Both Sides of the Table

APRIL 26, 2016

The key to being able to run a business that isn’t yet profitable (on operating margin) is availability of capital to finance losses and preferably at a cost that isn’t too punitive to the founders and employees. Poorly calculated LTVs can become BVs (bankruptcy values). I’m guessing much of this was 101 to many readers.

Metrics 150

Metrics Cost Acquisition Startup 150

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. Of the Inc. 5000 companies, only 6.5% raised from angels.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

This is going to be BIG.

MARCH 16, 2020

Some key existings who didn’t want to see their prior money get lost wouldn’t budge on a dilutive financing, despite the fact that they knew where we were headed. The answer, unfortunately, was to declare bankruptcy. This is what happens when you deal with investors that aren’t professionals.

Bankruptcy 95

Bankruptcy Private Equity Seed Stage Dilution 95

YoungUpstarts

JULY 16, 2020

If your business is unable to weather the current economic storm and has to close or file bankruptcy, you can be held personally liable for any outstanding debts. Setting up a legal business entity for your business creates a “company” that is different from your personal identity and separate from your personal finances.

LLC 255

LLC Bankruptcy Venture Capital Stock 255

Hunter Walker

JANUARY 2, 2017

This keeps them aligned with their investors since a $250m exit with modest venture financing raised can be wonderful for all parties, but the same transaction can look awful if your last round was $60m on $300m pre! Next Level: Buying Customers/Revenue/Distribution. Better that be a smart acquisition than a bankruptcy.

Technical Review 116

Technical Review Cap Table Acquisition Startup 116

YoungUpstarts

JULY 25, 2016

Every small business is different when it comes to the need for financing. If you think you’ll need a business loan, there are benefits to waiting at least a couple years after launching your new business to apply for financing. Changes in how you handle your finances can take months to make a difference. Bottom Line.

SBA 100

SBA Bankruptcy Finance Revenue 100

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78

Equity Revenue Cofounder Colorado 78

Gust

SEPTEMBER 5, 2012

How to finance a new seed-stage startup? ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. .” I won’t rehash all of the customary convertible note financing deal terms and points of negotiation here. (For

Finance 134

Finance Convertible Security Equity Seed Stage 134

Up and Running

DECEMBER 28, 2015

Your annual revenue. Revenue is also very important in determining loan size. Most of the time you can only qualify for amounts around 15 percent or less of your total annual revenue. Annual revenue of $50,000+. Must be 3+ years out from a bankruptcy. Annual revenue of $150,000+ (one lender will consider $25,000+).

Security 72

Security SBA Bankruptcy Finder 72

Gust

OCTOBER 12, 2011

Last week , we took the plunge and began dissecting an example term sheet for a convertible debt financing round piece by piece. In Part II, we looked at the mandatory conversion language that is at the heart of any convertible debt financing. Same, except at the option of the noteholders (per the term sheet example above).

Finance 107

Finance Term Sheet Pre-Money Valuation Early Stage 107

YoungUpstarts

JUNE 28, 2012

Considering how incredibly popular Harley-Davidson is today, it’s hard to believe that the motorcycle company was ever on the verge of bankruptcy, but it’s true. Harley-Davidson experienced near-bankruptcy from 1969 to 1981 when the American Machine and Foundry (AMF) bought the company and turned it upside down. Harley-Davidson.

Bankruptcy 195

Bankruptcy Texas Naming Venture Capital 195

Steve Blank

JUNE 24, 2013

The bill came due two decades later as the American auto industry spiraled into bankruptcy and its market share plummeted from 75% in 1981 to 45% in 2012. When you get customer scale and raise a large financing round , take the battle to the incumbents. i.e. revenue/profit sharing, two-tier hiring, etc. In contrast, U.S.

North Carolina 335

North Carolina New Jersey New York Government 335

Steve Blank

JUNE 24, 2013

The bill came due two decades later as the American auto industry spiraled into bankruptcy and its market share plummeted from 75% in 1981 to 45% in 2012. When you get customer scale and raise a large financing round , take the battle to the incumbents. i.e. revenue/profit sharing, two-tier hiring, etc. In contrast, U.S.

North Carolina 227

North Carolina New Jersey New York Government 227

Up and Running

JUNE 2, 2011

There comes a time when every business must secure financing to cover their growing needs. Unfortunately the world of finance can be a bit tricky, especially when it comes to business loans. There needs to be a comfortable buffer between what goes out (expenses) and what comes in (revenue).

Vesting 82

Vesting CPA SBA Bankruptcy 82

The Startup Magazine

MARCH 1, 2022

Not every one of these blogs is receiving large amounts of traffic or generating revenue. They write about their experiences backpacking around the globe, and the advertising revenue helps to support them. For others, a blog can provide a lucrative income and represent a genuine career. Source: Pexels. Reducing debt.

Finance 138

Finance Reputation Social Media Audience 138

Ben's Blog

JULY 16, 2013

Perhaps you are caught in the “Series A crunch” or perhaps you are a consumer company and expected that you would be valued on users rather than revenue like the last time. Down rounds are bad and hit founders disproportionately hard, but they are not as bad as bankruptcy. Financing capital market down round fundraising outkast'

Down Round 78

Down Round Marketing Preferred Stock Post-Money Valuation 78

The Startup Magazine

DECEMBER 4, 2017

This could include things like bankruptcies, judgments and liens, and should be looked into very carefully. For example, look closely at their revenue and stability. Payment Disputes. In order to assess any potential risks, you’ll want to know if there are any unfavourable records connected to the company. Setting credit limits.

