Comments on: Correction or a slump for startup exits? You say tomato… http://uk.techcrunch.com/2008/03/12/correction-or-a-slump-for-startup-exits-you-say-tomato/ Tracking the UK's mobile and web start-up ecosystem. Fri, 25 Jul 2008 12:13:02 +0000 http://wordpress.org/?v=2.5.1 By: Mike Butcher http://uk.techcrunch.com/2008/03/12/correction-or-a-slump-for-startup-exits-you-say-tomato/#comment-121541 Mike Butcher Thu, 13 Mar 2008 13:04:09 +0000 http://uk.techcrunch.com/2008/03/12/correction-or-a-slump-for-startup-exits-you-say-tomato/#comment-121541 Part II of this topic is now live here: http://uk.techcrunch.com/2008/03/13/2007-a-bumper-year-for-tech-exits-reality-bites-in-2008/ Part II of this topic is now live here:
http://uk.techcrunch.com/2008/03/13/2007-a-bumper-year-for-tech-exits-reality-bites-in-2008/

]]> By: Raj Anand http://uk.techcrunch.com/2008/03/12/correction-or-a-slump-for-startup-exits-you-say-tomato/#comment-121321 Raj Anand Thu, 13 Mar 2008 07:49:48 +0000 http://uk.techcrunch.com/2008/03/12/correction-or-a-slump-for-startup-exits-you-say-tomato/#comment-121321 Mike excellent post as always. Agree with your thoughts on correction of evaluation as oppose to a slum. I think its a good thing, it makes our industry more sustainable. Last thing we require in the startup environment are crazy evaluations and the market to crumble based on the fact that companies who acquired startups didn't see enough profit. Evaluation of FB for me was a worrying sign, I'm glad that things are changing. I rather see a (5-15)X EBIT as oppose to 100X Mike excellent post as always. Agree with your thoughts on correction of evaluation as oppose to a slum. I think its a good thing, it makes our industry more sustainable. Last thing we require in the startup environment are crazy evaluations and the market to crumble based on the fact that companies who acquired startups didn’t see enough profit.

Evaluation of FB for me was a worrying sign, I’m glad that things are changing. I rather see a (5-15)X EBIT as oppose to 100X

]]> By: Colin http://uk.techcrunch.com/2008/03/12/correction-or-a-slump-for-startup-exits-you-say-tomato/#comment-121216 Colin Thu, 13 Mar 2008 04:30:30 +0000 http://uk.techcrunch.com/2008/03/12/correction-or-a-slump-for-startup-exits-you-say-tomato/#comment-121216 I see a different theme evolving ... 2007 - data 2008 - niche I see a different theme evolving …
2007 - data
2008 - niche

]]> By: alan p http://uk.techcrunch.com/2008/03/12/correction-or-a-slump-for-startup-exits-you-say-tomato/#comment-121204 alan p Wed, 12 Mar 2008 23:12:15 +0000 http://uk.techcrunch.com/2008/03/12/correction-or-a-slump-for-startup-exits-you-say-tomato/#comment-121204 It is quite astounding to me how the entire Economism has gone from "everyone knows its all rosy" to "everyone knows its all doom" in about 6 months. The plunging valuations are from a zenith of some absurd numbers....$15bn redux anybody? It is quite astounding to me how the entire Economism has gone from “everyone knows its all rosy” to “everyone knows its all doom” in about 6 months.

The plunging valuations are from a zenith of some absurd numbers….$15bn redux anybody?

]]> By: Dan Field http://uk.techcrunch.com/2008/03/12/correction-or-a-slump-for-startup-exits-you-say-tomato/#comment-121187 Dan Field Wed, 12 Mar 2008 17:32:24 +0000 http://uk.techcrunch.com/2008/03/12/correction-or-a-slump-for-startup-exits-you-say-tomato/#comment-121187 There are now too many people saying that there is a slump for there not to be anything in it... even if they are causing a self-fulfilling prophecy! Its how much of a slump there is going to be that is the question and how long is it going to last. The slump of course will cause a correction in some areas, some startups (In my view) are heavily over valued - but not all. I've heard from many people now who are stating that the biggest problem is the lack of easy, cheap finance. Even VC's and investors need finance. Today's budget hasn't really helped the situation here in the UK, £30k charge for non-doms, the change in capital gains going through and even simple things like the planned October increase in fuel duty all have an effect on startups and any other small business. So yes, there is going to be a small slump which will correct the prices of some startups! Its not as bad as some doomsayers say though, there are many good startups which are rapidly growing in turnover, we are for one and I know of several others who are also reporting good growth figures. Many investors will not lower their initial value of an investment today based on a short-term slump... they will be looking longer term than that, minimum of 2-3 years in most cases. There are now too many people saying that there is a slump for there not to be anything in it… even if they are causing a self-fulfilling prophecy!

Its how much of a slump there is going to be that is the question and how long is it going to last. The slump of course will cause a correction in some areas, some startups (In my view) are heavily over valued - but not all.

I’ve heard from many people now who are stating that the biggest problem is the lack of easy, cheap finance. Even VC’s and investors need finance.

Today’s budget hasn’t really helped the situation here in the UK, £30k charge for non-doms, the change in capital gains going through and even simple things like the planned October increase in fuel duty all have an effect on startups and any other small business.

So yes, there is going to be a small slump which will correct the prices of some startups! Its not as bad as some doomsayers say though, there are many good startups which are rapidly growing in turnover, we are for one and I know of several others who are also reporting good growth figures.

Many investors will not lower their initial value of an investment today based on a short-term slump… they will be looking longer term than that, minimum of 2-3 years in most cases.

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