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

VC Cafe

NOVEMBER 30, 2022

Together, we mapped 89 companies, that collectively raised over £2 billion in venture capital across consumer experiences, enabling technologies and infrastructure. The pandemic was generally viewed to have been a net positive for the industry. Access to capital and talent remains the big barrier for growth.

Startup 122

Startup Generative AI Venture Capital Valuation 122

This is going to be BIG.

JULY 30, 2015

You incorporate expected company returns, mortality rates, and fee structures to try to predict how a venture capital fund works from a cash in, cash out, and NAV standpoint. And no, the numbers don't exactly add up--but they're more than close enough for venture capital. It's also not the "average fund".

Venture Capital 60

Venture Capital Pre-Money Valuation IRR Valuation 60

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

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. How could they make money?

Venture Capital 99

Venture Capital Acquisition Valuation .Net 99

Berkonomics

JUNE 8, 2017

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. It’s an option, even though an expensive one.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

David Teten

AUGUST 6, 2015

My colleague Paul Bianco serves as interim CFO for a number of ff Venture Capital ’s portfolio companies, and has built and reviewed hundreds of financial models. financial statement summaries, valuation analysis, ratio analysis, etc.) Use an appropriate number of significant digits. once a model has been finalized.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

Cracking the Code

JANUARY 22, 2009

While it may make sense to offer very slight adjustments for favorable payment terms and one time revenue, net additions to MRR should dominate the sales rep’s thoughts. What is my cost of capital and how much is worth an incremental upfront payment? 1 of MRR generates $12 of annual revenue, so $1 commission equals 1/12=8.3%

Software Review 91

Software Review Clawback Sales Salary 91

Venture Chronicles

MAY 26, 2010

This is the “tastes great, less filling&# debate that recurs on a regular basis in the venture capital and entrepreneur communities. Venture math is really simple, if you raise $10 million for a company that is valued at $10 million “pre-money&# then you have sold 50% of the equity to the new investors.

Lean 40

Lean Early Stage Valuation Startup 40

The Startup Magazine

OCTOBER 3, 2019

These types of loans present a useful amount of liquidity and lower borrowing costs. Stock loans are a means of investing that, in the past, was only accessible to investors with a large net worth or international corporations. Here, we will run through their basic features and both their advantages and potential drawbacks.

Stock 75

Stock Angel Investor Startup SEC 75

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . 645 Ventures released a cap table simulator to help level the playing field. 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

Both Sides of the Table

APRIL 25, 2011

This thinking is largely driven by the venture capital industry (and subsequently Wall Street) who are in search of high margin, highly scalable businesses. I gave them advice I don’t think they were expecting from a VC, “Don’t raise venture capital for this business. This team is talented.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

The Equity Kicker

JANUARY 10, 2020

Nic is also the author of one of Europe’s most popular venture capital blogs – www.theequitykicker.com. Maybe they’ll pivot to something great eventually, but in the interim period, the valuation goes sideways – and that’s not a good place for a VC to be. Let’s start with the obvious question. Your first idea has failed.

Partner 68

Partner Early Stage Portfolio Metrics 68

The Equity Kicker

MARCH 21, 2017

There is clearly dysfunction in chasing growth at all costs – inherently unprofitable companies grow to employ thousands of people before going bust, resulting in much personal anguish and not a little wasted capital. Companies that aren’t chasing unicorn status find it hard to raise money. Or at least almost as much.

San Francisco 90

San Francisco Cap Table Angel Investor Valuation 90

Startup Company Lawyer

MARCH 12, 2009

If a C corp generates net operating losses rather than net income, these are carried forward to offset future corporate taxable income. However, such flexibility is countered by increased compliance costs due to the application of complex partnership tax rules that also apply to LLCs.

LLC 61

LLC Stock Options Preferred Stock Stock 61

Babbling VC

JANUARY 7, 2011

I personally believe that one of the major drawbacks to venture capital in Europe is chronic under-financing and people skirt around this issue. We keep hearing about lean start-ups and how much costs have dropped when launching and growing a business. Initial costs are peanuts to get something up and running.

Finance 76

Finance LP Europe Valuation 76

Berkonomics

JANUARY 20, 2010

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 69

Private Equity Valuation Cap Table Accredited Investor 69

Eric Friedman

AUGUST 18, 2021

I lovingly call him the curmudgeon of fintech – in this episode we go deep into how he is building a venture capital firm and practice, not just running a fund and how he views the world of fintech investing. One of the ones that really bothers me is how Venture Capitalists try and conflate what they do as being complicated.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

Growthink Blog

APRIL 25, 2011

On Friday Silicon Valley Bank released a survey of 375 executives at startup technology companies in the 4 core venture capital investment sectors – Software/Internet, Hardware, Life Science, and Cleantech. In fact, the main competitive advantage that these startup executives see for doing business overseas is cost. Are Bullish.

Silicon Valley 69

Silicon Valley Ratchet Private Equity Startup 69

This is going to be BIG.

JUNE 2, 2010

What I’m concerned about is that while your near term chances of survival go up, because you’re flush with cash, the net-net percentage chance of eventual “success” (defining success as a situation where most people, especially the entrepreneur, walk away happy) actually goes down. Tags: Venture Capital & Technology.

