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

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

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

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

The Startup Magazine

AUGUST 15, 2022

The first step in creating a business plan to sell your startup to an acquirer is to create a valuation of your company. The valuation should include a business optimization plan that outlines strategies and tactics for growing transferable value, attracting potential buyers, and driving deal value. Finding a buyer.

Merger 129

Merger Acquisition Due Diligence Valuation 129

The Next Web

FEBRUARY 27, 2014

One of the questions I get, more often than not, is what is the appropriate valuation of my business. This is typically in conjunction with an upcoming financing or pending takeover offer. multiple interested investors competing for the deal, and driving up your valuation in the process). The more scarce a supply (e.g.,

Valuation 167

Valuation Forecast Seed Stage .Net 167

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). In short, it’s the amount of cash you’re burning every month (vs.

Burn Rate 212

Burn Rate Startup .Net Venture Capital 212

Version One Ventures

OCTOBER 15, 2020

Let’s now explore the major developments and ultimate use cases for the Lightning Network in two categories: A) payments/finance and B) Web3. . Use Case I: Payments and Finance . In this post, I outlined why the Lightning Network matters and recent developments around its two major use cases: payments/finance and Web3. .

Networking 168

Networking Global OTC Security 168

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. Access to finance and skills remain the key barriers to industry growth.

Startup 122

Startup Generative AI Venture Capital Valuation 122

VC Adventure

MAY 5, 2022

How many of those valuations will hold remains to be seen, but that kind of market clearly advantaged funds that deployed capital very quickly. 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).

IRR 116

IRR Metrics Valuation LP 116

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

Up and Running

NOVEMBER 12, 2014

If your business needs financing, consider equity crowdfunding; its distinctive traits will lure investors desiring the rewards of investment returns and investor protection, in addition to the goodwill generated by their support. Does my business have the necessary resources to conduct this equity crowdfunding campaign?

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

Up and Running

AUGUST 29, 2014

Many people who want to start a business believe they will be able to get grants or loans to help them finance the venture. A Certified Public Accountant (CPA) is a state licensed professional who offers various accounting, auditing, tax, financial analysis, business valuation and consulting services. Often this is not true.

Small Business 87

Small Business CPA Government North America 87

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

AUGUST 10, 2014

Should they focus on increasing revenues and profitability, or entice more and more users with free services to increase their valuation. The concept of free goods and services to get you hooked, financed by deep pockets or advertising, seems marginally ethical to many. Most are still confused about the right priority.

Revenue 246

Revenue Entrepreneur Valuation Viral 246

Duct Tape Marketing

FEBRUARY 3, 2022

So, you know, I, I have kids that are in their thirties and I'm envisioning a purple dinosaur that I did a a lot of watching with, but I guess there's also Smith Barney, which is certainly in the finance space, but I'm sure you have and Barney. Amanda Dixon (01:29): The store. John Jantsch (01:29): Oh, right, right, right.

Entrepreneur 79

Entrepreneur Technical Review Cofounder Valuation 79

Scott Edward Walker

MAY 15, 2012

This post is the third part of a three-part primer on convertible note seed financings. Part 1, entitled “ Everything You Ever Wanted To Know About Convertible Note Seed Financings (But Were Afraid To Ask) ,” addressed the basics. Part 2, entitled “ Convertible Note Seed Financings: Econ 101 for Founders ,” addressed the economics.

Finance 64

Finance Founder Accredited Investor Preferred Stock 64

View from Seed

JANUARY 11, 2021

Despite the sustained climate of uncertainty, valuations continued to climb and VC exit values reached their second highest total ever in Q3. In the early phases of COVID-19, some venture capitalists looked to de-risk investments by sourcing from founders known pre-pandemic, rather than building net new relationships.

Venture Capital 350

Venture Capital Cofounder Early Stage Seed Stage 350

Altgate

DECEMBER 16, 2010

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← Pre-Money Valuation vs Number of Founders Where Do Tech VCs Invest? The first thing I noticed was that the vast majority (76%) of financings have a “one x&# preference.

Liquidation Preference 39

Liquidation Preference Pre-Money Valuation Term Sheet Valuation 39

The Startup Magazine

OCTOBER 3, 2019

Financing a business venture is a difficulty that many start-up owners have encountered. Stock loans are a means of investing that, in the past, was only accessible to investors with a large net worth or international corporations. It can be uncomfortable putting your car or home at risk to finance your business.

Stock 75

Stock Angel Investor Startup SEC 75

Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Startup Professionals Musings

APRIL 3, 2012

But I have found that making the right choice at the right time can have a major impact on your long-term valuation, and the decision process is complex. Angels are typically high net-worth individuals, investing their own money, interested more in early or “seed” financing of amounts starting as low as $25K.

