Startup Professionals Musings

MARCH 25, 2023

Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation. Most modern investors still look for a business model that embodies a gross margin over 50%, and a net margin in the 20% range. Most are still confused about the right priority.

Valuation 235

Valuation Revenue Viral Retention 235

Startup Professionals Musings

JUNE 21, 2020

Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation. Most modern investors still look for a business model that embodies a gross margin over 50%, and a net margin in the 20% range. Most are still confused about the right priority.

Revenue 434

Revenue Valuation Viral Retention 434

Startup Professionals Musings

SEPTEMBER 6, 2010

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Startup Professionals Musings

NOVEMBER 14, 2010

The value proposition is a short statement that clearly communicates the target customer, the customer’s problem and the pain that it causes, the unique solution that addresses this problem, and the net benefit of this solution (value derived versus relative cost) from the customer's perspective. Participation.

Intellectual Property 265

Intellectual Property Balance Sheet Phoenix Arizona 265

Gust

NOVEMBER 18, 2012

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Feld Thoughts

JULY 9, 2019

This was before the IPO Summer of 2019 when all conventional valuation metrics have entered the land of “suspension of disbelief” which is short-term good and long-term well-we-will-see-…-eventually. We ended up talking about using Gross Profit, instead of Revenue, to do valuation analysis.

Revenue 179

Revenue Valuation .Net IPO 179

Startup Professionals Musings

JUNE 25, 2012

Use this approach before you have a real valuation, a real product, or any real customers. If you don't know any “high net worth” individuals, use your advisors to find them. Find a customer who would benefit greatly from getting your product first, and be willing to advance you the cost of development. Friends and family.

Technical Review 257

Technical Review Bootstrapping Venture Capital Incubator 257

ReadWriteStart

JULY 12, 2019

To gather and organize vast amounts of training data needed to build effective AI solutions is cost prohibitive for a startup. So much so, that there was a half-joking consensus that adding either to your pitch deck meant an immediate 10% valuation bump with investors. Larger entities and new startups have the same needs. .

Artificial Inteligence 132

Artificial Inteligence Technical Review Software Review Startup 132

Steve Blank

FEBRUARY 26, 2020

Series B is about proving your net revenue model (can you be profitable?). At the end of this post, we’ll discuss the valuation at each step (how much the investors value your company and therefore how much of it you need to give up to get this money) and how much revenue you should generate at each step.). Valuations.

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

Berkonomics

AUGUST 3, 2023

When the need is high… For the rest of us, desiring to build large, valuable enterprises quickly, the need for outside capital is high on our list of requirements and even the source for some sleepless nights as we worry over the availability and cost of capital.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Steve Blank

MARCH 31, 2014

Metrics like Return on Net Assets, Return on Capital and Internal Rate of Return are the guiding stars of the board and CEO. Unfortunately as we’ve learned from recent experience, using Return on Net Assets and IRR as proxies for efficiency and execution won’t save a company when their industry encounters creative disruption.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

Startup Professionals Musings

DECEMBER 9, 2019

To refresh your memory, angel investors are typically high net worth individuals, accredited by the SEC and willing to invest their own money in a high-potential startup for a share of the ownership. Investors are very wary of unknown owners and valuation. Compare the time frames and costs of alternatives.

Non-disclosure Agreement 299

Non-disclosure Agreement Angel Investor Bootstrapping SEC 299

The Equity Kicker

SEPTEMBER 24, 2014

When startups can do more with less money the returns from investing small amounts of money go up, and that can be seen in rising Series A valuations and declines in the average amount of money raised before exit. Both of these schemes use the tax code to make it more attractive for high-net-worth individuals to invest in startups.

Early Stage 119

Early Stage Development Team Review Technical Review Software Review 119

Startup Professionals Musings

MARCH 16, 2011

Use this approach before you have a real valuation, a real product, or any real customers. If you don't know any “high net worth” individuals, use your advisors to find them. Find a customer who would benefit greatly from getting your product first, and be willing to advance you the cost of development. Friends and family.

