Startup Professionals Musings

SEPTEMBER 20, 2017

Angel investors and venture capitalists don’t make equity investments in nonprofit good causes. What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Personal loans from individuals, employees and board members.

Angel Investor 132

Angel Investor Equity Technical Review Exit Strategy 132

Up and Running

SEPTEMBER 19, 2017

When you accept outside money, particularly a private equity (PE) investment, however, that changes. In this article, I’ll provide some personal stories of how investors have navigated the balance between raising private equity capital and not losing control of their startup. You make all the decisions, when you want, how you want.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Startup Professionals Musings

FEBRUARY 15, 2015

Angel investors and venture capitalists don’t make equity investments in non-profits. What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Personal loans from individuals, employees and board members.

Angel Investor 120

Angel Investor Equity Technical Review Exit Strategy 120

YoungUpstarts

OCTOBER 19, 2018

When you’re looking for extra funds, there are typically two options: debt financing and equity financing. It’s important to understand the difference between debt financing and equity financing so when it comes time to get additional funding, you know which is the right fit for your business and how to get it. Equity Financing.

Finance 157

Finance Equity Vesting Dividend 157

Startup Professionals Musings

SEPTEMBER 15, 2012

What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Personal loans from individuals, employees and board members. As in any company, they can lead to employee problems, or messy legal issues.

Angel Investor 218

Angel Investor Technical Review Exit Strategy Equity 218

Startup Professionals Musings

SEPTEMBER 7, 2018

This process costs money, which professional investors are not willing to contribute, since their interest is in scaling a proven product and business model into a growth business. through Grants.gov , an online directory of more than 1,000 federal grant programs that don’t look for equity or payback.

Early Stage 225

Early Stage SBIR Technical Review Seed Stage 225

Steve Blank

MARCH 31, 2014

In spite of this, private equity funds have used the rallying cry of efficiency to hijack corporate strategy and loot the profits that historically would have been reinvested into research and development and new products. The first will be commodity businesses that are valued for their ability to execute their current business model.

Private Equity 328

Private Equity Metrics China Intellectual Property 328

YoungUpstarts

APRIL 16, 2020

For example, a rapidly growing business is often purchasing lots of inventory, investing in fixed assets, and not managing their accounts receivable. If your business model is profitable but you’ve mismanaged one of the above categories, you need to build a 13-week cash forecast to manage your short-term crisis.

Recapitalization 200

Recapitalization Forecast Software Review Finance 200

Startup Professionals Musings

JULY 3, 2011

What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Personal loans from individuals, employees and board members. As in any company, they can lead to employee problems, or messy legal issues.

Angel Investor 238

Angel Investor Technical Review Exit Strategy Equity 238

Steve Blank

OCTOBER 7, 2011

It’s hard enough to pick which existing companies with known business models to aid. At Tekes, government employees (and their hired consultants) – with no equity, no risk or reward, no startup or venture capital experience – try to pick startup winners and losers.

Finland 327

Finland Venture Capital Government Russia 327

genylabs.typepad.com

SEPTEMBER 24, 2011

Working for Equity Instead of Cash. has an article on service firms waiving their fees and instead taking equity in their clients. Interest in this waned when the Internet bust resulted in most tech start-up equity becoming worthless, but it seems to be coming back. Not all start-up stock is created equally.

Equity 40

Equity Technical Review San Jose Stock 40

Steve Blank

MARCH 16, 2016

Risk capital takes equity (stock ownership) in your company instead of debt (loans) in exchange for cash. Founders can now access the largest pool of risk capital that ever existed –in the form of Private Equity (Angel Investors, family offices , Venture Capitalists (VC’s) and Hedge Funds.). The Bad News. Successful Clinical trials?

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Venture Capital 120

Steve Blank

OCTOBER 10, 2011

You find early stage employees expecting to work normal hours, to get paid a regular salary, and not asking or expecting equity. Startup incubators, business angels and VCs are starting to emerge. Filed under: Business Model versus Business Plan , Customer Development , Teaching , Venture Capital.

