Archive: valuation
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Choosing Between Startups and Tech Stocks
By Adam Sharp on October 6, 2020
Today we’re going to briefly compare tech stocks with startup investments. We’ve reached a point in the public market where many tech stocks are overvalued by what I would guess is a multiple that ranges from 2x-to-10x. The valuations at this point are simply silly, as I wrote about a few weeks back. Let’s look at a few large tech stocks’ price-to-earnings (P/E) ratios…
The New Way to Generate Wealth
By John Fanning on September 9, 2020
Note: A few weeks ago, we welcomed John Fanning to the Early Investing family. Today, we’re pleased to bring you his second column. If you’re not familiar with John, he’s worth getting to know. He was the founding chairman and CEO of napster. He…
Expanding the Definition of Accredited Investors
By Adam Sharp on September 1, 2020
This week the SEC expanded its definition of “accredited investor” (AI). Now investment professionals — as well as certain other individuals and groups — can qualify without satisfying the SEC’s income or wealth requirements — $200,000 annual income for the last two years…
The Power of the Private Market
By Adam Sharp on July 31, 2020
Two amazing American companies went public (IPO’d) in 2004 — Google (GOOG) and Domino’s Pizza (DPZ). Since then, Google (now Alphabet) has become one of the largest companies in the world. Today it’s worth more than $1 trillion. Domino’s is currently valued…
Avoid High-Priced Startup Deals
By Adam Sharp on June 9, 2020
In the last week, I’ve been invited to invest in two hot deals on AngelList. Both companies are doing well because of changes caused by COVID-19. One is in telehealth. The other is in food delivery. But when I checked the valuation on these…
Mailbag: Silicon Valley Isn’t the Only Place to Find Startup Investments
By Early Investing on September 15, 2019
In this week’s Mailbag, the Early Investing team talks Silicon Valley investments and equity crowdfunding portals.
How to Use EquityZen, a Pre-IPO Investment Platform for Accredited Investors
By Adam Sharp on August 27, 2019
Here’s a rundown of EquityZen, a startup equity matchmaker.
Mailbag: Explaining Convertible Notes and Cowardly Politicians
By Early Investing on May 19, 2019
The Early Investing team explains why politicians are dropping the ball on pot legalization and how convertible notes work.
Attainable Returns Are Something to Brag About
By Andy Gordon on March 13, 2019
Unicorns are great for bragging rights, but they’re not the only measure of success for an early investor.
A Simple Way to Assess Startup Risk
By Andy Gordon on February 21, 2018
The Berkus Method, a four-factor valuation formula, gives you a nice framework to assess investment opportunities in terms of current risk and chances of future success.