Tag Archives: LinkedIn

Demystifying Venture Capital Economics, Part 3

The funding of almost every new and successful technology market can, to the uninitiated, have the appearance of a financial bubble. A tsunami of venture capital flows into hot new markets at what appear to be ridiculous prices. Amazingly, the capital invested in the market winners is almost always justified. A few other companies will drive small returns while the vast majority of new entrants will lose money. This dynamic benefits the premier venture capital firms and consistently hurts second-tier firms. Most successful new markets begin the same way. A market-sensitive technologist recognizes an inflection point in technology that enables a new kind of product. It’s not uncommon for more than one individual to recognize the potential of the new […]

Introducing Ali Rosenthal

At Wealthfront, we believe that everyone deserves sophisticated financial advice. To deliver on that belief, we need more than an audacious mission — we need to build a world-class company. To achieve that goal, we need to attract world-class talent in three major areas: investment research, software development and management. Thus far we’ve made some pretty good progress. We’ve been fortunate to attract financial luminaries like Burt Malkiel and Charley Ellis to our investment team. Our software team includes some of the best from companies like Apple, Facebook, Google and LinkedIn. Our management team includes five professionals who helped build billion-dollar revenue companies that forever changed their industries. Today, we’re thrilled to announce yet another phenomenal executive, Ali Rosenthal, has […]

Are Rental Properties Good Investments?

Over the past six months, Wealthfront has given a seminar on how to invest well to more than 50 Bay Area-based companies, including Facebook (FB), LinkedIn (LNKD) and Yelp (YELP). The seminar helps the audience learn how to use Modern Portfolio Theory[1] to better manage investment portfolios. (Here’s a link to our slideshare presentation covering some of the same ground and to our seminar page) As you might expect, we talk about the idea that investing in individual stocks actually hurts portfolio returns over time. At almost every seminar, we get a question from the audience related to how someone should think about investing in real estate – not the home in which a person lives, but real estate rental properties. The […]

Strategies For Selling Stock Post-IPO

Strategies for Selling Your Stock Post IPO

One of the most important and difficult decisions you’ll make after your company navigates a successful IPO and lockup period is when and how much of your stock to sell. After numerous Wealthfront clients asked the question, Jared Jacobs, one of the engineers here at Wealthfront, created a simulation to help employees at new public companies visualize different approaches to selling some or all of their stock. As far as we know, it’s the first publicly available simulator of its kind. […]

Over What Time Period Should I Sell My LinkedIn Shares?

The lock-up at my company (LinkedIn) has come off, and I’m thinking about how to invest the proceeds from selling some of my shares. Is there an optimal strategy for investing my money into an asset allocation?  Should I suddenly buy all at once or over a period of time? Psychologically, dollar cost averaging might make sense but I wonder if that is something people tell you so you sleep better at night and there is little scientific merit to it? – A reader Congratulations on the hard work that you and your colleagues put in at LinkedIn, which has put you in the position to ask this question. People in your situation — those who own a concentrated stock […]

Understanding Tech IPOs From The Inside

One of the most eagerly anticipated initial public offerings in years took place when LinkedIn debuted in spectacular fashion on Thursday, May 19, 2011. Priced to initial investors at $45, the stock rose as high as $122.70 intraday before finishing at $94.25. One of the “Big Five” Web 2.0 companies (along with Facebook, Twitter, Groupon and Zynga), LinkedIn’s debut marked a new chapter in tech IPOs, as it was not only the first U. S.-based social networking company to go public, but also the most prominent technology company whose shares had already been trading on secondary markets. As someone who has analyzed literally hundreds of technology IPOs in the past 18 years, I thought it might be helpful to describe […]