A History of VC

A History of VCA History of VCVenture capital firms suffered a temporary downturn in 1974, when the stock market crashed and investors were naturally wary of this new kind of investment fund. In 1975 only one venture capital fund raised money, but that was the saatkorn year Tandem Computer took $1 1000000 from a venture capital firm. Returns were tremendous for the few firms in the business in the late 1970s.The Federal government lent a helping hand in the form of legislation through this period. In 1978 the government changed the pension plan rules under ERISA (the Employee Retirement Income Security Act), making it possible for pension funds to invest in alternative (and potentially higher risk) asset classes such as venture capital firms. Pension funds represented billions of dollars in capital, so an allocation of even 1 percent of funds represented an enormous increase in the pool of money available to venture capitalists. The industry raised $750 million in 1978.In 1979 c apital gains taxes were reduced from 49 percent to 28 percent, so anyone making profits from investing in venture capital firms, or any venture capital firms making profits from investing in private companies, had to pay less taxes. In 1981 the capital gains tax was further reduced from 28 percent to 20 percent. Then came 1983 the year of excess. The stock market peaked and there were over 100 initial public offerings for the first time in U.S. history. That year venture capital investments jumped to a total of $4 billion. Some of 1983s funding went to newly founded companies that are todays largest and most prominent firms such as Apple Computer and Intel. Due to the excess of IPOs and the inexperience of many venture capital fund managers, VC returns were very low through the 1980s. In 1991, disbursements from the venture capital firms to their investors hit a 10-year low. VC firms retrenched, working hard to make their portfolio companies successful. The work paid off, and returns began climbing back up. But venture capitalists couldnt take full credit for the turnaround. Macroeconomic forces helped. In the mid-to-late 1980s, interest rates were relatively high, and the price/earnings ratios in the public markets were low. Ten years later, interest rates were low, and P/Es were very high (by historical averages). Pension funds grew dramatically. In 1987 U.S. pension funds held approximately $2.5 trillion. By 1997 that number reached $7 trillion. The booming economy made pension fund managers more comfortable allocating up to 4 percent of their capital into alternative assets. The U.S. stock market had its greatest run-up in history between 1991 and 1999. Mutual fund assets grew from $1 trillion in 1990 to over $6 trillion in 1999. Finally, the rate of M&A activity has increased dramatically in the late 1990s, creating more opportunities for small, venture-backed companies to exit (cash out) at high prices.Venture capital firms taking portf olio companies public in 1999 experienced record returns. In general, 1999 was a boom year for IPOs, and venture backed firms were particularly prominent. In 1999 544 companies went public, while in 1998 only 373 executed initial public offerings according to Securities Data Corporation. In 1999 271 of newly public companies (nearly half the total) were backed by venture capitalists. On average, these companies have done exceedingly well in the public markets. According to Securities Data Corp. statistics, the average offering size of a venture-backed IPO in 1999 was $87.2 million. This figure represents the average amount of money each start-up company gathered from the IPO. However, the average post-offering valuation (the average value of the outstanding shares in the public market) was a startling $502.7 million.Venture capitalists were greatly rewarded for their efforts in funding new enterprises. According to Securities Data, as of monat des herbstbeginns 30, 1999, the average return for all venture capital funds for the year was 62.5 percent. The venture capital industry is a very cyclical industry. Many industry observers believe 1999 represents the high point before a decline in rates of return. In 1984 45 new venture capital firms were formed and a long decline in returns and capital raised began. The number of new VCs declined every year through 1991, when the industry actually saw 17 more VC firms go out of business than were formed. In 1999 the industry netted approximately 100 new firms. Are we again seeing the peak? Time will tell.

