Startup Professionals Musings

MARCH 16, 2011

Just don’t quit your day job before your new company is producing revenue. This source often gets overlooked, but it should be a major focus these days due to government initiatives on alternative energy and technology. If you don't know any “high net worth” individuals, use your advisors to find them. Venture capital.

Technical Review 233

Technical Review Bootstrapping Startup Venture Capital 233

Startup Professionals Musings

JANUARY 27, 2021

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.

Search 317

Search Accredited Investor Angel Investor Venture Capital 317

Up and Running

JUNE 23, 2022

Pre-Tax Return on Net Worth. This ratio is not applicable if the subject company’s net worth for the period being analyzed has a negative value. You can explore grant funding, financial technology (fintech) lenders such as Kabbage and Ondeck, and crowdfunding platforms such as Kickstarter and Indiegogo. Pre-Tax Return on Assets.

SBA 163

SBA Finance Balance Sheet Technical Review 163

Feld Thoughts

JANUARY 2, 2014

When people ask me how they can become a VC, I point them to my partner Seth Levine’s excellent blog posts How to become a venture capitalist and How to get a job in venture capital (revisited). Feld Technologies was acquired in November 1993. Venture Capital fred wilson seth godin yoyodyne'

San Francisco 159

San Francisco Boston Venture Capital Angel Investor 159

Gust

JUNE 17, 2012

Just don’t quit your day job before your new company is producing revenue. This source often gets overlooked, but it should be a major focus these days due to government initiatives on alternative energy and technology. If you don’t know any “high net worth” individuals, use your advisors to find them. Venture capital.

Technical Review 164

Technical Review Bootstrapping Venture Capital Incubator 164

David Teten

NOVEMBER 26, 2019

Howell, Professor of Business Administration at Tuck, writes that you should turn your budgeting process upside down by “reformat[ting] planning and budgeting templates to highlight cash rather than accounting net income.”. Successful agile budgeting requires modern technology. This agile approach is not restricted to small startups.

Agile 60

Agile Management Forecast Silicon Valley 60

Startup Professionals Musings

MARCH 1, 2010

Just don’t quit your day job before your new company is producing revenue. This source often gets overlooked, but it should be a major focus these days due to the Obama administration initiatives on alternative energy and technology. If you don't know any “high net worth” individuals, use your advisors to find them.

Technical Review 149

Technical Review Bootstrapping Startup Venture Capital 149

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. There are an estimated 2,106 immersive technology companies in the UK, representing an 83% growth in the last five years. billion in revenue in 2022.

Startup 122

Startup Generative AI Venture Capital Valuation 122

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

Both Sides of the Table

JUNE 19, 2017

One of the hardest decisions entrepreneurs make when they start a company and raise outside capital is figuring out what an acceptable “burn rate” is. That is, how much should your company be willing to lose in cash every month as you make investments in staff and equipment that funds technology, sales, marketing and management.

Burn Rate 212

Burn Rate Startup .Net Venture Capital 212

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

Steve Blank

MARCH 31, 2014

As the venture capital business has come roaring back in the last 5 years, startups are awash in available capital. Companies horde cash and squeeze the most revenue and margin from the money they use. Instead of measuring success in dollars of profit, …firms focus on measuring capital efficiency.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

Both Sides of the Table

JULY 16, 2010

But VC is an “illiquid asset&# so funds didn’t disappear quickly - In 2000/01 the stock market quickly adjusted punishing investors in the NASDAQ and in individual public technology stocks. After all, most people don’t understand that “venture capital is a get rich slowly&# scheme.

LP 311

LP Technical Review Early Stage Silicon Valley 311

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. A good example is the marketing technology sector. Heck, there was no venture capital in Dixie in that era.

Technical Review 48

Technical Review Software Review Nevada Silicon Valley 48

Austin Startup

MAY 10, 2021

a full 60x trailing twelve month revenues. Companies have increasingly digitized operations, but in silos, said lead director Rich Wong, a partner at Silicon Valley venture-capital firm Accel, an early investor in UiPath. For context, UiPath’s revenue last year was reported at $607 million and grew 81% over the prior year?—?so

Silicon Valley 113

Silicon Valley IPO Venture Capital Valuation 113

Austin Startup

MAY 22, 2020

I pointed out to their pitchman that they had lower unit revenue and far higher unit cost than their competitors. Blitzscaling is taking in large amounts of venture capital for massive customer acquisition growth in a short period of time. In short, the net profit selling each unit accrues faster than your expenses.

Venture Capital 99

Venture Capital Acquisition Valuation .Net 99

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. also wins by making sure we don’t have too much concentration in technology innovation, which is surely a great thing for us all.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

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

BeyondVC

JANUARY 3, 2019

Ed Sim, Boldstart Ventures. Amara’s Law : “We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.”. For the more advanced enterprises who have migrated to the cloud, this will be a year of net new technology and building applications. Enterprise Tech in 2019.

