David Teten

JANUARY 19, 2021

Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. We detail below the major categories of VC: VENTURE CAPITAL TYPOLOGY. Yes, via conversion rights at a valuation cap.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

David Teten

AUGUST 20, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. I have been impressed by how these venture capitalists are accomplishing a major social impact goal…without even trying to. of venture capital deals. Realistic projections.

Revenue 60

Revenue Cofounder Founder Venture Capital 60

Startup Professionals Musings

OCTOBER 13, 2013

Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. Hopefully you can see from this list that the people and processes involved in financing a non-profit have little in common with Angel investors, or the venture capital process.

Equity 207

Equity Angel Investor Technical Review Exit Strategy 207

Both Sides of the Table

JUNE 22, 2011

In addition to FOMO it is partly driven by massive increase in valuations for earlier-stage companies who raised money at bit seed prices but who still have product risk. million pre-money valuation is now raising $1 million at a $12 million valuation the next investor has nowhere to go but up (or sit out the investment).

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Startup Professionals Musings

SEPTEMBER 15, 2012

Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. Hopefully you can see from this list that the people and processes involved in financing a non-profit have little in common with angel investors, or the venture capital process.

Angel Investor 218

Angel Investor Technical Review Exit Strategy Equity 218

Startup Professionals Musings

JULY 3, 2011

Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. Hopefully you can see from this list that the people and processes involved in financing a non-profit have little in common with angel investors, or the venture capital process.

Angel Investor 238

Angel Investor Technical Review Exit Strategy Equity 238

Startup Professionals Musings

NOVEMBER 13, 2021

If you are an aspiring entrepreneur, or an existing business, and haven’t yet sized any of these opportunities, you may be already late to the game. One consequence of the new sharing business model is that goods become services. Access to assets in a community leads to a reduced need to own.

Cuba 316

Cuba Venture Capital Community Valuation 316

Startup Professionals Musings

FEBRUARY 15, 2015

Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. Hopefully you can see from this list that the people and processes involved in financing a non-profit have little in common with Angel investors, or the venture capital process.

Angel Investor 120

Angel Investor Equity Technical Review Exit Strategy 120

thebarefootvc

JANUARY 27, 2014

Do I think we are in a valuation bubble? I think that later stage valuations are frothy (for reasons I explain below) while earlier stage valuations are starting to stabilize from previous highs (with the exception of the superstar serial entrepreneur) - turns out scaling in a sea of competition (both startup and entrenched) is not so easy.

Technical Review 63

Technical Review Valuation Venture Capital Investment Bankers 63

Startup Professionals Musings

APRIL 24, 2011

I just read the Q1 2011 report from CB Insights , which shows venture capital is back. billion to work across 738 financing deals with U.S. Back to VCs, Silicon Valley venture capital firms are still the most active. So what can you do to get to the head of the venture capital investment queue?

Venture Capital 233

Venture Capital Revenue Elevator Pitch Silicon Valley 233

Both Sides of the Table

MAY 23, 2012

Many observers of the venture capital industry have questioned whether its best days are behind it. Looking ahead at the next decade I am excited by what I believe will be viewed as one of the best and most rational investment periods for venture capital due to seven discrete factors: 1. The Exit Problem.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

Steve Blank

MARCH 31, 2014

As the venture capital business has come roaring back in the last 5 years, startups are awash in available capital. Instead of measuring success in dollars of profit, …firms focus on measuring capital efficiency. Look at the valuations of companies like Tesla, Illumina, and Twitter.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.]

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Professionals Musings

JUNE 6, 2010

Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. Hopefully you can see from this list that the people and processes involved in financing a non-profit have little in common with angel investors, or the venture capital process.

Angel Investor 143

Angel Investor Technical Review Exit Strategy Equity 143

Steve Blank

SEPTEMBER 14, 2009

Over the same 30 years, Venture Capital firms have honed their skills and strategies to match Wall Streets needs to achieve liquidity for their portfolio companies. One of the biggest mistakes entrepreneurs make is misunderstanding the role of venture capital investors. What Do VC’s Do?

