The Startup Magazine

FEBRUARY 21, 2024

Arif Bhalwani is the co-founder and CEO of Third Eye Capital (TEC) in Toronto, Canada. As an investor, these experiences have honed my ability to see beyond spreadsheets and valuations, to the core of what makes businesses thrive: the people, the vision, and the relentless pursuit of excellence. The firm has made more than $4.5

Technical Review 135

Technical Review Due Diligence Bankruptcy Intellectual Property 135

David Teten

AUGUST 20, 2019

Many are reporting that they’re seeing a more diverse pool of applicants than traditional equity VCs… even though virtually none have a particular focus on women or underrepresented founders. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital.

Revenue 60

Revenue Cofounder Founder Venture Capital 60

ReadWriteStart

JUNE 1, 2020

In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. For these businesses, it is imperative to get funding from the start without which the company cannot be set up. Bridge or exit stage.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

View from Seed

AUGUST 17, 2021

A few weeks ago, we hosted a small dinner for a number of portfolio company founders, LP’s, and friends of the firm. It’s by far the longest time I’ve spent working on any one thing, and I feel very blessed to have been able to work with my partners, colleagues, founders, and collaborators. Also, being too dogmatic isn’t very fun J.

IRR 205

IRR Dilution Founder Portfolio 205

View from Seed

AUGUST 17, 2021

A few weeks ago, we hosted a small dinner for a number of portfolio company founders, LP’s, and friends of the firm. It’s by far the longest time I’ve spent working on any one thing, and I feel very blessed to have been able to work with my partners, colleagues, founders, and collaborators. Also, being too dogmatic isn’t very fun J.

IRR 156

IRR Dilution Founder Portfolio 156

VC Cafe

APRIL 4, 2024

While investments to generative AI startups are red hot, founders have to battle quite a few investor biases. Counter position – Kill the value-proposition of the competition with a new, superior business model, which the incumbent does not mimic due to anticipated damage to their existing business.

Generative AI 78

Generative AI Artificial Inteligence Technical Review ChatGPT 78

Steve Blank

MARCH 12, 2014

The startups and the teaching team crafted a challenge for the kids to tackle using the Customer Development methodology, Lean Launchpad tools and the business model canvas. Knowing they had 3 weeks before presenting to the company co-founders, the kids felt intensity like no traditional classroom could generate.

Lean 334

Lean Customer Development Startup Silicon Valley 334

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. Takeaway lesson: A shocking number of technology startups never even get their first product out the door. His first capital raise was a $2.75

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

View from Seed

AUGUST 17, 2021

A few weeks ago, we hosted a small dinner for a number of portfolio company founders, LP’s, and friends of the firm. It’s by far the longest time I’ve spent working on any one thing, and I feel very blessed to have been able to work with my partners, colleagues, founders, and collaborators. Also, being too dogmatic isn’t very fun J.

IRR 136

IRR Dilution Founder Portfolio 136

Startup Professionals Musings

NOVEMBER 21, 2016

They expect to hear about founders and team member’s prior experience in building a startup, and knowledge in the relevant solution domain. They know it’s especially hard to provide a financial return with a free business model. Many naïve startup founders believe that they can make good money with low margins.

Intellectual Property 120

Intellectual Property Valuation Technical Review Equity 120

Startup Professionals Musings

JUNE 26, 2013

It’s higher risk, but higher return, to pick the big winners early, before Angels have set unreasonable valuations and restrictive terms. More sources of funding for early-stage startups may drive up valuations on these deals, which will lower the returns for the Angels and super-Angels willing to do these deals.

Angel Investor 231

Angel Investor Entrepreneur Early Stage Silicon Valley 231

Both Sides of the Table

JUNE 22, 2011

I recently spoke at the Founder Showcase at the request of Adeo Ressi. I said that at the Founder Showcase, too. 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. This post originally ran on TechCrunch.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Steve Blank

MARCH 17, 2020

But next the question is, ‘What happens to my business?”. The questions every startup or small business CEO needs to ask now are: What’s my Burn Rate and Runway? What does your new business model look like? What does my business model look like now? Is this a three-month, one-year or a three-year problem?

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

Startup Professionals Musings

DECEMBER 11, 2022

Non-credible funding request or unreasonable valuation. Investors are looking to buy a chunk of the business, not the product. They need to know how much money you need, and what portion of the current business you are willing to offer for the investment. Future unproven projections don’t set today’s valuation.

Due Diligence 271

Due Diligence Intellectual Property Entrepreneur Preferred Stock 271

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.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

VC Cafe

JANUARY 27, 2021

We are taking the screen sharing experience to the next level, so that collaboration doesn’t get in the way of doing great work,” writes CEO and founder Tom Medema. Next47 and American Insight Partners VC, demonstrates growing trust in its current and future business model. Another virtual events platform, Hopin , has hit a 2.1

Vertical 148

Vertical Video Technical Review Europe 148

Startup Professionals Musings

JANUARY 7, 2013

The market and venture capitalists are looking for business, but with a continuing focus on proven business models. Here are some key action items that may give your business some visibility: Start with an investment-grade business plan. To make this work, you will need an initial valuation of at least $5M.

Venture Capital 252

Venture Capital IPO Elevator Pitch Initial Public Offering 252

David Teten

JANUARY 19, 2021

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Every Flexible VC structure allows founders to access immediate risk capital while preserving exit, growth trajectory, and ownership optionality. . Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Steve Blank

MARCH 31, 2014

Look at the valuations of companies like Tesla, Illumina, and Twitter. The first will be commodity businesses that are valued for their ability to execute their current business model. The second class will be firms with a demonstrated ability to continually innovate and reinvent their business models.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

Startup Professionals Musings

SEPTEMBER 9, 2010

It’s higher risk, but higher return, to pick the big winners early, before angels have set unreasonable valuations and restrictive terms. More sources of funding for early-stage startups may drive up valuations on these deals, which will lower the returns for the angels and super-angels willing to do these deals. Marty Zwilling.

