View from Seed

AUGUST 17, 2021

90% of the airtime around ownership and valuations is focused on what happens when the first check is written. Effective post money is the effective valuation of an investor’s dollars at any one time. Also, being too dogmatic isn’t very fun J. What matters is effective post-money at exit. We think about this a lot too.

IRR 156

IRR Dilution Founder Portfolio 156

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

JANUARY 19, 2020

Mobile and web software apps may cost even less. Super angels sometimes drive up valuations. Perhaps because of their focus on building a large portfolio, or their competitiveness, these angels sometimes accept valuations that cause later friction while moving to VCs, or even other angel groups. Marty Zwilling.

Angel Investor 314

Angel Investor Venture Capital Silicon Valley Startup 314

View from Seed

AUGUST 17, 2021

90% of the airtime around ownership and valuations is focused on what happens when the first check is written. Effective post money is the effective valuation of an investor’s dollars at any one time. Also, being too dogmatic isn’t very fun J. What matters is effective post-money at exit. We think about this a lot too.

IRR 136

IRR Dilution Founder Portfolio 136

YoungUpstarts

MAY 30, 2016

For one, the business owner continues to own major equity which gives them greater financial leverage and control. Also, by their very nature, bootstrapped businesses are built on sustainable business models. Imagine a startup that builds software applications for medium and large businesses.

Bootstrapping 100

Bootstrapping Germany United States France 100

Austin Startup

OCTOBER 15, 2017

What seems to be the best way to create customers and revenue may result in a business model that is out of vogue with the investment world and shortchanges you on enterprise valuation. He forgot a major highlight of the business model, and the damage was done. A good example is the marketing technology sector.

Technical Review 48

Technical Review Software Review Nevada Silicon Valley 48

SoCal CTO

JUNE 9, 2010

Kathy Sierra at Business of Software 2009 - Business of Software Blog , May 4, 2010 "In the old days, getting customers was easy. " In fact, 3 of the 10 selected companies from the past two years has followed this business model. You could just outspend. marketplace is born.

Fractional CTO 248

Fractional CTO Startup Venture Capital Cofounder 248

ReadWriteStart

MARCH 8, 2016

The hottest open source companies are focused on big data, with companies like DataStax, Cloudera , and MongoDB bagging billion-dollar valuations as they earn ever-increasing revenues. But even hotter, according to new data from mutual fund filings and Dow Jones VentureSource, are proprietary big data software startups. Its reward?

Software 60

Software Open Source Valuation Analytics 60

crowdSPRING Blog

AUGUST 22, 2014

Complete Guide to Google My Business | TechFunction – crowdspring.co/1ldeJWm. How to Test Whether Your Business Model is Worth Pursuing – crowdspring.co/1nbEqBG. How to Test Whether Your Business Model is Worth Pursuing – crowdspring.co/1nbEqBG. Colorful Detailed Wall Textures – crowdspring.co/YppGcU.

Social Media 92

Social Media Small Business Design Media 92

YoungUpstarts

FEBRUARY 6, 2019

Whenever you’d hear the word “startup” nowadays, you’d immediately think of a tech or software venture in Silicon Valley – the breeding ground of startups, both failures and successes. Here’s a good cheat sheet on how startup valuation works. The Officeless World Of Online Business. Competition Forces Evolution.

Small Business 176

Small Business Silicon Valley Valuation Seattle 176

Version One Ventures

OCTOBER 1, 2019

What was one of the highest flying start-ups with a private market valuation of $47B was brought down to Earth when trying to IPO. The major point that often gets forgotten is that no business model is the same. Great start-ups can be built in many categories and with many different business models.

Valuation 116

Valuation Vertical IPO Business Model 116

Version One Ventures

OCTOBER 15, 2020

Up until late August, Lightning Labs had capped the channel capacity and payment size for users of their popular implementation of the network to ~$2000 USD and ~$500 respectively to better protect user funds with experimental software. . NFTs are unique digital bearer assets which may include a variety of software-enabled rights.

