ReadWriteStart

JUNE 1, 2020

Funding might be a need in some cases — but it’s not an absolute necessity. ? The business should be self-sustainable. The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. Government programs.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

MARCH 25, 2023

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $1 trillion. A business only achieved critical mass by becoming cash-flow positive. Both have worked.

Valuation 235

Valuation Revenue Viral Retention 235

Steve Blank

SEPTEMBER 5, 2018

Tech IPO prices exploded and subsequent trading prices rose to dizzying heights as the stock prices became disconnected from the traditional metrics of revenue and profits. Startups wrote business plans, generated expansive 5-year forecasts and executed (hired, spent and built) to the plan.

Lean 335

Lean Burn Rate Startup IPO 335

Steve Blank

APRIL 23, 2014

buy out an entire company for its revenue and profits. Corporate business development and strategic partner executives are flocking to Silicon Valley to find these five types of innovation. For acquirers this math makes sense since they can factor in the potential impact the startup has when combined with their existing business.

Acquisition 332

Acquisition Intellectual Property Silicon Valley Startup 332

Startup Professionals Musings

NOVEMBER 21, 2016

After listening to hundreds of startup pitches, and reading even more business plans, most new venture investors develop their own favorite list of “red flags” that signal the beginning of the end of their interest. Declare a $10 million valuation with no revenue or customers. Higher numbers cause investors to walk away.

Intellectual Property 120

Intellectual Property Valuation Technical Review Equity 120

Startup Professionals Musings

APRIL 17, 2023

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. At this point, most Angel investors and a few early-stage VCs will be happy to talk, assuming you have the business model validated, and a large opportunity. Congratulations!

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

Startup Professionals Musings

AUGUST 10, 2014

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Both have worked.Google reached $1 billion in revenue within five years of incorporation, and now has a market capitalization of over $400 billion. A business only achieved critical mass by becoming cash-flow positive.

Revenue 246

Revenue Entrepreneur Valuation Viral 246

Startup Professionals Musings

AUGUST 25, 2018

Those that do it right also have the unprecedented opportunity to join the elite ranks of 250 unicorns (relatively new companies with a current valuation of over $1 billion). These days you can create a C-corp or LLC online quickly at a low cost, to serve you well in signing partners, intellectual property, investors, and revenue.

Technical Cofounder 184

Technical Cofounder Intellectual Property Silicon Valley LLC 184

Startup Professionals Musings

JUNE 26, 2016

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $400B. A business only achieved critical mass by becoming cash-flow positive. Both have worked.

Revenue 145

Revenue Valuation Startup Viral 145

Startup Professionals Musings

FEBRUARY 15, 2023

Most new teams are geographically dispersed these days anyway, so paying rent for an office should be differed to later stages when revenue is plentiful. Favor profitability over revenue and user growth. Use your equity for key executives and business partners. Barter services for access to required resources.

Equity 349

Equity Hockey Stick Bootstrapping Sweat Equity 349

Startup Professionals Musings

SEPTEMBER 30, 2013

Here are some tips which will signal traction and fundability to investors, as well as to your team: Document your business plan. It’s hard to build a business without a plan, just like it’s hard to build a house without a blueprint. A great business often starts with one person, but it doesn’t end there.

Intellectual Property 281

Intellectual Property Entrepreneur Sweat Equity CTO Hire 281

YoungUpstarts

JUNE 16, 2020

Business valuation is defined as a way to determine the overall economic value of a company , and is a necessary component of a sound business plan and strategy. Any of these situations will demand a valuation to determine current and future projected value. . Three Methods of Valuation.

Valuation 142

Valuation CPA Software Review Revenue 142

Startup Professionals Musings

JANUARY 7, 2013

Your friends and family are really the only answer until you have a significant revenue stream. Here are some key action items that may give your business some visibility: Start with an investment-grade business plan. Mass mailing your business plan to every VC in the book won’t get you any credibility or traction.

Venture Capital 252

Venture Capital IPO Elevator Pitch Initial Public Offering 252

The Startup Magazine

AUGUST 29, 2019

The working capital loan is required to run a complete cycle of revenue-generating operations. However, funding involves the usual process of sharing the valuation details and business plan along with the project reports, which then determines the sanctioning of the loan.

Startup 96

Startup Government Valuation Technical Review 96

Startup Professionals Musings

AUGUST 13, 2012

People ask me if they really need ANY business plan, unless they are looking for an outside investor. In fact, a business plan is needed more by you than investors, as the blueprint for your company, team communication, and progress metrics. Explain the business model. Include a current valuation estimate.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Startup Professionals Musings

JULY 22, 2020

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. At this point, most Angel investors and a few early-stage VCs will be happy to talk, assuming you have the business model validated, and a large opportunity. Congratulations!

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

Startup Professionals Musings

AUGUST 31, 2012

Here are some tips which will signal traction and fundability to investors, as well as to your team: Document your business plan. It’s hard to build a business without a plan, just like it’s hard to build a house without a blueprint. A great business often starts with one person, but it doesn’t end there.

