How Timing Affects Company Value

What is it they say, ‘timing is everything’? Andreesen Horowitz raised $4.5b in funding to invest in Crypto and that fund is down 40% in value as of 10/22. This group knows what they are doing but timing can make a HUGE impact.

This reminds me of a time as a VC. Tim Draper and I wanted democratize venture capital and decided the best way to do that was to raise a public venture capital fund. We successively closed on $330 million which we raised on the NYSE from retail investors. Unfortunately, this was in 2000 and within a couple of months of closing the fund NASDAQ went off a cliff. This was famously called the “.com bust.” Besides the obvious impact on the value of the portfolios of venture capital investors that were the primary source of capital for .com companies, the media decided it needed some scapegoats and our fund was selected as a major vehicle that had taken advantage of retail investors. This was untrue, as returns from that fund were actually pretty good when measured a few years later when liquidity events began to happen, but the media never hangs around to see if facts coincide with their stated opinions. In addition, the recession did cause us to slow our investment pace which gave us a very large cash position and a low stock price. This resulted in a raid conducted by a New York hedge fund which took over with the intent of dividend ending out our cash.

So as a business owner, are you considering “timing” when you are making big moves?

Let’s chat about timing and your business.?Book a call here.