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

Up and Running

SEPTEMBER 19, 2017

That’s because obtaining a pre-money valuation for a concept level technology company in excess of $1 million is difficult, particularly for a startup founder without a proven track record. By contrast, obtaining a pre-money valuation of $5 million for a business with a new viable product and even very minimal sales is somewhat reasonable.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Startup Professionals Musings

FEBRUARY 2, 2019

If you are an aspiring entrepreneur, or an existing business, and haven’t yet sized any of these opportunities, you may be already late to the game. One consequence of the new sharing business model is that goods become services. Access to assets in a community leads to a reduced need to own.

Cuba 246

Cuba Venture Capital Community Valuation 246

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. I call it drip-financing. In 1M/1M, our preferred financing strategy is customers. Because customer financing equals revenue, not equity.

Cloud 115

Cloud Silicon Valley Incubator Finance 115

YoungUpstarts

JANUARY 6, 2014

I like to think that our generation’s digital skills are replacing the startup’s traditional hunt for capital – all we need is a good idea, our team specs it out to make it sell, and we self-finance each company off its own cash flow. But as an avowed startup junkie, I’m always looking forward to the next thing.

San Francisco 154

San Francisco Business Model Silicon Valley Coder 154

VC Cafe

SEPTEMBER 16, 2021

Let’s start with a short definition: [the creator economy] is defined as the class of businesses built by over 50 million independent content creators, curators, and community builders including social media influencers, bloggers, and videographers, plus the software and finance tools designed to help them with growth and monetization.

Startup 207

Startup Social Media Venture Capital Audio 207

VC Cafe

FEBRUARY 27, 2024

While the answers are somewhat semantic, the pre-seed funding round is making a comeback in 2024 startup financing. Lower valuations and follow on valuation sensitivity – fundraising is a recurring event in the life of a startup. Pre-seed tends to be about developing an MVP and generating early traction.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

www.inc.com

SEPTEMBER 24, 2011

Small Business Success | Mondays and Thursdays. The Goods: Your Business Toolbox | Thursdays. Finance | Tuesdays. Todays Small Business News | Daily. Financing a Small Business. Buying a Small Business. RUNNING A BUSINESS. Financing A Small Business. Business Taxes.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Growthink Blog

APRIL 15, 2015

Now given that the company has yet to even come close to breaking even, this can be viewed as either a great validation of Domo''s business model, or as more evidence of the “Bubble Mania” of the current technology financing landscape and a screaming signal to get out while you still can.

Valuation 48

Valuation Venture Capital Finance Acquisition 48

Austin Startup

FEBRUARY 13, 2019

Consider convertible debt Before diving into a seed round, you may want to consider convertible debt over equity financing. You benefit from the capital and investors benefit from a nice discount at conversion, usually in the range of 20 percent. Delaying in obtaining this level of talent would not have had nearly the same impact.

Strategic Investors 49

Strategic Investors Austin Angel Investor Bootstrapping 49

Steve Blank

JULY 15, 2010

If you take funding from a venture capital firm or angel investor and want to build a large, enduring company (rather than sell it to the highest bidder), this isn’t the decade to do it. The collapse of the IPO market and dysfunctional math in the venture capital community has stacked the odds against you. Here’s why.

Venture Capital 297

Venture Capital IPO Liquidity Event Entrepreneur 297

Steve Blank

JANUARY 4, 2010

In fact, Google’s offer for $15 Million was equal to the highest valuation from the venture firms. Lets take venture capital and grow this thing into a real business.”. They used Customer and Agile development to search for a scalable and repeatable business model to become a large company.

Hockey Stick 276

Hockey Stick Venture Capital Startup Cofounder 276

Cracking the Code

NOVEMBER 13, 2008

The fact that SaaS valuations are being more affected by the downturn than the Nasdaq can be surprising given the supposed resiliency of the SaaS model (recurring revenues) but it translates the public investors belief that SMB software spend is going to be hit very hard by this recession. With this decline, the average EV/08 rev.

