David Teten

MARCH 5, 2021

What can we learn from the best 40 venture capital investments of all time? For example, a profitable firm at which 30 percent of leaders are women could expect to add more than 1 percentage point to its net margin compared with an otherwise similar firm with no female leaders. “For How do we reconcile these two sets of data?

Cofounder 78

Cofounder Founder Technical Cofounder Technical Review 78

Both Sides of the Table

NOVEMBER 3, 2009

This is part of my ongoing series of posts and I need to file this one under both Raising Venture Capital and Startup Advice. That died with waterfall software development. I’m not even talking about your 12-page Powerpoint presentation that you need to raise venture capital or to talk with potential biz dev partners.

Business Plan 334

Business Plan AJAX Venture Capital Technical Review 334

ReadWriteStart

SEPTEMBER 9, 2019

Although some founders take venture capital in exchange for equity, that’s not the only way to do it. To learn more about the pros and cons of venture capital — and founders’ funding alternatives — I caught up with Mark McKee. Anderson: So is venture capital the right approach for most startups?

Venture Capital 105

Venture Capital Equity SBA Finance 105

Both Sides of the Table

DECEMBER 27, 2011

Gross Profit (also called Gross Margin or sometimes “Net Revenue”). And assuming they both had the same net profit margins (profit / revenue) then the former company would be much better off at the end of the year. Let’s consider the following two software companies, both of which have 66% gross margins.

Startup 418

Startup Revenue Technical Review Flash 418

Startup Professionals Musings

OCTOBER 19, 2010

billion invested during the same three-month period in 2009, according to the National Venture Capital Association (NVCA). Many of the large endowments that invest in the venture industry have seen their net worth plummet. Overall, venture capital investment fell in the United States last year but rose elsewhere.

Venture Capital 225

Venture Capital Silicon Valley Startup United States 225

YoungUpstarts

MAY 24, 2018

The sale of software isn’t subject to sales tax.”. Our product is delivered electronically; sales tax doesn’t apply to us.”. “We We only have work-from-home employees outside of our home state; we aren’t subject to tax in other states.”. Rebecca Stidham is Senior Manager – Tax Services at OUM & Co.

South Dakota 111

South Dakota North Dakota United States Wyoming 111

Up and Running

MAY 15, 2018

However, sourcing enough money to start your new venture can be difficult. From jewelry to dog food to SaaS (software as a service) products, startups are popping up in virtually every field around the world, despite the risks. Make sure to use the latest automation and software technologies wherever makes sense.

SBA 84

SBA Angel Investor Technical Review Startup 84

Reid Hoffman

JULY 27, 2021

When I decided I wanted to start a company, I realized that I needed to pick up certain skills first, like product management, knowledge of online services, and a practical understanding of commercial software development. The risk-averse argument is that a strong network is a safety net. Networks are both safety nets and trampolines.

Silicon Valley 69

Silicon Valley Venture Capital Balance Sheet Networking 69

Reid Hoffman

JULY 27, 2021

When I decided I wanted to start a company, I realized that I needed to pick up certain skills first, like product management, knowledge of online services, and a practical understanding of commercial software development. The risk-averse argument is that a strong network is a safety net. Networks are both safety nets and trampolines.

Silicon Valley 69

Silicon Valley Venture Capital Balance Sheet Cofounder 69

Both Sides of the Table

APRIL 27, 2010

I didn’t mean to be so insulting and I didn’t mean for the net to be cast so wide that many people wondered whether I was talking about them when I was speaking of “job hoppers.&# I learned a lot from reading the comments. But in these years I learned how to sell software – necessity is the mother of all invention.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

YoungUpstarts

SEPTEMBER 7, 2014

The lifetime value of a customer is the current value of net future cash flow attributed to the customer. TX Zhuo is a managing partner of Karlin Ventures , an L.A.-based based venture capital firm that focuses on early-stage enterprise software, e-commerce, and marketplaces. Lifetime Value/Cost of Acquisition.

Metrics 189

Metrics Churn Rate Startup Acquisition 189

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.”. Disclosure: Graphite Financial is a spinoff of ff Venture Capital , where I was formerly a Partner.

