SoCal CTO

FEBRUARY 2, 2011

A lot of my time is spent helping early-stage companies get to proof points so that they can raise capital. They might have some seed money and are thinking or raising a Series A based on success of an early release (MVP). Think about how you can prove your business model with an MVP. is a requirement.

Valuation 198

Valuation Revenue Pre-Money Valuation Early Stage 198

Startup Professionals Musings

MARCH 14, 2020

That approach may work for an entrepreneur who just sold a successful business for a huge profit, but it doesn’t work for the rest of us who are not proven successes yet, or don’t even have a business yet. At these stages, it’s all about you, and your ability to communicate and execute effectively.

Due Diligence 308

Due Diligence Intellectual Property Preferred Stock Seed Stage 308

Startup Professionals Musings

DECEMBER 9, 2019

This is the realm of the angel investor, who wants to own a piece of the new business, and probably knows how to run it and wants a seat on the Board.For B2B startups, every investor expects to see a proven business model, with a working prototype, and preferably a real customer or two.

Non-disclosure Agreement 299

Non-disclosure Agreement Angel Investor Bootstrapping SEC 299

Startup Professionals Musings

JANUARY 19, 2020

Super angels sometimes drive up valuations. Perhaps because of their focus on building a large portfolio, or their competitiveness, these angels sometimes accept valuations that cause later friction while moving to VCs, or even other angel groups. Marty Zwilling.

Angel Investor 314

Angel Investor Venture Capital Silicon Valley Startup 314

David Teten

JANUARY 19, 2021

Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Seed-stage compatible: Like traditional equity VC investors, Flexible VCs accomodate early-stage investment risk within their portfolios better than a traditional RBI funder. Typical business stage.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Cracking the Code

OCTOBER 1, 2020

Snyk was founded with the mission to help developers make their code secure, providing a platform to automatically assess and remediate open source vulnerabilities. The company’s success has been largely driven by its developer-led freemium model, going from Series A funding to a valuation of $2.6B in just 30 months.

Early Stage 62

Early Stage Open Source Development Team Review Security 62

Both Sides of the Table

FEBRUARY 6, 2019

Valuations are out of control” is the mantra of others. Others believe that new business models are emerging that could replace venture capital all together. Companies are raising billions of dollars in the private markets and the valuations are enormous PRIOR to the IPO. We’re in a new tech bubble!” some have pronounced.

Venture Capital 292

Venture Capital IPO Mezzanine Early Stage 292

Austin Startup

FEBRUARY 13, 2019

At this point, we had already developed the first phase of the platform by bootstrapping. We got back on our feet and successfully pivoted the business. Some came from angel investors, but we also sought out industry experts to be early contributors in this stage, which leads me to tip number three.

Strategic Investors 49

Strategic Investors Austin Angel Investor Bootstrapping 49

VC Cafe

FEBRUARY 27, 2024

Pre-seed tends to be about developing an MVP and generating early traction. In smaller funds, ticket sizes tend to be lower, so pre-seed is the only stage where micro funds are able to secure their minimum equity targets. Seed is about showing initial product market fit.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

Women Entrepreneurs Can

NOVEMBER 19, 2022

A Venture Capital Firm is a firm that invests in startups and early-stage companies. Early-Stage Investments vs. Mid-Stage Investments. Investing in a startup company carries a high degree of risk, particularly at the early stage. They can also help you develop your product and sales channels.

Venture Capital 52

Venture Capital Early Stage Liquidity Event SEC 52

View from Seed

APRIL 30, 2015

Especially in the early stages, so much about the company may change in how they think about product or go-to-market — and change multiple times — before raising an institutional round. NVV: Let’s talk about the seed stage specifically. Business model? Traction and revenue?

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

Austin Startup

AUGUST 20, 2017

Early stage startups have to survive one day at a time and are often presented with limited choices of the moment that enable them to continue. At early stages you probably don’t have an assembly line and can’t clearly define any particular job. Keep the valuations consistent with company progress.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Startup Professionals Musings

DECEMBER 27, 2014

Super Angels sometimes drive up valuations. Perhaps because of their focus on building a large portfolio, or their competitiveness, these angels sometimes accept valuations that cause later friction while moving to VCs, or even other angel groups. Marty Zwilling First published on Entrepreneur.com on 12/19/2014.

