Professor VC

AUGUST 26, 2011

To that last one, there is certainly some truth as the standard time vs. revenue chart in most business plans looks like this: Im not teaching Entrepreneurial Finance this semester for the first time since Fall 2007. Does a complicated sales build model make sense for a pre-revenue SaaS company? I often do this in the revenue tab.

Silicon Valley 35

Silicon Valley San Jose Hockey Stick Venture Capital 35

Professor VC

JUNE 20, 2011

But of course, the model had us requiring only $10M equity to breakeven and to achieve $185M in revenues in 2008 (the magic Year 5 in all business plans). ► 2008. (14). ► September. (1). Survey says VC's invest on Gut Instinct. ► July. (1). ► May. (1). Can you start a company on $10K? ► March.

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

Startup Lessons Learned

MARCH 27, 2009

The full formula works like this: runway = cash on hand / burn rate # iterations = runway / speed of each iteration Very few successful companies ended up in the same exact business that the founders thought theyd be in (see Founders at Work for dozens of examples). The key is to be able to refute as many major hypotheses as you can.

San Francisco 117

San Francisco Lean Continuous Deployment DC 117

dondodge.typepad.com

JANUARY 15, 2011

My next post will be about the importance of cash flow, keeping burn rates low, and how to avoid excessive equity dilution. from David Dalka - Creating Revenue and Retention - Chicago GSB MBA As discussed in my recent post about a TiE event on Chicago start ups, there are many factors to consider when taking in funding and employees.

Equity 40

Equity Employee Dilution Valuation 40

Both Sides of the Table

FEBRUARY 14, 2016

That was written in September 2008. Huge funding increases lead to massive wage inflation, rent inflation and thus higher burn rates. forward revenue for SaaS businesses when in the years before it had been less than 5x. In September 2008 this was the bankruptcy of Lehman Brothers and the rippling effect was massive.

Valuation 150

Valuation Down Round Startup Later Stage 150

VC Adventure

SEPTEMBER 4, 2015

It was a great chance to compare notes, meet far flung colleagues (“cousins” as we sometimes refer to employees at different portfolio companies) and discuss a variety of topics effecting companies selling with a recurring revenue model. In fact, a 10% (meaning 30% to 40%) increase in growth rate translated into a 3x (3x!!)

Burn Rate 48

Burn Rate Portfolio Revenue Valuation 48

www.chubbybrain.com

SEPTEMBER 28, 2011

spent $20 million to get back to the same revenue that I had when I was CEO. created a vastly higher cost structure; I had 80 people mostly on base salaries under $100,000 and was bringing in revenue at the rate of $20 million annually. .”). Title: Burn Rate: How I Survived the Gold Rush Years on the Internet.

Software Review 79

Software Review Startup Technical Review Vesting 79

Both Sides of the Table

AUGUST 9, 2011

Companies with less than $2 million in revenue were asking for $50-60 million valuations and getting them. By 2008 I had gotten more serious about championing companies through our investment process. It was September 2008. Companies raised too much money in 2005-08 and had high burn rates. The market had tanked.

Stock 305

Stock Technical Review Marketing Greece 305

VC Cafe

JULY 6, 2010

How are you planning ramp up the revenue? Also, the nice thing about these revenue streams is that they actually help the Libox user. Our burn rate is very low and the technology is very scalable. People over pay for stuff (storage), but you have plenty of space in your PC. We want to change that.

Media 84

Media Management API HTML 84