Both Sides of the Table

JULY 16, 2010

LP’s who invest in funds are typically university endowments, public & private pension funds, insurance companies, large corporations and very high net worth individuals called “family offices.&# To give you an indication of how bad, for example, university endowments are suffering check out this chart. That’s OK.

LP 311

LP Technical Review Early Stage Silicon Valley 311

Startup Professionals Musings

MARCH 16, 2011

Just don’t quit your day job before your new company is producing revenue. After bootstrapping, friends and family are the most common funding sources for early-stage startups. If you don't know any “high net worth” individuals, use your advisors to find them. Friends and family. Angel investors. Venture capital.

Technical Review 233

Technical Review Bootstrapping Startup Venture Capital 233

Startup Professionals Musings

JANUARY 27, 2021

Each has met legal securities minimums for net worth and professionalism, to reduce the risk to entrepreneurs. To be fundable, fifth year revenue projections need to be in the $20-$100 million range. Early stage research and development won’t excite angels. Most share expertise as well as money.

Search 317

Search Accredited Investor Angel Investor Venture Capital 317

Steve Blank

MARCH 17, 2020

Next, take a look at your actual revenue each month – not forecast, but real revenue coming in each month. If you’re an early stage company, that number may be zero. Subtract your monthly gross burn rate from your monthly revenue to get your net burn rate. This math works in a normal market….

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

Both Sides of the Table

OCTOBER 29, 2009

We’re clearly in the early stages on Twitter monetization but let me offer some views on why we find Ad.ly Many people have speculated a variety of revenue sources such as charging 3rd parties for their data, charging power users for their accounts, charging “verified users&# for their certified accounts, etc.

Technical Review 286

Technical Review Advertising Early Stage Internet 286

Gust

NOVEMBER 15, 2011

The Risk Factor Summation Method the fifth methodology for estimating the pre-money valuation of pre-revenue companies we have described in recent posts. The Risk Factor Summation Method, described by the Ohio TechAngels, considers a much broader set of factors in determining the pre-money valuation of pre-revenue companies.

Valuation 102

Valuation Pre-Money Valuation Ohio Early Stage 102

YoungUpstarts

DECEMBER 7, 2015

Net-net: Customers expect seamless experiences across all channels and devices. While apps excel at cultivating customer loyalty, the web remains the main engine driving mobile traffic and revenue, with the mobile web contributing 95% of traffic growth to retail sites, versus just 5% by apps. And tablet shoppers generate over 2.2

Mobile 100

Mobile Software Review eCommerce .Net 100

Steve Blank

FEBRUARY 26, 2020

There are two reasons to raise money: You have a killer idea that is only partially validated, that you think can get to $50M+ of revenue in 5 years with 80%+ gross margins (if margins are lower, you need a lot more revenue)and you need money to get to product-market fit, or. Not all startups need outside investment to grow.

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

David Teten

AUGUST 21, 2019

Or should they look to one of the new wave of Revenue-Based Investors? Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. For more background, see Revenue-Based Investing: A New Option for Founders who Care About Control. But should they? Aligned incentives.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Gust

JUNE 17, 2012

Just don’t quit your day job before your new company is producing revenue. After bootstrapping, friends and family are the most common funding sources for early-stage startups. If you don’t know any “high net worth” individuals, use your advisors to find them. Friends and family. Angel investors. Venture capital.

Technical Review 164

Technical Review Bootstrapping Venture Capital Incubator 164

Duct Tape Marketing

NOVEMBER 2, 2023

02:06] Can you share your experience starting with an early-stage company (Hubspot) that eventually went public? [07:11] That's hundred grand annual revenue. And that became about, and now is about 40% of HubSpot's revenue. Questions I ask Peter Caputa: [0:48] What exactly does Databox do? [02:06]

Metrics 75

Metrics Analytics Forecast Software Review 75

David Teten

DECEMBER 16, 2015

The most common financial metrics ffVC asks companies to compare vs. budget are: Gross Revenue. Net Income (Loss). For early stage companies, the metrics that matter might typically center around activation, engagement and retention. Monthly Recurring Revenue (MRR). Net MRR Churn %. Gross Profit.

