Adaptive Insights – Where’s the Valuation at Now?

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Amended & Restated Certificate of Incorporation 6/22/2015

Based on documents uncovered by VC Experts the cloud finance intelligence company is worth $453m. View the Amended and Restated Certificate of Incorporation filed June 22, 2015 and check out the funding facts below. Want more? You can view more private company valuations, deal terms, and price per share information with our Intelligence Database.
Adaptive Insights

Regulation A+: Making the Grade?

Guest post by Thomas J. Kim, Craig E. Chapman, John J. Sabl – Sidley Austin LLP

On June 19, 2015, the Securities and Exchange Commission’s (SEC) recently adopted rule amendments to Regulation A under the Securities Act of 1933 (the Securities Act)-colloquially known as “Regulation A+”-took effect. Regulation A is intended to ease the burden of Securities Act registration for small public offerings. These rule amendments, among other things, increase the amount of capital that can be raised in Regulation A offerings from $5 million to $50 million over a 12-month period.

The extent to which Regulation A+ will result in issuers and other market participants actually using Regulation A to raise capital will depend on a number of factors-including how it compares to other methods for raising capital, how the SEC Staff will administer the offering process and the market’s acceptance of Regulation A-compliant offering materials.

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Wealth Inequality in the US – The Result of Unintended Consequences and How This Time Can be Different

Guest post by Jeffrey L. Feldman – Director, Poliwogg

The United States economy is on its way to a recovery from the Great Recession of 2008. The unemployment rate is down to 5.5% and Gross Domestic Product (GDP) is projected to grow at a rate of at least 3% per year. But the benefits of the recovery have not been shared equally. In fact, the distribution of wealth from the richest to the poorest has skewed dramatically to the very top over the past five years and has never been greater [1]. Much has been written about the so-called “1%” who have seen their net worth soar while the “99%” have suffered with stagnant wages for more than a decade. The problem is actually worse than that; a small percentage of the 1% have garnered most of the increases.

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The “File, Then Sell Strategy,” for Emerging Growth Companies

When rumors start swirling that a company … an emerging growth company (“EGC”) … is thinking about going public, two groups often come running to call on EGC management. First to the front door are the investment bankers who want to chaperone the EGC through the IPO process and represent it afterwards on secondary offerings, acquisitions and the like. But, right behind the bankers are often strategic acquirors. (Also institutional investors who relish participating in five or six bridge rounds with exits on the horizon given the effect of the time value of money on IRRs.)

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Advice at the Starting Line: Location, Location, Location

In real estate, the rule for successful acquisition and development is humorously stated in three identical terms: “Location. Location. Location.” In early stage strategizing, the same three terms apply. Since emerging growth companies (abbreviated as “EGCs”) are often virtual companies in whole or in part, the founders can often, within limits, pick and choose the location of the principal place of business. The trick is to do that right.

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You Can Make It … Will Someone Buy It?

The following was originally published by Joseph W. Bartlett, Founder and Chairman of VC Experts. If you are looking for more information on venture capital and private equity please visit www.vcexperts.com and check out our Intelligence Database and Reference Material.

A major source of error is a love affair between a founder and the technology he has developed in the lab. The number of new and interesting ideas brought into being every year is astonishing. A field trip to any respectable college or university will reveal a fascinating array of projects in the laboratories, many of which, if brought to fruition, will certainly improve the state of the art. However, a critical error of founders considering whether to commit capital to a project is to assume that the novelty and utility of a new technology are both necessary and sufficient for the success of a start-up. Novelty may be enough to secure a patent, but it is only one part of the venture-capital equation.

No one can make any money unless there is a market for the product, unless people are willing to buy it at a price that returns a profit to the manufacturer.

Assuming the idea is any good, is there a market for it? This simple, banal truth is overlooked time and again by the fledgling entrepreneurs. Is there a market which can be penetrated at a reasonable cost?

The classic example is the pen that writes under water — interesting technically but, as it turned out, no one wanted to buy one because no one wanted to write a letter beneath the waves.

Thus, the single most commonly cited reason for failure of a start-up is the inability to implement a well-thought-out marketing plan. Selling is a matter of airplanes, hotel rooms, and shoe leather; as Willy Loman put it, “on the road with a smile and a shoe shine.” Marketing, on the other hand, has to do with understanding the demand for the product, pricing strategy, evaluating channels of distribution, and maximizing dollars spent on sales. Moreover, the market has to be large enough to support an interesting company. The enterprise with less than $10 million in sales and nowhere to go is usually not a suitable target for venture-capital financiers. Companies of that size are known as the “walking dead” in a venture portfolio – too small to go public and too large to abandon.