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On Funding?—?Shots on Goal

Both Sides of the Table

You need shots on goal as not every one will go in the back of the net. At Upfront Ventures, we defined our “shots on goal” strategy based on 25 years of experience (we were founded in 1996): We take board seats and consider ourselves company-builders > stock pickers. Another 3–5 could return in aggregate $300–500 million.

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Groupon's S-1: From Zero to Like? Billions in 30 Months ? AGILEVC

Agile VC

How They Make Money: Groupon keeps a share of the coupon value (typically 40-50%) as its net revenue (1). in net revenue and passes $0.58 2010 Net Income: -$389M (net loss) (2). Notes: None of the above should be considered investment advice or a recommendation to buy or sell Groupon stock. to the merchant.

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Cliff Notes S-1: Kayak ? AGILEVC

Agile VC

How They Do It: Aggregate data from travel data warehouses like ITA as well as indexing travel providers websites, provide this information to consumers in a highly customizable search engine. 2010 Net Income: $8 million. One can infer valuations based on per share prices of preferred stock and oustanding common shares (~5.3M

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Airbnb S-1 (Part 1): So How Profitable Is This Thing Really?

View from Seed

Airbnb’s availability as a marketplace and its aggregation of substantial consumer demand has actually meant certain forms of lodging have been newly built or converted into rooms for the primary purpose of listing on Airbnb. Airbnb therefore generates substantially higher free cash flow (FCF) than accounting profit.

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Management Carve Out Plan

ithacaVC

As the investors’ aggregate liquidation preference (ALP) increases typically the need for a MCOP also increases. The ALP is the total amount of $ that preferred stock holders are owed on a sale of the company under their liquidation preferences. A few key points to consider: 1. The MCOP is a surprisingly complex topic.

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Lean vs Fat Startups: The Disrupt Debate

Venture Chronicles

At this point it’s all paper valuation because the stock isn’t liquid so achieving an outcome is a function of executing on the business to achieve a next round of funding or selling it. I’d be willing to bet that more investors lose a great amount of aggregate capital here than at any other stage.

Lean 40
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10 Recommendations For Aspiring New Venture Investors

Startup Professionals Musings

Investing in entrepreneurs and startups is a fun but different world from investing in conventional stocks, bonds, and commodities. This requires a simple signature that you have a net worth of at least $1M or have made at least $200K each year for the last two years. It’s a lot easier to buy stock in a startup than it is to sell it.