A Tour of Airbnbs Beautiful San Francisco Headquarters

A Tour of Airbnbs Beautiful San Francisco HeadquartersA Tour of Airbnbs Beautiful San Francisco HeadquartersA new, 72,000-square-foot headquarters of Airbnb is simply breathtaking. Do you want to know all the details and interesting facts about it? Take a tour with usThe new headquarters takes place in a 96-years-old warehouse at 888 Brannan Street in San Francisco. It was one of those buildings, you are not really pleased to see on your way to work. The renovation was made by Genser, which is a big global design company.Their idea was to create a building, in which everyone of 200 employees would smile. Create a huge playground and your working place would become less hierarchical and more collaborative. To make this place feel like home, you can find here kitchen, library, nerd cave and even a place to nap.This building is inspired by San Francisco as a inspiring and cult place. The inspiration took a big part of Airbnb as a fresh and modern company. If you take these two ideas and mix it with the latest design, you get an outstanding place to work.source officelovin.com, metropolismag.comDo you like this story? Share it with your friends.Share Your Feedback or Ideas in the Comments

7 Smartphone Apps for Engineers

7 Smartphone Apps for Engineers 7 Smartphone Apps for Engineers As the summer vacation season kicks in and most people plan trips across the country or world, some of us will choose to stay connected to work and have a workation. Mobile devices, with their plethora of apps, are enabling people not only to stay connected but also to get work done from any location.Apps for engineers are available on iOS and androide for accomplishing work-related tasks including engineering calculations, design simulations, and data analysis. Below are seven smartphone apps that can help engineers get their work done on the go. Some of these apps were recommended by professional engineers in our ASME.org community.Droid48 is an app thats an emulator of the HP 48 scientific calculator.Droid48A free android app thats an emulator of the HP 48 scientific calculator, using reverse polish notation (RPN), offers many advanced functions including symbolic algebra, matrix handling, calculus, statistics, equati on solving, graph plotting, unit and temperature conversion, etc. The 3D buttons in Droid48 make it look almost like the actual scientific calculator used by engineers of all disciplines.uMathThis is a professional calculation tool designed for solving mathematical ausprgungs with units. By creating the ability to include units such as meters, kilograms, newtons, pascals, and volts within a mathematical calculation, uMath eliminates the need of tedious unit conversion. Write any mathematical expression with any unit and receive an answer in terms of the units you used as input. Whether you need to perform a quick calculation or want to check your design, uMath is capable of carrying out any mathematical expression no matter how complex.GrabCAD allows engineers to view CAD models in full 3D.GrabCADA cloud-hosted collaboration and file-sharing service, GrabCAD allows engineers to manage, view, and share CAD files. The app offers access to both the GrabCAD public library of CAD models as well as private projects stored on GrabCAD Workbench. Using this app, engineers can view CAD models in full 3D, regardless of the format they were created, view and respond to comments, create Workbench projects and upload files to them. The app also allows you to upload photos right from your phone - take a picture of a part or a quick napkin sketch and attach it to a project - and get feedback earlier in project.eDrawings ViewerAnother app to view CAD models, eDrawings can help engineers collaborate with their produce development team remotely. Teamed with your Apple devices camera, the app uses augmented reality to allow you to view 3D models you create in 11 scale with the real world. It allows you to view native eDrawings files as well as native SolidWorks parts, assemblies, and drawings files. Multi-touch gestures let you pan, zoom, and rotate models easily.eDrawings Viewer uses augmented reality to enable you to view 3D models.Wastewater ManagerThis android-based app is de signed for wastewater operators, engineers, or any wastewater management professionals. It has specialized and conversion formulas commonly used for facility operations, sewer pipeline, sewage treatment, water flow, sludge, and more. The formulas are organized by processes and can be used to assist in daily lab work, process troubleshooting, and other purposes.Heat ExchangerA free iOS app, Heat Exchanger, helps solve heat exchanging problems and gives you a thorough and step-by-step calculation sheet. This app contains seven predefined fluids as well as one additional user-defined fluid, and solves three major types of problems that chemical and mechanical engineers face on this topic.Truss MeIf you enjoy engineering-based mobile games, here is an app to try out with your kids on your next road trip or beach vacation. Designed by a rocket scientist, Truss Me helps you learn to design structures while having fun. At each challenge, you design structures that are light and strong and earn precious golden nuts. Truss Me utilizes simulation techniques used by aerospace, mechanical, and civil engineers to provide the most realistic behavior for your structures.Finally, dont forget your device charger to continue enjoying your workation and let us know your favorite apps for engineers in the comments field below. For Further DiscussionMobile devices, with their plethora of apps, are enabling people not only to stay connected but also to get work done from any location.