Angel Investor 260

Angel Investor Silicon Valley Startup Portfolio 260

Professor VC

SEPTEMBER 26, 2011

How would Billy Beane have done as an early stage investor? RCSMs premise is that they can reach an investment decision (and valuation) based on an application completed by the founders and take gut feel out of the decision process. They have launched a valuation tool that is free to try out. ProfessorVC. Steve Bennet.

Technical Review 38

Technical Review Early Stage San Jose Angel Investor 38

Steve Blank

NOVEMBER 5, 2009

Unfortunately in early stage startups the drive for financing hijacks the corporate DNA and becomes the raison d’etre of the company. Chasing funding versus chasing customers and a repeatable and scalable business model, is one reason startups fail. What are Early Stage VC’s Really Asking? Can it scale?”

Customer Development 262

Customer Development Developer Customer Silicon Valley 262

Startup Professionals Musings

AUGUST 1, 2016

That approach may work for an entrepreneur who just sold a successful business for a huge profit, but it doesn’t work for the rest of us who are not proven successes yet, or don’t even have a business yet. At these stages, it’s all about you, and your ability to communicate and execute effectively.

Due Diligence 120

Due Diligence Intellectual Property Preferred Stock Seed Stage 120

David Teten

DECEMBER 12, 2017

As a globally focused LP in early stage VC funds, we at Blue Future Partners have observed a growing trend of firms investing substantially in software tools, whether developing proprietary solutions or adopting off the shelf tools. But what tools are they using themselves to automate their own processes? Methodology.

Early Stage 60

Early Stage Technical Review Software Review Venture Capital 60

ReadWriteStart

SEPTEMBER 10, 2010

And EVEN if you ARE an experienced entrepreneur, all but just a few VCs still want to see customer validation, business model validation and traction, before they will invest. Why not go further, develop more valuation, customer experience, and really, deeply validate the business? Next comes the topic of angels.

Cloud 115

Cloud Silicon Valley Incubator Finance 115

Up and Running

JULY 22, 2019

A telling success factor for new businesses looking to make an impact in their industries is whether they can attract investment at an early stage of development. . Attracting investors in the early stages helps bring in new partners that are committed to your business. Start early.

Canada 78

Canada Early Stage Valuation Finance 78

Steve Blank

MAY 13, 2010

They’re deep into Customer Development ,” he said. So I met the entrepreneur and asked him how his search for a business model was going. Here’s what I told him: A startup exists to search for a scalable and repeatable business model. No consultants as you search for your business model.

Founder 199

Founder Cofounder Business Model Customer Development 199

www.inc.com

SEPTEMBER 24, 2011

Internet and Online Business. Business Software. Research & Development. In the past few years, hundreds of small companies have been snatched up by private equity firms willing to agree to ever-rising valuations. TECHNOLOGY. Computer Security. Telecom and Wireless. Technology. INNOVATION. Managing Creativity.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Transformify

JULY 23, 2018

Initial 10-page business proposal to be submitted. Develop project through innovation strategy. Detailed 30-page business plan. Business valuation or investor background is among the expert evaluator’s selection criteria. What is your current stage of development? Feasibility study.

Intellectual Property 66

Intellectual Property Angel Investor Dilution Startup 66

www.forentrepreneurs.com

FEBRUARY 2, 2010

Business Model I would like to propose that in addition to team, product, and market, there is actually a fourth, equally important, core element of startups, which is the need for a viable business model. These new business models focused heavily on how buying behavior has changed because of the power of the web.

Acquisition 103

Acquisition Cost Customer Entrepreneur 103

Professor VC

APRIL 1, 2010

It had a good mix of viewpoints with east ( James Geshwiler, Common Angels ) and west coast (yours truly) angels, early stage venture capitalist ( Jason Mendelson, Foundry Group ), and a couple of attorneys ( Dan Hansen and Mario Rosati ). It is obviously too late to dial-in to the call, but you can still order a CD of the session.

