Startup Professionals Musings

MARCH 25, 2023

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $1 trillion. Long-term stability requires revenue growth and profit. Both have worked. Traditionally, it was simple.

Valuation 235

Valuation Revenue Viral Retention 235

Startup Professionals Musings

AUGUST 10, 2014

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Both have worked.Google reached $1 billion in revenue within five years of incorporation, and now has a market capitalization of over $400 billion. Long-term stability requires revenue growth and profit.

Revenue 246

Revenue Entrepreneur Valuation Viral 246

YoungUpstarts

JANUARY 10, 2018

How do you find the balance between not too small to prove itself but not too big to have an off-putting valuation? Minimizing losses in the year before you begin shopping around for buyers will increase profit and help you get that higher valuation. Fact is, you just don’t know whether your business is ready to sell.

Valuation 145

Valuation Technical Review Exit Strategy Metrics 145

YoungUpstarts

JUNE 16, 2020

Business valuation is defined as a way to determine the overall economic value of a company , and is a necessary component of a sound business plan and strategy. Any of these situations will demand a valuation to determine current and future projected value. . Three Methods of Valuation. Also referred to as Book Value .

Valuation 162

Valuation CPA Software Review Revenue 162

Startup Professionals Musings

NOVEMBER 26, 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 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

Startup Professionals Musings

JUNE 26, 2016

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $400B. Long-term stability requires revenue growth and profit. Both have worked. Traditionally, it was simple.

Revenue 145

Revenue Valuation Startup Viral 145

Startup Professionals Musings

JUNE 25, 2012

Just don’t quit your day job before your new company is producing revenue. Use this approach before you have a real valuation, a real product, or any real customers. 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 257

Technical Review Bootstrapping Venture Capital Incubator 257

Steve Blank

MARCH 17, 2020

Next, take a look at your actual revenue each month – not forecast, but real revenue coming in each month. Subtract your monthly gross burn rate from your monthly revenue to get your net burn rate. All your assumptions about customers, sales cycle and most importantly, revenue, burn rate and runway are no longer true.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

Agile VC

APRIL 17, 2011

How They Make Money: Majority of Kayak’s revenue actually comes from advertising on their site (55%), not lead generation or referral fees to travel suppliers as you might think (more on this below). Financial Snapshot: 2010 Revenue: $170 million. Revenue growth: 51% YoY (2010), 1% YoY (2009), 131% YoY (2008).

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

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

Both Sides of the Table

JULY 6, 2016

After all, if people feel more of a safety net for trying and not succeeding more people are bound to try in the first place and more innovation is almost inevitable. So I wondered out loud with the president if the government wanted to encourage more entrepreneurship — was there a way to help promote more of a culture accepting of failure?

South Korea 261

South Korea Silicon Valley Los Angeles Japan 261

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

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. LPs See The Over-Valuations and Don’t Like It. LPs have followed the recent press about the over-valuation and over-funding of the startup industry, and they experience these phenomena first hand.

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

Feld Thoughts

JANUARY 7, 2015

Companies were being bought (and valued) at 10x forward revenue only to be valued at between 0.5x revenue several years later. We were bought for a more reasonable 1x revenue (and about 4x pre-tax income) when the value of the AmeriData stock, options, and cash we took out were factored in. I’d argue the 0.5x

Stock Options 70

Stock Options Cofounder Revenue Hosting 70

Startup Professionals Musings

MARCH 16, 2011

Just don’t quit your day job before your new company is producing revenue. Use this approach before you have a real valuation, a real product, or any real customers. 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

Steve Blank

MARCH 31, 2014

Companies horde cash and squeeze the most revenue and margin from the money they use. Metrics like Return on Net Assets, Return on Capital and Internal Rate of Return are the guiding stars of the board and CEO. Look at the valuations of companies like Tesla, Illumina, and Twitter.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

This is going to be BIG.

OCTOBER 12, 2020

Right on time, I’ve got a company from my first fund doing a roadshow right now that could net a big exit by the end of the year. That leaves me out raising with two funds under my belt and no big exit and no unicorn valuations. Yet, I’ll admit, it has been a lot harder than I thought it would be. Life of a micro-fund, I guess.

LP 136

LP Technical Review Software Review Valuation 136

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).