Finland 330

Finland Naming Russia Government 330

www.inc.com

SEPTEMBER 24, 2011

Financing A Small Business. Business Taxes. Selling A Business. Employee Benefits. Internet and Online Business. Business Software. Will Work for Equity. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. Theres a huge opportunity cost in not taking equity," he says.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Startup Professionals Musings

NOVEMBER 21, 2016

They know it’s especially hard to provide a financial return with a free business model. Even non-profits need money to scale, but their pitch should be to philanthropists, not equity investors. This may work for a year or two, until you grow to need employees with benefits, facilities, and more complex processes.

Intellectual Property 120

Intellectual Property Valuation Technical Review Equity 120

NZ Entrepreneur

SEPTEMBER 29, 2021

experiments to build a product, find customers, test business models and hire amazing people. Creating this value is anchored in finding a repeatable, scalable business model. Startups must be obsessive on solvency, ensuring that at no point the business strays into reckless trading territory. Risk and reward.

Technical Review 88

Technical Review Software Review New Zealand Due Diligence 88

Startup Professionals Musings

OCTOBER 20, 2023

Most new businesses need three to five advisors or board members to regularly evaluate progress and resource needs, as well as your own leadership. These advisors need a stake in your success, like a monthly stipend, or an equity share of the business. This is not a place for friends and family.

Marketing 290

Marketing Leadership Differentiation Equity 290

Steve Blank

MAY 19, 2015

retaining their existing hires who were working for intern-like salaries with little equity. He had never run one, and worse, had never been on a board of a startup making the transition from searching for a business model and product/market fit, to the next phase of “building” the infrastructure to support scale.

Technical Review 120

Technical Review Salary Early Stage Software Review 120

Hearpreneur

JANUARY 1, 2023

Our teams and employees are our biggest support during an economic downturn. Tighten up your business by focusing on team wellness and feedback before the recession hits. Using feedback implements or engagement initiatives, keep employee expenditures lower later on by investing in teams’ satisfaction and retention now.

Entrepreneur 99

Entrepreneur Software Review Technical Review Revenue 99

The Startup Magazine

JULY 1, 2022

How To Create A Business Model And Identify Your Target Market. Creating a business model is an essential step in starting a business. Once you understand the different types of companies and their structures, you need to identify your target market and choose a business model that fits your startup.

Technology 148

Technology Venture Capital Finance Startup 148

Steve Blank

APRIL 26, 2022

They offered desperate founders more cash but insisted on new terms, rewriting all the old stock agreements that previous investors and employees had. Venture capital, like most private equity, is an unregulated financial asset class – anything goes. Other times it was simply a take-it-or-leave-it, here are the new terms. You’re not.

Cram Down 413

Cram Down Founder Venture Capital Recapitalization 413

Startup Professionals Musings

JULY 14, 2023

That leads to switching costs, sunk costs, brand equity, and a host of other considerations, commonly called “barriers to entry.” You need to identify substitute inputs, supplier concentrations, and employee solidarity (labor unions), which can limit you or give you the advantage. Utility of alternative solutions.

Differentiation 220

Differentiation Framework Equity Business Plan 220

Steve Blank

MARCH 17, 2020

Large companies are sending employees to work at home. While the impact on small businesses and workers in the “gig-economy” hasn’t made the news, it will be worse for them. If you’re running a startup or small business, your first priority (after your family) is keeping your employees and customers safe.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

Austin Startup

FEBRUARY 23, 2020

million employees on the platform. She is responsible for the company’s vision and strategy for delivering innovative solutions, building an organization of the industry’s most talented people, and developing organizational excellence to deliver the highest levels of business value to its customers.

Technical Review 62

Technical Review Seattle Elevator Pitch Equity 62

David Teten

AUGUST 19, 2019

This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. We don’t have any equity or control over the business….”. “As

Revenue 60

Revenue Technical Review Software Review Equity 60

Both Sides of the Table

JANUARY 4, 2014

The lack of team cohesion and respect for individuals has probably been one of the biggest weaknesses of Zynga – at least from nearly EVERY employee I’ve ever talked to who worked there. Equity for the future? What should the financial settlement be for the founder leaves be?