Cap Table 106

Cap Table Seed Stage .Net Venture Capital 106

David Teten

NOVEMBER 18, 2019

The wrong decision can cost you millions of dollars, in the form of a broken deal process, a suboptimal valuation, or inappropriate investors. . To see why that is, see How much truth is there to the belief that VCs do not work with investment bankers for capital raises? You should also be careful about agreeing to exclusivity.

Investment Bankers 60

Investment Bankers Database Private Equity SEC 60

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. Let’s look at public market comparables and venture capital flows to see if we can find a match. Venture capital flows. It’s the valuation:value ratio.

Technical Review 78

Technical Review Venture Capital Valuation Database 78

David Teten

MARCH 24, 2014

ff Venture Capital is both an investor and also runs our back office on Addepar.). 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.

Software Review 114

Software Review Due Diligence Venture Capital Portfolio 114

VC Adventure

DECEMBER 4, 2009

Quoting from the piece: “According to the Census Bureau, nearly all net job creation in the U.S. This conclusion is backed up by the National Venture Capital Association which tracks the impact of private companies who receive institutional venture financing.

Accredited Investor 49

Accredited Investor Venture Capital Stock Options Government 49

Up and Running

AUGUST 19, 2014

An angel investor is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. 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. What impresses angels?

Angel Investor 161

Angel Investor Technical Review Due Diligence Startup 161

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

Austin Startup

FEBRUARY 12, 2019

Just this week, entrepreneur and investor Tim O’Reilly wrote a powerful piece in which he challenged Hoffman’s blitzscaling strategy, which often encourages companies to grow as fast as possible by raising venture capital to dominate new markets, a strategy leveraged by Uber among other unicorns (i.e.

Silicon Valley 48

Silicon Valley Technical Review Venture Capital San Francisco 48

abovethecrowd.com

APRIL 20, 2016

In February of last year, Fortune magazine writers Erin Griffith and Dan Primack declared 2015 “ The Age of the Unicorns ” noting — “Fortune counts more than 80 startups that have been valued at $1 billion or more by venture capitalists.” As a result, most firms have independent internal groups that periodically analyze valuations.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

abovethecrowd.com

FEBRUARY 24, 2015

An unprecedented 80 private companies have raised financings at valuations over $1B in the last few years. The size of these companies’ private valuations may be similar to a traditional public company valuation, but that is where the similarities begin and end.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40

Up and Running

DECEMBER 22, 2015

Combine a wild guess on future growth for several years, add in a wilder guess about future valuation prices and exit opportunities, and then pretend that the combination means something. Please, get a clue: Real businesses usually turn out net profits in single digits, and only rarely up as high as 20%. You’re out of school now.

Angel Investor 60

Angel Investor IRR Software Review Startup 60

David Teten

NOVEMBER 15, 2013

At my firm, ff Venture Capital, we’re trying our part to rethink how the industry works, and also actively looking for opportunities to invest in companies creatively disrupting this sector, e.g., our portfolio companies Addepar and Indiegogo. I don’t think that a Net Present Value calculation is appropriate for every company.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

www.paulgraham.com

APRIL 28, 2010

Another concept we need to introduce now is valuation. I say "in theory" because in early stageinvesting, valuations are voodoo. As a company gets more established,its valuation gets closer to an actual market value. As a company gets more established,its valuation gets closer to an actual market value. Better how?

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

BeyondVC

OCTOBER 11, 2007

In other words, as companies mature the valuation of a startup turns from pure strategic value to one where it is based more on actual revenue multiples and market comparable data. One other factor for entrepreneurs to look at is the opportunity cost or the time you spend on one venture.

Net Present Value 60

Net Present Value Strategic Investors Early Stage Revenue 60

www.currentlyobsessed.com

MAY 28, 2010

Snapvine was my first experience being in the driver’s seat of the fund-raising process, and in the 3 years prior to our acquisition we raised over $10mm in venture capital. Valuation is an important aspect of VC deal terms, and a major determinant of your ultimate outcome. Or is it?

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42

Cracking the Code

OCTOBER 10, 2008

Ultimately, finding a low-cost, repeatable way to show customers how to be successful with your solution is as important as the solution itself. You put into words what we were thinking for our cost of client. Michael Kassing. Let me just say "Thanks". You validated our business model and added huge value to our efforts.

Software Review 48

Software Review North America Europe Metrics 48

Both Sides of the Table

MARCH 12, 2017

Recently Upfront Ventures published its outlook for the technology startup world and venture capital overall titled it “ WTF Happened to Winter ?” We are now publishing some of the VC survey data the report used and the results are clear — it’s a great time to be a startup raising venture capital.

Venture Capital 277

Venture Capital Artificial Inteligence LP Valuation 277

techcrunch.com

FEBRUARY 19, 2010

Researchers polled experts in lending, mezzanine capital, private equity, venture capital and private businesses themselves. Not a big shock, but things don’t look pretty, especially in the venture capital world. 41% of them feel that they qualify for venture capital funding. just my opinion.

Venture Capital 62

Venture Capital Technical Review Sweat Equity Valuation 62