Both Sides of the Table

JUNE 29, 2011

Yesterday I wrote Part 1 of the series on the changes to the software industry over the past decade that has led to changes in the venture capital industry itself. Some have done earlier-stage deals and done well. Others have chased earlier-stage but lack the skills or relationships to do this effectively.

Venture Capital 296

Venture Capital Software LP Early Stage 296

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? Next, take a look at your actual revenue each month – not forecast, but real revenue coming in each month.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . Data companies focused on early-stage startups include Aingel , fundsUP , Preseries , PredictLeads , and Sploda. 645 Ventures released a cap table simulator to help level the playing field.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Steve Blank

JUNE 11, 2013

When you take money from investors their business model becomes yours. Sigh… What I should have been hearing is the search for the business model, specifically the progress on product/market fit, but I hear the fund raising story first at least 90% of the time. What are revenue strategy and pricing tactics?

Venture Capital 333

Venture Capital IRR Liquidity Event Business Model 333

thebarefootvc

JANUARY 27, 2014

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. Or so it seems.

Technical Review 63

Technical Review Valuation Venture Capital Investment Bankers 63

Steve Blank

JUNE 11, 2013

When you take money from investors their business model becomes yours. Sigh… What I should have been hearing is the search for the business model, specifically the progress on product/market fit, but I hear the fund raising story first at least 90% of the time. What are revenue strategy and pricing tactics?

Venture Capital 225

Venture Capital IRR Liquidity Event Business Model 225

Steve Blank

JUNE 15, 2010

The role of a founding CEO in a startup searching for a business model is radically different than a CEO building and growing a company. Certain VC’s like the new class of Super-Angels and small VC funds specialize in the early stage of a startup where you are searching for a business model. Lean Startups ?

Founder 231

Founder Vesting Later Stage Early Stage 231

Hunter Walker

JULY 18, 2022

Multiples dropped in public and private markets, growth expectations were cut, and business models with high spend for promise of future ROI became quite unfavorable. Your runway is impacted by the absence of projected revenue. Similarly, for a variety of reasons, the music stopped.

Valuation 116

Valuation Cap Table Startup Later Stage 116

Startup Professionals Musings

MARCH 18, 2016

First priority is real revenue, customers and contracts. If you have a proven business model with some sales, it’s credible to apply a multiplier of five to 10 times this number for the first element of valuation. Thus, $100,000 of gross revenue in the last 12 months might be extrapolated to $500,000 to $1 million in valuation.

Intellectual Property 120

Intellectual Property Valuation Pre-Money Valuation Startup 120

techcrunch.com

FEBRUARY 19, 2010

Researchers polled experts in lending, mezzanine capital, private equity, venture capital and private businesses themselves. Not a big shock, but things don’t look pretty, especially in the venture capital world. The businesses, it seems, vastly over-estimate their ability to raise funds.

Venture Capital 62

Venture Capital Technical Review Sweat Equity Valuation 62

Growthink Blog

MAY 10, 2012

You see, equity capital is raised in stages or rounds. The five main stages include the following: 1. Early Stage Investment (Series A & B) 4. Later Stage Investment (Series C, D, and so on) 5. Put everything else on your "wish list" to buy with revenues from sales or additional financing.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

Both Sides of the Table

FEBRUARY 14, 2016

Most venture capitalists who have been in this business for a long time foresaw this correction and have been talking about it privately for the better part of the last year or two. forward revenue for SaaS businesses when in the years before it had been less than 5x. This corrected only to go back up to 13.4x

Valuation 150

Valuation Down Round Startup Later Stage 150

Up and Running

DECEMBER 9, 2014

They cover funding for small businesses from the initial funding stage to later stages of growth, and other areas in between. The question is what metrics do you most rely on to understand your business’s health? Two, revenue. Give us an answer and let’s move on to finding working capital.

Small Business 95

Small Business Finance Forecast Metrics 95

techcrunch.com

OCTOBER 23, 2010

It is the first in a series of posts he’s writing about the decisions a young entrepreneur needs to make when she/he is first starting a business. The timing is perfect, there is more than a little overlap with Vivek Wadhwa’s guest post on venture capital earlier today. Johnny Good post. How to get there.

Technical Review 84

Technical Review Cofounder Technical Cofounder Software Review 84