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

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. Venture capital. Friends and family.

Technical Review 164

Technical Review Bootstrapping Venture Capital Incubator 164

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. Venture capital. Friends and family.

Technical Review 149

Technical Review Bootstrapping Startup Venture Capital 149

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

This is going to be BIG.

JULY 8, 2013

I probably get around a dozen e-mails a week asking me how to get into venture capital. On top of that, anytime I talk to anyone who wants to get involved in startups but isn''t sure what they want to do, inevitably, I hear, "And then I was thinking maybe I should look into venture capital, too.".

Venture Capital 167

Venture Capital Early Stage Portfolio Private Equity 167

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

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 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

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

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). Professional angels: This is the arena where I work and play.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

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

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. Do the math.

Silicon Valley 48

Silicon Valley Atlanta Software Review Early Stage 48

Both Sides of the Table

MAY 24, 2021

It has historically been the case that VCs would rather fund the promise of 100x in a company with almost no revenue than the reality of a company growing at 50% but doing $20+ million in sales. He then went on the create an early-stage VC that I track closely?—? Entrada Ventures? —?that

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

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

Startup Professionals Musings

FEBRUARY 16, 2015

Most entrepreneurs have found by now one or more of the many popular crowdfunding sites , and have the name and contact information for at least one of the big venture capital firms. Each has met legal securities minimums for net worth and professionalism, to reduce the risk to entrepreneurs.

Angel Investor 120

Angel Investor Accredited Investor Venture Capital Startup 120

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. Kevin Federline Search Engine Realistic Entrprenuer's Guide to Venture Capital Time Rich, Time Poor and Apple F2F Still Matters 8 Ways the Internet has Changed Software Marketing.

Technical Cofounder 150

Technical Cofounder Southern California Los Angeles CTO Hire 150

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

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 Equity Kicker

JANUARY 10, 2020

Nic Brisbourne is Managing Partner at Forward Partners, the UK’s leading early-stage VC, currently supporting the UK’s next generation of AI, e-commerce and marketplace businesses. Nic is also the author of one of Europe’s most popular venture capital blogs – www.theequitykicker.com. What are your benchmarks?

Partner 68

Partner Early Stage Portfolio Metrics 68

Berkonomics

JUNE 8, 2017

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

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

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. . Data companies focused on early-stage startups include Aingel , fundsUP , Preseries , PredictLeads , and Sploda. When I was single, I registered for (a lot of) dating websites.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

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. Today, we are lucky to welcome Dan Kimerling of Deciens Capital. Venture Capital is not a complicated business.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

YoungUpstarts

SEPTEMBER 7, 2014

Revenue Growth. Enterprise startups must have processes in place to monitor revenue growth. According to a Pacific Crest survey , the average year-over-year revenue for enterprise startups is 89 percent. If you’re doubling revenue every year, you’re in great shape. Payback Period. Lifetime Value/Cost of Acquisition.

Metrics 219

Metrics Churn Rate Startup Acquisition 219

Up and Running

JULY 1, 2015

Using existing resources or earned revenue instead of borrowing is a great approach, but being creative and resourceful can be profitable too. Loans, angel investment, and venture capital . Your “angel” will typically invest in the early stages of a business starting from $10,000 up to few million dollars.

Bootstrapping 60

Bootstrapping Angel Investor Venture Capital Finder 60

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. Whether you are hoping to expand a small business with a loan or going for a round of venture capital, you will need a scalable business model. Venture capital. Angel investors. Crowdfunding.

SBA 84

SBA Angel Investor Technical Review Startup 84

Both Sides of the Table

SEPTEMBER 2, 2009

A friend of mine is a serial entrepreneur and is running a high-profile, early stage company in NorCal. The net effect for [my company] for example is we are now doing reasonably well. We should end the year with a few million in fully recurring revenue and we’re projected to double next year.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

Berkonomics

DECEMBER 17, 2020

Let’s take a few minutes to examine the kind of equity financing available to small or early stage businesses. There is an exemption from the requirements that these investors be accredited with net worth or income minimums to qualify legally to invest in your company. Then there is venture capital.

Equity 62

Equity Finance Liquidity Event Angel Groups 62

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. 51 percent). What impresses angels?

Angel Investor 161

Angel Investor Technical Review Due Diligence Startup 161

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

BeyondVC

OCTOBER 11, 2007

Put yourself in these entrepreneurs’ shoes – you launch a great product or service today, usage is growing, revenue is nil or minimal, and cocktail party chatter and buzz are at its highest. Two days ago it was Jaiku being bought by Google and this morning CBS announced that it is buying Dotspotter , a 10 month old gossip blog.

Net Present Value 60

Net Present Value Strategic Investors Early Stage Revenue 60

abovethecrowd.com

FEBRUARY 24, 2015

Over the last few years, the late-stage (pre-IPO) market has become the most competitive, the most crowded, and the frothiest of these financing stages. Investors from all walks of life have decided that “late stage private” is where they want to play. You must subtract it from your top-line revenue.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40

abovethecrowd.com

OCTOBER 1, 2013

No other metric so holistically captures as many critical aspects of a web site – user design, usability, performance, convenience, ad effectiveness, net promoter score, customer satisfaction – all in a single measurement. As a result, AdWords boasts over one million customers and over $30B in annual revenue. 71 Things to A/B Test.

Metrics 93

Metrics Conversion Internet Acquisition 93

abovethecrowd.com

APRIL 20, 2016

A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue. About this same point in time, the journalists that focus specifically on the venture capital industry noted something quite profound. Competition also has access to capital.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Austin Startup

JUNE 26, 2019

However, we also discovered key challenges we could not overcome with the capital and window of our team. 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.

Silicon Valley 54

Silicon Valley Startup B2C Sweat Equity 54

Cracking the Code

OCTOBER 10, 2008

Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. Farming is also often overlooked, but can help grow customer accounts and revenues from 30% upwards (if successful). Great list!

Software Review 48

Software Review North America Europe Metrics 48

K9 Ventures

NOVEMBER 30, 2008

The business of venture capital is relatively young. The birth of modern-day venture capital (not considering the European monarchs financing explorations and projects as venture capital) can be traced back to American Research and Development, which was started by Georges Doriot. of the size of the fund.

IRR 48

IRR Venture Capital LP Early Stage 48

www.paulgraham.com

APRIL 28, 2010

There never has to be atime when you have no revenues. 4 ] Seed Funding Firms Seed firms are like angels in that they invest relatively smallamounts at early stages, but like VCs in that theyre companiesthat do it as a business, rather than individuals making occasionalinvestments on the side.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76