have attracted billions of investor dollars at sky-high valuations without demonstrating the returns.
Car Dealership Marketing Automation WebinarSimplyCast
This document outlines features that could help automate processes for car dealerships. It describes abilities like identifying customer interests before contact; answering questions through chat; streamlining test drives and trade-ins through forms; automating social media; providing vehicle info to potential customers; gaining survey feedback; and automatically messaging customers about trade-ins or new vehicles. The goal is to create efficiency, confidence, and engagement at each stage of the customer journey.
The document is a questionnaire about customer perceptions of Mahindra automobiles. It asks respondents about their preferred vehicle type and brand, perceptions of Mahindra products, expectations if purchasing a Mahindra vehicle, price assessment of Mahindra cars, and factors that satisfy Bolero owners. Specific questions gauge perception of Mahindra's competitiveness, quality, and ability to attract younger generations.
The French Animal Healthcare Market is on the upswing boosted by growing disposable income, a rising number of pets, growing animal healthcare awareness, etc.Get detailed Business Analysis Infographic from Aranca.
Owing to IoT and increased customer preference for wearable gadgets, the Global Wearable Devices Market is expected to grow at a 21% CAGR during 2015-18. Get detailed market infographics on wearable devices market here.
The global market potential for Commercial Drones could be worth 2.1 billion USD by 2022. Know details on the future of Commercial Drone from Aranca's Market Research Experts.
The GCC Facilities Management Market - ArancaAranca
The rising demand of multi-billion construction projects is expected to fuel the growth of FM Market in the GCC region. Read on to know details from Aranca's Business Research Experts.
Brazil’s continuous and sustainable agricultural growth represents tremendous growth opportunity for the Brazilian Pesticide Market . Read on to know more from Aranca's Market Research Experts.
Car Dealership Marketing Automation WebinarSimplyCast
This document outlines features that could help automate processes for car dealerships. It describes abilities like identifying customer interests before contact; answering questions through chat; streamlining test drives and trade-ins through forms; automating social media; providing vehicle info to potential customers; gaining survey feedback; and automatically messaging customers about trade-ins or new vehicles. The goal is to create efficiency, confidence, and engagement at each stage of the customer journey.
The document is a questionnaire about customer perceptions of Mahindra automobiles. It asks respondents about their preferred vehicle type and brand, perceptions of Mahindra products, expectations if purchasing a Mahindra vehicle, price assessment of Mahindra cars, and factors that satisfy Bolero owners. Specific questions gauge perception of Mahindra's competitiveness, quality, and ability to attract younger generations.
The French Animal Healthcare Market is on the upswing boosted by growing disposable income, a rising number of pets, growing animal healthcare awareness, etc.Get detailed Business Analysis Infographic from Aranca.
Owing to IoT and increased customer preference for wearable gadgets, the Global Wearable Devices Market is expected to grow at a 21% CAGR during 2015-18. Get detailed market infographics on wearable devices market here.
The global market potential for Commercial Drones could be worth 2.1 billion USD by 2022. Know details on the future of Commercial Drone from Aranca's Market Research Experts.
The GCC Facilities Management Market - ArancaAranca
The rising demand of multi-billion construction projects is expected to fuel the growth of FM Market in the GCC region. Read on to know details from Aranca's Business Research Experts.
Brazil’s continuous and sustainable agricultural growth represents tremendous growth opportunity for the Brazilian Pesticide Market . Read on to know more from Aranca's Market Research Experts.
With the increased adoption of Cryogenic Equipment, a growth of 8% CAGR in the Global Cryogenic Equipment Market is anticipated. Read on to know details from Aranca's Business Research Experts.
With increase in urban population & investment in infrastructure sector, China's elevator & escalator market is expected to grow at a CAGR of 14%. Read on to know detailed forecast from Aranca's Business Research Experts.
Growing regulations regarding emissions, fuel efficiency and longing for light weight vehicle has increased the demand of Aluminum Automotive Sheets globally. Read on to know details from Aranca's Business Research Experts.