Founder 340

Founder Sacramento Cofounder Technical Review 340

Up and Running

MARCH 12, 2019

If you’re in the early stages of starting your tech-based or SaaS business , it makes good sense to consider IP (intellectual property) protection a critical part of your business model. It’s a way to reduce your business’s risk. Include these crucial clauses in your employment contracts.

IP 80

IP Software Developers Software Development Intellectual Property 80

Startup Professionals Musings

OCTOBER 24, 2020

That leads to switching costs, sunk costs, brand equity, and a host of other considerations, commonly called “barriers to entry.” You need to identify substitute inputs, supplier concentrations, and employee solidarity (labor unions), which can limit you or give you the advantage. Utility of alternative solutions.

Differentiation 378

Differentiation Framework Equity Business Plan 378

Startup Professionals Musings

JUNE 6, 2010

What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Personal loans from employees and board members. As in any company, they can lead to employee problems, or messy legal issues.

Angel Investor 143

Angel Investor Technical Review Exit Strategy Equity 143

YoungUpstarts

SEPTEMBER 10, 2018

Acceleration and incubation programs are on the rise and have helped start and scale many successful businesses over the past 10 years. There are many different kinds of accelerators – private and public based accelerators, accelerators that take equity, as well as equity free accelerators. It was all hypothetical.

Programming 124

Programming Chile B2B B2C 124

www.drowningamerican.com

JUNE 22, 2012

Next → How we Hire for Sweat Equity (Part 2)… Posted on April 7, 2011 by Travis Biziorek. equity in the company. Ground floor opportunity and voice in shaping the company — you will be the third employee, your input and work will be invaluable. Sounds like you pivoted from your original business model.

Sweat Equity 40

Sweat Equity Equity Hiring Technical Review 40

Steve Blank

MARCH 4, 2014

The Enterprise: Business Model Execution We know that a startup is a temporary organization designed to search for a repeatable and scalable business model. The corollary for an enterprise is: A company is a permanent organization designed to execute a repeatable and scalable business model.

IRR 335

IRR Startup Business Model Agile 335

Up and Running

NOVEMBER 15, 2017

Even if you already know what a SWOT analysis is and what it’s used for, it can be tough to translate that information and examine your own business with a critical eye. Reading an example SWOT analysis for a business that is either in your industry or based on a comparable business model can help get you started.

Botswana 148

Botswana Business Plan Oregon Distribution 148

Gust

NOVEMBER 8, 2012

Apple was mostly a curiosity in the late 1970s, when I played with the children of some of its early employees and had the privilege of playing then-state-of-the-art games on their Apple II computers in glorious monochrome ASCII. Reasonable minds can differ on all of the above topics.

Silicon Valley 187

Silicon Valley San Francisco Intellectual Property Accredited Investor 187

The Startup Magazine

AUGUST 6, 2021

Develop a Business Model. The great managerial guru, Peter Drucker, liked to say that the purpose of a business is to keep and create a customer. Achieving that in profitable ways is the purpose of your business model. New businesses often do not have the capital to attract top talent.

Limited Liability Company 167

Limited Liability Company Silicon Valley Business Model Stock Options 167

The Startup Magazine

SEPTEMBER 2, 2021

Traditional business models have changed as globalization takes hold on a global scale, and technology changes our lives day by day. They provide an excellent way for startups to train their employees without incurring the cost of a physical location or hiring more staff members. Employee-Owned Startups.

Startup 169

Startup Social Media Global Incubator 169

Steve Blank

APRIL 14, 2013

business models. Even though they’re next to Zhongguancun, the hottest place for startups in China, there seems to be a lower appetite for risk, a lack of interest in equity (instead optimizing for a high salary) and very little loyalty to any one company. Turnover of employees in capital in Beijing is very high.

China 326

China Silicon Valley Non-Compete Intellectual Property 326