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Clare McAndrew, the woman putting a value on art
December 30, 2019 | Financial Times | by Melanie Gerlis.
art  art_market  auctions  economics  PhDs  valuations  women 
8 weeks ago by jerryking
The death of cultural transmission
April 3, 2019 | FT Alphaville | By Jamie Powell.

music publishing = the business of licensing songs for films, television and advertising.

Valuing [a record label's] music catalogue is... crucial for anyone looking to bid for a stake in the business.

Despite the prominence of new music, established artists are still fundamental to recorded music's success. .......So let's think about these golden oldies as assets. Assets whose appeal has, arguably, only been heightened by the advent of streaming which, with its recurring revenues and growing audience, has made recurring payments from established acts even more bond-like in their cash flow consistency.
But like fixed-income assets with long durations, these cash flows are also sensitive to the smallest assumptions about their future viability. Assumptions which are not as rock solid as some investors might imagine. Let's use The Beatles as a point of reference here, as "The White Album" was UMG's fourth best-selling album last year. (If you're asking “why The Beatles?” Well, Alphaville likes The Beatles, sure. The Fab Four could easily be replaced by its other legacy acts, such as Queen and Nirvana).

But the problem for a prospective buyer is why we're a fan. To put it simply: we had no choice. We were indoctrinated.

On a long car journeys to coastal summer holidays, or at home on a knackered JVC stereo, we, like many of our friends, were limited to a dozen or so records (jk: finite resources). One of which, inevitably, would be some form of John, Paul, George and Ringo (and George).

Call it the cultural transmission effect. Music would be passed on generation to generation, amplified by the relative scarcity, physical space constraints and high prices of recorded media.

This provided a boon for the major labels as it not only meant lower marketing costs but reissues, limited editions, and remasters became an easily repeatable trick, as younger generations grew up to become consumers themselves.......The Beatles, Rolling Stones and Bob Marley are after all, great artists. Their music will live on. But that's not the question for a perspective investor.

The question is: to what degree will the royalties from these artists continue to flow? Assume Sir Paul and Sir Ringo will continue to grow exponentially richer off the back of streaming, and perhaps the quoted multiples don't look quite so mad. In this age it's hard to find assets which both grow, and have semi-predictable cash flows.

But if the next generation doesn't hold the same affinity to the artists which defined the first fifty years of the pop era, where does that leave the labels' back catalogues? May we suggest: in a tougher spot than most imagine.
Apple_Music  artists  assets  Beatles  biopics  bonds  cultural_transmission  digital_strategies  finance  finite_resources  golden_oldies  hard_to_find  indoctrination  legacy_artists  music  music_catalogues  music_labels  music_publishing  platforms  Rollingstones  royalties  Spotify  strategic_buyers  streaming  superstars  U2  UMG  valuations 
april 2019 by jerryking
5 Ways to Value Your Collection, Whether It’s Fine Wine or Shrunken Heads
March 1, 2019 | The New York Times | By Paul Sullivan.

Collectible assets include wine, spirits, coins, trading cards as well as more unusual items, like lighters, belt buckles and even shrunken heads. These collections cost money and time to assemble and certainly have a value to their owners, but can they be considered legitimate investments? That depends on the market.

For many collectors, the only option to buy, sell or even value these assets is through online auction platforms like eBay or enthusiast sites, but for others, their possessions are treated as fine art.......the market for collectibles, which are often valued in the millions of dollars, may not always be so easy to weather. It can experience sudden surges that put desired items out of the reach of true collectors or it can collapse, wiping out the gains speculators thought they had made.

In an economic slowdown, how these investments are treated depends on supply and demand as well as unpredictable forces like fashion and popularity.....Collectibles can be broken into categories determined by provenance, rarity and even a moment in time. Here are five issues to consider when weighing the investment potential of your collection.....
(1) The standouts in the crowd - Leading the pack are high-quality items that have broad name recognition.
(2) High risk, high reward -
(3) Not all collectibles are investments- jewelry is not an investment....because the market is driven too much by changing fashion.
(4) Obscure and difficult to sell - establish the value of esoteric collections by using third-party appraisers. But insurance companies like A.I.G. value these collections by their replacement value, not by the price someone would pay for them.
(5) A market downturn - =hether it’s shrunken heads, 1,000 bottles of wine or sheets of trading cards, a ready buyer may not be available — or may want to pay much less (i.e. a step change in the valuation).
collectibles  collectors  high-risk  howto  obscure  valuations  AIG  auctions  assets  brands  eBay  economic_downturn  esoteric  fine_arts  high-end  high-quality  investing  investments  passions  step_change  unpredictability  wine  whisky  online_auctions 
march 2019 by jerryking
The value of a network
Business Life: The value of a network
First published in Business Life, January 2009

The value of a network is proportional to the square of the number of users (or devices) on that network.
Facebook  Microsoft  Metcalfe's_Law  networks  network_effects  social_networking  Tim_Harford  valuations 
february 2019 by jerryking
The Retailers That Can Resist the Amazon Onslaught
AUG. 28, 2017 | The New York Times | By JENNIFER SABA.

