Startup Professionals Musings

DECEMBER 27, 2014

Based on the best evidence I can find, the genesis of this trend and the advantages come from several evolutionary changes in the startup investment industry, and some innovations driven by the recent recession: Venture capital funds are still recovering from the recession. Super Angels sometimes drive up valuations.

Angel Investor 260

Angel Investor Silicon Valley Startup Portfolio 260

Startup Professionals Musings

AUGUST 13, 2016

Different types of investors tend to specialize in capitalizing on businesses at different stages. Venture capital firms look for the most mature companies they can find, Angel investors typically deal a tier lower, while friends and family are most likely to help you get started. Congratulations!

Matching 120

Matching Angel Investor Intellectual Property Investment Bankers 120

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

Start Up Blog

NOVEMBER 18, 2020

Here are some of their key numbers below: Filed to float with a valuation of around $13b USD. The problem is that it has a technology company valuation. The app delivery sector seems to be falsely propped up by Venture Capital investments so they can expand quickly, even if they lose money. Valuation around $30b.

IPO 62

IPO Valuation Software Venture Capital 62

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. AOL, Tech Crunch and What Selling Your Business Means.

Equity 40

Equity Technical Review San Jose Stock 40

Steve Blank

APRIL 1, 2020

If you were expecting angel or venture funding get on the phone to your investor(s). Others are cutting their valuations. The CFO should be on the phone to sources of additional capital. Remember, a year from now no one wants to be the CEO of a company out of business whose lament is, “I did what the board told me to do.”.

South Korea 333

South Korea Salary Business Model China 333

The Equity Kicker

JULY 8, 2019

When I started in venture capital in the late 1990s VCs were regularly lambasted for taking long summer holidays and spending too much time on the golf course. That can only mean that VCs will continue to find ways to add more value to their capital and that more and more fund managers will adopt the Applied Venture model.

Portfolio 84

Portfolio LP Venture Capital Partner 84

Cracking the Code

DECEMBER 2, 2006

The time they spend with customers is usually limited to transactional core products sales, generating lower margins – The resource allocation is not always matching the opportunity (geography, customer segment, vertical.) – The rules of engagement for technical resources (solution or product specialists) are not clear.

Software Review 48

Software Review Technical Review Europe Software 48

Seeing Both Sides

JULY 21, 2014

But many years later, I began to appreciate that one of our core flaws was our business model. million in one year, the year we went public at a billion dollar valuation (ok, it was 1996; everyone went public in 1996 with a billion dollar valuation), and then $61 million the following year. million to $22.5

Revenue 54

Revenue Valuation Churn Rate Portfolio 54

Babbling VC

APRIL 3, 2011

I know it goes against your business model :-) but it must tickle you that to some, the sign of success is funding and not a successful business. It's kind of funny that the majority of people coming to me are obviously looking to raise venture capital and don't have this discussion with me. This is a good one.

Venture Capital 81

Venture Capital Bootstrapping Global Valuation 81

This is going to be BIG.

NOVEMBER 7, 2011

Valuations. There are a ton of companies being funded at $500+ million valuations--seriously limiting exit opportunities. Many of the private companies like AirBnb, Dropbox, and Square and that have been rumored to have big valuations are real, growing businesses. Are their valuations justified? A bubble burst?

Angel Investor 104

Angel Investor Valuation Startup Revenue 104

Steve Blank

NOVEMBER 5, 2009

Chasing funding versus chasing customers and a repeatable and scalable business model, is one reason startups fail. Is there a profitable business model? The Traditional VC Pitch Entrepreneurs who pursue the traditional product development model don’t have customer data to answer these questions. Can it scale?”

Customer Development 262

Customer Development Developer Customer Silicon Valley 262

Steve Blank

FEBRUARY 26, 2020

For a Series A round you want to prove you have built a repeatable and scalable sales/revenue model and understand all parts of the business model. Series B is about proving your net revenue model (can you be profitable?). Team, Product, Traction, Business Model and Market. Business Model.

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

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

www.paulgraham.com

OCTOBER 23, 2010

They all use the same simple-minded model.They seem to have approached the problem by thinking about how todo database matches instead of how dating works in the real world.An Venture investments are usually described in terms ofthat number. The next round of funding is the one in which you might deal with actual venture capital firms.

Startup 105

Startup Cofounder Software Stock 105