Technical Review 233

Technical Review Bootstrapping Startup Venture Capital 233

Hearpreneur

SEPTEMBER 27, 2020

That mission could be impactful, to invest in it’s team or community, become net carbon zero or promote more diversity within its staff. A company is nothing without its customers; so is a company successful if it generates profit but has a low net promoter score, or review rate? Business success is great, but at what cost.

Entrepreneur 134

Entrepreneur .Net Metrics Revenue 134

ReadWriteStart

OCTOBER 22, 2019

They’re low cost and capable of delivering specific — but mostly basic — engineering services. And they just announced a new round of funding; $300 million from Salesforce Ventures, pegging the company’s post-funding valuation at over three-billion dollars. So what’s changed?

Distribution 117

Distribution San Francisco Silicon Valley El Salvador 117

Agile VC

APRIL 17, 2011

2010 Net Income: $8 million. Obviously most of these employees are working hard primarily for equity upside compensation, but Kayak’s personnel costs are roughly $200K/head so the company is highly productive on a per employee basis. Post-money valuation probably no higher than $12M (2). Pre-money valuation was approx.

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Up and Running

JULY 14, 2015

The net effect of raising too little funding is that the company runs out of money and all growth comes to a grinding halt. Any investor will put their valuation on your business based on a number of factors, including looking at important metrics for your business, patents, or assets. Whatever the case, the business is left in limbo.

Technical Review 60

Technical Review Valuation Due Diligence Finder 60

Gust

JUNE 17, 2012

Use this approach before you have a real valuation, a real product, or any real customers. If you don’t know any “high net worth” individuals, use your advisors to find them. Find a customer who would benefit greatly from getting your product first, and be willing to advance you the cost of development. Friends and family.

Technical Review 164

Technical Review Bootstrapping Venture Capital Incubator 164

Both Sides of the Table

JUNE 19, 2017

The Basics The starting point — the 101 — is knowing the difference between gross burn and net burn. Gross burn is your cost base and net burn is the difference between your revenue and costs. GAAP Net Income, which at times isn’t a good reflection of cash burn). You start from the basics, which is if you raise $2.5

Burn Rate 212

Burn Rate Startup .Net Venture Capital 212

David Teten

DECEMBER 3, 2019

Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores. Capital has built a free online tool for founders to calculate their cost of capital.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Austin Startup

OCTOBER 15, 2017

What seems to be the best way to create customers and revenue may result in a business model that is out of vogue with the investment world and shortchanges you on enterprise valuation. If you deliver exactly the same results at the same net cost to the customer via a SaaS product, you may get a tech multiple 10X higher.

Technical Review 48

Technical Review Software Review Nevada Silicon Valley 48

The Startup Magazine

APRIL 24, 2020

Whether you’re interested in selling a website you built from scratch, or want to sell your Amazon-based B2C brand, there are many different baseline factors that go into determining an appropriate website valuation number. While it’s true that valuations can get quite technical, the basics are relatively easy to understand.

eCommerce 91

eCommerce Valuation B2C Revenue 91

Startup Professionals Musings

MARCH 1, 2010

Use this approach before you have a real valuation, a real product, or any real customers. If you don't know any “high net worth” individuals, use your advisors to find them. Find a customer who would benefit greatly from getting your product first, and be willing to advance you the cost of development. Friends and family.

Technical Review 149

Technical Review Bootstrapping Startup Venture Capital 149

Version One Ventures

OCTOBER 15, 2020

While questions remain around the long-term legal feasibility of such a solution, the larger point is that the speed and cost benefits of Lightning can now be abstracted away for the end user’s benefit without any knowledge of bitcoin the asset. . Other businesses are pushing mainstream Lightning adoption for shopping.

Networking 168

Networking Global OTC Security 168

Up and Running

AUGUST 29, 2014

A major cause of business failure is not having enough cash available to cover all startup costs and operate for at least a year. A Certified Public Accountant (CPA) is a state licensed professional who offers various accounting, auditing, tax, financial analysis, business valuation and consulting services.