The Amazon vortex won’t suck in everyone. That’s the verdict of investors in the retail sector.

Among potential competitors to the e-commerce juggernaut founded by Jeff Bezos, some – including Ross Stores, Home Depot and AutoZone – may have the wherewithal to withstand Amazon. The market is conferring on them valuations commensurate with, or better than, the one accorded to Amazon.........The auto-parts chain AutoZone may represent another retail slice that is somewhat resistant to Amazon. The $19 billion company trades at 1.5 times 2020 sales, a recognition that it has created a supply chain that minimizes inventory without crimping a timely ability to fulfill customer orders.

Even in apparel, there are bright spots. At 1.4 times projected 2020 sales, Ross Stores, which sells reasonably priced clothing through more than 1,500 outlets, fetches an enterprise valuation close to Amazon’s. TJX Companies, operator of TJ Maxx and Marshalls, lingers at 1.1 times sales. That’s below Amazon but well above peers like Macy’s and Kohl’s. Bargain hunting may offer some respite from online price choppers...........Once he is done crushing the grocery business, Mr. Bezos may seriously set Amazon’s sights on car parts, cheap clothes and home-improvement accessories. For now, though, the market is betting on a few pockets of calm.
retailers  bargain_hunting  e-commerce  Whole_Foods  competitive_landscape  apparel  Home_Depot  AutoZone  valuations  Amazon  home-improvement  contra-Amazon 
august 2017 by jerryking
Vice tunes into youth audience with frontline coverage in Charlottesville
19 August/20 August 2017 | Financial Times | Matthew Garrahan.

The Charlottesville film took Vice viewers much closer to the demonstrating racists than most rival media reports. While US news channels reacted to the demonstration and its violent aftermath when an anti-fascist protester was murdered by an alleged domestic terrorist, Vice was ahead of the game, Ms Bell said

“The mainstream media’s reaction to the march on the day felt like they were being taken by surprise but Vice was very well prepared,” she said. “They knew who the protagonists were and have been following this issue and thinking about it for a while. They knew about these protests for months and knew it would be a big story.”

Vice said Elle Reeve, its correspondent who reported from Charlottesville, had spent time earning the trust of key figures in the hate groups that participated in the march.

The mainstream media’s reaction to the march on the day felt like they were being taken by surprise but Vice was very well prepared

“It really is a triumph of old fashioned beat reporting,” said Josh Tyrangiel, executive vice-president of news at Vice. “She is able to distinguish between the different groups and the fact that she is capable of understanding them gives them some trust that she takes them seriously.”

Mr Tyrangiel said Vice’s decision to get close to the Charlottesville protesters reflected the interests of its audience. “There is so much going on in the world and successful news organisations know they can’t possibly own every story. We’re going to own the things that are very important to our audience. 

“If you’re CNN or the New York Times, they’ve done very well on their top [story] priorities. For us, because we lean younger, the rise of those groups seem like it’s one we should own.”

Investors in Vice are well aware of the company’s rising profile. The TPG deal was the latest in a string of investments in Vice, which has more than doubled in value since 2014. 

WPP, the world’s largest advertising group, was an early investor, buying an 8 per cent stake that is now worth more than $450m.

Rupert Murdoch’s 21st Century Fox bought 5 per cent in 2013 for $70m — a stake that is now worth close to $300m — while James Murdoch, the company’s chief executive, sits on the Vice board. Walt Disney recently paid $400m to double its stake to about 10 per cent while A&E Networks, a television group it owns with Hearst, invested in and launched Viceland, Vice’s cable channel.
digital_media  Charlottesville  white_supremacy  Vice  investors  Josh_Tyrangiel  TPG  WPP  21st_Century_Fox  anti-Semitism  Walt_Disney  valuations 
august 2017 by jerryking
Twitter’s Troubles and Snap’s Appeal: It’s All About the Mojo
OCT. 11, 2016 | - The New York Times| By STEVEN DAVIDOFF SOLOMON.

User growth is the secret sauce of internet valuations. Revenue and earnings are forgiven if you can show growth in users. Whether that makes sense, of course, is another matter.....Sharp leadership — whether that is from its chief executive, Jack Dorsey, or new blood — could certainly help Twitter exploit its huge user base.

But the problem is that in the eyes of the Valley, Twitter has lost its mojo.