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

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

The Equity Kicker

AUGUST 29, 2013

I’m rather late to this, but this morning I was pointed towards an eMarketer projection of Twitter revenues from March this year which has them hitting $950m in 2014, up from $583m this year. I can’t find any information on profits so it’s hard to know what this means for their valuation.

Revenue 109

Revenue IPO API Valuation 109

Gust

JUNE 17, 2012

Just don’t quit your day job before your new company is producing revenue. Use this approach before you have a real valuation, a real product, or any real customers. 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

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

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 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

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. multiple interested investors competing for the deal, and driving up your valuation in the process). Never have an investor think they are the only investor pursuing your business, as that will hurt your valuation.

Valuation 167

Valuation Forecast Seed Stage .Net 167

Startup Professionals Musings

MARCH 1, 2010

Just don’t quit your day job before your new company is producing revenue. Use this approach before you have a real valuation, a real product, or any real customers. 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

Version One Ventures

OCTOBER 15, 2020

And >40% of that revenue is coming from in-game purchases. When they can invest the marginal engineering hour in listing a new token that drives revenue vs. saving some costs on settlement, it’s hard to justify. The app could then take a small % of all revenue from “paid” messages.

Networking 168

Networking Global OTC Security 168

Austin Startup

MAY 10, 2021

but then going public and rising 23% on day one to… drumroll please… a $36B valuation ?—?a a full 60x trailing twelve month revenues. For context, UiPath’s revenue last year was reported at $607 million and grew 81% over the prior year?—?so The IPO netted $500M for UiPath (and another $700M for shareholders).

Silicon Valley 113

Silicon Valley IPO Venture Capital Valuation 113

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. billion in revenue in 2022. UK XR startups generated over $1.4

Startup 123

Startup Generative AI Venture Capital Valuation 123

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

ConversionXL

JULY 16, 2021

Too many brands try to cast a wide net. By collating key information in a framework, you’ll reduce internal feedback loops, improve collaboration, and empower consistency—which can increase revenue by 33%. . It took 10 years and steady growth, punctuated by a brilliant messaging strategy, to achieve a $5 billion valuation. .

Audience 127

Audience Framework Differentiation Software Review 127

Up and Running

AUGUST 29, 2014

A study co-sponsored by Crawford International and HR.com in Palo Alto, California in 2006 found that “companies that create adaptive corporate cultures outperform companies with non-adaptive cultures by a factor of 900 to 1 as measured by long term net income and stock price growth.” How can a business owner assess their company culture?

Small Business 87

Small Business CPA Government North America 87

ConversionXL

AUGUST 11, 2021

A sponsorship strategy should cover five areas: Assets Audience data Asset valuation Activations Market identification. Asset valuation. An inventory of metrics: Click-through rates, newsletter subscribers, downloads, social engagement, revenue figures, etc. Your most obvious asset is the product itself. Source ).

Audience 139

Audience Social Media Email Ruby 139

View from Seed

NOVEMBER 18, 2020

You can read various articles out there which will give you the cursory facts about Airbnb like their overall revenue or profitability or how their business has faired here in 2020 in the COVID environment. But even with this profitable Q3, on a trailing twelve months (TTM) basis Airbnb has a GAAP net loss of >$1 billion.

North America 401

North America IPO Prospectus Europe 401

Duct Tape Marketing

FEBRUARY 3, 2022

I mean, how do you end up putting some, something that is intangible that is more than like, you know, a, a multiplier of revenue, because there are some people that have created a methodology that have created a framework that have created something exactly a way to actually get, you know, leads. Amanda Dixon (05:36): Exactly.

Entrepreneur 79

Entrepreneur Technical Review Cofounder Valuation 79

Agile VC

AUGUST 9, 2012

We also know lots of valid reasons why the company could be valued at far less than it once was including: Stalled Growth – revenue essentially flat over the last 4 quarters. The “value” case goes like this: A) Valuation Net of Cash – Zynga’s market cap sits at around $2.2-2.3B as of this post.

Stock 160

Stock LBO .Net Valuation 160

Tim Keane

MARCH 9, 2011

If, on the other hand, there is some near term prospect of cash flow (say within six months or a year) but no ability to repay in the meantime, then the entrepreneur may try and find a way to finance his “pre-revenue period” using friends and family money that accepts a somewhat lower payment in recognition of a relationship beyond just investing.

Finance 83

Finance Bootstrapping Startup Equity 83