YoungUpstarts
NOVEMBER 13, 2012
Questionable business model. Negotiating a different deal structure could have prevented the price from dropping. The current market cap is only $1.8 billion and could fall further. A few attributes that led to this dramatic decline: - Intense competition. - Low barrier to entry. Unprofitable. Rapidly growing market.
Tim Keane
AUGUST 20, 2009
" The problem has been that too-high valuations and too generous terms have spawned painful down rounds that squash the entrepreneur and his early investors. the business, it will always be worth more to the entrepreneur as well as future investors, if any. This is fundamental to their business model.
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Entrepreneurs-Journey.com by Yaro Starak
JANUARY 21, 2011
Although I knew I would be working in (not on) the business to some extent, the work turned out to be more than I anticipated, at least initially. Investment in small businesses require knowledge of transactions and the related aspects such as business valuation, due diligence, deal structuring / financing, contracts, etc.
Cracking the Code
OCTOBER 10, 2008
You validated our business model and added huge value to our efforts. However, as we know from the cable industry, subscription businesses can be very profitable over time. For a direct, enterprise sales business model, these thresholds are likely to be around $80,000-100,000 CMRR (approx. $1-1.2M Michael Kassing.
grasshopperherder.com
SEPTEMBER 24, 2011
Valuations. I was approached with one sweat equity offer that placed the valuation of the company at >$5 million pre-money and before even a seed round of funding. I would be very wary of accepting a valuation like this, simply because I’m not qualified and as a consultant, I shouldn’t have to be. Unseen Metrics.
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