Even as Twitter was deflating, another social media darling, Snapchat, now renamed Snap, was riding high as reports emerged that the start-up, known for its disappearing messages, was preparing for a public offering that could value it for as much as $25 billion.
Twitter  Snapchat  momentum  valuations  Silicon_Valley  social_media  youth  mojo  special_sauce  customer_growth  user_growth  user_bases 
october 2016 by jerryking
The value shift: Why CFOs should lead the charge in the digital age | Deloitte US | CFO Program
William (Bill)J. Ribaudo, a partner at Deloitte & Touche LLP

Given CFOs’ fiduciary responsibility to deliver shareholder value, it makes sense that they should be leaders in digital business model innovation. When the evidence shows that each marginal dollar can be spent to generate value at a multiplier of 1, 2, 4, or 8 times revenue.

Four business models driving value

The rise of intangibles as a part of total market and corporate value has occurred in conjunction with the proliferation of new business models. Our research, in fact, shows that almost every company fits into one of four types business models, regardless of industry or function—and each one corresponds to a shift in technology and asset structure. Specifically, companies predominantly fall into one of the following categories, based on the way they create value:

Asset Builders. These companies build, develop, and lease physical assets to make, market, distribute, and sell physical things. Examples include everything from automakers to chemical manufacturers, big box retailers, and distribution and delivery businesses.
Service Providers. These companies hire employees who provide services to customers or produce billable hours for which they charge. Examples include consulting firms and financial institutions.
Technology Creators. These companies develop and sell intellectual property such as software, analytics, pharmaceuticals, and biotechnology. Examples include software, big-data tools, and medical-device companies.
Network Orchestrators. These companies create a network of peers in which the participants interact and share in the value creation. They may sell products or services, build relationships, share advice, give reviews, collaborate, co-create, and more. Examples include online financial exchanges, social media businesses, and credit card companies.
business_models  CFOs  Deloitte  digital_economy  ecosystems  information_flows  intangibles  multiplier_effect  multiples  networks  orchestration  platforms  physical_assets  shareholder_value  taxonomy  valuations  value_creation  value_migration 
september 2016 by jerryking
This Tech Bubble Is Bursting - WSJ
May 2, 2016 | WSJ | By CHRISTOPHER MIMS

ALEJANDRO AGHAYAN May 3, 2016
It's essentially impossible to compute the intrinsic value of a company in a zero percent interest environment.
Flag ButtonShare6
start_ups  valuations  bubbles  Silicon_Valley  technology  software  intrinsic_value  Christopher_Mims 
july 2016 by jerryking
Carney, Bloomberg press for climate-change risk disclosure guidelines - The Globe and Mail
SHAWN MCCARTHY
OTTAWA — The Globe and Mail
Published Friday, Dec. 04, 2015

Mr. Bloomberg will lead a task force that will develop voluntary financial risk disclosure guidelines that will ensure consistent information for investors, lenders, insurers and other stakeholders....In a speech this fall at Lloyd’s of London insurance firm, Mr. Carney highlighted three types of threats: physical, or impacts from weather-related events such as floods, droughts and storms; liability issues arising from investors suing companies for failing to disclose risks or parties who suffer loss claiming compensation from those they hold responsible, and transition issues in which assets – especially fossil fuel reserves – are revalued due to the transition to a low-carbon economy.
climate_change  risks  Mark_Carney  Michael_Bloomberg  liabilities  threats  financial_risk  disclosure  valuations 
december 2015 by jerryking
What’s Driving VC Firms to Take Bigger Risks - Digits - WSJ
Sep 3, 2015 STARTUPS
What’s Driving VC Firms to Take Bigger Risks
ARTICLE
COMMENTS
BILLION DOLLAR STARTUP CLUB
NEU VENTURE CAPITAL
STARTUPS
VALUATIONS
VENTURE CAPITAL
72 154
By ROLFE WINKLER
risk-taking  vc  venture_capital  valuations  start_ups 
september 2015 by jerryking
Investors Find Ways to Indirectly Profit From Valuable Start-Ups - The New York Times
AUG. 9, 2015 | NYT | By KATIE BENNER.

Frank Timons and LeAnne Schweitzer, the co-founders of Pier 88, believe there is money to be made on this big gap between public and private company valuations. In their view, the public companies are such relative bargains that they will make great acquisitions for purchasers that want to better compete with upstarts like Airbnb. Then, when those publicly traded companies are snapped up — often for a premium of more than 50 percent — Pier 88 can profit from the bet.
investors  privately_held_companies  hedge_funds  start_ups  valuations  Airbnb 
august 2015 by jerryking
Cirque deal needs some financial acrobatics to work - The Globe and Mail
IAN McGUGAN
Cirque deal needs some financial acrobatics to work
SUBSCRIBERS ONLY
The Globe and Mail
Published Monday, Apr. 20 2015,
private_equity  TPG  Fosun  Guy_Laliberté  entrepreneur  Cirque_du_Soleil  valuations 
april 2015 by jerryking
Uber Now Valued at More Than $41 Billion - WSJ
By DOUGLAS MACMILLAN, SAM SCHECHNER and LISA FLEISHER
Updated Dec. 5, 2014