IRR 248

IRR Term Sheet Startup Valuation 248

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. Hence, financing rounds have been smaller (roughly a ratio of 5 to 1 when comparing US to EU). Historically, venture fund sizes have been significantly lower here.

Finance 76

Finance LP Europe Valuation 76

ReadWriteStart

SEPTEMBER 9, 2019

Here’s his take: Brad Anderson : As someone who’s worked in investment banking and been an early employee at a startup, do you think most founders understand their financing options? How do you collectively plan to finance the business as it grows? We reached out to high-net-worth individuals and small funds. Why or why not?

Venture Capital 105

Venture Capital Equity SBA Finance 105

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. The post When should you go for equity financing?

Equity 62

Equity Finance Liquidity Event Angel Groups 62

YoungUpstarts

MARCH 9, 2015

While most of the startup blogs and magazines focus on the VC fundings and their million dollar valuations, the truth is that a whopping majority of entrepreneurship stories are never shared. Today, alternatives like Net Suite software are available on the cloud which can be accessed at a far lower monthly subscription price.

Bootstrapping 100

Bootstrapping Cloud Finance eCommerce 100

Both Sides of the Table

APRIL 25, 2011

It’s nearly impossible to get a services company financed by VCs. They have created two internal technology “products&# and wanted to figure out how they could turn their services business into a product business that could be financed. You’re a small fish. This team is talented. They wanted advice.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

The Startup Magazine

MARCH 22, 2019

According to Entrepreneur , most angel investors must meet the Securities Exchange Commission’s definition of an accredited investor , which means they have a net worth of $1,000,000 or more and make at least $200,000 dollars a year. Small business loans and crowdfunding will also finance a start-up business.

Angel Investor 122

Angel Investor Venture Capital Accredited Investor Equity 122

The Equity Kicker

DECEMBER 2, 2015

Mahesh Vellanki from Redpoint put up an interesting post yesterday about ecommerce valuations. Apologies for getting a bit finance-geeky, and you may want to skip this paragraph, but a bit of corporate finance logic can explain the link between revenues, growth, and margins. 1-800 Flowers, meanwhile is valued at 0.6x

Forecast 60

Forecast eCommerce Net Present Value Revenue 60

The Equity Kicker

MARCH 21, 2017

Five of the six largest companies in the world today were venture backed startups and just about all net new job creation comes from young companies. We need massively successful companies like Facebook, and even Uber to generate growth, employment and the profits needed in the venture industry to finance the next generation of companies.

San Francisco 90

San Francisco Cap Table Angel Investor Valuation 90

The Startup Magazine

MARCH 23, 2021

Just recently they raised another huge round of funding ( source ) and secured a 95 billion valuation. It is one of the most streamlined platforms for credit card payments. It can be used in over 40 countries and integrates easily with huge platforms like wordpress, woocommerce or shopify.

HTML 139

HTML Affiliate Valuation .Net 139

Startup Company Lawyer

MARCH 12, 2009

Any company that raises venture financing will need to be a C corp in order to issue preferred stock. If founders want the benefit of flow through tax treatment with respect to losses prior to an outside financing, an S corp election may make sense as long as there are no entity or non-U.S. citizen/resident stockholders.

LLC 61

LLC Stock Options Preferred Stock Stock 61

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. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. Yahoo Finance. by Joel York at Chaotic Flow. Lluis Faus @ vLex.

Software Review 91

Software Review Clawback Sales Salary 91

Startup Professionals Musings

NOVEMBER 11, 2010

Angels are typically high net-worth individuals, investing their own money, interested more in early or “seed” financing of amounts starting as low as $25K. Angels typically have simpler term sheets, don’t squeeze so hard on valuations, and are more realistic on time-frames. The basics are simple.

IRR 225

IRR Startup Term Sheet Angel Investor 225

www.mint.com

MARCH 9, 2010

What is your net outflow per month? If the answer to the question centers around “We will achieve revenue soon so our net will improve and give us more runway,” it means the company is in trouble because no product ever ships on time nor achieves the company’s “conservative forecast.” So easy on the eyes! All Rights Reserved.

Software Review 68

Software Review Startup Post-Money Valuation Technical Review 68

View from Seed

MAY 2, 2019

So your net dilution may end up worse and you may miss out on working with a really hands-on pre-seed partner early in your company’s life. But prior to actual data, valuation ends up being driven entirely by demand, competition, and ownership targets. The Pre-seed to Pre-traction A.

Early Stage 214

Early Stage Dilution Valuation .Net 214