VC Cafe

MAY 18, 2022

a 70% decrease in price might seem like a ‘bargain’ to buy, but in 2008, it took stocks 10 years to recover their original price following a recession, and some lost up to 90% of their original value, so it’s hard to predict how far we are from the bottom. Advice for startup founders (consolidated).

Term Sheet 190

Term Sheet Startup Valuation Ukraine 190

David Teten

DECEMBER 8, 2010

" "Because the light is so much better" The US financial regulatory apparatus looks terrible now because of the Madoff scandal (which was not a hedge fund) and the 2008 financial meltdown (caused by the large banks/mortgage companies, bad regulation, quasi-government agencies like Fannie/Freddie, and consumers who took on too much debt).

Networking 122

Networking Private Equity SEC Software Review 122

Steve Blank

MARCH 31, 2014

Just look at the disruptive challenges that businesses face today– globalization, China as a manufacturer, China as a consumer, the Internet, and a steady stream of new startups. Perhaps that’s because where established companies might see risks or threats, startups see opportunity. We legalized robbing the corporate treasury.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

Both Sides of the Table

MAY 19, 2010

Another topic we debated early in the program was “lean startup” vs. “ fat startup ” where we both took the obvious hedge and said “it depends.” But truthfully both Dana and I are more aligned with the lean startup principles and believe you only go FAT when you’ve really proved out your product / market fit.

Partner 240

Partner New York City Cofounder Syndicate 240

Altgate

SEPTEMBER 16, 2010

We tried to provide a framework for startups to think about what activities should be outsourced and why. What kind of startup outsources everything? Well, you’re right, most don’t, but one example of a startup that does is PlentyOfFish. Also, most startup attorneys will do deferred payment plans.

Software Review 65

Software Review Offshore Startup Boston 65

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. When I first got into the industry it was 2007. was still a term being bandied about. tl;dr summary.

Stock 305

Stock Technical Review Marketing Greece 305

Gust

OCTOBER 20, 2011

Individual accredited investors in typical angel deals put personal capital at risk for an equity share of growth-oriented, start-up companies. In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

Agile VC

APRIL 17, 2011

AGILEVC My idle thoughts on tech startups. 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. How To Think About The Future.

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Hearpreneur

SEPTEMBER 16, 2020

Unfortunately, he was fired and all of that potential equity disappeared. When this platform launched in 2008, they were practically were laughed at and couldn’t find investors. billion in annual revenue. That’s quite a turnaround from gaining $30,000 in funding and joining a startup incubator. 2- Noah Kagan.

Entrepreneur 107

Entrepreneur China Incubator Philippines 107

Steve Blank

SEPTEMBER 14, 2009

3) invest in and take equity stakes in exchange for capital. Five Quarters of Profitability During the 1980’s and through the mid 1990’s startups going public had to do something that most companies today never heard of – they had to show a track record of increasing revenue and consistent profitability.

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

Both Sides of the Table

JUNE 22, 2011

Ah, but today’s Internet companies have real revenue! But this mania to not miss out on the next big thing is driving some investors to pay growth-equity prices for traditional market risk (as in, they’re paying up before it is clear there is product / market fit). That happened a lot in 2002 and again in 2008.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

rapidrollout.wordpress.com

OCTOBER 23, 2010

Web Startup Lessons Advice from a CTO and Entrepreneur Home About Finding a Technical Partner for Your Startup Today I received an inquiry from a student at an Ivy League university who wants to launch a web startup. I found your suggestions in the article “Startup Mistakes: The Partnership Gone Sour&# especially useful.

Technical Review 40

Technical Review Fractional CTO Partner CTO Hire 40

Both Sides of the Table

SEPTEMBER 2, 2009

On a panel that I sat on with Ron in LA in 2008 he stated that there were no circumstances in which the founder should take money off of the table. We should end the year with a few million in fully recurring revenue and we’re projected to double next year. But more spend = more viral opps = more revenue down the road.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

ReadWriteStart

APRIL 1, 2020

Further still are the discussions that we may eventually be stuck–similar to the Great Recession of 2008–in a recovery that excludes jobs as we emerge from this cluster. If there is a silver lining to all of this, it is that such events are often breeding grounds for innovation, pivots, startups and the birth of new companies.