the five-year-old company must prove it can turn a mobile app for hailing a ride into a significant and profitable global business. Its app, which lets people hail a car from professional or nonprofessional drivers with a few clicks and a credit card, has become a part of daily life in cities from Anchorage to Shenzhen, China....Uber also is exploring using its fleet of drivers to transport goods and services in addition to people. The company has tested deliveries of items including ice cream, flu shots and fresh meals and recently poached the head of Google ’s same-day delivery business.....Uber profits by keeping 20% of the fare paid on most rides on its service and gives the rest to its drivers, who work as independent contractors....by the end of 2015, Uber expects to be operating at an about $2 billion net annual revenue rate, which excludes driver pay, according to the person familiar with the company’s financials. Such growth is coming from a cookie-cutter global expansion, where the company moves quickly to open up shop, splashes out incentives to sign up drivers and then hires lobbyists and lawyers to gird for legal challenges from taxi companies and regulators...Uber’s strategy has been to get a foothold in a market in any way possible, whether it offers a way to hail traditional metered taxis, livery cabs or drivers without professional licenses through its ride-sharing services. The key is to get potential customers to download the app and then expand the range of services.
Uber  valuations  start_ups  sharing_economy  same-day  ride_sharing  international_marketing  Asia_Pacific  expansions 
december 2014 by jerryking
Peter Thiel on Why Big Companies Don’t Think Like Startups - WSJ - WSJ
November 3, 2014 | WSJ | Interview of Peter Thiel by Mr. Dennis K. Berman.

Changing the World
MR. BERMAN: The term you use in your book is that a startup is an excuse to change the world. How do people inside big companies take that idea and make something of it? MR. THIEL: There are a number of larger companies that are still innovating fairly aggressively. I’m very biased, as an investor, to be pro-companies that are still led by the founders. The founders are often able to make more choices and take more risk and have more inspiration than more politically minded CEOs. The old founders don’t always live forever, that’s true. You need a figure that’s as close to a founder as possible.

In theory, large companies could do far more than small companies. They have more capital. They have longer time horizons. They can take more risks. I tend to think it’s always that the internal politics somehow get in the way.
bubbles  founders  internal_politics  large_companies  office_politics  Peter_Thiel  risk-taking  Silicon_Valley  start_ups  time_horizons  valuations  vc  venture_capital 
november 2014 by jerryking
The Big Mystery: What’s Big Data Really Worth? - The CFO Report - WSJ
October 13, 2014 | WSJ | By VIPAL MONGA.

“Data is worthless if you don’t know how to use it to make money,” said Laura Martin, an analyst with Needham & Co. Information on individual users loses value over time as they move or their tastes change, she added. That makes data a perishable commodity and more difficult to value at any given moment.
massive_data_sets  valuations  data  Kroger  monetization  Nestlé  P&G  Nielsen  perishables  commodities  shifting_tastes 
october 2014 by jerryking
Desire2Learn’s new funding round to fuel rapid growth - The Globe and Mail
BOYD ERMAN
Desire2Learn’s new funding round to fuel rapid growth Add to ...
SUBSCRIBERS ONLY
The Globe and Mail
Published Thursday, Aug. 14 2014
Desire2Learn  valuations  venture_capital  funding  growth 
august 2014 by jerryking
Wealth Managers Enlist Spy Tools to Map Portfolios - NYTimes.com
AUG. 3, 2014 | NYT | QUENTIN HARDY.

Karen White, Addepar’s president and chief operating officer, says a typical customer has investments at five to 15 banks, stockbrokers or other investment custodians.

Addepar charges based on how much data it is reviewing. Ms. White said Addepar’s service typically started at $50,000, but can go well over $1 million, depending on the money and investment variables involved.

And in much the way Palantir seeks to find common espionage themes, like social connections and bomb-making techniques, among its data sources,[jk: traffic_analysis] Mr. Lonsdale has sought to reduce financial information to a dozen discrete parts, like price changes and what percentage of something a person holds.

As a computer system learns the behavior of a certain asset, it begins to build a database of probable relationships, like what a bond market crisis might mean for European equities. “A lot of computer science, machine learning, can be applied to that,” Mr. Lonsdale said. “There are lessons from Palantir about how to do this.”
wealth_management  software  valuations  Quentin_Hardy  Addepar  Palantir  money_management  social_connectivity  machine_learning  correlations  portfolio_management  investment_custodians  tools 
august 2014 by jerryking
Growth in ‘brand value’ of Canadian firms slowing - The Globe and Mail
SUSAN KRASHINSKY - MARKETING REPORTER
The Globe and Mail
Published Tuesday, May. 27 2014
Susan_Krashinsky  brands  valuations 
june 2014 by jerryking
From Andreessen, a Lesson in Corporate Finance - NYTimes.com
By WILLIAM ALDEN APRIL 17, 2014

In a series of tweets on Thursday, Mr. Andreessen offered a framework for thinking about technology valuations — relying on metrics that hard-nosed financiers tend not to consider.

