VC Cafe

JANUARY 15, 2024

M&A/ Exits – This situation is compounded by a narrowing window for mergers and acquisitions (M&A) and initial public offerings (IPOs). There’s a pecking order, and perhaps the right timing will be the end of the year or beginning of 2025.

IPO 88

IPO Valuation Private Equity 88

Version One Ventures

OCTOBER 7, 2014

However, as Scott Krager points out in his post, the companies have vastly different approaches for generating revenue. Hubspot’s average revenue per customer: $8,670 per year. Moz’ average revenue per customer: $1,295 per year. Moz’ average revenue per customer: $1,295 per year. Moz spends $131 to acquire a new customer.

Initial Public Offering 148

Initial Public Offering IPO SEC Valuation 148

Startup Professionals Musings

JANUARY 13, 2018

Thus I’m getting more questions on new mechanisms, like crowd funding, or going public through the side door as a reverse merger. Being a public company isn’t cheap or easy. A PwC survey averages the burden of public companies at $1.5M Is your startup really ready to play in the corporate world?

Merger 198

Merger OTC IPO Due Diligence 198

Startup Professionals Musings

AUGUST 19, 2018

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Angel Investor 184

Angel Investor Intellectual Property Investment Bankers Private Equity 184

Startup Professionals Musings

MAY 3, 2014

A reverse merger is the acquisition of an already public company (usually a dormant shell) to avoid the Initial Public Offering (IPO) process and cost, to quickly get your startup on a public exchange for fund raising through visibility and selling stock. Being a public company isn’t cheap or easy.

Merger 246

Merger OTC IPO Stock 246

Startup Professionals Musings

SEPTEMBER 7, 2015

I recently saw a startup projecting $50 million in revenue for the first year. I recommend five-year projections, to show the evolution of revenues and expenses and funding and profitability expectations over time. My rule of thumb is that startup-revenue projections in the fifth year better be between $20 million and $100 million.

Liquidity Event 120

Liquidity Event Startup Initial Public Offering Equity 120

Startup Professionals Musings

JULY 4, 2014

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Angel Investor 232

Angel Investor Intellectual Property Investment Bankers Private Equity 232

Version One Ventures

OCTOBER 7, 2014

However, as Scott Krager points out in his post, the companies have vastly different approaches for generating revenue. Hubspot’s average revenue per customer: $8,670 per year. Moz’ average revenue per customer: $1,295 per year. Moz’ average revenue per customer: $1,295 per year. Moz spends $131 to acquire a new customer.

Initial Public Offering 78

Initial Public Offering IPO SEC Valuation 78

Startup Professionals Musings

FEBRUARY 19, 2012

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). Initial Public Offering (IPO).

Exit Strategy 241

Exit Strategy Initial Public Offering IPO Startup 241

Steve Blank

MARCH 18, 2011

VC’s worked with entrepreneurs to build profitable and scalable businesses, with increasing revenue and consistent profitability – quarter after quarter. The reward for doing so was a liquidity event via an Initial Public Offering. The revenue, profits and speed of scale of the winning companies can be breathtaking.

Internet 334

Internet IPO Silicon Valley Agile 334

Startup Professionals Musings

AUGUST 13, 2016

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Matching 120

Matching Angel Investor Intellectual Property Investment Bankers 120

Startup Professionals Musings

FEBRUARY 5, 2012

At this stage, your startup better be selling a commercial offering, have price and cost validated, with significant customer sales and a real revenue stream. This normally means more then 30 employees, and more then $1 million in revenue. Lesser amounts remain in the angel realm. Growth stage. Exit stage.

Investment Bankers 241

Investment Bankers Venture Capital Startup Initial Public Offering 241

Startup Professionals Musings

JUNE 15, 2015

Thus I’m getting more questions on new mechanisms, like crowd funding, or going public through the backdoor as a reverse merger. Being a public company isn’t cheap or easy. Experts estimate the burden of public companies at up to $1M a year. Is your startup really ready to play in the corporate world?

Merger 120

Merger OTC IPO Due Diligence 120

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). Initial Public Offering (IPO).

Exit Strategy 231

Exit Strategy Initial Public Offering Startup IPO 231

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

OCTOBER 13, 2010

At this stage, your startup better be selling a commercial offering, have price and cost validated, with significant customer sales and a real revenue stream. This normally means more then 30 employees, and more then $1 million in revenue. Lesser amounts remain in the angel realm. Growth stage. Exit stage.

Investment Bankers 231

Investment Bankers Venture Capital Startup Initial Public Offering 231

Gust

NOVEMBER 22, 2011

At this stage, your startup better be selling a commercial offering, have price and cost validated, with significant customer sales and a real revenue stream. This normally means more then 30 employees, and more then $1 million in revenue. Lesser amounts remain in the angel realm. Growth stage. Exit stage.

Venture Capital 171

Venture Capital Investment Bankers Angel Investor Initial Public Offering 171

YoungUpstarts

MARCH 11, 2015

This compensation can come in the form of a stock option , a stock appreciation right, or a similar financial instrument, which can potentially be quite lucrative for employees at the time of a merger, acquisition or initial public offering (IPO). A company can have value, even if there is no current income or revenue.

Valuation 100

Valuation Stock Options CPA Merger 100

Startup Professionals Musings

NOVEMBER 2, 2018

It probably had more to do with the fact that they had doubled their sales annually for several years, and still managed to squeeze out a profit of $11M in their year of acquisition. The best advantage includes intellectual property to provide a barrier to entry or incent acquisition.

Intellectual Property 48

Intellectual Property Initial Public Offering Merger Acquisition 48

ReadWriteStart

APRIL 2, 2012

The real truth is, since the "Internet bubble" burst in 2001, initial public offerings have not resumed the vitality levels of the late 1980s, let alone the boom years of the '90s. It refers to this specific, new group of young, low-revenue companies for whom some of the SOX reporting regulations will no longer apply.

IPO 121

IPO Startup Florida Seed Capital 121

online.wsj.com

SEPTEMBER 23, 2012

If failure is defined as failing to see the projected return on investment—say, a specific revenue growth rate or date to break even on cash flow—then more than 95% of start-ups fail, based on Mr. Ghoshs research. In early 2011 an acquisition by a Fortune 500 company fell apart. start-ups fail, he says.

Venture Capital 107

Venture Capital Software Review Rhode Island North Dakota 107