Startup 120

Startup SEO Private Equity Venture Capital 120

ReadWriteStart

OCTOBER 7, 2010

Bottom line, early stage equity is very, very expensive. As a thumb rule, try to get enough validation so that you can get to at least a $2 million pre-money valuation before raising equity capital. That is debt financing that converts into equity at the Series A valuation once the price for that is set. (I Photo by lco.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

ReadWriteStart

SEPTEMBER 10, 2010

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. Because customer financing equals revenue, not equity. I started doing my free Online Strategy Roundtables for entrepreneurs in the fall of 2008.

Cloud 115

Cloud Silicon Valley Incubator Finance 115

Altgate

DECEMBER 17, 2009

" Well, there are basically three ways you can link pay to performance (in startups): Discretionary (i.e. it's up to the Board or CEO) One or more financial metrics Balanced scorecard For very early stage startups (e.g. And finally, once the business has achieved greater scale and size (50+ people, $10MM+ revenue, etc.)

Venture Capital 47

Venture Capital Metrics Startup Software Review 47

View from Seed

NOVEMBER 7, 2019

Like many things in life, the VC/startup ecosystem is one of cycles. But let’s look back at the last decade in VC-backed startups… it’s easy to forget how predominant mindsets change throughout the cycle. Good Times” presentation (Oct 2008). VC funding for startups is drying up quickly. 2009-2011: Retrenchment.

IPO 202

IPO Early Stage Cofounder B2C 202

Startup Company Lawyer

MAY 1, 2009

CompStudy publishes an annual report of equity and cash compensation that provides compensation data on top management positions and Boards of Directors at private companies in technology and life sciences. The 2008 results are available on Altgate and are also embedded below. 2008 CompStudy Report in Technology.

Stock Options 31

Stock Options CTO Hire Equity 31

David Teten

SEPTEMBER 5, 2014

I was excited to see that GLG (formerly Gerson Lehrman Group), the industry leader, is now offering a professional network service geared to the needs of the startup community: GLG Share. Like many established finance & media companies, GLG knows that the tech startup sector is a growing part of the economy.

New York 114

New York Technical Review Networking Advisory Board 114

Startup Lessons Learned

MAY 25, 2020

42:07) On how the 2008 financial crisis prepared banks for the pandemic. (44:25) And then from there, I was running a fitness company on the west coast by the name of 24 Hour Fitness, which was private equity backed and quite a bit of debt. Stanley McChrystal's Team of Teams. (29:34) 34:28) The mortgage industry finally goes digital.

Technical Review 148

Technical Review Balance Sheet Texas Austin 148

The Startup Magazine

FEBRUARY 6, 2020

The buyers (or lessees) in these transactions are pension funds, insurance companies, or private equity representing other institutions. Private Equity sees infrastructure investing as uncorrelated diversification and has the additional upside of correcting any operational inefficiencies. appeared first on The Startup Magazine.

Private Equity 129

Private Equity New York City Chicago Investment Bankers 129

www.chubbybrain.com

SEPTEMBER 28, 2011

25 Best Startup Failure Post-Mortems of All Time. Update – As a followup, we analyzed all of these startup failure post-mortems to identify the top 20 reasons for startup failure. Also worth a read after you review these startup failure post-mortems. Post-Mortem Title : How My Startup Failed.

Software Review 79

Software Review Startup Technical Review Vesting 79

Austin Startup

NOVEMBER 25, 2018

As I mentioned at the beginning of this series/ebook, over the years I’ve noticed that I tend to frequently share certain Lucky7 posts with entrepreneurs we’ve backed , team members at data.world, or other startup investors I know. 2008 Harvard Business Review. In totality, these posts are at least as long as most business books.

Bootstrapping 48

Bootstrapping Austin Equity Cofounder 48

Both Sides of the Table

MARCH 11, 2010

Recently I’ve been debating with a number of young startup companies that are raising money in the next few months, “what is the right about of capital to raise at a startup?&#. Let’s assume that the $2 million buys 25% of your company, which is the norm in an equity financing. There are trade offs.