Networking 168

Networking Global OTC Security 168

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

Startup Professionals Musings

DECEMBER 27, 2014

Mobile and web software apps may cost even less. Super Angels sometimes drive up valuations. Perhaps because of their focus on building a large portfolio, or their competitiveness, these angels sometimes accept valuations that cause later friction while moving to VCs, or even other angel groups.

Angel Investor 260

Angel Investor Silicon Valley Startup Portfolio 260

Start Up Blog

NOVEMBER 18, 2020

So today I’m going to help you get a better at understanding true technology / software plays versus those who, in truth pretend to be something they are not. In fact, almost every business relies on software in some way. Here are some of their key numbers below: Filed to float with a valuation of around $13b USD.

IPO 62

IPO Valuation Software Venture Capital 62

crowdSPRING Blog

APRIL 8, 2012

Entrepreneurs should always conduct their own historical research to better understand the context of their idea, the likelihood of the venture’s success, and to determine the value of a market or a business model. Academics review one another’s work.

Software Review 112

Software Review Entrepreneur Incubator Valuation 112

VC Cafe

FEBRUARY 27, 2024

Everyone moved to earlier stage – part of the decline in late stage investing is the ‘baggage’ of companies that previously raised money at inflated valuations that they would struggle to justify in today’s market. That’s yet another reason for micro funds to move earlier in the fundraising timeline.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

Feld Thoughts

AUGUST 25, 2015

Not really; it was a result of an industry investing into a frothy market at higher and higher valuations in expectation of near term liquidity, and suddenly the IPO window shutting, leading to no exits and little additional capital to support these companies. “By January 1984, investors had turned away from hardware toward software.”

Venture Capital 70

Venture Capital SBIC Technical Review Silicon Valley 70

Austin Startup

AUGUST 20, 2017

Keep the valuations consistent with company progress. The bottom line is that the pedigree of your investors will have much to do with your ultimate valuation and with your enjoyment of the startup experience. Your business works as intended if you can attract customers that fit into the context of your operation.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Steve Blank

MARCH 18, 2011

The signals are loud and clear : seed and late stage valuations are getting frothy and wacky, and hiring talent in Silicon Valley is the toughest it has been since the dot.com bubble. Software companies had to buy specialized computers and license expensive software. Carpe Diem. We’re now in the second Internet bubble.

Internet 334

Internet IPO Silicon Valley Agile 334

crowdSPRING Blog

NOVEMBER 30, 2012

Start With a Business Model, Not a Business Plan | WSJ – [link]. The danger of waiting to long to find a business model? … Checking In on Foursquare’s Valuation – [link]. Legal Contracts for Software Developers Who Hate Contracts (w/free contract template to use today) – [link].

Social Media 100

Social Media Small Business Central African Republic Design 100

Startup Professionals Musings

JUNE 22, 2016

According to most experts , business traction is evidence that somebody really wants your product. It’s business momentum, independent of whether you have a product delivered, proven the business model, or significantly penetrated the opportunity. Validate every key element of your business model.

Metrics 143

Metrics Advisory Board Startup Lean 143

Cracking the Code

OCTOBER 1, 2020

The company’s success has been largely driven by its developer-led freemium model, going from Series A funding to a valuation of $2.6B You’re asking the same type of questions about the use case but you don’t have to bet the entire business model on it. in just 30 months.

Early Stage 62

Early Stage Open Source Development Team Review Security 62

Version One Ventures

OCTOBER 7, 2014

Rick Perreault of my portfolio company Unbounce recently called my attention to an interesting comparison between two SaaS models: Hubspot & Moz – A Tale of Two (Very Different) SaaS Business Models. As soon as your business stops growing, your valuation multiples come crashing down and you can be in serious trouble.

Initial Public Offering 148

Initial Public Offering IPO SEC Valuation 148

Cracking the Code

NOVEMBER 13, 2008

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. Be realistic on valuation: the best public SaaS companies lost 60% of their value on average, so it is likely your valuation is down too! Cracking The Code. Thursday, November 13, 2008.

