Comments for Econometa http://www.econometa.com The economy of stuff about stuff Sat, 23 Aug 2008 17:10:35 +0000 http://wordpress.org/?v=2.9.2 hourly 1 Comment on Startup fundraising math: value, not percentage by Mathias http://www.econometa.com/archives/50/comment-page-1#comment-15981 Mathias Sat, 23 Aug 2008 17:10:35 +0000 http://www.econometa.com/archives/50#comment-15981 Agree, the math is simple. Absolutly agree that many entrepreneurs do see percentages before value. That "pre-money value" you discuss is so important. What I have found out with many new entrepreneurs I have met is that they seem to believe that you take a number out of thin air when putting a value on a start-up. Which is rather crazy. The value comes from either invested amount (you invest cash) or from "built up" value which means you have got customers on contracts etc. Or you have proven the concept with money being made from customers. Money that is now in the bank. Of course, you can then use the earnings before financing as a "built up value" (now with a P/E attached to it). Hence raising the "pre-money" value before financing. Agree, the math is simple. Absolutly agree that many entrepreneurs do see percentages before value. That “pre-money value” you discuss is so important.

What I have found out with many new entrepreneurs I have met is that they seem to believe that you take a number out of thin air when putting a value on a start-up. Which is rather crazy. The value comes from either invested amount (you invest cash) or from “built up” value which means you have got customers on contracts etc. Or you have proven the concept with money being made from customers. Money that is now in the bank. Of course, you can then use the earnings before financing as a “built up value” (now with a P/E attached to it). Hence raising the “pre-money” value before financing.

]]> Comment on Turning rankings into distributions by admin http://www.econometa.com/archives/15/comment-page-1#comment-15965 admin Mon, 30 Jun 2008 15:41:19 +0000 http://www.econometa.com/archives/15#comment-15965 @Joe: True enough, but a prominent example of a CDF giving a probability >= t is the Pareto distribution. You're probably right, it should be called out in the article, but at least I did mention it in the Addendum: "A Cumulative Distribution Function (CDF) is the probability of any outcome less than or equal to x. Sometimes a CDF is defined with a different inequality; e.g. a Pareto distribution is a CDF F(x) which is the probability of any outcome *greater* than or equal to x." @Joe: True enough, but a prominent example of a CDF giving a probability >= t is the Pareto distribution. You’re probably right, it should be called out in the article, but at least I did mention it in the Addendum:

“A Cumulative Distribution Function (CDF) is the probability of any outcome less than or equal to x. Sometimes a CDF is defined with a different inequality; e.g. a Pareto distribution is a CDF F(x) which is the probability of any outcome *greater* than or equal to x.”

]]> Comment on Turning rankings into distributions by Joe http://www.econometa.com/archives/15/comment-page-1#comment-15964 Joe Wed, 25 Jun 2008 17:19:09 +0000 http://www.econometa.com/archives/15#comment-15964 The cumulative distribution function shown here was confusing at first... typically, a CDF is the probability that a user performed t or fewer taggings, rather than more. See http://en.wikipedia.org/wiki/Cumulative_distribution_function, for instance. The cumulative distribution function shown here was confusing at first… typically, a CDF is the probability that a user performed t or fewer taggings, rather than more. See http://en.wikipedia.org/wiki/Cumulative_distribution_function, for instance.

]]> Comment on The Laws of Identity: string theory for the web universe? by Econometa » Blog Archive » OpenID: first things first http://www.econometa.com/archives/51/comment-page-1#comment-15950 Econometa » Blog Archive » OpenID: first things first Sat, 05 Apr 2008 15:22:03 +0000 http://www.econometa.com/archives/51#comment-15950 [...] issues like security, technology, and usability, and these are all important. But as I’ve said before, the most important thing is to make it as easy as possible for site owners to adopt the [...] [...] issues like security, technology, and usability, and these are all important. But as I’ve said before, the most important thing is to make it as easy as possible for site owners to adopt the [...]

]]> Comment on The Laws of Identity: string theory for the web universe? by Econometa » Blog Archive » New PrefPass service: instant universal login! http://www.econometa.com/archives/51/comment-page-1#comment-15948 Econometa » Blog Archive » New PrefPass service: instant universal login! Mon, 31 Mar 2008 04:33:13 +0000 http://www.econometa.com/archives/51#comment-15948 [...] of the pain points for site owners (or “relying parties”) that I talked about in my previous post on the Laws of [...] [...] of the pain points for site owners (or “relying parties”) that I talked about in my previous post on the Laws of [...]

]]> Comment on Could nationalization correct for long-term oil costs? by Ron http://www.econometa.com/archives/44/comment-page-1#comment-15942 Ron Sun, 02 Mar 2008 10:11:50 +0000 http://www.econometa.com/archives/44#comment-15942 Oil will never go below $85 again. In 2010 oil will be over $250 a barrel and gas will be $10 a gallon. Even though reserves are rising which should make oil prices drop the fact they don’t drop in price is because the political tensions are rising. With that you will either buy a hybrid which will still be expensive to operate or ride your bike or take the public transit. There are ways to reduce your fuel cost. Oil will never go below $85 again. In 2010 oil will be over $250 a barrel and gas will be $10 a gallon. Even though reserves are rising which should make oil prices drop the fact they don’t drop in price is because the political tensions are rising. With that you will either buy a hybrid which will still be expensive to operate or ride your bike or take the public transit. There are ways to reduce your fuel cost.

]]> Comment on Auctions and inefficiencies in online advertising by Jim Mirkalami http://www.econometa.com/archives/41/comment-page-1#comment-15924 Jim Mirkalami Wed, 06 Feb 2008 20:21:40 +0000 http://www.econometa.com/?p=41#comment-15924 I have been reading this blog for a while now, and I thought it would be proper to leave a note of appreciation here. Many Thanks, Jim Mirkalami I have been reading this blog for a while now, and I thought it would be proper to leave a note of appreciation here.

Many Thanks,
Jim Mirkalami

]]> Comment on Turning rankings into distributions by Who took the money? « The gaping silence http://www.econometa.com/archives/15/comment-page-1#comment-15871 Who took the money? « The gaping silence Fri, 16 Nov 2007 17:07:08 +0000 http://www.econometa.com/archives/15#comment-15871 [...] area; the fact that Pietro also invokes the Long Tail (which, as you’ll recall, is not what it seems) makes it all the more compelling (to me at [...] [...] area; the fact that Pietro also invokes the Long Tail (which, as you’ll recall, is not what it seems) makes it all the more compelling (to me at [...]

]]> Comment on Turning rankings into distributions by None of you stand so tall « The gaping silence http://www.econometa.com/archives/15/comment-page-1#comment-15867 None of you stand so tall « The gaping silence Wed, 14 Nov 2007 21:54:04 +0000 http://www.econometa.com/archives/15#comment-15867 [...] This may seem like a minor nitpick, but it’s actually very important. Back to Adam: [...] [...] This may seem like a minor nitpick, but it’s actually very important. Back to Adam: [...]

]]> Comment on Web 2.0 and the limits of owning your data by Good neighbors « The gaping silence http://www.econometa.com/archives/24/comment-page-1#comment-15866 Good neighbors « The gaping silence Wed, 14 Nov 2007 21:51:43 +0000 http://www.econometa.com/archives/24#comment-15866 [...] I’d recently been reading this post on EconoMeta, in which Adam talks about our changing relationship with our personal data: one [...] [...] I’d recently been reading this post on EconoMeta, in which Adam talks about our changing relationship with our personal data: one [...]

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