Indian Agrochemical Industry is expected to grow by a rate of 12 to 14% CAGR owing to the increased demand of food grains & supportive Government initiatives. Read on to know more from Aranca's Business Research Experts.
Weak currency, strong anti-corruption reforms, and stiff luxury taxes are forcing global luxury brands to rethink their expansion plans in one of the world's fastest growing consumer economies. Read more from Aranca's Investment Research Experts here.
Saudi Aramco IPO - A Reality of Mythical ProportionsAranca
Aranca's special report on Saudi Aramco IPO highlights its impact on industry, global investment banks and discusses the political and economic ramifications a large IPO may have. Download the report here!
Fatca high cost initiative to curb tax evasionAranca
Enacted by the United States Congress in March of 2010, the Foreign Account Tax Compliance Act (FATCA) is a federal law meant to deter tax evasion. Read details from Aranca's Business Research Experts here.
Winning shelf space private labels or fmcg brandsAranca
Consumer preference for Fast Moving Consumer Goods based on quality and affordability, in the high inflationary markets led to the emergence of private labels across geographies such as Europe, China, India, and the Americas.
Virtual currency has been a debated concept within the technology community in the past few years, as transactions through this medium do not require any third party’s involvement. Know more details from Aranca's Business Research Experts here.
Here we discuss the sectoral winners and losers for Patient Protection and Affordable Healthcare Act I (Obamacare) along with the key factors driving these trends due to Obamacare. Check out the Special Report on Obamacare from Aranca's Business Research Experts!
Therapeutic Vaccines for Alzheimer’s — Are We Close Enough?Aranca
Could a vaccine for Alzheimer's be a reality any sooner? Find more on Alzheimer Therapy Market Challenges from Aranca's Technology Intelligence & IP Research Experts.
Indian Telecom Tower Industry - Aranca ResearchAranca
India's telecom tower industry is expected to grow significantly owing to the Government's plans of providing high speed internet throughout the country. Read on to know more Aranca's Business Research experts.
Virtual Reality (VR) Industry has been through Ups & downs for around 3 decades but due to adaption of connected devices, it is expected to grow. Read on to know more details here.
Insurance Industry is Going to Soar in the GCCAranca
A positive economic outlook and several regulatory reforms are likely to drive the insurance industry in the GCC region. Know more from Aranca's Research Experts here.
Contactless Cards Growing in Popularity in the UKAranca
With the ease of contactless payments for small transactions, Contactless Cards are streaming in the UK. Read on to know more from Aranca's Research Experts.
Alloy Wheel Market in India Growing Due to High-end Passenger Vehicle VariantsAranca
With introduction of high end passenger vehicle, the alloy wheel market in India is expected to grow by 19%. Read on to know more details from Aranca's Research Experts.
Global managed security services market 2016Aranca
As business across the world shift their day-to-day ops and services to the cloud, there's a growing demand for competitively-priced Managed Security Services (MSS) from small and medium-sized businesses that need to comply with stringent security and data protection mandates.
Predictably Improve Your B2B Tech Company's Performance by Leveraging DataKiwi Creative
Harness the power of AI-backed reports, benchmarking and data analysis to predict trends and detect anomalies in your marketing efforts.
Peter Caputa, CEO at Databox, reveals how you can discover the strategies and tools to increase your growth rate (and margins!).
From metrics to track to data habits to pick up, enhance your reporting for powerful insights to improve your B2B tech company's marketing.
- - -
This is the webinar recording from the June 2024 HubSpot User Group (HUG) for B2B Technology USA.
Watch the video recording at https://youtu.be/5vjwGfPN9lw
Sign up for future HUG events at https://events.hubspot.com/b2b-technology-usa/
With the increased adoption of Cryogenic Equipment, a growth of 8% CAGR in the Global Cryogenic Equipment Market is anticipated. Read on to know details from Aranca's Business Research Experts.