Agile 60

Agile Management Forecast Silicon Valley 60

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. . Fund/SPV management services specifically are provided by Assure Services and Proteus Capital. ff Venture Capital hired two full-time engineers to build out Totem.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Startup Professionals Musings

MARCH 16, 2016

People are even talking about “decacorns" -- investable companies with net worth now exceeding $10 billion -- like Dropbox and Pinterest. This term refers to an initial venture-capital investment, often wrongly sought to seed early product development. Prime examples include Uber, Airbnb and Snapchat. Seed-round investment.

Software Review 120

Software Review Sweat Equity Accredited Investor Angel Investor 120

David Teten

JULY 12, 2013

I emphasize that the best PR you can build is through satisfied customers with high Net Promoter scores. ff Venture Capital recently hosted an event in its offices to feature two of its portfolio companies: MovableInk and Parse.ly. Are you trying to build buzz, but don’t have the cash to launch a full-fledged PR campaign?

PR 114

PR Public Relations Startup Technical Review 114

David Teten

JANUARY 10, 2012

Mr. Parekh started his career at Goldman Sachs, developing the firm’s equities business in the Middle East, with high net worth family offices and sovereign wealth funds. He has been granted two software patents, and has multiple patents pending. He was an Institutional Investor ranked analyst for several years.

Technical Review 128

Technical Review Technology North Carolina Switzerland 128

Gust

OCTOBER 8, 2014

She designed a software solution that she was planning on selling to enterprises for $100,000 a year. When I set about to raise money for my first startup, sixdegrees, I spoke with over 200 high-net-worth individuals– all of whom rejected me. Recently, I met with an entrepreneur to discuss her financing strategy. Stay In Touch.

Venture Capital 163

Venture Capital Finance Early Stage .Net 163

Steve Blank

MARCH 31, 2014

Today’s workforce has radically different expectations, brands are losing their power, physical channels are being destroyed by virtual ones, market share is less important than market creation, and software is eating world. As the venture capital business has come roaring back in the last 5 years, startups are awash in available capital.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

David Teten

MARCH 24, 2014

Addepar is precisely trying to collect and convert into software these best practices. (ff ff Venture Capital is both an investor and also runs our back office on Addepar.). Chernick : However, net alpha is negative for asset allocators. Returns are unpredictable, but expenses are not. Chernick : 4.

Software Review 114

Software Review Due Diligence Venture Capital Portfolio 114

Ben's Blog

MARCH 24, 2011

Let’s look at public market comparables and venture capital flows to see if we can find a match. Venture capital flows. A basic driver for a private technology market bubble is the over-supply of venture capital into the sector. If too much venture capital hits the streets, valuations will bubble up.

Technical Review 78

Technical Review Venture Capital Valuation Database 78

Both Sides of the Table

OCTOBER 8, 2014

What is perhaps different from other regions is that we have large indigenous aerospace industry and a big high-tech import/export trade as opposed to a lot of software companies. Given how efficient markets are when a large market like LA starts to blossom it attracts capital pretty quickly. But even this is changing. ”).

Los Angeles 376

Los Angeles Silicon Valley Entrepreneur Seattle 376

BeyondVC

JANUARY 3, 2019

No matter what economic cycle we go through, Fortune 500 companies need to invest in software.”. Ed Sim, Boldstart Ventures. For the more advanced enterprises who have migrated to the cloud, this will be a year of net new technology and building applications. Fortune December 2019 Investor Roundtable. Enterprise Tech in 2019.

Stealth 79

Stealth Advisory Board Cloud Virginia 79

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.

LP 311

LP Technical Review Early Stage Silicon Valley 311

Both Sides of the Table

JUNE 8, 2014

To build applications we needed databases (Oracle), browsers (Netscape), servers (Sun Microsystems), storage (EMC), security (Semantic), application servers (Apache), caching software, load balancers, hosting facilities, programming languages and methods, CDNs, DSL equipment, Wifi routers and so forth. And then the world changed.

Silicon Valley 390

Silicon Valley Kansas City Startup Venture Capital 390

Austin Startup

MAY 10, 2021

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. The IPO netted $500M for UiPath (and another $700M for shareholders). a full 60x trailing twelve month revenues.

