Berkonomics

JANUARY 3, 2019

But it is within the range of experience by many of us professional investors, and with those who have acted as brokers, serial purchasers or consultants for acquisitions. Why would anyone acquire a company? With this rate of disappointment, why would anyone or any company purchase another? Lessons to learn from the best. And the lesson?

Acquisition 48

Acquisition Due Diligence Forecast Employee 48

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

Steve Blank

JULY 15, 2010

Until 1995 startups going public typically had a track record of revenue and profits. Suddenly there was a public market for companies with limited revenue and no profit. Number of Venture Backed Liquidity Events 1991-2000. Number of Venture Backed Liquidity Events 2000-2010. Source: NVCA.). Free At Last.

Venture Capital 297

Venture Capital IPO Liquidity Event Entrepreneur 297

Steve Blank

JUNE 23, 2016

Intel under their last two CEOs delivered more revenue and profit than any ever before. Capital is returned to these investors through liquidity events (originally public offerings, but today mostly acquisitions). Its acquisition of Android may have been the biggest bargain in corporate history.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

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. Gross margins greater than 50%. Show red ink to match your funding request.

Liquidity Event 176

Liquidity Event Equity Venture Capital Merger 176

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. For VC’s and entrepreneurs the gold rush to liquidity was on. The New Exits.

Internet 334

Internet IPO Silicon Valley Agile 334

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. Projected revenues and expenses over the strategic period. The entrepreneur needs to show a strategy for such an event, and a projected value and return to the investor.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

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). If you don’t plan a liquidity event, you won’t find many investors interested. Quantify founder investments, both cash and sweat-equity.

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Growthink Blog

MAY 26, 2011

Last week, TruckCenter.com was purchased by Liquidity Services (NASDAQ: LQDT), a company that runs online auctions for surplus goods. I found this pretty amusing since when a company is purchased, we often say it reached a "liquidity event." your business) into cash.

Acquisition 81

Acquisition Liquidity Event Valuation Revenue 81

Berkonomics

SEPTEMBER 24, 2015

Perhaps you have decided to continue growing top line revenues at the expense of cash flow (EBITDA.) For high growth ventures being groomed for a lucrative liquidity event, this is usually a wise choice, presuming additional growth capital can be successfully raised on agreeable terms.

Liquidity Event 48

Liquidity Event Ohio Acquisition Revenue 48

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

Gust

NOVEMBER 4, 2011

Never missing an opportunity for a good war story, I’d like to revisit one high-profile transaction, the $650 million acquisition of MySpace by Fox Interactive Media in 2005, on which I spent many sleepless nights along with the rest of the deal team. Read on for a fuller explanation. Intermix and its advisors weren’t fools. of MySpace, Inc.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Berkonomics

SEPTEMBER 6, 2018

But each commitment of resources of any substantial size for acquisition of new products, talent, even new companies, changes the value of your enterprise perhaps to a great degree. Should I make an acquisition to increase value? Let’s analyze the effect of a potential acquisition upon the value of your company.

Acquisition 48

Acquisition Distribution Channel Operations 48

Berkonomics

AUGUST 27, 2011

But each commitment of resources of any substantial size for acquisition of new products, talent, even new companies, changes the value of your enterprise perhaps to a great degree. Let’s analyze the effect of a potential acquisition upon the value of your company.

Acquisition 73

Acquisition Distribution Channel Revenue 73

Startup Professionals Musings

MARCH 13, 2020

Find some credible opportunity statistics that can support your own revenue expectations of between $20 million and $100 million in the fifth year. > Market penetration and revenue targets related to opportunity size. Companies that get investor attention usually double their revenue or more every year.

Liquidity Event 308

Liquidity Event Forecast Exit Strategy Bootstrapping 308

The Next Web

SEPTEMBER 29, 2013

Investors are always thinking about growth mode because that’s the path to where they want to go – liquidity event. Some metrics that I like to look for are: Lifetime value of a customer, average revenue per buyer, cost of a paying customer, registration rates, etc. How do you do that? Now let’s talk about the metrics.

Metrics 136

Metrics Cofounder Cram Down Liquidity Event 136

Berkonomics

SEPTEMBER 13, 2018

Strategic buyers look for managerial talent, intellectual property, geographic expansion, an extension into adjacent markets – and more – that will be achieved with the acquisition of your company. Negotiating with an emotional buyer.

Intellectual Property 240

Intellectual Property Investment Bankers Acquisition Forecast 240

Up and Running

SEPTEMBER 20, 2021

A convertible note is like a loan, but this amount can be converted into company equity later on, usually during a liquidation event, like the acquisition of the company. It is attractive for seed-stage companies that have not had time to show much traction in terms of their product or revenue. Convertible notes.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

Berkonomics

SEPTEMBER 2, 2011

Strategic buyers look for managerial talent, intellectual property, geographic expansion, an extension into adjacent markets and more that will be achieved with the acquisition of your company.

Intellectual Property 88

Intellectual Property Investment Bankers Acquisition Forecast 88

Seeing Both Sides

SEPTEMBER 15, 2015

Are Israeli companies on the verge of developing a repeatable playbook to scale their companies and become market leaders, not just acquisition fodder for the Silicon Valley giants? To answer these questions, we built a database of 112 Israeli companies founded between 1996 and 2013 that have met or exceeded $20 million in revenue.

Cofounder 20

Cofounder Technical Review United States 20

www.quora.com

JANUARY 16, 2011

Building a scalable, profitable, customer acquisition engine. What did you take from idea on the back of a napkin to liquidity event? Today's "Minimum Viable Product" *must* have scalability / capacity planning and security baked in, *not* postponed until revenue starts to come in. Now we turn it around.

Developer 42

Developer Technical Review Cofounder Technical Cofounder 42