With increase in urban population & investment in infrastructure sector, China's elevator & escalator market is expected to grow at a CAGR of 14%. Read on to know detailed forecast from Aranca's Business Research Experts.
Growing regulations regarding emissions, fuel efficiency and longing for light weight vehicle has increased the demand of Aluminum Automotive Sheets globally. Read on to know details from Aranca's Business Research Experts.
Indian Agrochemical Industry is expected to grow by a rate of 12 to 14% CAGR owing to the increased demand of food grains & supportive Government initiatives. Read on to know more from Aranca's Business Research Experts.
Weak currency, strong anti-corruption reforms, and stiff luxury taxes are forcing global luxury brands to rethink their expansion plans in one of the world's fastest growing consumer economies. Read more from Aranca's Investment Research Experts here.
Saudi Aramco IPO - A Reality of Mythical ProportionsAranca
Aranca's special report on Saudi Aramco IPO highlights its impact on industry, global investment banks and discusses the political and economic ramifications a large IPO may have. Download the report here!
Fatca high cost initiative to curb tax evasionAranca
Enacted by the United States Congress in March of 2010, the Foreign Account Tax Compliance Act (FATCA) is a federal law meant to deter tax evasion. Read details from Aranca's Business Research Experts here.
Winning shelf space private labels or fmcg brandsAranca
Consumer preference for Fast Moving Consumer Goods based on quality and affordability, in the high inflationary markets led to the emergence of private labels across geographies such as Europe, China, India, and the Americas.
Virtual currency has been a debated concept within the technology community in the past few years, as transactions through this medium do not require any third party’s involvement. Know more details from Aranca's Business Research Experts here.
Here we discuss the sectoral winners and losers for Patient Protection and Affordable Healthcare Act I (Obamacare) along with the key factors driving these trends due to Obamacare. Check out the Special Report on Obamacare from Aranca's Business Research Experts!
Therapeutic Vaccines for Alzheimer’s — Are We Close Enough?Aranca
Could a vaccine for Alzheimer's be a reality any sooner? Find more on Alzheimer Therapy Market Challenges from Aranca's Technology Intelligence & IP Research Experts.
Indian Telecom Tower Industry - Aranca ResearchAranca
India's telecom tower industry is expected to grow significantly owing to the Government's plans of providing high speed internet throughout the country. Read on to know more Aranca's Business Research experts.
Virtual Reality (VR) Industry has been through Ups & downs for around 3 decades but due to adaption of connected devices, it is expected to grow. Read on to know more details here.
Insurance Industry is Going to Soar in the GCCAranca
A positive economic outlook and several regulatory reforms are likely to drive the insurance industry in the GCC region. Know more from Aranca's Research Experts here.
Contactless Cards Growing in Popularity in the UKAranca
With the ease of contactless payments for small transactions, Contactless Cards are streaming in the UK. Read on to know more from Aranca's Research Experts.
Alloy Wheel Market in India Growing Due to High-end Passenger Vehicle VariantsAranca
With introduction of high end passenger vehicle, the alloy wheel market in India is expected to grow by 19%. Read on to know more details from Aranca's Research Experts.
Global managed security services market 2016Aranca
As business across the world shift their day-to-day ops and services to the cloud, there's a growing demand for competitively-priced Managed Security Services (MSS) from small and medium-sized businesses that need to comply with stringent security and data protection mandates.
Predictably Improve Your B2B Tech Company's Performance by Leveraging DataKiwi Creative
Harness the power of AI-backed reports, benchmarking and data analysis to predict trends and detect anomalies in your marketing efforts.
Peter Caputa, CEO at Databox, reveals how you can discover the strategies and tools to increase your growth rate (and margins!).
From metrics to track to data habits to pick up, enhance your reporting for powerful insights to improve your B2B tech company's marketing.
- - -
This is the webinar recording from the June 2024 HubSpot User Group (HUG) for B2B Technology USA.
