Too much runway

By rickColosimo / March 2, 2016 /

Too much runway, and you may never take off. Here’s the write-up I saw in the Next Draft newsletter (hey there, Dave!) that pointed me to a story about Slack’s then-recent venture financing: Give me some slack … equity. The company’s product is about a year old. But investors just invested $120 million into Slack…

Read More

Why pretend Facebook is a sure thing?

By rickColosimo / February 4, 2011 /

Dear NY Times, Please stop writing about corporate finance. Nobody who worked on this article appears to know anything about securities laws, corporate finance, reasons companies go public, or how to read past issues of this paper. Securities laws: Facebook is subject to the same fundamental law as every other company: Rule 10b5, which says…

Read More

What happens when nonpublic information is shared?

By rickColosimo / December 20, 2010 /

Answer: it becomes regular useless information, arbitraged away by the market. (Unless you don’t believe in the efficient market hypothesis, in which case you’re reading the wrong blog! The only way to live in between those two things is to believe that you understand the mechanics of value differently or better than the market and…

Read More

All finance is finance

By rickColosimo / October 12, 2010 /

A colleague recently asked us about finance and money tips for small businesses. Since we spend a huge amount of time analyzing very large companies from the perspective of the equity markets, it might seem that the lessons we teach those companies would not translate well. The truth is the complete opposite. From a traditional…

Read More