Stealth 79

Stealth Advisory Board Cloud Virginia 79

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. . When I met my now-wife, I realized that any technology that can find me a spouse is a killer app. I previously posted a detailed presentation with sales technology tools useful for B2B sales.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

The Next Web

FEBRUARY 27, 2014

your equity in a hot new patented technology business), the higher the demand (e.g., As an example, a new restaurant may get valued at 3-4x EBITDA (earnings before interest, taxes, depreciation, and amortization) and a hot dot com business with meteoric traffic growth could get valued at 5-10x revenues. The more scarce a supply (e.g.,

Valuation 167

Valuation Forecast Seed Stage .Net 167

David Teten

JANUARY 28, 2019

My former Partner John Frankel of ff Venture Capital observes that 20 years ago, the defining movie of the generation was “Wall Street”. So universities have realized that for many students, promising a career in technology and entrepreneurship is key to recruiting high potential students. Everyone wanted to work in finance.

Affiliate 60

Affiliate Connecticut Programming Community 60

SoCal CTO

MARCH 22, 2007

I have to say that it has netted far more than I would have thought. Technology Advisor Technology Roles in Startups Pricing Customer Acquisition Sunk Costs and More -. Technology Jobs in Southern California – a Rebound. Weve also found that potential clients find us through LinkedIn. in Computer Science.

Technical Cofounder 150

Technical Cofounder Southern California Los Angeles CTO Hire 150

Hearpreneur

DECEMBER 8, 2019

Entering our 4th year of business, we doubled our headcount, became a certified B Corporation, and released our revenue model which aligned with our becoming a 1% for the Planet member. Thanks to CJ Xia, Boster Biological Technology ! #14- Photo Credit: Matt Daigle. There is so much for me to be proud of in 2019!

Entrepreneur 115

Entrepreneur Technical Review Vertical Las Vegas 115

abovethecrowd.com

NOVEMBER 13, 2012

Wow” moments lead to word-of-mouth viral growth and high net promoter scores. Opportunity for Technology to Add Value. In many marketplaces, the technology offering greatly enhances the user experience. They have overlaid this data with maps and search technology that provide remarkable richness to the home buyer.

Aggregator 101

Aggregator Marketing Software Review North America 101

Startup Professionals Musings

MAY 14, 2012

There are no “overrides” – for example, businesses don’t thrive just because they offer the latest technology, or because everyone wants to be “green, or because their goal is to reduce world hunger. Revenue model. The most common failures are solutions looking for a problem, lack of a defined market, and giving away the product.

Business Model 242

Business Model Distribution Viral Green 242

Both Sides of the Table

MAY 4, 2010

We discussed whether investing in the second largest player in a category makes sense given that Groupon is 10x the revenue, 3.5x But LivingSocial is reportedly doing around $180,000 per day in gross revenue. If this figure is accurate – it’s certainly a very large business even when you look at net revenues.

IPO 236

IPO .Net Venture Capital Strategic Investors 236

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

ReadWriteStart

APRIL 30, 2014

Think of it as a cross between a landlord, summer camp, and venture-capital firm. It has graduated nearly 100 companies in Boston alone, generating millions of dollars in funding and local revenue. That’s money that cash-strapped cities crave as they attempt to create a new economy based on technology and innovation.

Technology 60

Technology Boston Cloud Silicon Valley 60

Steve Blank

JUNE 23, 2016

As a consequence, corporations used metrics like return on net assets (RONA), return on capital deployed, and internal rate of return (IRR) to measure efficiency. Intel under their last two CEOs delivered more revenue and profit than any ever before. Risk capital has provided financing for new ideas in the form of startups.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

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. 1 of MRR generates $12 of annual revenue, so $1 commission equals 1/12=8.3% of Year One Revenue Sounds high, but is that considered a reasonable package?

Software Review 91

Software Review Clawback Sales Salary 91

Startup Professionals Musings

JANUARY 29, 2011

There are no “overrides” – for example, businesses don’t thrive just because they offer the latest technology, or because everyone wants to be “green, or because their goal is to reduce world hunger. Revenue model. The most common failures are solutions looking for a problem, lack of a defined market, and giving away the product.

Business Model 246

Business Model Distribution Viral Green 246

Growthink Blog

AUGUST 3, 2016

And this “past is past” motif is freeing , especially as we are confronted with the competitive and technological challenges of our modern, global business marketplace. But, last year your revenues only grew 10% and your net margins were very thin.

Jordan 48

Jordan Chicago Washington Technical Review 48

This is going to be BIG.

MARCH 1, 2010

My company was not well executed enough to achieve venture capital financing—and that wasn’t the city’s fault, it was mine. Tags: First Round Capital Venture Capital & Technology nextNY. I was there, too. Perhaps actually listening to the feedback you get from them might be helpful. > Office rents?

New York City 113

New York City New York Startup Burn Rate 113

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. 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.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

The Startup Magazine

OCTOBER 14, 2021

Fast forward to today; since we founded Taxfyle in 2015, it has earned the support and investment of numerous venture capitalists and is one of the fastest-growing companies in any sector in the U.S. 5000 list , which lists private American companies based on three-year revenue growth between 2016 and 2019. Magazine’ Inc.

CPA 136

CPA Founder Vertical Cofounder 136

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