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

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

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.

Exit Strategy 135

Exit Strategy Angel Investor Capital Gains Startup 135

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

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.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Gust

OCTOBER 12, 2011

To angels , prepayment defeats the entire purpose of making a convertible note investment in an early stage startup: A 6% or 10% return within a year or two isn’t worth the risk associated with making an unsecured, non-recourse loan to an unproven, development-stage company with little or no revenue.

Finance 107

Finance Term Sheet Pre-Money Valuation Early Stage 107

Gust

MAY 24, 2012

In the case of an acquisition, the shares are tendered for cash and/or stock in the acquiring company.). Ordinarily, every share of Common Stock in a public company is identical, carrying one vote per share on matters put to any vote of stockholders.

IPO 159

IPO Equity Common Stock Stock 159