Watch the video recording at https://youtu.be/5vjwGfPN9lw
Sign up for future HUG events at https://events.hubspot.com/b2b-technology-usa/
"Financial Odyssey: Navigating Past Performance Through Diverse Analytical Lens"sameer shah
Embark on a captivating financial journey with 'Financial Odyssey,' our hackathon project. Delve deep into the past performance of two companies as we employ an array of financial statement analysis techniques. From ratio analysis to trend analysis, uncover insights crucial for informed decision-making in the dynamic world of finance."
Build applications with generative AI on Google CloudMárton Kodok
We will explore Vertex AI - Model Garden powered experiences, we are going to learn more about the integration of these generative AI APIs. We are going to see in action what the Gemini family of generative models are for developers to build and deploy AI-driven applications. Vertex AI includes a suite of foundation models, these are referred to as the PaLM and Gemini family of generative ai models, and they come in different versions. We are going to cover how to use via API to: - execute prompts in text and chat - cover multimodal use cases with image prompts. - finetune and distill to improve knowledge domains - run function calls with foundation models to optimize them for specific tasks. At the end of the session, developers will understand how to innovate with generative AI and develop apps using the generative ai industry trends.
The Ipsos - AI - Monitor 2024 Report.pdfSocial Samosa
According to Ipsos AI Monitor's 2024 report, 65% Indians said that products and services using AI have profoundly changed their daily life in the past 3-5 years.
4th Modern Marketing Reckoner by MMA Global India & Group M: 60+ experts on W...Social Samosa
The Modern Marketing Reckoner (MMR) is a comprehensive resource packed with POVs from 60+ industry leaders on how AI is transforming the 4 key pillars of marketing – product, place, price and promotions.
4th Modern Marketing Reckoner by MMA Global India & Group M: 60+ experts on W...
"Who Will Be Hurt Most When The Tech Bubble Bursts? Not VCs "
1. Who Will Be Hurt Most When The Tech Bubble
Bursts? Not VCs
June 25, 2015
Do we have a ticking time bomb on hand? The debate over whether Silicon Valley is sitting on another
tech bubble rages on. It is being fueled by many celebrated “unicorns” that have attracted billions of
investor dollars at sky-high valuations without demonstrating the returns.
These unicorns are fast becoming the new normal in the VC space. CB Insights states that over 103
startups in the U.S. have bagged over a $1 billion valuation right now. Most of them are not even
remotely close to making any profit. The race to find the next Facebook is driving many on the Sand Hill
Road to write outrageous checks for unsubstantiated concepts. Metrics like operating margins, break-
even points and future cash flows seem to have taken a backseat.
Some of the passionate bulls have already labeled doomsayers as disgruntled wannabes who do not
understand tech investing. But not Mark Cuban, one of the renowned moguls in the VC world. Voicing
concerns, Cuban, in a widely discussed and debated blog post, claims that this bubble may just be much
worse than ever. Many find his assertion extreme, but not without conceding that even if there is a
bubble, it seems quite different from the 2000 dot-com one.
So, who’d get hit the most eventually? Our readings suggest that, quite unlike the popular notion, VCs
may not suffer that much. Rather, the biggest losers may be the employees and, perhaps, even the
founders.
The Next Big One
Investors are betting solely on distant futuristic expectations and happily throwing old-school models of
valuations rooted in fundamentals of visible earnings out the window. Several of these startups like Uber
are disrupting industries by focusing on market share rather than earnings.
2. The breakneck speed at which valuations have travelled among subsequent rounds has surpassed the
stretch of imagination of even die-hard optimists. For instance, Uber moved from $17 billion to $40 billion
between the two funding rounds within six months.
A bubble, it is. But will it erode the real capital of investors overnight, particularly the retail ones? Perhaps,
not.
Interestingly, there is reasonable sanity prevailing in the public markets as the tech bubble, at large, is
being driven by the surge in late stage VC financings. It is taking much longer for tech companies today to
go public, unlike 2000 when several rushed to go public before any revenues. And as the number of IPOs
has reduced significantly, more IPO companies are profitable than ever before.