Software Review 48

Software Review Technical Review Valuation Portfolio 48

Scalable Startup

AUGUST 26, 2014

As further market proof of the power of Drupal in the enterprise, Acquia has received about $100 million in funding in the past 3 months, which puts its valuation at over $1 billion. They kind of invented this business model. Google has optimized this open source to freemium model in almost all of its products. .

Founder 42

Founder Los Angeles PHP Open Source 42

YoungUpstarts

DECEMBER 5, 2018

Lately, we’ve seen startups able to reach a billion-dollar valuation, so-called “unicorn” companies, in the limelight. These companies are changing how we live and work, and they are not only creating tremendous value but are introducing new business models. Even with Venture Capital, Most Startups Fail.

Startup 182

Startup Acquisition Portfolio Venture Capital 182

Startup Professionals Musings

MAY 11, 2016

If you are an aspiring entrepreneur, or an existing business, and haven’t yet sized any of these opportunities, you may be already late to the game. One consequence of the new sharing business model is that goods become services. Access to assets in a community leads to a reduced need to own.

Cuba 120

Cuba Marketing Venture Capital Community 120

Professor VC

APRIL 7, 2011

This will also serve as a good pointer for all the entrepreneurs who ask why I am not interested in their company led convertible note financing round. In a convertible note structure, Im penalized for increasing your valuation. This can make it much more difficult to get any bank financing, new investment, and trade credit.

San Jose 36

San Jose Technical Review Angel Investor Valuation 36

Professor VC

APRIL 1, 2010

One comment made by Jason was that angels tend to be less sensitive than VCs on valuation and can potentially make it difficult to get a venture financing done at acceptable valuation. We are typically looking at either smaller exits or require a lower valuation to get a reasonable step-up to a venture round.

Term Sheet 32

Term Sheet Angel Investor San Jose Venture Capital 32

Professor VC

SEPTEMBER 26, 2011

Ive written previously about Right Side Capital Management (RCSM) , the latest in my post earlier this year, " How Much Diligence is Due. " (Full disclosure: I am an investor and adviser in RCSM.) They have launched a valuation tool that is free to try out. Labels: due diligence , early stage investing , moneyball , valuation.

Technical Review 38

Technical Review Early Stage San Jose Angel Investor 38

Startup Professionals Musings

MAY 8, 2015

If you are an aspiring entrepreneur, or an existing business, and haven’t yet sized any of these opportunities, you may be already late to the game. One consequence of the new sharing business model is that goods become services. Access to assets in a community leads to a reduced need to own.

Cuba 120

Cuba Entrepreneur Venture Capital Community 120

genylabs.typepad.com

SEPTEMBER 24, 2011

Even the best venture capital firms have a lot of failures and few successes. I wont bother going into details on start-up financing terms ( see this post for an overview of typical VC terms) except to say if you dont know and understand: the firms cap table and valuation. Business Models. venture capital.

Equity 40

Equity Technical Review San Jose Stock 40

Growthink Blog

APRIL 22, 2015

Business Planning Entrepreneurship Financing Investing Jay Turo Management Venture Capital' Who Should Attend I have designed the webinar with two main audiences in mind: 1. Sign up here:
 https://attendee.gotowebinar.com/register/346963354431820033 read more.

Venture Capital 48

Venture Capital Valuation Aggregator Business Model 48

Growthink Blog

FEBRUARY 25, 2015

Yesterday, TechCrunch posted a neat slideshow on the nine largest venture capital and private equity financing rounds of the past 24 months. And the emphasis is clearly on the World - as four of the seven companies profiled ( Didi Dache , Flipkart , Meituan , and Xiaomi ) have businesses focused outside of the United States.

Venture Capital 48

Venture Capital Private Equity United States China 48