3/Value of company X to acquirer Y often = Potential impact to acquirer Y's business -- which has a lot more to do with Y than X.

4/For example, in product businesses, you'll often hear term "attach rate" -- acquirer Y can attach company X's product to Y's sales engine.

5/Ex: I sell $20B of servers/year; I buy storage company X doing $100M revenue/year; & I can attach X's product to 20% of my server sales.

6/Ex cont'd: I can generate new $20B*20% = $4B/year of storage sales attached to my server business. X's standalone revenue is irrelevant.

7/Ex cont'd: So I can pay up for storage company X based on its projected impact on MY business, way beyond X's independent valuation.
Marc_Andreessen  Andreessen_Horowitz  corporate_finance  start_ups  valuations  standalone  frameworks  software  mergers_&_acquisitions  M&A 
june 2014 by jerryking
When Diamonds Are Dirt Cheap, Will They Still Dazzle? - NYTimes.com
APRIL 19, 2014| NYT | ROBERT H. FRANK.

In many domains, perhaps even including signed baseballs, it’s becoming possible to produce essentially perfect replicas of once rare and expensive things.

That’s true, for example, of diamonds and paintings. Renowned art originals will always be scarce, and so will high-quality mined diamonds, at least while De Beers holds sway. But what will happen to the lofty prices of such goods if there is an inexhaustible supply of inexpensive perfect copies? Economic reasoning can help answer this question. It can also shed light on how new technologies might alter traditional ways in which people demonstrate their wealth to others, or might change what society embraces as tokens of commitment and other gifts....Not even perfect replicas, however, will extinguish strong preferences for original paintings and mined diamonds. In the short run, price premiums for such goods are likely to persist, as collectors scramble for certificates of authenticity.

Longer term, those premiums may prove fragile
...Tumbling prices will transform many longstanding social customs. An engagement diamond, for instance, will lose its power as a token of commitment once flawless two-carat stones can be had for only $25.

Replication technologies also raise philosophical questions about where value resides.
...Technology won’t eliminate our need for suitable gifts and tokens of commitment, of course. And such things will still need to be both intrinsically pleasing and genuinely scarce. But technology will change where those qualities reside.
art  De_Beers  collectibles  artifacts  collectors  authenticity  inexpensive  replication  scarcity  valuations  digital_artifacts  high-quality 
april 2014 by jerryking
How To Tell What Patents Are Worth
6/25/2013 @ 11:13AM 5,390 views
How To Tell What Patents Are Worth
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This article is by Joseph G. Hadzima, Jr.
patents  valuations 
december 2013 by jerryking
Spotify Hits a High Note: Valuation Tops $4 Billion - WSJ.com
Nov. 21, 2013 | WSJ | By John D. Stoll,Evelyn Rusli and Sven Grundberg.

Spotify AB has secured about $250 million in new financing that values the music-streaming company somewhere "north" of $4 billion,
Spotify  Pandora  streaming  music  venture_capital  vc  funding  valuations 
november 2013 by jerryking
Down but Not Out: What Is Marsh Worth? - WSJ.com
October 21, 2004

Down but Not Out: What Is Marsh Worth?

By JESSE EISINGER
insurance  valuations  Warren_Buffett  Marsh_&_McLennan 
march 2013 by jerryking
Value, not cost, is the basis of education
Mar. 13 2013 | The Globe and Mail | TODD HIRSCH.

“Free tuition NOW.” But if the picketing university students were honest, their signs would read: “I want someone else to pay for my education.” Education is never free. Someone has to pay.

But the students’ view that someone else should help pay for their tuition is a reasonable request....Cost is what we give up to get something, and it’s usually captured by the dollar price of the good. Value reflects how useful, essential or emotionally appealing something is, and that can differ wildly between individuals and circumstances.

For a variety of reasons, cost is not always aligned with value. ...Like free drinks at an open bar, free tuition would no doubt be welcomed by students. But is there a danger education could be devalued? Would it be wasted if students dropped out of courses with less thought or regard, if they didn’t pay the tuition? Or might they “consume” too much, earning degree after degree with no practical goal in sight?...The tuition debate focuses entirely on the cost of education. But if we focused more on the value of education, the tone of the debate would change.

