Too much runway

By rickColosimo / March 2, 2016 / Comments Off on Too much runway

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…

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Why pretend Facebook is a sure thing?

By rickColosimo / February 4, 2011 / Comments Off on Why pretend Facebook is a sure thing?

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…

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What happens when nonpublic information is shared?

By rickColosimo / December 20, 2010 / Comments Off on What happens when nonpublic information is shared?

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…

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All finance is finance

By rickColosimo / October 12, 2010 / Comments Off on All finance is finance

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…

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