Up and Running

MAY 17, 2017

Plus, you’ll always be prepared in case an opportunity or desire to sell arises in the future—it’s a smart idea to have an exit strategy. The sad reality is that many business acquisitions do not work out as hoped. To make your business ripe for acquisition, make your business appealing to potential buyers.

Acquisition 92

Acquisition Technical Review Revenue Exit Strategy 92

ReadWriteStart

OCTOBER 2, 2021

And even though an LLC is legally required to report its revenues, profits, and losses, it does not have to pay corporate income taxes on profits. One primary consideration in creating a tech startup is the long-term strategy, per the owner/founder’s goals, especially regarding exit.

Technical Review 78

Technical Review LLC IPO Stock 78

Reid Hoffman

JULY 23, 2020

This week, I’d like to turn to the question of how current market conditions affect the approach entrepreneurs should take towards their exit strategy. Companies make acquisitions based on strategic goal that are aligned with their inner workings. If you win that market, you’re going to be valuable as an acquisition.

IPO 36

IPO Exit Strategy Acquisition Technical Review 36

ReadWriteStart

JUNE 1, 2020

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. These usually play a role in the very early stage of your business, primarily pre-revenue. Reasons for funding. ? Incubators and Accelerators. Government programs.

Startup 150

Startup Elevator Pitch Entrepreneur Seed Stage 150

Steve Blank

NOVEMBER 18, 2016

Most often the first acquisitions in a hype cycle are for the “shiny objects” – the technology, the team and the tools. The irony is that the acquisitions made later in the hype cycle – when companies have built real products that customers want, are the ones that generate revenue and profit for the acquirer.

Artificial Inteligence 318

Artificial Inteligence Lean Exit Strategy Startup 318

Startup Professionals Musings

FEBRUARY 25, 2023

Yet one of the first things a potential equity investor asks about is your exit strategy. Here are three important reasons for the question: Good investment paybacks normally require an exit event. This alternative is often paired with a personal no-exit strategy. You can kick-off your next startup.

Exit Strategy 264

Exit Strategy Private Equity Equity Technical Review 264

YoungUpstarts

MAY 6, 2019

How much revenue are you generating on an annual basis? Is there an exit strategy? Further Customer Acquisition. You need to improve your customer acquisition process. These partnerships need to bring in more revenue. Acquisition. What type of funding do you require and how you require it?

Startup 104

Startup Merger Technical Cofounder Early Stage 104

Startup Professionals Musings

MAY 25, 2020

Yet one of the first things a potential equity investor asks about is your exit strategy. Here are three important reasons for the question: Good investment paybacks normally require an exit event. This alternative is often paired with a personal no-exit strategy. You can kick-off your next startup.

Exit Strategy 376

Exit Strategy Startup Private Equity Equity 376

Steve Blank

SEPTEMBER 14, 2009

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. There was now a public market for companies with no revenue, no profit and big claims.

Silicon Valley 217

Silicon Valley Technical Review IPO Venture Capital 217

SoCal CTO

FEBRUARY 17, 2007

They are quite happy with a business that will turn into a profitable $20M company and dont necessarily need an obvious exit strategy. Technology Advisor Technology Roles in Startups Pricing Customer Acquisition Sunk Costs and More -. This is something Ive always wondered about.

Incubator 150

Incubator Technical Cofounder Southern California Los Angeles 150

Startup Professionals Musings

JANUARY 5, 2011

Assuming your startup takes off, you will probably find that the fun is gone by the time you reach 50 employees, or a few million in revenue. So here are the most common exit strategies and considerations these days for planning purposes: Merger & Acquisition (M&A). To some, an exit strategy sounds negative.

Exit Strategy 231

Exit Strategy Initial Public Offering Startup IPO 231

Startup Professionals Musings

AUGUST 17, 2014

Aggressive revenue projections and growth rate. Revenue in the fifth year should be at least $20 million, with a growth rate average of 100% per year. In other words, revenue projections are not the place to be too conservative or wildly optimistic. That’s why investors want to hear about your exit strategy.

Liquidity Event 249

Liquidity Event Equity Venture Capital Merger 249

Startup Professionals Musings

SEPTEMBER 30, 2015

In addition, current investors want to see every startup go public or be acquired, as an exit event, so they can get their due return for that investment which has been tied up for the last few years. For these reasons, I always look for an overt exit strategy in every startup I might consider for an angel investment.