Software Review 48

Software Review Technical Review Valuation Portfolio 48

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

View from Seed

APRIL 30, 2015

” Venture debt gives you those options, and particularly for companies that wind up doing well, then on your same cash-out date, you’d likely have achieved a better milestone thanks to fueling your spend, which would translate into a better valuation. Business model? Traction and revenue? Previous capital raised?

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

crowdSPRING Blog

NOVEMBER 1, 2013

Small Business and Startups: The Trends for 2014 (Pt II) - crowdspring.co/1atXci8. Amazon and the “profitless business model” fallacy – crowdspring.co/1aQZQ04. Entrepreneur PSA – Advertising Businesses are Hard | Seth’s Blog - crowdspring.co/1aHHgHS. But a nearly $4 billion valuation?

Social Media 94

Social Media Small Business Design Media 94

Steve Blank

SEPTEMBER 14, 2009

Underwriters realized that as long as the public was happy snapping up shares, they could make huge profits on the inflated valuations (regardless of whether or not the company should have ever been public.) The valuations for acquisitions were nothing like the Internet bubble, but there was a path to liquidity, difficult as it was.

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

Ben's Blog

AUGUST 17, 2020

When speaking with founders and private growth investors, we hear countless references to “multiples paid” on current or near-term revenue; both obsess over this because a higher multiple translates to a higher valuation. How valuation multiples work Why did multiples become a shortcut-heuristic for estimating valuations in the first place?

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

www.paulgraham.com

OCTOBER 23, 2010

August 2010 Two years ago I wrote about what I called " a huge, unexploitedopportunity in startup funding :" the growing disconnect betweenVCs, whose current business model requires them to invest largeamounts, and a large class of startups that need less than theyused to. Butthere may not have to be just one valuation.

Startup 93

Startup Valuation Non-Compete Deal Flow 93

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. Why not go further, develop more valuation, customer experience, and really, deeply validate the business? Next comes the topic of angels.

Cloud 115

Cloud Silicon Valley Incubator Finance 115

www.inc.com

SEPTEMBER 24, 2011

Internet and Online Business. Business Software. Last spring, Dave Graham , founder of software consulting firm Arizona Bay, learned that a major client, Jumpstart Automotive Media, had been acquired for more than $80 million. Human Resources (HR). Employee Benefits. SALES & MARKETING. Online Marketing. Advertising.

Arizona 40

Arizona Equity Iowa Venture Capital 40

This is going to be BIG.

NOVEMBER 3, 2014

Billion valuation. Personally, I think it was kind of a bad idea--not necessarily because of the valuation, but because it seems like $120mm is way too much money for a software company at this stage, especially one that might even be cashflow positive right now. The company is doing about a million a month in recurring revs.

Venture Capital 151

Venture Capital Marketing Valuation Lead Investor 151

Steve Blank

JULY 15, 2010

Most of the startups they invested in either died by running out of money before they found a scalable business model or ended up in the “land of the living dead” by never growing (failing to Pivot.). It includes venture funded startups in all industries, from software to biotech. Startup lifecycle in an IPO Market.

Venture Capital 297

Venture Capital IPO Liquidity Event Entrepreneur 297

www.forentrepreneurs.com

FEBRUARY 2, 2010

Business Model I would like to propose that in addition to team, product, and market, there is actually a fourth, equally important, core element of startups, which is the need for a viable business model. These new business models focused heavily on how buying behavior has changed because of the power of the web.

Acquisition 103

Acquisition Cost Customer Entrepreneur 103

Steve Blank

APRIL 1, 2020

Others are cutting their valuations. I listened in on a board call with an enterprise software company this week, and when the CEO said, “Our VP of sales assured me our pipeline won’t be affected.” Days 3 and 4: Prepare new business model and operating plan. What does your board suggest?

South Korea 333

South Korea Salary Business Model China 333