SoCal CTO

SEPTEMBER 27, 2011

If the company's valuation is $2 million, $90k is 4.5%. Of course, to be able to use this kind of formula, you will need to be able to determine how much impact the person will have and figure out a valuation. I've talked about this topic before in How Investors Think About Valuation of Pre-Revenue Startups.

Early Stage 391

Early Stage Equity CTO Hire Sweat Equity 391

Both Sides of the Table

APRIL 26, 2016

The key to being able to run a business that isn’t yet profitable (on operating margin) is availability of capital to finance losses and preferably at a cost that isn’t too punitive to the founders and employees. CAC is often measured incorrectly and doesn’t often doesn’t capture the true costs of acquisition. The first input is CAC.

Metrics 150

Metrics Cost Acquisition Startup 150

Startup Professionals Musings

MARCH 25, 2023

Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation. The concept of free goods and services to get you hooked, financed by deep pockets, or advertising, seems marginally ethical to many. Most are still confused about the right priority.

Valuation 235

Valuation Revenue Viral Retention 235

ReadWriteStart

JUNE 1, 2020

If you are facing any problem you can always check out this: Business Loan vs. Equity Financing. The bridge or exit stage is generally of very large transactions and for companies with substantial valuation. These phases are focused on inorganic growth, mergers, buyouts, acquisitions, and exit preparation for the business.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

allthingsd.com

AUGUST 24, 2012

Fenwick VC Survey: Q2 Funding Valuations Shoot the Moon. According to Fenwick & West’s latest Silicon Valley Venture Capital Survey , fundings in the second quarter of this year showed the highest valuation increases in more than five years. ATDacquisitions (Acquisitions). August 23, 2012 at 7:00 am PT.

Valuation 45

Valuation Technical Review Silicon Valley Software Review 45

Startup Professionals Musings

JUNE 21, 2020

Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation. The concept of free goods and services to get you hooked, financed by deep pockets, or advertising, seems marginally ethical to many. Most are still confused about the right priority.

Revenue 434

Revenue Valuation Viral Retention 434

Tim Keane

MARCH 9, 2011

How should I finance my new venture? It’s a deceptively simple question:  what is the optimal way to finance a new startup? Misaligned interests that lead to poor financing choices are often very problematic for first time entrepreneurs in young companies.  « Leaving a Trail | Main. | five years.).

Finance 83

Finance Bootstrapping Startup Equity 83

YoungUpstarts

JULY 10, 2017

Effects on valuation. In some instances, revenue will be recognized earlier than in the past, and sometimes later, which will inevitably impact the valuation of the company. Additionally, certain contract acquisition costs, such as commissions, may be added to the balance sheet, thus impacting the timing of expense recognition.

Technical Review 124

Technical Review Revenue Software Review Due Diligence 124

Steve Blank

OCTOBER 24, 2017

Facebook’s ~$20 billion acquisition of WhatsApp, a 5-year-old startup that had $10 million in revenue, made no sense until you realized that Facebook was paying to acquire 300 million new users.). A 20th century VC was likely to have an MBA or finance background. 2. Information is everywhere. 4. Founder-friendly VCs.

Founder 252

Founder Technical Review CTO Hire IPO 252

YoungUpstarts

MARCH 11, 2015

With the daily demands of running a business along with the financial pressures and challenges inherent in early-stage companies, a business valuation may not be the first thing an entrepreneur thinks of when he awakes each morning. When does a startup company need a business valuation? The timing will vary depending on the purpose.

Valuation 100

Valuation Stock Options CPA Merger 100

Both Sides of the Table

AUGUST 12, 2010

In the technology world there are a few websites that most startups track to keep up with the latest financings, acquisitions, product announcements and gossip: BusinessInsider, TechCrunch, Mashable, GigaOm, etc. Specifically we talked about Slide having gotten a $550 million valuation before being sold to Google for $182 million.

Seed Stage 232

Seed Stage Valuation Private Equity Venture Capital 232

View from Seed

DECEMBER 4, 2019

Over the last 10 years, we’ve been in a bull market with considerable froth in late stage financing activity and valuations. The cases of WeWork and Uber cast a cloud of doubt over funds that are largely driven by one or two outlier companies that may have a tremendous valuation, but shaky underlying business metrics.