Source: IPOs and Private Financing Deals above $100 Million in the Tech Sector (Global) Source: Renaissance
Capital
3. Source: IPOs and Private Financing Deals in the Tech Sector since 2000 (United States) Source: PwC/NVCA
MoneyTree Report, Bloomberg
As can be seen from the above figures, VC deals and investment amounts in tech are soaring at a pace
that will soon match the 2000 (bubble) levels. But even with the NASDAQ index surging beyond 5,000, a
trading P/E of 36.5 is nowhere close to the insane levels witnessed during 2000. So in all likelihood, we are
not looking at a 2000-like burst that eroded billions of worth of capital of retail investors overnight. Here’s
where it changes its spectrum.
At the Receiving End
This bubble is bound to burst. While there is a current mega trend of mega private financings and almost
preposterous valuations, this time private markets shall take the hit. Unlike the 2000s, VCs will not be in
the line of fire. Employees and founders would take the fall. And quite a bad one, perhaps.
To understand this, let’s analyze some of the top billion-dollar tech valuations closely:
Source: VC Experts
While the implied valuation for all the above companies is north of $1 billion, it’s clear that the actual
money invested is merely a fraction of that. When the liquidation preferences kick in, VC investors always
have a great chance to recover their money. And then some.
As a valuation and advisory firm offering opinions to hundreds of VC-backed companies, including some
of such unicorns, we have observed that funding rounds are increasingly seeing term sheets with creative
rights. To protect themselves, VC investors have been seeking participation rights over and above
liquidation preferences, in the hope to make a desired return on their investments, when things go south.
This goes on to prove the old maxim of “You pick the valuation and I’ll pick the terms.”
4. Unfortunately, common shareholders and option holders do not have the benefit of such preferential
rights. Employees calculate notional gains based on high post-money valuations, but usually end up with
options that are worthless. Even founders owning common stock eventually realize that the billions of
dollars’ worth of wealth, they had purportedly created, was only on paper.
Take Uber and Airbnb for example. Both co-founders and one of the executives of Uber, and Airbnb’s
three co-founders made it to the Forbes’ Billionaires List released this year. Needless to say, their wealth
was calculated on the basis of notional post-money valuations, figures far in excess of what these
companies could actually be sold at in the market right now.
If, in future, Uber and Airbnb were to not meet their distant growth expectations and make an exit at say
0.1x of their post-money valuations, investors would recover their investment and perhaps walk away with
a positive return. But, what will be wiped off for sure would be the billions their employees and founders
have “made.”
Hard Fall
In a nutshell, FOMO is driving many investors in a hustle to be a part of the next Facebook or Twitter and
put in huge investments for a fraction of stake. And, they don’t see much risk in it as long as they get the
downside protection. Earlier VCs would do some math to come up with a number on a company, and the
liquidation preferences and other such rights were somewhat ceremonial. Now, these have suddenly
become a bigger fallback.
It’s a race where people don’t mind running for an unlikely but big win, as long as failing to win wouldn’t
cost much. Would they buy the entire company at these high valuations? Hell no.
The situation created by betting on more powerful stakeholders in the ecosystem may leave employees,
and perhaps founders staring down at the wrong end of barrel. The 12.5 million (and growing) Americans
employed in VC-backed companies see stock options as the key motivation to invest significant part of
their lives working in a start-up. This is in anticipation of the big payday at exit, based mostly on the long-
term futuristic growth prospects of these companies.
Someday, pretty soon, these will be put to the test, and valuations based on visibility of earnings will
matter again. A few will succeed of course, but several others will fall – it remains to be seen how
miserably. VCs will most likely walk away with their invested money, if not more. It’s the employees and
founders who will see their million-dollar dreams crash and burn.
A speculative bubble requires a “who’s the greater fool” syndrome to fuel it. Timing of the burst is what
determines who in the market ecosystem would have a harder fall. Right now, cross-hair is clearly on the
employees and founders. Not the VCs, for sure.