Startup Professionals Musings

MARCH 16, 2011

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. Venture capital. An investment from a venture capital firm is usually expensive, in equity and control. Friends and family.

Technical Review 233

Technical Review Bootstrapping Startup Venture Capital 233

Startup Professionals Musings

MARCH 16, 2016

This term is currently applied to recent startups who profess a current valuation which exceeds $1 billion. People are even talking about “decacorns" -- investable companies with net worth now exceeding $10 billion -- like Dropbox and Pinterest. Frothy startup valuations. Prime examples include Uber, Airbnb and Snapchat.

Software Review 120

Software Review Sweat Equity Accredited Investor Angel Investor 120

Gust

JUNE 17, 2012

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. Venture capital. An investment from a venture capital firm is usually expensive, in equity and control. Friends and family.

Technical Review 164

Technical Review Bootstrapping Venture Capital Incubator 164

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). It is most often a win-win for both you and the strategic partner.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

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. Instead of measuring success in dollars of profit, …firms focus on measuring capital efficiency. Look at the valuations of companies like Tesla, Illumina, and Twitter.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

Startup Professionals Musings

MARCH 1, 2010

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. Venture capital. An investment from a venture capital firm is usually expensive, in equity and control. Friends and family.

Technical Review 149

Technical Review Bootstrapping Startup Venture Capital 149

David Teten

SEPTEMBER 16, 2014

That’s a sizeable amount, especially in comparison to the US venture capital industry, which similarly invests over $20 billion annually. In 2013, 298,800 angels invested in 70,730 entrepreneurial ventures, according to the 2013 Angel Market Analysis by the Center for Venture Research at the University of New Hampshire.

Angel Investor 114

Angel Investor Technical Review Venture Capital Pre-Money Valuation 114

This is going to be BIG.

JULY 30, 2015

You incorporate expected company returns, mortality rates, and fee structures to try to predict how a venture capital fund works from a cash in, cash out, and NAV standpoint. And no, the numbers don't exactly add up--but they're more than close enough for venture capital. It's also not the "average fund".

Venture Capital 60

Venture Capital Pre-Money Valuation IRR Valuation 60

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. The pandemic was generally viewed to have been a net positive for the industry. Access to capital and talent remains the big barrier for growth.

Startup 122

Startup Generative AI Venture Capital Valuation 122

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

Both Sides of the Table

MAY 24, 2021

Case in point, Procore just went public and is trading at an $11 billion valuation. sold to Disney for $670 million and since our first investment was at < $10 million valuation we did quite well. Instagram selling to Facebook. This is true in consumer but it’s also true in enterprise software. Maker Studios?—?sold

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

Steve Blank

MARCH 17, 2020

Subtract your monthly gross burn rate from your monthly revenue to get your net burn rate. They triage their deals – first worrying about liquidity of their late stage deals which have the highest valuations. Some investors have only lived in a booming market when valuations only went up and investment capital was plentiful.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

The Next Web

FEBRUARY 27, 2014

George Deeb is the Managing Partner at Chicago-based Red Rocket Ventures , a startup consulting and financial advisory firm based in Chicago. One of the questions I get, more often than not, is what is the appropriate valuation of my business. Each industry typically has its unique valuation methodologies. Your industry.

Valuation 167

Valuation Forecast Seed Stage .Net 167

Austin Startup

MAY 22, 2020

Blitzfailing: How to NOT Grow a Company Some time around 2016, a company that was raising at a lofty valuation pitched to me requesting capital from one of Sputnik ATX’s antecedent funds. Blitzscaling is taking in large amounts of venture capital for massive customer acquisition growth in a short period of time.

Venture Capital 99

Venture Capital Acquisition Valuation .Net 99

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

Austin Startup

MAY 10, 2021

—? but then going public and rising 23% on day one to… drumroll please… a $36B valuation ?—?a 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. a full 60x trailing twelve month revenues.

Silicon Valley 113

Silicon Valley IPO Venture Capital Valuation 113

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 123

Angel Investor Venture Capital Accredited Investor Equity 123

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.