Silicon Valley 113

Silicon Valley IPO Venture Capital Valuation 113

Austin Startup

NOVEMBER 6, 2017

Background Reading: When LLCs Make Sense for Startups Not Building a Unicorn If you have spent almost any time reading about the basics of startup legal issues, you know that Delaware C-corps are the default organizational structure for a “classic” tech startup (software, hardware) planning to raise angel/VC money and scale.

Delaware 48

Delaware LLC Startup Silicon Valley 48

Both Sides of the Table

FEBRUARY 10, 2011

some fun, big tech issues like privacy, net neutrality, location-based services and real-time data. Thomas and his partner lived off of credit cards, and used crappy data centers and open source software (LAMP). Net neutrality (1:09:00). lessons learned from his days as an entrepreneur.

Angel Investor 302

Angel Investor Cofounder Southern California .Net 302

Austin Startup

OCTOBER 15, 2017

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. However, that is wishful thinking if your customer decision makers have budgets for percentage payments and software buying is handled by a different group and a different procurement process.

Technical Review 48

Technical Review Software Review Nevada Silicon Valley 48

David Teten

DECEMBER 16, 2015

Net Income (Loss). Net MRR Churn %. Steve Cody, CEO of The Better Software Company* observed, “To drive the growth numbers that we need and reinforce our culture, we keep our key sales metrics up on three live monitors in the office. ff Venture Capital portfolio company. So how do you do it? Gross Profit.

Metrics 60

Metrics Analytics Balance Sheet .Net 60

David Teten

JULY 12, 2013

I emphasize that the best PR you can build is through satisfied customers with high Net Promoter scores. ff Venture Capital recently hosted an event in its offices to feature two of its portfolio companies: MovableInk and Parse.ly. Are you trying to build buzz, but don’t have the cash to launch a full-fledged PR campaign?

PR 60

PR Public Relations Startup Technical Review 60

Software By Rob

JUNE 25, 2013

It takes time to recoup the cost of acquiring a customer before you actually make a net profit. If you have venture capital in the bank then you can afford to go upside down on CAC for a few months, but if you’re bootstrapping your startup then this is probably not an option. Think Creatively. Not Dogmatically.

Venture Capital 71

Venture Capital Bootstrapping Distribution Conversion Ratio 71

Growthink Blog

SEPTEMBER 7, 2010

But if we must choose (and we must), I'll cast my lot with the young, highly educated, preferably immigrant software entrepreneur, working out of their cramped garage, over the slow-to-innovate home-builder or mildly educated real estate agent. Innovation, Not Bigger Bathrooms, Drives Wealth-Creation. So what to do about it?

Software Review 91

Software Review Technical Review Government Venture Capital 91

The Startup Magazine

MARCH 22, 2019

The question of venture capitalist versus angel investor often arises. Venture capital and angel investments offer excellent options to startup businesses. Most venture capital firms focus on targeted sectors of the business world, such as software, or on a specific geographical area when entertaining possible investments.

Angel Investor 119

Angel Investor Venture Capital Accredited Investor Equity 119

Both Sides of the Table

JUNE 17, 2017

Venture capital isn’t right for many business but if you do want to raise from a VC at some point you need to understand that often investors care more about growth than profits. The first company represents a normal software company that sells its products directly (either via sales staff or directly off of the internet).

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Version One Ventures

APRIL 8, 2014

Look across virtually any industry and you’ll see great examples where traditional spaces are being disrupted by software, access to data, and massive online communities. The net effect is powerful: it empowers all of us (no matter who we are or where we are) to learn more quickly, make better decisions, and operate more efficiently.

Venture Capital 160

Venture Capital Vertical Curation SEC 160

David Teten

AUGUST 19, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance.

Revenue 60

Revenue Technical Review Software Review Equity 60

YoungUpstarts

MAY 16, 2018

There, he would be showered in venture capital, build a team of similarly brilliant twenty-somethings, acquire millions of customers seemingly overnight, and steer his startup to an IPO and himself to the cover of Inc magazine well before his 30th birthday. Instead, he would take his evident talent to Silicon Valley.

Silicon Valley 135

Silicon Valley Forecast Venture Capital Business Plan 135