Both Sides of the Table

JUNE 28, 2018

How could Bird really be worth the reported $2 billion valuation that I read about in this press? While I promised not to comment on the exact valuation you can assume that it is very large and perhaps the fastest rise from zero to what some have called a “unicorn” valuation. Forget the valuation?—?I

San Francisco 256

San Francisco Valuation Technical Review Los Angeles 256

Austin Startup

APRIL 25, 2017

Revenue needs to grow 20x, and margins must expand dramatically. I won’t dive into cost structure in this blog post, but let’s think through how Snap could grow revenue 20x. I won’t dive into cost structure in this blog post, but let’s think through how Snap could grow revenue 20x. How can one justify a $20B valuation for Snap?

Valuation 48

Valuation Technical Review Forecast Social Network 48

VC Cafe

AUGUST 2, 2022

billion valuation) to invest in the Metaverse and build the future of digital entertainment Epic owns Fortnite, one of the most popular multiplayer games, enabling users to interact with each other online in an immersive way to play, socialise, attend to virtual concerts. billion revenue in 2021 for Epic Games and was played by 83.3

IP 206

IP Cofounder Valuation Acquisition 206

Both Sides of the Table

MAY 28, 2018

There are many things a VC is looking for in reviewing your business plan but beyond things the like the quality of revenue, margins, OPEX and CAPEX there’s a really simple rule I call, “Cash In, Cash Out, Milestones Achieved.” Every VC knows that the amount you raise is often a proxy for your valuation. Happy raising.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

Startup Professionals Musings

MARCH 25, 2023

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $1 trillion. Long-term stability requires revenue growth and profit. Both have worked. Traditionally, it was simple.

Valuation 235

Valuation Revenue Viral Retention 235

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

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

Startup Professionals Musings

OCTOBER 18, 2023

Even if you don’t have a formal board of directors, it pays to have trusted advisors who will give you regular unbiased feedback on your team strengths and weaknesses, financial and operating ratio norms, and an external view of current company valuation issues. Your valuation and salability depends on the credibility of this effort.

Exit Strategy 248

Exit Strategy Valuation Acquisition Metrics 248

Startup Professionals Musings

APRIL 17, 2023

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 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

Both Sides of the Table

APRIL 26, 2016

Perhaps the most misused terms I see these days from entrepreneurs involve CAC (customer acquisition costs) and LTV (life time value) and a lack of understanding these critical components is driving many companies to premature failure. CAC is often measured incorrectly and doesn’t often doesn’t capture the true costs of acquisition.

Metrics 150

Metrics Cost Acquisition Startup 150

Startup Professionals Musings

AUGUST 10, 2014

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Both have worked.Google reached $1 billion in revenue within five years of incorporation, and now has a market capitalization of over $400 billion. Long-term stability requires revenue growth and profit.

Revenue 246

Revenue Entrepreneur Valuation Viral 246

Startup Professionals Musings

JANUARY 9, 2021

Even if you don’t have a formal board of directors, it pays to have trusted advisors who will give you regular unbiased feedback on your team strengths and weaknesses, financial and operating ratio norms, and an external view of current company valuation issues. Your valuation and salability depends on the credibility of this effort.

Exit Strategy 434

Exit Strategy Valuation Acquisition Metrics 434

YoungUpstarts

MAY 14, 2018

Of course, these are important ingredients to growth, but the – perhaps unconventional – truth is that this kind of growth can be riskier and less compelling to investors than growth through acquisition. Set clear financial objectives for an acquisition and create benchmarks to gauge attractiveness of potential target companies.

Acquisition 109

Acquisition Finance Raleigh Mezzanine 109

Startup Professionals Musings

JUNE 26, 2016

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $400B. Long-term stability requires revenue growth and profit. Both have worked. Traditionally, it was simple.

Revenue 145

Revenue Valuation Startup Viral 145

ReadWriteStart

JULY 15, 2020

New talk of capital efficiency is gratifying, but there was another lesson from pre-COVID-19 valuation struggles. Venture capitalists and early-stage investors have told all of us, founders are critical to a startup’s valuation. One of their investors, JTC Group has developed a specialty in this arena through a recent acquisition.

Valuation 91

Valuation South Carolina San Jose Balance Sheet 91

Both Sides of the Table

NOVEMBER 14, 2017

How long does it take me to pay back my original customer acquisition costs? Throughout the first year we made many fixes and saw our revenue base in these markets accelerate so we felt we were ready to attack Los Angeles, amongst the most important storage markets in the country. How profitable is my product or service?

Operations 286

Operations New York City Technical Review Startup 286

Agile VC

APRIL 17, 2011

Now that Google’s acquisition of ITA is closed, following lenghty FTC review, it would appear Kayak is poised to proceed with their IPO in the coming months. =. Financial Snapshot: 2010 Revenue: $170 million. Revenue growth: 51% YoY (2010), 1% YoY (2009), 131% YoY (2008). Distribution revenue is CPC and CPA. .

