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Praying to the God of Valuation

Both Sides of the Table

We had nascent revenues, ridiculous cost structures and unrealistic valuations. Within 5 years I was on the board of real businesses with meaningful revenue, strong balance sheets, no debt and on the path to a few interesting exits. Until we weren’t. 2001–2007: THE BUILDING YEARS The dot com bubble had burst.

Valuation 466
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WP Engine passes $100M in revenue and secures $250M investment from Silver Lake

A Smart Bear: Startups and Marketing for Geeks

Late last year we passed $100M in annual recurring revenue. That revenue is in on 75,000 customers, earned through the hard work of 500 employees across six offices on three continents. This week we closed $250M in financing from Silver Lake , the premier technology private equity firm. We just announced a few more things.

Engineer 152
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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. We want a strong balance sheet (um, ok. but that’s our firm’s money on your balance sheet. Gross burn is the total amount of money you are spending per month.

Burn Rate 383
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[INTERVIEW] Michael Majeed, Finance Executive, SR&ED Tax Consultant

YoungUpstarts

What kinds of habits should an entrepreneur cultivate so that financial management is done in an ongoing manner? Michael Majeed: Financial management is crucial to the success of the business. For starters, rising debt-to-equity ratio. Michael Majeed is a longtime financial services executive and consultant based in Toronto.

Finance 217
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The Key Elements of the Financial Plan

Up and Running

Balance sheet. It’s a table that lists all of your revenue streams and all of your expenses—typically for a three-month period—and lists at the very bottom the total amount of net profit or loss. A typical profit and loss statement should include: your revenue (also called sales), followed by. Cash flow statement.

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Rules of Thumb Business Valuation Methods Explained

Up and Running

Metrics such as discretionary cash flow or business revenue are used. A company’s goodwill might be worth 2x more than the discretionary cash flow, or the accounting practice’s value might be worth 1 to 1.35x the annual revenue + work-in-progress (inventory). their net commission revenue. It has $600,000 in EBITDA.

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9 Steps to Handle Business Loan Rejection

Up and Running

If you don’t already know who the loan manager is, then do some research and find out. For example, I ran into one case in which the loan manager blamed a rejection on a lack of monthly financial projections for the next 5-years. Measures a company’s ability to manage and allocate resources. Dig into why your loan was denied.

SBA 163