Small Business 87

Small Business CPA Government North America 87

VC Cafe

NOVEMBER 30, 2022

Notable companies in the landscape include: Improbable – the simulation engine company, famously building Otherside, the virtual world by Yuga Labs (owners of the Bored Ape Yacht Club), which most recently raised $100 million at $3 billion valuation. The pandemic was generally viewed to have been a net positive for the industry.

Startup 122

Startup Generative AI Venture Capital Valuation 122

Startup Professionals Musings

SEPTEMBER 30, 2011

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

Ben's Blog

MARCH 24, 2011

As we do so, keep in mind that the relevant bubble statistic is not valuation. High valuations are fine if the underlying value is there. In the great bubble of 1998-2000, the boom in public valuations mirrored the boom in private valuations. If too much venture capital hits the streets, valuations will bubble up.

Technical Review 78

Technical Review Venture Capital Valuation Database 78

David Teten

MARCH 24, 2014

For family offices / high net worth investors: the fact that some funds succeed with high returns motivates those with gambler mentalities to chase hot managers or to think that they can use their luck / smarts / intelligence to find the best managers. Chernick : However, net alpha is negative for asset allocators. Chernick : 4.

Software Review 114

Software Review Due Diligence Venture Capital Portfolio 114

Up and Running

NOVEMBER 12, 2014

Cover Upfront Costs. A successful campaign collects enough proceeds both to justify your business costs and satisfy your key business needs. Evaluate the administrative and financial costs of running the campaign. Accordingly, intermediary costs for your brewery’s $250,000 securities offering may total $37,500.

Equity 125

Equity SEC Technical Review Security 125

Startup Professionals Musings

JUNE 26, 2016

Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation. It’s only been in the last ten years that social media companies, like Facebook and Twitter, have achieved market valuations in billions of dollars, while clearly sacrificing revenue to gain users.

Revenue 145

Revenue Valuation Startup Viral 145

Agile VC

NOVEMBER 9, 2015

I’ll address potential valuation further down the post here. Unfortunately the fact that the company raised capital in private markets at a healthy valuation ($6B) and the uncertainty about having a CEO who’s attention is divided between two public companies obscures this story. What are customer acquisition costs like?

IPO 165

IPO .Net Revenue Acquisition 165

Austin Startup

MAY 22, 2020

Blitzfailing: How to NOT Grow a Company Some time around 2016, a company that was raising at a lofty valuation pitched to me requesting capital from one of Sputnik ATX’s antecedent funds. I pointed out to their pitchman that they had lower unit revenue and far higher unit cost than their competitors. The company pitching was WeWork.

Venture Capital 99

Venture Capital Acquisition Valuation .Net 99

Startup Professionals Musings

AUGUST 10, 2014

Should they focus on increasing revenues and profitability, or entice more and more users with free services to increase their valuation. Most modern investors still look for a business model that embodies a gross margin over 50 percent and a net margin in the 20 percent range. Most are still confused about the right priority.

Revenue 246

Revenue Entrepreneur Valuation Viral 246

Up and Running

AUGUST 19, 2014

An angel investor is a high net worth individual who invests their own money into startup companies in the hopes of gaining a return on their money. I’m impressed when entrepreneurs know their numbers inside and out and are realistic about their valuations. Candice Yoneyama, Angel from Los Angeles, CA | Twitter | Linkedin.

Angel Investor 161

Angel Investor Technical Review Due Diligence Startup 161

Up and Running

OCTOBER 3, 2018

Financial Summary: Explain your business model, startup costs, revenues, and liabilities to the company. The solution: PARE shoulders the cost of renovations for young people who do not have the time, knowledge, or money to do it themselves. Pricing : Design your pricing so that will cover your costs and match the market rate.

El Paso 61

El Paso Business Plan Technical Review Forecast 61