Postsecondary education offers tremendous value to students, both in terms of becoming critical, reasoned thinkers and also in terms of earning potential. There’s also value to society because education is a public good that benefits everyone.
education  valuations  costs  free  tuition  Quebec  Colleges_&_Universities 
march 2013 by jerryking
The Financial Bonanza of Big Data
March 7, 2013 | WSJ | By KENNETH CUKIER AND VIKTOR MAYER-SCHÖNBERGER:
Vast troves of information are manipulated and monetized, yet companies have a hard time assigning value to it...The value of information captured today is increasingly in the myriad secondary uses to which it is put—not just the primary purpose for which it was collected.[True, but this secondary or exhaust data has to be placed in the right context in order to maximize value]. In the past, shopkeepers kept a record of all transactions so that they could tally the sums at the end of the day. The sales data were used to understand sales. Only more recently have retailers parsed those records to look for business trends...With big data, information is more potent, and it can be applied to areas unconnected with what it initially represented. Health officials could use Google's history of search queries—for things like cough syrup or sneezes—to track the spread of the seasonal flu in the United States. The Bank of England has used Google searches as a leading indicator for housing prices in the United Kingdom. Other central banks have studied search queries as a gauge for changes in unemployment.

Companies world-wide are starting to understand that no matter what industry they are in, data is among their most precious assets. Harnessed cleverly, the data can unleash new forms of economic value.
massive_data_sets  Amazon  books  Google  branding  Facebook  Wal-Mart  Bank_of_England  data  data_driven  value_creation  JCK  exhaust_data  commercialization  monetization  valuations  windfalls  alternative_data  economic_data  tacit_data  interpretation  contextual  sense-making  tacit_knowledge 
march 2013 by jerryking
Value of big data depends on context
According to Hayek, it is not only localised and dispersed knowledge, but also tacit knowledge that is crucial for the functioning of the market system. Often, useful localised knowledge is tacit. By definition, tacit knowledge cannot be articulated and mechanically transferred to other individuals.[See Paul Graham on doing things that don't scale] Companies and governments have become more successful in collecting large volumes of data but it is nearly impossible to capture useful tacit knowledge by these data collection methods.

Furthermore, the value of big data is not about the volume and the amount of collected data but it depends on our ability to understand and interpret the data. As human faculties of interpretation and understanding differ greatly, the value of big data is subjective and dependent on particular context. Ironically, the skillful use of big data may require tacit knowledge.
data_collection  letters_to_the_editor  massive_data_sets  Friedrich_Hayek  tacit_data  contextual  sense-making  interpretation  tacit_knowledge  valuations  Paul_Graham  unscalability 
february 2013 by jerryking
Flood of private capital helps fill financing void - The Globe and Mail
JONATHAN STOLLER

Special to The Globe and Mail

Published Monday, Feb. 04 2013,
Freshbooks  valuations  private_equity  voids 
february 2013 by jerryking
Billion-Dollar Start-Ups Face Problems With Valuation and Acquisitions - NYTimes.com
November 18, 2012, 11:00 am8 Comments
Disruptions: A $1 Billion Start-Up Might Not Be So Fun
By NICK BILTON
start_ups  valuations 
november 2012 by jerryking
Business continuity: Making it through the storm
Nov 10th 2012 | The Economist |Anonymous.

Hurricane Sandy was another test of how well businesses can keep going when disaster strikes...GOLDMAN SACHS’S latest shrewd investment was in sandbags and back-up electricity generators. As Hurricane Sandy approached New York, the bags were stacked around its headquarters. It was one of the few offices in downtown Manhattan to remain dry and well-illuminated as “Frankenstorm” battered the city.

Meanwhile, a block farther down West Street, the headquarters of Verizon were awash with salty flood water, soaking cables delivering phone and internet services to millions of customers. The firm was able to reroute much of the traffic through other parts of its network, but local service was disrupted....Sandy is the latest catastrophic event to test the readiness of the world’s leading firms to cope with disaster. Most firms have improved “business continuity” preparations over the years. The Y2K scare at the turn of the century moved IT risk high up the list of worries. The attacks of September 11th 2001 warned firms of the danger of putting all their computers (and staff) in the same place (jk: concentration risk; SPOF)....“Firms are increasingly reliant on networks, but often fail to understand the risks that networks bring,” says Don Tapscott, a management guru. Global supply chains, just-in-time and shifting to the “cloud” tend to bind once unrelated activities ever closer together, making them more prone to failing at the same time. The current fad for moving data to the “cloud” may appear to reduce risk because there is so much spare capacity in the web. Yet some firms offering cloud services have more concentrated operations than (jk: concentration risk).

Firms are starting to recognise their vulnerability to cyber-attack, but few have much idea what they would do if it happened. Mr Tapscott thinks boards should have a committee explicitly focused on understanding IT and network risks and ensuring they are properly managed....Dutch Leonard, a risk expert at Harvard Business School, says that the best-prepared firms use a combination of planning for specific events and planning to cope with specific consequences, such as a loss of a building or supplier, regardless of the cause. He also recommends copying an approach used by the armed forces: using a group of insiders to figure out how the firm could be brought down [ jk: white hats]....Firms should make lobbying government to invest heavily in upgrading that infrastructure a core part of their risk-management strategy, argues Irwin Redlener of the National Centre for Disaster Preparedness at Columbia University.