Merger 130

Merger Acquisition Due Diligence Valuation 130

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? But first, let’s look at pre-money valuation by liquidation preference. and 2X had an average pre-money valuation of $8.6

Liquidation Preference 39

Liquidation Preference Pre-Money Valuation Term Sheet Valuation 39

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

AUGUST 6, 2015

My colleague Paul Bianco serves as interim CFO for a number of ff Venture Capital ’s portfolio companies, and has built and reviewed hundreds of financial models. financial statement summaries, valuation analysis, ratio analysis, etc.) once a model has been finalized. 12) Design for printing.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

The Equity Kicker

MARCH 24, 2015

Everyone loves a high valuation and it’s natural for founders to want to minimise dilution. They will most probably go on to raise multiple rounds of venture capital after all. And look at what Zuck achieved… But companies that spend too much time optimising terms end up as net losers.

Valuation 60

Valuation Down Round Dilution Venture Capital 60

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. Venture Capital. (3). by Joel York at Chaotic Flow.

Software Review 91

Software Review Clawback Sales Salary 91

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

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. . Close to 80% responded that manual processes, such as tracking down support, preparing reports and pulling data from different sources, are the biggest pain points they face in the valuation process.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

www.quora.com

JANUARY 16, 2011

Find Questions, Topics and People Add Question Add Question Venture Capital Venture Capital Term Sheets Startups Term Sheets What are examples of good startup term sheets? The BVCA (British Venture Capital Association) docs are here, with a link to a term sheet [link] ets/fea. org/2009/02. org/index.php?op.

Term Sheet 41

Term Sheet Startup Angel Investor Wiki 41

The Startup Magazine

OCTOBER 3, 2019

Stock loans are a means of investing that, in the past, was only accessible to investors with a large net worth or international corporations. The amount of money offered by the lender for the loan will depend on their valuation of the shares you put forward. Image by Gerd Altmann from Pixabay. Strengths of Stock Loans.

Stock 75

Stock Angel Investor Startup SEC 75

Feld Thoughts

SEPTEMBER 9, 2015

“We basically doubled the number of unicorns in the past year and a half,” says Aileen Lee, the founder of Cowboy Ventures, who has herself become a mythic creature in the Valley after coining the term. But a lot of these are paper unicorns, so their valuations may not be real for a while.” Let me say it a different way.

Liquidation Preference 70

Liquidation Preference Burn Rate Balance Sheet .Net 70

The Equity Kicker

JANUARY 10, 2020

Nic is also the author of one of Europe’s most popular venture capital blogs – www.theequitykicker.com. Maybe they’ll pivot to something great eventually, but in the interim period, the valuation goes sideways – and that’s not a good place for a VC to be. Let’s start with the obvious question. What are your benchmarks?

Partner 68

Partner Early Stage Portfolio Metrics 68

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. I gave them advice I don’t think they were expecting from a VC, “Don’t raise venture capital for this business. This team is talented.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

Startup Company Lawyer

MARCH 12, 2009

If a C corp generates net operating losses rather than net income, these are carried forward to offset future corporate taxable income. Most venture and institutional investors favor C corps because they may have separate classes of stock, allowing for the creation of various levels of preferences, protections, and share valuations.

LLC 61

LLC Stock Options Preferred Stock Stock 61

K9 Ventures

MAY 14, 2011

The funding for the incubator of accelerator may come from the principals running the incubator (as I believe is the case for AngelPad , i/o ventures etc.) The incubators invest usually for an equity stake and buy equity at a extremely low valuation (for example, 7% for $15,000, which implies a pre-money valuation of less than $200,000).

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

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. It’s also true that many of society’s deepest problems aren’t likely to be solved by for-profit companies. Celebrate mid-level outcomes as much as massive outcomes.

San Francisco 90

San Francisco Cap Table Angel Investor Valuation 90

Reid Hoffman

JULY 27, 2021

The risk-averse argument is that a strong network is a safety net. Networks are both safety nets and trampolines. I think a lot of entrepreneurs don’t fully understand how venture capital works. VENTURE CAPITAL AND THE MBAS OF SILICON VALLEY. Or maybe valuation depends on growth rates or operating margins.

Silicon Valley 69

Silicon Valley Venture Capital Balance Sheet Cofounder 69

Reid Hoffman

JULY 27, 2021

The risk-averse argument is that a strong network is a safety net. Networks are both safety nets and trampolines. I think a lot of entrepreneurs don’t fully understand how venture capital works. VENTURE CAPITAL AND THE MBAS OF SILICON VALLEY. Or maybe valuation depends on growth rates or operating margins.

Silicon Valley 69

Silicon Valley Venture Capital Balance Sheet Cofounder 69

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. Valuations were also therefore lower and I believe you could extrapolate that exit valuations too were lower. The fear of failure is truly holding back the risk takers!

Finance 76

Finance LP Europe Valuation 76

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