Technical Review 215

Technical Review Early Stage Venture Capital Startup 215

Steve Blank

SEPTEMBER 21, 2012

While statistics are weak on startup success rates, the worst one I’ve seen suggests that 2 in 1000 venture backed startups will ever achieve $100-million or more in valuation. . ——————-. Another stat puts that number at 2% rather than 0.2%. What’s the point? What are they waiting for?

Startup 332

Startup Cofounder Customer Development Viral 332

Startup Professionals Musings

OCTOBER 19, 2015

Most technologists have little interest in the mechanics of starting and building a business. That’s why I recommend that they find a co-founder who loves business challenges, including marketing and finance. Outside investors are most interested in scaling a proven business model, not research and development.

Technical Review 120

Technical Review Intellectual Property Cofounder Bootstrapping 120

YoungUpstarts

MAY 30, 2016

by Anand Srinivasan, founder of LeadJoint.com. Looking at the startup scene through the lens of TechCrunch or VentureBeat, one may not be faulted for assuming that securing VC capital is the default way to raise a business. Either way, you are not alone if you are bootstrapping your business. You are in the vast majority.

Bootstrapping 100

Bootstrapping Germany United States France 100

SoCal CTO

JUNE 9, 2010

But founders need to know how to ask for their advice and when to ignore it. Startup Insights From Paul English, Co-Founder of Kayak - OnStartups , May 10, 2010 I’m just wrapping up several weeks of attending conferences across both coasts. Why Entrepreneurs Hate Lawyers. was having coffee with a friend who teaches at the U.C.

Fractional CTO 248

Fractional CTO Startup Venture Capital Cofounder 248

Startup Professionals Musings

MARCH 14, 2020

Non-credible funding request or unreasonable valuation. Investors are looking to buy a chunk of the business, not the product. They need to know how much money you need, and what portion of the current business you are willing to offer for the investment. Future unproven projections don’t set today’s valuation.

Due Diligence 308

Due Diligence Intellectual Property Preferred Stock Seed Stage 308

Startup Professionals Musings

NOVEMBER 4, 2011

If the founders are not experienced, find a couple of advisors from the business sector to fill the gap. Every entrepreneur needs a professional business plan for their own use, whether they intend to seek investor funding or not. Finalize your financial model. This is called “validating the business model.”

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

The Startup Magazine

JUNE 1, 2023

By Daniel Sokolovksy, Co-Founder and CEO, WARP and Troy Lester, Co-Founder and CRO, WARP The dissolution of Silicon Valley Bank (SVB) was more than just a bank collapse, it was a reality check for both startups and the VCs that fund them. As a founder, ask yourself – does your business actually warrant VC funding?

Early Stage 113

Early Stage Los Angeles Silicon Valley Cofounder 113

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

Version One Ventures

JULY 20, 2015

I often get asked about how to determine the valuation for a marketplace startup that is starting to scale. The main multiple we like to use for marketplace businesses is GMV (Gross Merchandise Volume…the total volume of goods sold on the marketplace). Our assumptions for this valuation: Scale: > $1b GMV. for 2015 GMV.

Valuation 60

Valuation Early Stage IPO eCommerce 60

Steve Blank

MAY 13, 2010

But startups can shoot themselves in the foot when founders use consultants at the wrong time or in the wrong way. 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. Here’s why.

Founder 199

Founder Cofounder Business Model Customer Development 199

Steve Blank

OCTOBER 24, 2017

Why do these founders get to stay around? Because the balance of power has dramatically shifted from investors to founders. VCs competing for unicorn investments have given founders control of the board. — all great things when you are executing and scaling a known business model. Board Control.

Founder 245

Founder Technical Review CTO Hire IPO 245

Lightspeed Venture Partners

OCTOBER 7, 2012

The first company started as a BBQ catering business, and eventually focused in on their most popular product, a dip made of blended up chicken plus various sauces. This isn’t a company yet, it’s an idea, and the founder could do a lot more on his own to validate product-market fit before raising capital. Fair enough too.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

Startup Professionals Musings

SEPTEMBER 23, 2010

If the founders are not experienced, find a couple of advisors from the business sector to fill the gap. Every entrepreneur needs a professional business plan for their own use, whether they intend to seek investor funding or not. Finalize your financial model. This is called “validating the business model.”

Angel Investor 224

Angel Investor Intellectual Property Technical Review Elevator Pitch 224

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

Austin Startup

FEBRUARY 13, 2019

The first one relates to the most important investor…you, the founder(s)! Not necessarily the entire business, but at some point, something will fail and you’ll either learn from it and grow or it will be the beginning of the end. Bootstrap if you can, for as long as you can As a startup you’ll likely fail.

Strategic Investors 49

Strategic Investors Austin Angel Investor Bootstrapping 49

Duct Tape Marketing

FEBRUARY 3, 2022

Amanda is the Co-founder at Barney an M&A firm that specializes in the digital marketing space. 17:49] Have you ever experienced a transaction where a Founder sold the company to their existing team? [18:35] She's the co-founder at Barney, an M & A firm that specializes in the digital marketing space.

Entrepreneur 79

Entrepreneur Technical Review Cofounder Valuation 79

View from Seed

FEBRUARY 19, 2015

This is a guest post from Rob May , a co-founder and CEO of Backupify , which raised $19.5M Think more about business models. I’ve seen many companies with great products die because a great product is not necessarily a great business. But your job as CEO is really to guide your startup to a good business model.

Founder 120

Founder Startup Cofounder Business Model 120