Goldman Sachs has long been a leader in disaster planning because it understands that the situations in which it might not be able to function are exactly the sort of events when very large changes in the value of its investments could occur, says Mr Leonard. Yet too many firms underinvest in planning for disaster because they don’t think it will pay, at least within the short-term timeline by which many now operate, reckons Yossi Sheffi of MIT.
beforemath  boards_&_directors_&_governance  business-continuity  catastrophes  compounded  concentration_risk  crisis  cyberattacks  cyber_security  disasters  disaster_preparedness  Don_Tapscott  Goldman_Sachs  Hurricane_Sandy  isolation  natural_calamities  networks  network_risk  New_York_City  optimism_bias  preparation  readiness  red_teams  resilience  risks  risk-management  short-term  SPOF  step_change  supply_chains  surprises  underinvestments  valuations  vulnerabilities  white_hats 
november 2012 by jerryking
With Smartphone Deals, Patents Become a New Asset Class - NYTimes.com
September 24, 2012, 1:21 pm4 Comments
With Smartphone Deals, Patents Become a New Asset Class
By STEVE LOHR

patents have become a new asset class.

Traditionally, patents sat on corporate shelves and were occasionally used as bargaining chips in cross-licensing deals with competitors. But that began to change in the 1990s, when technology companies like Texas Instruments and I.B.M. started to regard their patent portfolios as sources of revenue, licensing their intellectual property for fees.

Today, companies routinely buy and sell patents, mostly in deals that draw little attention, for millions of dollars instead of billions. The question, experts say, is how big the market will become.

“Patents are a tricky asset to trade,” said Josh Lerner, an economist at the Harvard Business School. “But there is clearly a huge amount of value in intellectual property. And I think what we’re seeing is the beginning of a lot more monetization and trading of intellectual property rights.”

A sizable specialist industry has developed to build the marketplace for trading ideas. The players include patent aggregators like Intellectual Ventures and RPX, patent brokers like Ocean Tomo and ICAP, hedge funds, investment banks and law firms.
property_rights  smartphones  patents  intellectual_property  law_firms  Steve_Lohr  valuations  Ocean_Tomo  markets  monetization  portfolio_management  cross-licensing  asset_classes 
september 2012 by jerryking
Unique aspects of private equity
February 13,2006 | Pensions Week |

Investing in private assets such as private equity often involves a number of unique considerations that investors do not face with traditional investments like stocks, bonds and cash. These include: 1. inability to trade easily in and out of the investments,2. uncertain capital calls. 3 uncertain distributions, and 4. uncertain valuations. How do these unique aspects of investing in private assets affect an investment portfolio? Each of the issues outlined above represents a unique source of uncertainty for investors: uncertainty about cash inflows and outflows, valuations. and about the portfolio weightings they might hold at any time in these and other asset classes. These sources of uncertainty, therefore, are similar in character to one of the standard buildmg blocks of portfolio construction: risk
private_equity  uncertainty  valuations  illiquidity  risks  asset_classes  uniqueness 
august 2012 by jerryking
Crisis fails to dampen art service demand at banks
Oct 17, 2008 | Reuters | By Jo Winterbottom.

The art advisory service belongs to the overall wealth management offer. I don't think it will be cut back," said Karl Schweizer, head of art banking and numismatics at UBS.
high_net_worth  private_banking  collectibles  collectors  wealth_management  art  art_advisory  precious_metals  valuations  auctions  affluence  investment_advice  banks 
august 2012 by jerryking
Judgment Day
Aug 1, 2004 | Inc.com | Jim Melloan.
valuations 
july 2012 by jerryking
Hype Hangs Over Dropbox - WSJ.com
April 2, 2012 | WSJ | By GEOFFREY A. FOWLER and JESSICA E. VASCELLARO.

Hype Hangs Over Dropbox
A $4 Billion Valuation, Celebrity Investors, Hit Product; Now a Moment of Proof
Dropbox  valuations  growth  Jessica_E._Vascellaro 
april 2012 by jerryking
A House of Cards
April 2004 | Robb Report WORTH | Eileen P. Gunn.
private_equity  angels  family_office  valuations 
march 2012 by jerryking
Putting Moneyball on Ice?
2007 | International Journal of Sport Finance | by Daniel S. Mason' and William M. Foster^
'University of Alberta
^University of Alberta-Augustana Campus
Moneyball  Octothorpe_Software  NHL  sabermetrics  hockey  valuations 
october 2011 by jerryking
Glencore IPO brings out the rah rah in London traders
May. 18, 2011 | The Globe and Mail | ERIC REGULY.

Glencore is part miner and part trader, making it hard to value.