Metrics 60

Metrics Customer Database Bankruptcy 60

Growthink Blog

OCTOBER 12, 2016

This is particularly true in our digital business age because as we increase our marketing to sales conversions percentages only slightly , we are in turn able to increase instantaneously the size of our marketing budget, which in turn immediately grows revenues and gross profits. ensures our ultimate success.

Bankruptcy 48

Bankruptcy Sales Campaign Hiring 48

Ben's Blog

JULY 16, 2013

Perhaps you are caught in the “Series A crunch” or perhaps you are a consumer company and expected that you would be valued on users rather than revenue like the last time. Down rounds are bad and hit founders disproportionately hard, but they are not as bad as bankruptcy. But they most certainly are not. How could this be?

Marketing 46

Marketing Preferred Stock Post-Money Valuation Down Round 46

YoungUpstarts

OCTOBER 15, 2020

However, third party financing and unsecured loans often charge much higher interest rates. Professionals often compare the cost of debt with their new revenue projection. If the financed debt provides adequate returns on your investment, then it’s worth it. Interest rates vary depending on your creditor. Wrapping Up.

Small Business 179

Small Business Management Bankruptcy Finance 179

Up and Running

DECEMBER 16, 2020

What’s more, one of the least appreciated or understood parts of owning and running a successful business is the importance of building and maintaining a credit profile that makes borrowing easier and provides options for financing that a poor profile doesn’t. Do you have the revenue and cash flow to make periodic loan payments?

Small Business 123

Small Business SBA United States Early Stage 123

Steve Blank

OCTOBER 1, 2009

Sloan kept the corporate staff small and focused on policymaking, corporate finance and planning. But Ford, with his emphasis on cash-flow, sort of had the last laugh earlier this year when GM and Chrysler declared bankruptcy while his company — under Alan Mullaly’s exceptional leadership — managed to avoid it.

Silicon Valley 156

Silicon Valley United States RSS Customer Development 156

David Teten

DECEMBER 3, 2019

Pacer is useful to search prior litigation, bankruptcies, etc. Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Occam's Razor

JULY 18, 2011

It might seem logical that you’ll also measure the second most overused web metric: Average Revenue per Email Sent = total revenue / # of emails sent. Not revenue. Finally for those of you measuring revenue, and think of yourselves as Analysis Ninjas, you are measuring this delightful metric (don’t let me down!):

Metrics 137

Metrics Campaign Email Marketing 137

ReadWriteStart

APRIL 30, 2020

The latter group also tends to spend every waking moment in the pursuit of lining up new financing. I refer here to startups that waste their financing as though there’s an endless supply of cash waiting to be brought in the doors as go-go startups. The Go-Go Startup. It’s easy to understand why.

Burn Rate 107

Burn Rate Management Startup Early Stage 107

abovethecrowd.com

NOVEMBER 28, 2022

In his recent bankruptcy proceeding filing, John Ray III, the new CEO and Chief Restructuring Officer at FTX, minced no words: I have over 40 years of legal and restructuring experience. I have been the Chief Restructuring Officer or Chief Executive Officer in several of the largest corporate failures in history.

Venture Capital 113

Venture Capital Non-Compete Government Delaware 113

Mike Michalowicz

OCTOBER 19, 2015

An accounting firm based in Santa Monica, CA, specializing in bankruptcy, from 2001 to 2003. Seth’s role there was to perform audits; prepare tax returns for Corporations, S-Corps, LLC’s, Partnerships; and bankruptcy compilation work for SEC reporting and litigation. Show Quotes . You want to increase your profits?

Video 60

Video SEC Bankruptcy Wisconsin 60

Women Entrepreneurs Can

SEPTEMBER 15, 2019

Business loans are not always a sign of mismanaged finances. Upfront costs for startups can be extremely expensive, and a term loan is especially useful to finance your expansion efforts. Do your homework by doing a revenue forecast. Taking a loan will help safeguard the continued growth of your business.

Due Diligence 40

Due Diligence Forecast Finance Bankruptcy 40

Up and Running

JULY 17, 2015

You’ll want to read the FTC guidelines and check with your state’s revenue agency to make sure you comply with the law. Finance law. Bankruptcy. If your business has cash flow problems and is exploring the possibility of bankruptcy, there are several laws you’ll want to familiarize yourself with before filing the paperwork.

Intellectual Property 60

Intellectual Property Bankruptcy United States Montana 60

Cracking the Code

OCTOBER 10, 2008

Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. Farming is also often overlooked, but can help grow customer accounts and revenues from 30% upwards (if successful). Great list! Philippe Botteri.

Software Review 48

Software Review North America Europe Metrics 48

Both Sides of the Table

FEBRUARY 14, 2016

forward revenue for SaaS businesses when in the years before it had been less than 5x. In September 2008 this was the bankruptcy of Lehman Brothers and the rippling effect was massive. Why Financing in Falling Markets is So Damn Difficult. You’ll see here that in 2007 people were willing to pay 7.7x And so it goes.

Valuation 150

Valuation Down Round Startup Later Stage 150

Startup Lessons Learned

AUGUST 26, 2020

We are still reeling from the first order of consequences of the pandemic, but we are also starting to see the second and third order effects, unemployment, hunger, mass bankruptcy, and the inequity and injustice of this crisis. And then I, of course, need revenue for this." And so she had an Academy. "I

Fresno 60

Fresno Community Technology California 60

Both Sides of the Table

AUGUST 9, 2011

Companies with less than $2 million in revenue were asking for $50-60 million valuations and getting them. Lehman Brothers had filed for bankruptcy. Finance where needed. When I first got into the industry it was 2007. Valuations were enormous relative to progress in companies. was still a term being bandied about. Fawk, man.

Stock 305

Stock Technical Review Marketing Greece 305