Both Sides of the Table

AUGUST 25, 2015

Last night I wrote a post about how the fall in the stock market over a 3-day period may affect the venture capital markets. Let me give you the quick summary of what I said yesterday: Public markets affect venture funding. private companies grow so quickly that their metrics catch up with their valuations. So now what?

Balance Sheet 150

Balance Sheet Valuation Burn Rate Stock 150

Steve Blank

JUNE 23, 2016

As a consequence, corporations used metrics like return on net assets (RONA), return on capital deployed, and internal rate of return (IRR) to measure efficiency. These metrics make it difficult for a company that wants to invest in long-term innovation. Risk capital has provided financing for new ideas in the form of startups.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

Steve Blank

JUNE 1, 2011

The combination of Venture Capital and technology startups is only about 50 years old. Rather than invent a new form of corporate governance, venture investors adopted the traditional board meeting structure from large corporations. The Wrong Metrics. What do those numbers/metrics look like? Here’s how.

Silicon Valley 258

Silicon Valley Business Model Venture Capital Balance Sheet 258

Both Sides of the Table

MARCH 3, 2013

He believes that one of the financial metrics taught at business schools and reinforced by Wall Street has accelerated offshoring of industries. He spoke about ROCE (return on capital employed). Venture Capital. New company in Boston with a model called “royalty capital.” I don’t believe it.

Bankruptcy 403

Bankruptcy Offshore Liquidation Preference Balance Sheet 403

Up and Running

MAY 30, 2022

An often overlooked purpose of a business plan is as a tool to define success metrics. This includes financial statements such as your profit and loss, cash flow, balance sheet, and sales forecast. Which can lead to more funding down the road from both venture capitals and banks alike. Futureproofs your business.

Business Plan 150

Business Plan Balance Sheet Revenue Metrics 150

Feld Thoughts

JANUARY 19, 2017

This was an artifact of the last 30 years of venture capital, where VCs often would use the board meeting as the way to primarily engage with the company. It also quickly turns into metric reporting, which is very distinct from financial report, and often extremely helpful, especially in a continuous board interaction approach.

Balance Sheet 70

Balance Sheet Metrics SEC Distribution 70

Feld Thoughts

SEPTEMBER 9, 2015

From section #6 in Aileen’s post: “Given how much capital our private companies have raised in the past few years, most likely have cash to fund 2-4+ more years of runway. If private capital is no longer available in the future, these companies will seek a public offering or acquisition.

Liquidation Preference 70

Liquidation Preference Burn Rate Balance Sheet .Net 70

ReadWriteStart

JUNE 13, 2011

The combination of Venture Capital and technology startups is only about 50 years old. Rather than invent a new form of corporate governance, venture investors adopted the traditional board meeting structure from large corporations. Most board meetings never get past big company metrics to focus on the crucial startup numbers.

Silicon Valley 117

Silicon Valley Balance Sheet Metrics Early Stage 117

Up and Running

MARCH 11, 2015

You should have a good solid executive summary, you should have full financials, and that means a projected balance sheet, P&L and cash flow. Food, technology, bioscience, services, you need to know the metrics for your model. These are the metrics for the SaaS model that we have. How many people are going to leave?

Technical Review 60

Technical Review Software Review Due Diligence Exit Strategy 60

Professor VC

AUGUST 26, 2011

Everyone seems to know someone who has raised huge amounts of venture capital without ever putting together even back of the envelope projections. What are the key drivers and metrics? Byron Deeter has a good blog post on SAAS metrics. How much needs to be shown in the form of a cashflow statement, and balance sheet?

Silicon Valley 35

Silicon Valley San Jose Hockey Stick Venture Capital 35

BeyondVC

DECEMBER 23, 2003

” My answer is quite simple-every company we invest in must have IPO potential (IPO potential as defined by non-bubble metrics) but along the way if someone makes an offer for the company because it is an attractive, rapid growth business, we can evaluate it appropriately. That is a losing proposition.

Exit Strategy 68

Exit Strategy Balance Sheet IPO Valuation 68