The mining assets are easy to value. For the public ones, like Xstrata, owner of Canada’s Falconbridge, all you have to do is look at the share price. The value of non-public mining assets can be estimated by attaching a peer-group trading multiple to them.

The trading side is where things get tricky. Trading is a huge business at Glencore, accounting for more than a third of its 2010 earnings before interest, taxes, depreciation and amortization (EBITDA) of $6.2-billion; mining made up the rest.

What valuation to attach to this hybrid beast? That’s hard to say, because no directly comparable company exists. While trading oil, coal, wheat and other commodities can be hugely profitable, it can also be hugely risky. Trading profits, it turns out, can fall just as hard and fast as mining profits, though some investors might think otherwise.
Eric_Reguly  IPOs  Xstrata  Glencore  mining  traders  valuations 
october 2011 by jerryking
Failure Chronicles -
April 2011 Harvard Business Review by Roger McNamee,
Elevation Partners.

The idea behind Silver Lake was to create a new kind of private equity.
Instead of a typical financial engineering strategy of using high
leverage to squeeze cash out of mature companies, we focused on “midlife
venture capital”—helping mature tech companies create new products that
would transform their businesses. Our approach was based on two
insights: Mature tech companies had low valuations, and investors
overestimated the cost and complexity of product transformations. At any
other time, Silver Lake’s radical idea might have scared investors, but
in the spring of 1999, institutional investors—state pension plans, in
particular—were desperate to put money into the tech sector. It’s hard
to imagine better circumstances in which to test a new investment
strategy.
failure  private_equity  Silver_Lake  fallen_angels  midlife  turnarounds  vulture_investing  Roger_McNamee  insights  institutional_investors  valuations  technology  financial_engineering  transformational  overestimation  radical_ideas 
april 2011 by jerryking
Founders Gain Clout in Venture World - WSJ.com
* MARCH 10, 2011 Investors Desperate to Find Hits Drive Up Valuations and Attach Fewer Strings to Their Deals
By PUI-WING TAM And AMIR EFRATI
start_ups  entrepreneurship  Pui-Wing_Tam  venture_capital  VC  valuations  founders 
march 2011 by jerryking
Strategy & Innovation: Why Disruptive Businesses Are Worth So Much
March 4, 2011| Strategy & Innovation | by Clayton Christensen and Andrew Waldeck and Richard Alton, Curtis Rising
Clayton_Christensen  valuations  disruption  innovation  strategy  business_models 
march 2011 by jerryking
Twitter's Suitors Talk in Billions - WSJ.com
* FEBRUARY 10, 2011 Twitter as Tech Bubble Barometer By SPENCER E. ANTE, AMIR EFRATI And ANUPREETA DAS
Twitter  valuations  IPOs  exits  Google  Facebook  Spencer_Ante  bubbles 
february 2011 by jerryking
FT.com / Entrepreneurship - Get the valuation right and don’t insult the vendor
November 9 2010 | Financial Times | by Roger Smith, a director
of Stirling Business Solutions, a business broker. “Don’t insult a
vendor by offering a price you wouldn’t accept unless you were
desperate, unless of course they are. You may have to live with the
consequences if he feels aggrieved and leaves the company in a bad state
before he departs. “To bridge expectations and manage risks, earn-outs
[which pay sellers more if they outperform] are the name of the game.
Spend as much time defining the formula as you did agreeing it in
principle. “Share swaps will preserve your cash and keep a younger
vendor incentivised. “Have a must have and a desirable list, as this
will help manage deal fever.”
exits  valuations  entrepreneurship  earn-outs  selling_a_business  buying_a_business  outperformance 
november 2010 by jerryking
Web Start-Up Values Soar - WSJ.com
SEPTEMBER 22, 2010 | Wall Street Journal | by PUI-WING TAM.
Investors Bid Up Internet Firms to Levels Reminiscent of the Last
Dot-Com Boom
start_ups  valuations  Pui-Wing_Tam  Web_2.0 
september 2010 by jerryking
These are India's most valuable brands
April 11, 2006 | Rediff India Abroad | David Haigh and
Unni Krishnan. There are no prominent hotel chains listed among the top
25 Indian brands.
India  branding  valuations  hotels 
march 2010 by jerryking
How to Value the Advertising-Supported Internet - John Quelch - Harvard Business Review
John Quelch

10:15 AM Monday June 29, 2009 | Comments (13)

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valuations  performance_reviews  John_Quelch  unconventional  Haiti  HBR  motivations  social_media  advertising 
february 2010 by jerryking
Venture Capital and Startups Feel More Pain, Study Says - BusinessWeek
February 26, 2009, 12:01AM EST | Business Week | By Spencer E.
Ante
Startup valuations are falling and venture capitalists are driving
harder bargains, according to a survey by California law firm Fenwick
& West
economic_downturn  recessions  Spencer_Ante  start_ups  valuations  vc  venture_capital 
march 2009 by jerryking
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