What really drives valuation for tech companies?

By Jason Busch and Richard Lee

Published in Spend Matters Pro – https://spendmatters.com/2014/06/11/what-really-drives-valuation-for-technology-companies-these-days/

We’ve always found the subject of valuation for technology companies a curious topic, one that we could probably bore too many people with during cocktail hour conversations. There are plenty of good authorities when it comes to tech valuation (some of the best research we’ve seen over the years comes from Pacific Crest) and nearly every sell-side analyst worth their salt has a theory or two on the topic. But ultimately, tech valuation is more art than science (remember the crazy theories during the last dot-com rush when eyeballs somehow served in place of real operating metrics?).

Autumn Brew, aka. Oktoberfest Beers

We had a great dinner last night with family and friends at Howells & Hood (which by the way boasts the largest draft been selection in Chicago).  But when the hostess brought out seasonal, autumn beer list, entire table let out a collective sigh.  Chicago summer is now officially over…  Much to our delight, the list did not contain too many hackneyed (not to mention over-played) pumpkin stout or any other pumpkin varietal.  A couple of my favorite darker ales of the fall -

  • Old Brown Dog by Smuttynose Brewing – it’s heavy in alcohol (almost 7%) so perfect for slightly frost-bitten evenings when you feel like ribs or other sauce-rich meat comfort dishes.  It’s deceptively creamy with light on bitterness and after-taste.
  • Indian Brown Ale by Dogfish Head – if you like dark, bitter brew with thick foam resulting from heavy does of molasses during the brewing process, this is the fall beer for you.  Great with rubbed / smoked meats and vegetables.

What are your favorites?

Jeter’s Retirement

I hate and love Olbermann.  Asides from Stuart Scott, Keith Olbermann is probably the most eloquent, poignant current / alumnus ESPN anchor there is.  And if you have not seen his latest tirade on Jeter’s hyped retirement, it’s a piece of art.

Now before Jeter faithful (Olbermann used the word apologist) try to hang me from the Brooklyn Bridge next to Olbermann, I am not necessarily saying that I agree with him (even if the stats and anecdotes Olbermann rants off are impossible to dispute…)  Is Jeter a Hall of Famers – absolutely.  Is he one of the greatest Yankees Captains ever – perhaps.   Did the modern media and Gatorade commercials help to “iconize” him – for sure (hey, I do love the Re2pect marketing).  Does God have a sense of humor for allowing the O’s to end the Yankees season all the while bestowing Jeter an opportunity to hit the game winner on his final at bat against the same team?  You know it.  Am I little jealous because Jeter is getting a rock star treatment while Chicago’s beloved Pauley (Konerko that is) is riding off into the sunset without much fanfare?  Of course…   Then again, it’s better than getting boo’d out of the city like Sosa did in his final year.  After watching one of those feel-good Gatorade commercials, my wife asked, “was he really that good?”  I don’t know…   Why don’t you decide?

That’s Why You Play the Game!

I have to admit, I am a football junkie…   College, pro, high school, Canadian, it does not matter.  Nothing better than plopping down for the weekend watching back-to-back-to-back games (of course, have not had that in a while since kids arrived but that’s another story).  There were a few surprises the past weekend, as there usually are every weekend.  First college – did BC really beat USC and South Carolina the same to Georgia (as close as it was)?  I love seeing / hearing so called experts predict how Texas will beat UCLA and conversely how the Bruins offense will finally wake up and trounce the Longhorns (UCLA beat Texas by 3 by the way which guarantees they’ll further drop in the ranking).  Well ladies and gentlemen, that’s why they play the game.  But what cracked me up the most…   How so called Chicago Tribune sports reporters (obviously not experts) all started the season with 0-2 in their resumes.  Yes, every one of them – Brad Biggs, Matt Bowen, Rich Campbell, David Haugh, Fred Mitchell, Mike Mulligan and Dan Wiederer – predicted that the Bears will beat the Bills and the Niners will trounce the Bears.  I especially loved David’s quote “Nobody expected the Bears to start 0-2 with a loss to the Bills, but a Bears defense that came to the Bay Area a day early will remain a step late in losing to the 49ers.”  Cute play on words, David…   That’s why you get paid to write, and I do not.  And that’s why you play the game!  Go Bears!