Venture Capital 319

Venture Capital Startup Silicon Valley Warrant 319

VC Cafe

NOVEMBER 3, 2010

Shamir Optical reported revenues of $142 million in 2009, generated mainly in Europe and the United States, and has about 1,400 employees. In 2008, the company, which employs about 30,000 worldwide, reported revenues of $28.8 In 2008, the company, which employs about 30,000 worldwide, reported revenues of $28.8

Bandwidth 79

Bandwidth Framework Forecast 79

Agile VC

NOVEMBER 7, 2019

Like many things in life, the VC/startup ecosystem is one of cycles. But let’s look back at the last decade in VC-backed startups… it’s easy to forget how predominant mindsets change throughout the cycle. Good Times” presentation (Oct 2008). VC funding for startups is drying up quickly. Reading Time: 5 minutes.

IPO 100

IPO Early Stage Cofounder B2C 100

www.singlefounder.com

OCTOBER 23, 2010

I’d like to take a few minutes to dispel the top five myths of software startups. VC funding gets you startup capital and a chance. Go ahead and laugh, but over 95% of Moon River Software’s revenue this year has been from consulting services. Myth #1: I need to get VC funding to make my company successful.

Software Review 40

Software Review Software Startup Massachusetts 40

Both Sides of the Table

OCTOBER 14, 2015

The truth is that the brutal reality of public markets is that they self correct much more quickly than our shitty little private equity illiquid corner of the universe. What is your revenue growth rate and what does this imply about your number of months of capital remaining? I put up this slide as part of my discussion.

Burn Rate 150

Burn Rate San Francisco Private Equity LP 150

Both Sides of the Table

FEBRUARY 14, 2016

” “Mark has a vested interest in talking down valuations of startups.” Most prefer not to say this publicly for two reasons: 1) they have an entire portfolio of startups, many of whom are raising capital and 2) they prefer not to be attacked publicly or seem “anti entrepreneur.” goes into a startup.

Valuation 150

Valuation Down Round Startup Later Stage 150

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 23, 2012

Witness, for example, this terrific Fast Company article on Bill Nguyen , serial entrepreneur who’s seventh startup “Color” famously raised $41m for a new mobile app before it even launched. After all, before the house of cards inevitably tumbles, private equity investors get a tidy return.

IPO 240

IPO Flash Bootstrapping Private Equity 240

www.instigatorblog.com

MARCH 2, 2010

Home About Contact My thoughts & lessons learned on startups, entrepreneurship, marketing and other stuff. The Importance of Advisory Boards for Startup CEOs Tweet When a startup receives financing it will need to setup a Board of Directors. This is typically done with a small piece of equity. Expectations.

Advisory Board 40

Advisory Board Startup Cofounder Equity 40

Reid Hoffman

JANUARY 26, 2021

Last week, we explored the topic of startup boards of directors. The primary goal of this conversation was to explain how and why a great startup board can be a powerful tool to help the CEO make the company successful. One of the things a financing round brings is an opportunity to strengthen the startup’s overall network.

Startup 36

Startup Equity Early Stage Green 36

Both Sides of the Table

APRIL 14, 2010

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. Tags: Entrepreneur Advice Raising Venture Capital Start-up Advice Startup Advice. It is 2010. Time suck.

Venture Capital 289

Venture Capital Liquidation Preference Common Stock Dividend 289

Up and Running

AUGUST 19, 2014

You might have held off paying yourself while launching your startup, but is it time to give yourself a salary? Owning a business requires plenty of “sweat equity,” and initially often results in working far harder than you’re being compensated for—and earning less than if you worked for someone else!

Salary 119

Salary Sweat Equity Silicon Valley Sales Cycle 119

Startup Lessons Learned

OCTOBER 30, 2008

Lessons Learned by Eric Ries Thursday, October 30, 2008 John Doerrs 10 lean startup tips I just saw video of John Doerrs talk yesterday at VentureBeat’s “How to manage your start-up in the downturn&# roundtable event. Not just about expenses, about increasing revenue. Offer equity instead of cash.

Lean 121

Lean San Francisco Continuous Deployment DC 121

dondodge.typepad.com

JANUARY 15, 2011

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

Equity Employee Dilution Valuation 40