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

www.forentrepreneurs.com

FEBRUARY 2, 2010

Blog About Log in Register Startup Killer: the Cost of Customer Acquisition In the many thousands of articles advising entrepreneurs on what they have to focus on to build successful startups, much has been written about three key factors: team, product and market, with particular focus on the importance of product/market fit.

Acquisition 103

Acquisition Cost Customer Entrepreneur 103

Startup Professionals Musings

JULY 22, 2020

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 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

Transformify

MARCH 4, 2020

From an investor’s point of view, the acquisition of Hermes iTickets in 2015 is a clear red flag. At the time, Wirecard had a choice of acquisition targets and could approach Hermes iTickets directly had it been on the top of their list. Wirecard’s M&A Activity. Roundtripping.

Technical Review 78

Technical Review Valuation Stock Acquisition 78

Up and Running

MAY 17, 2017

The sad reality is that many business acquisitions do not work out as hoped. An ROCG study of 502 business owners with revenues between $1 million and $100 million found that only 40 percent successfully transitioned their business and only 9 percent had a formal, written succession plan. Most business acquisitions focus on money.

Acquisition 92

Acquisition Technical Review Revenue Exit Strategy 92

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Flexible VC: Revenue -based. Of the Inc.

Cofounder 78

Cofounder Technical Review Dividend Equity 78

Haystack

NOVEMBER 12, 2018

In the wake of what is now considered the second-highest enterprise SaaS acquisition in history, below are some quick takeaways that are on my mind: 1/ The Efficiency Of Silicon Slopes – By now it should be no surprise that Utah’s tech ecosystem is on fire. And, every year, it doesn’t materialize that way.

Acquisition 105

Acquisition Utah IPO Venture Capital 105

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

Software By Rob

FEBRUARY 28, 2012

This is final installment of a 3-part series covering my acquisition of HitTail. Could you talk a bit about the diligence you did during the acquisition? Due diligence is the most important part of the process because it dictates whether you should move forward with the acquisition, and at what price. Photo by psiaki.

Acquisition 53

Acquisition Software Review Technical Review Due Diligence 53

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. In the financial year ending in March this year, the startup generated a revenue of $18.5 The acquisition is also expected to drive consolidation in the furniture industry in India.

India 104

India Acquisition Merger Curation 104

Startup Professionals Musings

OCTOBER 19, 2015

Thus it’s a waste of time for most entrepreneurs to be looking for investors until they have a product and some customer revenue. Patents can raise startup valuation by investors by as much as a million dollars, and will attract acquisitions rather than copycats. Most founders bootstrap product development.

Technical Review 120

Technical Review Intellectual Property Cofounder Bootstrapping 120

Growthink Blog

OCTOBER 22, 2013

How easy will it be to run your business after acquisition? Clearly, they want to see strong revenues and profits. And they want growing revenues and profits. If your revenues or profits are on the decline, many buyers will project that decline will continue, and thus significantly decrease the valuation of your business.

Acquisition 101

Acquisition Revenue Technical Review Valuation 101

The Startup Magazine

APRIL 24, 2020

Whether you’re interested in selling a website you built from scratch, or want to sell your Amazon-based B2C brand, there are many different baseline factors that go into determining an appropriate website valuation number. While it’s true that valuations can get quite technical, the basics are relatively easy to understand.

eCommerce 91

eCommerce Valuation B2C Revenue 91

The Startup Magazine

SEPTEMBER 10, 2019

Asset valuation. The concept of asset valuation may seem counterintuitive, but it is an important idea. Most financial valuation formulas value an asset by discounting the asset using the cost of capital (interest rate) to the present day. It has never paid out dividends, and clocks around $200 billion in revenue.

Founder 117

Founder Valuation Dividend Startup 117

Cracking the Code

FEBRUARY 23, 2011

It would have been easy to explain the difference by changes in the 2010/2011 revenue growth projections but unfortunately that is not the case. revenues while large caps are trading at 6.4x. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. Wednesday, February 23, 2011. What happened?

Software Review 101

Software Review Technical Review Valuation Europe 101

YoungUpstarts

JANUARY 29, 2020

Because of this development, many business owners are concerned about business valuation and ideas for transitioning their businesses. There are a number of trusted methods on how to value a private company , describing some of the common business valuation principles. Diversify Your Revenue & Profits. Set Yourself Apart.

Valuation 142

Valuation Revenue Differentiation America 142

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.

Private Equity 142

Private Equity Developer Venture Capital Merger 142

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. Market size.

Valuation 69

Valuation Startup Down Round Early Stage 69

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

The Equity Kicker

MARCH 7, 2016

At a conference last week Autodesk CEO Carl Bass said that he thinks about acquisitions in three buckets: companies that are really people who have a technology that Autodesk wants to build up (acquihires). large scale acquisitions. middle-size companies, meaning they have product that they’re selling, maybe even internationally.

Acquisition 60

Acquisition Intellectual Property Investment Bankers Valuation 60