LP 256

LP IRR Distribution Portfolio 256

Up and Running

APRIL 8, 2019

This will require an accurate valuation. Buyers and sellers don’t always agree on what’s valuable and what isn’t, which is why hiring a valuation consultant or a CPA who has experience valuing businesses is a good idea. There are a number of critical documents you’ll need to have in order to arrive at an accurate valuation.

Valuation 92

Valuation Small Business CPA Balance Sheet 92

Both Sides of the Table

NOVEMBER 14, 2017

How long does it take me to pay back my original customer acquisition costs? This financial leader could well have come through the finance org at another startup or at a larger company but they often also can come from strategy consulting (Bain, BCG or McKinsey) or through investment banking (Goldman Sachs, Morgan Stanley, etc.).

Operations 286

Operations New York City Technical Review Startup 286

A Smart Bear: Startups and Marketing for Geeks

JUNE 20, 2011

Or a company like Zappos (who was famous, growing, and profitable) still got only a 1x sales valuation when bought by Amazon because of thin margins. There’s many possibilities, each of which will cause a different valuation of your company. That’s where acquisition comes in — if you can’t make it, buy it!

Sales 260

Sales Channel Cofounder Valuation 260

Both Sides of the Table

JULY 29, 2010

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. The best thing to get is a “right sized&# valuation. A: It’s not best.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

ReadWriteStart

JULY 17, 2023

The acquisition will help Sheela Foam enter the fast-growing branded furniture market and expand its presence in the furniture industry. The platform has raised over $225 million through equity and debt financing to date. With this acquisition, Sheela Foam will be able to offer a wider range of products and services to its customers.

India 104

India Acquisition Merger Curation 104

Steve Blank

AUGUST 19, 2013

In the last six years half the VC’s in the space have disappeared , unable to raise new funds, and the number of biotech and device startups getting first round financing has dropped by half. For exits, acquisitions are the rule and IPOs the exception.

Venture Capital 302

Venture Capital Startup Lean Philadelphia 302

VC Cafe

JANUARY 2, 2023

On a global level, venture financing of private companies dropped 33% year over year, from a record $733B in 2021 to $490B in 2022. The ten biggest exits of the year included a mix of IPOs and acquisitions. There are 85 Israeli unicorns, but only about 50% them justify a billion Dollar valuation, according to Viola’s report.

Valuation 158

Valuation Down Round Venture Capital 158

Startup Professionals Musings

OCTOBER 19, 2015

That’s why I recommend that they find a co-founder who loves business challenges, including marketing and finance. Patents can raise startup valuation by investors by as much as a million dollars, and will attract acquisitions rather than copycats. Patents are not worth the effort, since big companies will win.

Technical Review 120

Technical Review Intellectual Property Cofounder Bootstrapping 120

Steve Blank

FEBRUARY 26, 2020

Btw, the definition of each startup financing stage has changed in the last decade. At the end of this post, we’ll discuss the valuation at each step (how much the investors value your company and therefore how much of it you need to give up to get this money) and how much revenue you should generate at each step.).

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

Steve Blank

APRIL 1, 2020

Others are cutting their valuations. How can you shift focus to customer retention versus acquisition? As part of these operating changes, make sure your heads of HR and finance recognize that they have entirely new jobs. If you were expecting angel or venture funding get on the phone to your investor(s).

South Korea 333

South Korea Salary Business Model China 333

Up and Running

DECEMBER 9, 2014

Bates: Good morning and welcome to our CEO panel, “How to Fine-Tune Your Small Business Finances From Funding to Growth” which I think is the direction that we would all like to be going. I’m here with some really phenomenal CEOs who are going to talk to us today about small business finances from funding to growth.

Small Business 95

Small Business Finance Forecast Metrics 95

The Startup Magazine

SEPTEMBER 23, 2021

As a testament to the growing power of “the creator economy,” visual content creation app development startup Lightricks has secured an impressive $130 million investment round, at a valuation of $1.8 To begin, we are planning between three to five acquisitions, each with a budget of tens of millions of dollars. Startup Journey.

Private Equity 144

Private Equity Developer Venture Capital Merger 144

The Startup Magazine

SEPTEMBER 10, 2019

Asset valuation. The concept of asset valuation may seem counterintuitive, but it is an important idea. Compared to Accounting, Finance is ruthlessly forward looking. Most financial valuation formulas value an asset by discounting the asset using the cost of capital (interest rate) to the present day. Alpha generation.

