Remove 2008 Remove Dilution Remove Equity Remove Revenue
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2010 VC Funding Outlook for Startups ā€“ Prepare for Winter (Part 3/3)

Both Sides of the Table

In the first post in this three part series I described why I believe the VC market froze between September 2008 – April 2009. We spent our future since the equity was artificial. This is tied to having consumers who feel confident enough to spend. Consumer spending is where Iā€™m dubious. So why the ā€™09 bounce?

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The Great VC Ice Age is Thawing (for now) ā€“ Part 1 of 3

Both Sides of the Table

Huge downturns have a real impact on the revenue line of start-ups and therefore the pressure on valuations. This came in part due to the huge influx of money into VC but also because hedge funds and private equity shops with no VC experience wanted part of the action. I argued for literally a year to slash burn.

Burn Rate 263
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Strategy Roundtable: Open Opportunities in Cloud Computing and Rural BPO

ReadWriteStart

They already have several customers including some telcos, and are at about $350,000 in revenues. Whether it is credit or equity, funding is very, very tight. You can get cash without diluting your ownership in the company. Because customer financing equals revenue, not equity. Kir Devries. Very encouraging!

Cloud 115
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The Entrepreneurā€™s Essentials #8: Bootstrap or VC?

Austin Startup

It was there that I met Eric Simone (one of the first investors in Bazaarvoice) as well as Josh Baer (one of the first investors in Bazaarvoice through his team building our first solution and getting paid primarily in equity versus cash). I failed to do that with Coremetrics and I paid dearly for it with dilution.

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How much equity for investors and employees?

dondodge.typepad.com

Community is more powerful than money or technology » August 11, 2007 How much equity for investors and employees? How much equity should I give up? How much equity should I grant to early employees? No loss of equity, at least until they convert at Series A. How much equity should be given to employees?

Equity 40
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What is the Right Amount of Money to Raise at a Startup?

Both Sides of the Table

But there are also problems / risks: - the funding environment might change dramatically – there may never be a next round (see: March 2000, September 11, 2001 and September 2008). - Let’s assume that the $2 million buys 25% of your company, which is the norm in an equity financing. add a buffer. Brilliant.

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Want to Raise Venture Capital More Easily? Clean Up Your Own Shite First

Both Sides of the Table

Many companies that are raising B or C venture capital rounds right now raised their initial money in 2005-2008. I looked up the funding details on Crunchbase and noticed that they closed a big round in March 2008 (e.g. If you want to raise venture capital more easily the advice could be quite practical and counter-intuitive.