Exit Strategy 120

Exit Strategy Startup Valuation Acquisition 120

Startup Professionals Musings

MAY 28, 2013

Aggressive revenue projections and growth rate. Revenue in the fifth year should be at least $20 million, with a growth rate average of 100% per year. In other words, revenue projections are not the place to be too conservative or wildly optimistic. That’s why investors want to hear about your exit strategy.

Liquidity Event 243

Liquidity Event Startup Equity Venture Capital 243

Steve Blank

NOVEMBER 18, 2016

Most often the first acquisitions in a hype cycle are for the “shiny objects” – the technology, the team and the tools. The irony is that the acquisitions made later in the hype cycle – when companies have built real products that customers want, are the ones that generate revenue and profit for the acquirer.

Artificial Inteligence 120

Artificial Inteligence Lean Exit Strategy Startup 120

Startup Professionals Musings

JUNE 26, 2020

All startups, including non-profits, need revenue to thrive, such as such as from subscriptions, retail, online, licensing, or services. They want to see revenue to share in the return. Here I recommend a 5-year projection of revenues, expenses, and funding requirements. Outline a viable exit strategy for you and investors.

Business Plan 423

Business Plan Product Intellectual Property Elevator Pitch 423

Gust

AUGUST 10, 2014

Aggressive revenue projections and growth rate. Revenue in the fifth year should be at least $20 million, with a growth rate average of 100% per year. In other words, revenue projections are not the place to be too conservative or wildly optimistic. Thats why investors want to hear about your exit strategy.

Liquidity Event 176

Liquidity Event Equity Venture Capital Exit Strategy 176

Up and Running

MAY 4, 2015

Explain your plan for customer acquisition. Describe your revenue model. State your exit strategy. Explain your solution. Describe your successes. Define your target market. Outline your competition. Provide your financial projections. Introduce your team. Clarify your funding needs.

Technical Review 60

Technical Review Entrepreneur Software Review Houston 60

Startup Professionals Musings

JANUARY 16, 2011

It has been at least a decade since going public via an Initial Public Offering (IPO) has been considered a credible exit strategy for startups. Do you need the IPO for your acquisitions strategy? Of course, you’re going to have to perform well to make that stock useful in the acquisitions process.

IPO 223

IPO Social Media Media Exit Strategy 223

Startup Professionals Musings

AUGUST 7, 2015

Every customer understands that your solution has to generate more revenue than cost, but you should not put that data in a customer pitch. Of course, these should never be in a customer pitch, but investors expect an overall strategy with specific budgets, milestones and metrics.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

The Equity Kicker

JULY 3, 2012

The aQuantive acquisition came hot on the heals of Google’s $3.1bn acquisition of Doubleclick and was clear evidence of Microsoft’s ambitions to be a serious player in online advertising. For Adtech startups looking for an exit strategy this is bad news. Unfortunately this prediction has not come to pass.

Exit Strategy 96

Exit Strategy Acquisition Advertising Metrics 96

Gust

JULY 31, 2012

Typically, angel-funded companies that are going sideways have 1-10 employees and sufficient revenues and earnings to be sustainable, but are not attractive acquisition candidates to larger companies. I am not recommending this exit strategy, only describing for readers a process used by others in the angel community.

Exit Strategy 135

Exit Strategy Angel Investor Capital Gains Startup 135

Startup Professionals Musings

FEBRUARY 13, 2016

What are your forecasts for revenue, expenses and cash flow? Technically, this is your exit strategy, usually a merger and acquisition (M&A) or initial public stock offering (IPO). Since investors are buying a part of your company (not your product), this is the most important question, and is one often not answered.

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Startup Professionals Musings

SEPTEMBER 12, 2014

Yet one of the first things a potential equity investor asks about is your exit strategy. Here are three important reasons for the question: Good investment paybacks normally require an exit event. This alternative is often paired with a personal no-exit strategy. You can kick-off your next startup.

Exit Strategy 289

Exit Strategy Entrepreneur IPO Startup 289

YoungUpstarts

DECEMBER 15, 2011

Launching a business often involves dips in revenue, and a startup will only survive if it can manage expenses during this fragile time. Understand the Exit Strategy. He writes , “Every startup should have a clear exit strategy that they can share with investors. Investors Look at Salaries.

