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Enron Mail |
Andy,
As you might expect in this market environment, valuations are down significantly from our last round. I expect we'll be south of $50mm. We've slashed our expenses so we won't have to take as much $$ at such a low valuation. We only need $5mm to $10mm to get us through to the other side. At these prices, I expect certain of our existing shareholders to step up. Just as there was a disconnection between underlying fundamentals and valuations in the first half of 2000, I feel like there is now a disconnect on the downside. Operationally, we're ahead of plan and looking at profitablity in the third quarter, but most VCs are licking their wounds and frozen. They are a bunch of lemmings. I won't have specific dilution figures until we firm up the round. Obviously, I want to sell as little of the company as possible in this market. I'll keep you posted. I'm also working on a proposal on the global strategy I mentioned to you and Louise in our meeting. Will have something to share with you in early Feb. Please keep all this confidential. I'm headed to Europe later this afternoon, but will be back on Wednesday if you want to talk. Best regards, Frank -----Original Message----- From: Andy.Zipper@enron.com [mailto:Andy.Zipper@enron.com] Sent: Monday, January 22, 2001 10:49 AM To: Frank Getman, HSE Subject: RE: VC contact? Frank, For reference, what value does the round of financing you are working on place on HoustonStreet and how much dilution do you anticipate ?
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