Founder 118

Founder Valuation Dividend Startup 118

The Next Web

OCTOBER 7, 2013

As an aside for founders, there is an interesting approach on how to arrive at equity offers outlined by Fred Wilson that may be worth checking out once there is a sense of valuation. As stated earlier, investors will dilute ownership upon nearly every round of financing. Are they especially acquisitive? N: exit size.

Engineer 129

Engineer Dilution Option Pool Vesting 129

Duct Tape Marketing

FEBRUARY 3, 2022

Since 2015, her company, Barney, has guided over 150 media, marketing & tech companies through acquisitions. 10:25] Are you seeing anybody selling parts of their companies rather than an entire acquisition? [11:19] All those things go into, you know, setting what that, that valuation is outside of just the financials.

Entrepreneur 79

Entrepreneur Technical Review Cofounder Valuation 79

ithacaVC

NOVEMBER 14, 2014

I have written about startup valuations previously. If you are advising startup founders, I strongly suggest having them read all 4 of the posts to get the lay of the startup valuation land. There’s a reason it’s so difficult to figure out – valuations have little basis in reality for early stage companies.

Valuation 69

Valuation Startup Down Round Early Stage 69

YoungUpstarts

JUNE 20, 2016

The switch from PDRs to VDRs resulted in deal cycles and increased valuations. Mergers and Acquisitions. Accounting demands accurate audit trails that allow easy tracking of finances. In the last 10 years, Virtual data rooms have steadily replaced paper-heavy and laborious Physical data rooms. percent between 2009 and 2014.

Software Review 100

Software Review Technical Review Due Diligence Security 100

Mucker Lab

MAY 28, 2020

These lost startups land higher valuations, have larger teams, outsource more product development and spend more money on customer acquisition than their peers. Compass.co, a benchmarking and research service, analyzed 3,200 internet startups and found that 74 percent “fail due to premature scaling.” How do you know you have it?

Startup 78

Startup Cofounder Burn Rate Technical Review 78

VC Adventure

MARCH 17, 2022

With the markets down significantly, financings (at least at the later stages) slowing down, and inflation and interest rates on the rise, perhaps now is a good time to talk about your burn rate. Hopefully, you took advantage of the robust financing markets of the past few years to put some money on your balance sheet.

Balance Sheet 121

Balance Sheet Burn Rate Valuation Metrics 121

View from Seed

JANUARY 11, 2023

Think partners coming together to tap their own networks for your follow-on rounds of financing. The Clarity of the Terms : how will your company be financed? Every accelerator also finances its cohort companies differently. Complicated agreements with MFN clauses and confusing future financing obligations are opaque at best.

Programming 156

Programming Sacramento San Francisco Founder 156

David Teten

JANUARY 19, 2021

The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Further reading: The Evolution of Entrepreneurial Finance: A New Typology. Yes, typically preferred equity.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

ReadWriteStart

SEPTEMBER 10, 2010

I call it drip-financing. Most entrepreneurs have no choice but to avail of this sort of financing along with the mentoring and the contacts that could come with it (doesn't always come along, though). In 1M/1M, our preferred financing strategy is customers. Because customer financing equals revenue, not equity.

Cloud 115

Cloud Silicon Valley Incubator Finance 115

The Startup Magazine

APRIL 19, 2024

Vehicle Acquisition and Disposal Strategically managing the acquisition and disposal of fleet vehicles can have a major impact on controlling expenses. Moreover, evaluating the potential resale value of vehicles at the point of acquisition helps maximize returns when it’s time to dispose of them.

Cost 149

Cost Management Massachusetts Acquisition 149

Hunter Walker

AUGUST 8, 2023

At the time, this is last quarter and the stock market has trended upwards nicely since then (a potential leading indicator of private tech valuations), we all agreed venture portfolios were probably still 25-40% overvalued. Valuations. Soft Acquisition Market. Whatever gets reported is just the tip of the iceberg.

Portfolio 99

Portfolio Cap Table LP Valuation 99

Cracking the Code

FEBRUARY 23, 2011

The sales productivity ratio (measured with the Customer Acquisition Cost or CAC ratio) are also fairly similar for the two groups (except for a small cap dip in Q4 09) and therefore do not explain the difference Why is scale so much rewarded by public markets? Detailed SaaS Spreadsheet (Valuation and CAC benchmark). Yahoo Finance.

Software Review 101

Software Review Technical Review Valuation Europe 101