Exit Strategy 167

Exit Strategy Balance Sheet Startup Salary 167

ReadWriteStart

MAY 1, 2012

The big news in the world of tech acquisition may be Facebook’s $1 billion acquisition of Instagram. For entrepreneurs in the gaming field, being bought by Zynga is the new exit strategy. Zynga bought 22 companies in 2010 and 2011, and plans to increase its acquisition pace in the years ahead. Zynga has $1.8

Startup 118

Startup Exit Strategy Acquisition Flash 118

www.inc.com

SEPTEMBER 24, 2011

Pricing Strategy. Exit Strategies. Strategy and Planning. But with the help of Grahams company, which specializes in creating tech systems for start-ups, Jumpstart grew to more than $50 million in revenue--enough to make it an attractive acquisition for media conglomerate Hachette Filipacchi. Legal Issues.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Startup Professionals Musings

JUNE 2, 2013

This requires a visible focus on the company’s revenue model, the costs to get there, and cash on hand. Exit strategy. What’s most realistic these days is an exit via sale to an existing major company for which you solve a meaningful problem. That means merger and acquisition (M&A), not initial public offering (IPO).

Cram Down 269

Cram Down Angel Investor Intellectual Property Venture Capital 269

Startup Professionals Musings

APRIL 27, 2016

Yet one of the first things a potential equity investor asks about is your exit strategy. Here are three important reasons for the question: Good investment paybacks normally require an exit event. This alternative is often paired with a personal no-exit strategy. You can kick-off your next startup.

Equity 120

Equity Exit Strategy Private Equity Startup 120

YoungUpstarts

MAY 7, 2015

Many ESOPs are as small as 12-15 employees with less than $1 MM in annual revenue. The tax savings can quickly accumulate and the cash can be used for reducing debt, capital investment or even making acquisitions. Myth: ESOPs are only for large companies. Fact: Profitability of the company is more important than size.

Stock 100

Stock Employee Private Equity Valuation 100

Mike Michalowicz

JANUARY 8, 2015

Some purchases are strategic acquisitions – your office cleaning company (with its client list and equipment) is attractive to a home cleaning business looking to expand. Other purchases are simply to generate revenue – allowing the buyer to streamline processes and cut costs by consolidating.

Intellectual Property 60

Intellectual Property Investment Bankers Exit Strategy Sales 60

Startup Professionals Musings

MARCH 13, 2020

In that context, I offer the following financial projection strategies, from my own experience: Forecast a business that has plenty of room to grow quickly. Find some credible opportunity statistics that can support your own revenue expectations of between $20 million and $100 million in the fifth year.

Liquidity Event 308

Liquidity Event Forecast Exit Strategy IPO 308

Gust

DECEMBER 23, 2011

Similarly, start calling VCs if your customer acquisition costs can only be recaptured over a substantial period of time. So: think deeply about the nature of your competitive advantage, your basic revenue vs. expense model, and whether the perception of a well-funded venture is important or not.

Intellectual Property 127

Intellectual Property Balance Sheet Dilution Bootstrapping 127

Gust

NOVEMBER 4, 2011

Depending on the circumstances, they can shape the fundamentals of an exit, redistribute value among stakeholders, or even kill a deal altogether. Read on for a fuller explanation. By the fall of 2004, the site’s explosive growth attracted the attention of many potential investors and buyers. Intermix and its advisors weren’t fools.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Up and Running

NOVEMBER 12, 2018

The subscription box industry is growing rapidly thanks to a steady revenue model and tapping into people’s love for surprises. Financial summary : Project your revenue for the first few years. Companies that become a big subset of your revenue are likely strategic alliances, though, which is a later section. Key customers.

Business Plan 63

Business Plan Curation Balance Sheet Intellectual Property 63

Entrepreneurs-Journey.com by Yaro Starak

MARCH 10, 2011

This article picks up from that point onward, discussing the challenges we ran into once we went into operation mode, the invaluable lessons that only first-hand experience can teach, the exit strategy which was the $250,000 sale of the website, and finally my overall concluding thoughts on the entire experience. Maybe or maybe not.

Technical Review 71

Technical Review PPC Due Diligence Exit Strategy 71

Up and Running

OCTOBER 3, 2018

Financial Summary: Explain your business model, startup costs, revenues, and liabilities to the company. Your funding ask and exit strategy, if applicable. Others predict Automated Valuation Models will provide more sophisticated revenue and expense information, possibly replacing financial analysts. Be specific.

El Paso 61

El Paso Business Plan Technical Review Forecast 61