Metrics 60

Metrics Analytics Balance Sheet .Net 60

Austin Startup

DECEMBER 17, 2017

I will always remember his pre-speech pep talk: “Dyer, your entire net worth rides on not screwing this up.” Hurricane Irma had a major negative revenue impact on one whose fall book of business was mostly in Florida. We just closed out in 2017 our 10-year early-stage venture fund started in 2000. I got the message.

Silicon Valley 48

Silicon Valley Atlanta Software Review Early Stage 48

Startup Professionals Musings

MARCH 1, 2010

Just don’t quit your day job before your new company is producing revenue. After bootstrapping, friends and family are the most common funding sources for early-stage startups. If you don't know any “high net worth” individuals, use your advisors to find them. Friends and family. Angel investors. Venture capital.

Technical Review 149

Technical Review Bootstrapping Startup Venture Capital 149

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

Data companies focused on early-stage startups include Aingel , fundsUP , Preseries , PredictLeads , and Sploda. The Pocket Negotiator is very early-stage attempt to aid in the negotiating process itself. Lighter Capital, a Revenue Based Investing VC, offers a Cost of Capital Calculator.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Eric Friedman

AUGUST 18, 2021

He is also co-founder and Managing Partner of Deciens Capital, an early stage investment fund. They talk about] businesses which are not contractually recurring revenue in the parlance of recurring revenue run rates. If you aren’t doing things which are sufficiently crazy, you’ll never generate a 5x net fund.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

Up and Running

MAY 15, 2018

However, you’ll also need a steady flow of funds, especially in the early stages, to turn those ideas into reality. Your business model must show the potential to increase the revenue with minimal expenditure in the coming months or years. Save the splurge for when you’re bringing in more revenue. Spend wisely on tech.

SBA 84

SBA Angel Investor Technical Review Startup 84

Both Sides of the Table

MARCH 1, 2016

In fact, if you add the capital flows of the past ten years, there have been just shy of $50 billion in net cash outlays. Some LPs have privately speculated that later-stage VCs may have a field day in the next 18 months, buying up large positions in firms with strong revenue at attractive prices given the recent squeeze on funding.

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

Version One Ventures

JULY 22, 2014

At the same time, funding opportunities have expanded for early-stage start-ups. While the top of the funnel has grown with all the angel and early-stage activity, the bottom of the funnel is still roughly the same size (about 10-20 billion dollar companies/year). But this boom landscape might change soon.

Finance 167

Finance Seed Money Bootstrapping Angel Investor 167

Berkonomics

AUGUST 3, 2023

However, most often, these funds are solicited by a well-meaning entrepreneur from investors who are not qualified as accredited investors under the law (currently requiring a proved income of $200,000 a year or $1 million in net worth for an individual investor). Often private equity investors will want control of the business as well.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

BeyondVC

JANUARY 3, 2019

For the more advanced enterprises who have migrated to the cloud, this will be a year of net new technology and building applications. The 10 year bull market where every company’s revenue chart is up and to the right is over. Either you’re a mega fund or an early stage fund, being caught in the middle is a place you don’t want to be.

Stealth 79

Stealth Advisory Board Cloud Virginia 79

VC Adventure

MAY 5, 2022

This shrinks the gross/net return spread and is good long-term for LPs (assuming in this analysis that the 10% overage invested returns the same or better than the fund as a whole). Both were valued at greater than 50x revenue (one was, I think, 70x revenue). management fee). But this doesn’t help a fund’s IRR.

IRR 116

IRR Metrics Valuation LP 116

abovethecrowd.com

NOVEMBER 13, 2012

Wow” moments lead to word-of-mouth viral growth and high net promoter scores. The opposite was true for OpenTable where the installation of a personal computer and internet connectivity were part of the early roll-out requirements. When this experience delta is great enough, it creates “wow” moments for new users.

Aggregator 101

Aggregator Marketing Software Review North America 101

Growthink Blog

APRIL 2, 2012

Then, layer in elements of the kinds of companies funded by angel investment groups and early stage venture capital firms – i.e. focused on hot technology spaces like mobile commerce, healthcare information technology and possessing fast-scaling revenue and thoughtful “Porter Five Forces-Friendly” business models.

Disintermediation 72

Disintermediation Technical Review SEC Early Stage 72

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. Entrepreneurs impress me when they demonstrate a proven revenue stream before asking for capital. Many angels are entrepreneurs themselves, or executives and business or community leaders.