9-11: We Should Never Forget…

Has it been 13 years already?  I was in California at my parents house when the first plane hit.  It was an eerie feeling flying internationally a few days later (to visit my then girlfriend, now my wife) where crew members outnumbered passengers on a United flight from ORD to ICN.   The war is not over yet – it’s still raging…  Political / religious ideologies aside, we should never forget those innocent, first respondents who fell.  May God rest their souls…

Fall’s Best Draws

 

Excerpts from the fall 2014 addition of Men’s Book…

The most luxurious way to draw out the cast of fall’s flavorful air is through the leaf-wrapped tobacco of a fine cigar.  The best stogies manage to magnify the season’s crisp, smoky air while heralding the rich complexities beneath.  But which smokes go the extra mile?  Some of the well-known Chicago cigar shops weighed in.

  • Up Down Cigar (www.updowncigar.com) – Arturo Fuente Don Carlos Aniversario Toro; one of the most flavorful medium-bodied smokes, its aged wrapper and filler tobaccos are all from the Dominican Republic.  It has leathery notes and saltiness often found in Cubans.
  • Iwan Ries & Co (www.iwanries.com) – Crowned Heads Las Calaveras; robust flavors provided by the refined Ecuadorian wrapper and the Nicaraguan filler, it has oaky, crispy and buttery flavors that pay homage to the festivities of Dia de los Muertos.
  • Hubbard State Cigar (www.hubbardstatecigar.com) – Ashton Virgin Sun Grown; the long-lasting, box-pressed cigar in a good-looking Ecuadorian Sumatra wrapper draws like a slow drive through delicious bouquets of almonds, cedar and roasted molasses.

My favorite?  Partagas 1845.  Asides from its hearty Ecuadorian wrapper, Connecticut binder and Nicaraguan fillers aged in Dominican rum barrels, every time my business partner and I smoke one with prospects / clients, we seem to close a new deal…

Writing Tips 101…

 

Let’s get to the point – I am a poor writer.  When friends find out that I contribute to an SMB blog, they usually do a double-take and ask, “say what?”  I am Jamaal Wallace in Finding Forrester where Sean Connery shoved a typewriter to the shell-shocked African-American teenager and yelled, “just freaking write!”  I would write a paragraph and instead of keep on writing, I’d go back to the same paragraph to make sure all the i’s are dotted and t’s are crossed (there, I did it again).  So for all those Jamaal Wallaces and Richard Lees out there, below are some quotes from best-selling authors and luminaries that may help you.

  • “What a writer has to do is write what hasn’t been written before or beat dead men at what they have done.” – Ernest Hemingway
  • “You have to show up.  If you show up, the creativity will show up.  If it doesn’t, I take a walk or meditate.” – Laura Benedict, author of Bliss House
  • “Tell a story.  Everyone loves stories.” – Stu Perlman, now retired 9th grade English teacher at Washington High (Fremont, CA).  A side note – I would not have gotten into college without taking and passing Stu’s English 101 class
  •  “My advice is not to wait to be struck by an idea. If you’re a writer, you sit down and damn well decide to have an idea. That’s the way to get an idea.” – Andy Rooney, ’nuff said
  • “I would not get into a car unless I Knew where I was going.” – Peter James, creator of the Roy Grace series, comparing driving to working with outlines or other forms of plotting
  • “Just write, maybe in bullet points.  It doesn’t even have to make sense in the first pass.” – Jason Busch, Group Managing Director and Chief Editor of Spend Matters and MetalMiner
  •  “Every idea is my last. I feel sure of it. So, I try to do the best with each as it comes and that’s where my responsibility ends. But I just don’t wait for ideas. I look for them. Constantly. And if I don’t use the ideas that I find, they’re going to quit showing up.” – Peg Bracken, author of humorous books on cooking, housekeeping, etiquette and travels
  • “I have a self-starter—published 20 million words—and have never received, needed or wanted a kick in the pants.” – Isaac Asimov

So which quote above resonates with you?  What’s your motivation for writing?  Mine – I suck at it, and I’d like to get better.  Not sure about getting better but since I’ve been writing for a few years, I find the process rather therapeutic…

Hope everyone’s having a great long weekend  :)

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