Startup Professionals Musings

APRIL 10, 2016

From my perspective as an investor, I recommend that every founder needs to know the answers to these questions, be open and honest in answering them thoughtfully, and without making excuses: What is the current runway and burn rate? Look for examples of similar companies and revenue multiples achieved from acquirers.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Startup Professionals Musings

JULY 9, 2014

Once you find a startup that seems like a good fit, it’s still important to do some of your own due diligence. What is the startup cash burn rate per month? There are many networking groups on FaceBook, LinkedIn, and others social media sites, which can help you increase your odds of finding a match early.

Technical Review 250

Technical Review Stock Options Due Diligence Silicon Valley 250

Startup Professionals Musings

NOVEMBER 7, 2014

They can iterate and evolve their business idea with a low burn rate and minimal dependencies. Most professional investors, even if they like your story, and were properly introduced by a friend, will ask for a business plan at the due diligence stage. You find an interested investor or bank, and need to close the deal.

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Business Plan Technical Review Angel Investor Due Diligence 274

Startup Professionals Musings

OCTOBER 18, 2015

Once you find a startup that seems like a good fit, it’s still important to do some of your own due diligence. What is the startup cash burn rate per month? There are many networking groups on FaceBook, LinkedIn, and others social media sites, which can help you increase your odds of finding a match early.

Technical Review 120

Technical Review Entrepreneur Stock Options Due Diligence 120

ReadWriteStart

APRIL 26, 2011

MicroVentures does the due diligence for investors, running a variety of checks on financials, forecasts, use of funds, burn rate and so on. Everything is disclosed fully to potential investors, who make their investments in exchange for equity in the companies.

Software Review 122

Software Review Accredited Investor Due Diligence Burn Rate 122

Startup Professionals Musings

NOVEMBER 2, 2012

My advice to founders out there is to not volunteer too much, but be open and honest in the face of direct questions like the following: What is your burn rate and runway today? In the parlance of an investor, asking these questions and getting answers is the heart of that mysterious “due diligence” process. Now you know.

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Due Diligence Sweat Equity Burn Rate Intellectual Property 244

Startup Professionals Musings

SEPTEMBER 5, 2011

My advice to founders out there is to not volunteer too much, but be open and honest in the face of direct questions like the following: What is your burn rate and runway today? In the parlance of an investor, asking these questions and getting answers is the heart of that mysterious “due diligence” process. Now you know.

Due Diligence 237

Due Diligence Sweat Equity Intellectual Property Entrepreneur 237

Startup Professionals Musings

AUGUST 20, 2010

My advice to founders out there is to not volunteer too much, but be open and honest in the face of direct questions like the following: What is your burn rate and runway today? In the parlance of an investor, asking these questions and getting answers is the heart of that mysterious "due diligence” process. Now you know.

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Due Diligence Sweat Equity Intellectual Property Startup 229

Professor VC

JANUARY 27, 2011

How Much Diligence is Due.Or Ive addressed the due diligence question in previous posts, but this came up again in a debate we were having at a recent meeting of the Sand Hill Angels. I appreciate your thoughts here on Due Diligence as it's been a question of mine for a few months now. ProfessorVC.

Technical Review 31

Technical Review Due Diligence Silicon Valley San Jose 31

Professor VC

SEPTEMBER 26, 2011

Labels: due diligence , early stage investing , moneyball , valuation. ProfessorVC is happy to have been included as one of the 50 Best Professor Blogs. Steve Bennet. at 2:32 PM. Email This BlogThis! Share to Twitter Share to Facebook. 2 comments: Kevin Dick. Thanks Steve. Can Entrepreneurship Be Taught? ► October. (1).

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Technical Review Early Stage San Jose Angel Investor 38

Professor VC

FEBRUARY 26, 2010

Of course, given the state of venture returns, perhaps randomly picking from a stack of business plans would provide as good or better results than an entrepreneur selection algorithm or detailed due diligence. I recall that the WSJ used to run a contest in stock picking between investment analysts and selection by darts.

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San Jose Silicon Valley Venture Capital Angel Investor 28

abovethecrowd.com

APRIL 20, 2016

The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate. Layoffs have also become more prevalent.

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IPO Term Sheet Silicon Valley Valuation 40

Professor VC

SEPTEMBER 24, 2009

Labels: due diligence , financial analysis , venture capital. In looking at that data, if Im a VC and promising LPs a 42% return, my "gut" might be telling me to to find another job when the fund is done. Steve Bennet. at 1:04 PM. Email This BlogThis! Share to Twitter Share to Facebook. 1 comment: LK said. ► October. (1).

San Jose 33

San Jose Angel Investor Venture Capital Mezzanine 33

www.paulgraham.com

APRIL 28, 2010

When you have a high "burn rate," youre alwaysunder time pressure, which means (a) you dont have time for yourideas to evolve, and (b) youre often forced to take deals you dontlike. VCs legal and financialdue diligence is pretty thorough, but the technical due diligenceis generally a joke. [

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Professor VC

JANUARY 20, 2009

At Fliqz, we met or exceeded the sales plan every month during the due diligence process. Dont miss Plan - This may seem obvious, but Ive seen a number of CEOs shot for missing the first quarters numbers after going public, which is a great way to shrink your market cap well before the lock-up period is up. Same principle here.

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Venture Capital Silicon Valley San Jose Bootstrapping 28

www.chubbybrain.com

SEPTEMBER 28, 2011

Review our Guide to Reverse Due Diligence on Investors. Title: Burn Rate: How I Survived the Gold Rush Years on the Internet. If you’ve read this far, you definitely should : Try out our Funding Recommendation Engine. Follow us on twitter here. Posted in startups. « CareCloud Investors Ink an Angel Round of Funding.

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Software Review Startup Technical Review Vesting 79

Professor VC

OCTOBER 20, 2009

I have put together a list of questions to ask your angel investor group contact: Do you charge any fees to present or during the due diligence process? I dont think its time to hang all angel investors in effigy, but remember that due diligence goes two ways. How many investments have you made this year? Average size?

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Angel Investor Due Diligence San Jose Silicon Valley 35