Term Sheet 32

Term Sheet Angel Investor San Jose Venture Capital 32

David Teten

DECEMBER 3, 2019

This provides us more time to develop meaningful relationships with prospects and customers. Data companies focused on early-stage startups include Aingel , fundsUP , Preseries , PredictLeads , and Sploda. Tribe Capital has developed A Quantitative Approach to Product Market Fit. . 3) Raise capital. 7) Negotiate .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

genylabs.typepad.com

SEPTEMBER 24, 2011

Before you agree to take equity in lieu of cash, you need to understand that any individual early stage start-up company equity is most likely going to be worthless. While Ive made at least my share of mistakes taking equity in lieu of pay, I continue to see this as a key part of my business model. Business Models.

Equity 40

Equity Technical Review San Jose Stock 40

The Equity Kicker

JULY 8, 2019

It was perhaps First Round Capital that pioneered the platform VC model, but at this point nearly all the major VCs have platform teams of varying sizes, including KPCB, Accel and Sequoia. The most recent development that’s emerging is an extension of the Platform VC model that we call Applied Venture. Business model.

Portfolio 84

Portfolio LP Venture Capital Partner 84

Growthink Blog

FEBRUARY 20, 2012

The reasons for this go beyond the obvious one of rarity - Facebook being the biggest business story of the new century, and correspondingly having one of the steepest valuation growth trajectories of all time. Now, if it is any consolation, so too are the very rich mostly closed off from early-stage private investing.

Silicon Valley 78

Silicon Valley Private Equity Early Stage Equity 78

Professor VC

APRIL 7, 2011

In a convertible note structure, Im penalized for increasing your valuation. Instead of getting a 2-3x multiple from seed to Series A, I get a discount off of the Series A, so Im better off financially with a lower valuation. You may say, if you are investing in the next facebook or google, why care about valuation?

San Jose 36

San Jose Technical Review Angel Investor Valuation 36

This is going to be BIG.

DECEMBER 26, 2011

It has the diversity and cheaper rent necessary for great creative potential and I think you're going to see a lot of development next year of Brooklyn as its own unique, but complimentary community of innovation. What's the business model?

Technology 116

Technology Valuation Community Restful 116

Professor VC

JANUARY 17, 2008

While currently free to angel groups, their business model revolves around aggregating the angel investment data. Another comment which probably deserves more discussion is around valuation. He also said they typically only invest at a $1 million pre-money valuation or less.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

VC Cafe

JUNE 29, 2012

I’m in San Francisco, attending the Google I/O , Google’s flagship developer conference. Kevin – consumer Internet plays, often times they don’t have a business model. I have an early stage startup, but it’s hard to find people that understand that long term commitment. Join a startup.

Developer 103

Developer Silicon Valley Software Review Mexico 103

Both Sides of the Table

MAY 23, 2012

Yes, it’s true that FOMO (fear of missing out) is driving some irrational behavior and valuations amongst uber competitive deals and well-financed VCs. The mobile world brings enormous business opportunities and changes to business models that were unthinkable when VCs made investments ten years ago that produced the last decade of results.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

Professor VC

AUGUST 26, 2011

Is the model consistent with the business plan? Does the business model make sense? Do you understand the business and market? The process of building the model forces you to answer the difficult questions related to the business model and give a complete picture of the opportunity.

Silicon Valley 35

Silicon Valley San Jose Hockey Stick Venture Capital 35

View from Seed

JANUARY 11, 2023

The smaller size also allows the space for teams to get to know each other within the cohort and develop a true sense of community and friendship on a founder-to-founder level, which has proven to be an invaluable resource during and after the program. . For this particular track, applicants need not apply with a fully baked business model.

Programming 156

Programming Sacramento San Francisco Founder 156

Tim Keane

APRIL 12, 2006

What development stage is your primary business focus? Where along the journey of seed-early-growth does the group like to invest? (Is this stage when the company can justify a higher. valuation than the previous round. Fewer investors will take common stock in early stage transactions.

Entrepreneur 60

Entrepreneur Valuation Sweat Equity Common Stock 60

reidhoffman.org

NOVEMBER 12, 2013

Friendster’s valuation set the tone for the entire social networking space. Press and analysts characterized LinkedIn in one of two ways: “LinkedIn is an interesting niche that might be worth paying attention to” or “LinkedIn is the Friendster for business”. The general rule is one business model drives the business.

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111