Angel Investor 161

Angel Investor Technical Review Due Diligence Startup 161

Startup Professionals Musings

NOVEMBER 26, 2012

So what magic can the founders use to justify a $4M valuation (or even the $1M valuation) at this early stage? Particularly valuable are recurring revenues, like subscription amounts, that don’t have to be resold every period. My advice for early-stage companies like this one is to target their valuation somewhere between $1.5M

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

Cracking the Code

JANUARY 14, 2014

This metric measures the ratio of the annualized additional recurring revenue generated by your sales and marketing investments. Secondly, the total revenue also includes, most of the time, non recurring revenue like implementation services or training which are independent of the sales productivity.

Cost 97

Cost Acquisition Customer .Net 97

Startup Professionals Musings

SEPTEMBER 30, 2011

So what magic can the founders use to justify a $4M valuation (or even the $1M valuation) at this early stage? Particularly valuable are recurring revenues, like subscription amounts, that don’t have to be resold every period. My advice for early-stage companies like this one is to target their valuation somewhere between $1.5M

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

Venture Chronicles

MAY 26, 2010

This is why early stage companies that raise a lot of capital are valued richly, it’s a compromise between the company and investors summed up as “I know you will only sell 40% of the equity but you need a pretty big chunk of capital so we’ll give you $10m and value you at $15m pre money instead of $5m&#.

Lean 40

Lean Early Stage Valuation Startup 40

Small Business Force

SEPTEMBER 10, 2017

Whether you’re an early-stage company or have been around for ten years, for entrepreneurs, leading and managing a small business, especially its growth, is never an easy task. We had some nice sustained success with six consecutive quarters of record revenues and earnings. But like Lego, we got surprised.

Small Business 32

Small Business Leadership Salary Forecast 32

Austin Startup

JUNE 26, 2019

You might notice what’s not on that list above: revenue, investors. No revenue isn’t always a problem for venture-style businesses; no investors + no revenue = challenges for most founders without tremendous self-funding. Early on we reached out to friends & family. So, we worked to raise capital.

Silicon Valley 54

Silicon Valley Startup B2C Sweat Equity 54

SoCal CTO

MARCH 22, 2007

I have to say that it has netted far more than I would have thought. Early Stage Marketing and Branding – Farida Fotouh. Weve also found that potential clients find us through LinkedIn. Im very happy with the time Ive spent building up my LinkedIn network. Attorney and Startup Business Advisor – Aaron Shec.

Technical Cofounder 150

Technical Cofounder Southern California Los Angeles CTO Hire 150

VC Cafe

DECEMBER 28, 2010

According to the magazine, Israel’s third largest city Haifa was chosen due to a massive head-to-toe regeneration and a recent swing to positive net immigration into the city in 2009. From 1999 to 2009, Teva’s revenue grew to about $14 billion from $1.3 TWO ISRAELI COMPANIES WIN GE CLEANTECH CHALLENGE.

Technical Review 87

Technical Review South Korea Mexico 87

Version One Ventures

JULY 13, 2015

Now, inspired by our friend Christoph Janz at Point Nine Capital who created a KPI dashboard for early-stage SaaS , we have put together a KPI template for marketplaces. Revenue is the income that the company receives from facilitating connections in the marketplace. Net promoter score (NPS). Seller/Supplier Metrics.

Due Diligence 60

Due Diligence Retention Metrics Revenue 60

Startup Professionals Musings

FEBRUARY 16, 2015

Each has met legal securities minimums for net worth and professionalism, to reduce the risk to entrepreneurs. To be fundable, fifth year revenue projections need to be in the $20-$100 million range. Early stage research and development won’t excite angels. Most share expertise as well as money.

Angel Investor 120

Angel Investor Accredited Investor Venture Capital Startup 120

Hippoland

DECEMBER 4, 2016

Roughly speaking, there are 4 stages of early stage investing based on traction: Pre-seed: < $100k net revenue run rate Seed: $100k-$500k net revenue run rate Post-seed: $500k-$2M net revenue run rate Series A: $2M+ net revenue run rate Note: Your ability to raise is NOT just about your traction.

Silicon Valley 48

Silicon Valley .Net Revenue Later Stage 48