Intellectual Property 260

Intellectual Property Sweat Equity CTO Hire Fractional CTO 260

Startup Professionals Musings

MAY 13, 2011

People ask me if they really need ANY business plan, unless they are looking for an outside investor. In fact, a business plan is needed more by you than investors, as the blueprint for your company, team communication, and progress metrics. Explain the business model. Include a current valuation estimate.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Startup Professionals Musings

NOVEMBER 4, 2011

They must amplify your “elevator pitch” to investors, as well as key points from the business plan and the financial model. Prepare an investment-grade business plan. Every entrepreneur needs a professional business plan for their own use, whether they intend to seek investor funding or not.

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

Startup Professionals Musings

MAY 18, 2020

Most new teams are geographically dispersed these days anyway, so paying rent for an office should be differed to later stages when revenue is plentiful. Favor profitability over revenue and user growth. Use your equity for key executives and business partners. Barter services for access to required resources.

Hockey Stick 423

Hockey Stick Bootstrapping Sweat Equity Intellectual Property 423

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

Startup Professionals Musings

JUNE 5, 2021

In startup business plans, a bubble is too many entrepreneurs and too many investors chasing the latest “next big thing,” like Google search engine, Facebook social network, or Amazon e-commerce site. High valuation, low profit. The focus should always be on execution, revenue, and profits. Overconfidence.

Demand 362

Demand Government Venture Capital Valuation 362

Berkonomics

MARCH 5, 2020

So, it is important for the entrepreneur to identify, address and mitigate each of these in order to increase valuation and decrease the risk of ultimate loss of the business. Reduction or elimination of one or more of these risks increases the valuation of the company and certainly improves its chances of survival and growth.

Valuation 62

Valuation Down Round Early Stage Demand 62

Startup Professionals Musings

JUNE 17, 2011

Here are some tips which will signal traction and fundability to investors, as well as to your team: Document your business plan. It’s hard to build a business without a plan, just like it’s hard to build a house without a blueprint. A great business often starts with one person, but it doesn’t end there.

Intellectual Property 253

Intellectual Property Sweat Equity CTO Hire Fractional CTO 253

Startup Professionals Musings

JUNE 25, 2012

Just don’t quit your day job before your new company is producing revenue. Use this approach before you have a real valuation, a real product, or any real customers. Your funding strategy is a key part of every business plan, so don’t hesitate to check out the real alternatives. Friends and family. Marty Zwilling.

Technical Review 257

Technical Review Bootstrapping Venture Capital Incubator 257

Both Sides of the Table

JULY 29, 2010

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. The best thing to get is a “right sized&# valuation. A: It’s not best.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

Startup Professionals Musings

MAY 4, 2016

Who would not want to joint the unicorns (recent startups with a current valuation of over $1 billion)? He nails the current key startup parameters, including the following: Crafting a lean business plan as your road map. The days of lengthy, text-heavy, business plan documents prepared by expensive experts are behind us.

Intellectual Property 120

Intellectual Property Startup Angel Groups Social Media 120

Startup Professionals Musings

APRIL 24, 2011

Your friends and family are really the only answer until you have a significant revenue stream. Here are some key action items that will give you some priority: Create an investment-grade business plan. Use friends, family, and angels, if possible, to get a product, revenue, and customers first before the VC connection.

Venture Capital 233

Venture Capital Revenue Elevator Pitch Silicon Valley 233

Gust

AUGUST 5, 2012

People ask me if they really need ANY business plan, unless they are looking for an outside investor. In fact, a business plan is needed more by you than investors, as the blueprint for your company, team communication, and progress metrics. Explain the business model. Include a current valuation estimate.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Startup Professionals Musings

MAY 22, 2010

Here are some tips which will signal traction to investors, as well as your team: Document your business plan. It’s hard to build a business without a plan, just like it’s hard to build a house without a blueprint. A great business often starts with one person, but it doesn’t end there. Only real results count.

Intellectual Property 222

Intellectual Property Sweat Equity CTO Hire Fractional CTO 222

Startup Professionals Musings

MARCH 14, 2020

That approach may work for an entrepreneur who just sold a successful business for a huge profit, but it doesn’t work for the rest of us who are not proven successes yet, or don’t even have a business yet. Non-credible funding request or unreasonable valuation. Future unproven projections don’t set today’s valuation.

Due Diligence 308

Due Diligence Intellectual Property Preferred Stock Seed Stage 308

Startup Professionals Musings

MARCH 16, 2011

Just don’t quit your day job before your new company is producing revenue. Use this approach before you have a real valuation, a real product, or any real customers. Your funding strategy is a key part of every business plan, so don’t hesitate to check out the real alternatives. Friends and family. Marty Zwilling.

Technical Review 233

Technical Review Bootstrapping Startup Venture Capital 233

Startup Professionals Musings

SEPTEMBER 23, 2010

They must amplify your “elevator pitch” to investors, as well as key points from the business plan and the financial model. Prepare an investment-grade business plan. Every entrepreneur needs a professional business plan for their own use, whether they intend to seek investor funding or not.

Angel Investor 224

Angel Investor Intellectual Property Technical Review Elevator Pitch 224

Startup Professionals Musings

APRIL 22, 2010

People ask me if they really need ANY business plan, unless they are looking for an outside investor. In fact, a business plan is needed more by you than investors, as the blueprint for your company, team communication, and progress metrics. Explain the business model. Include a current valuation estimate.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

Up and Running

MAY 17, 2017

The sad reality is that many business acquisitions do not work out as hoped. Either the person selling their business gets significantly less than they planned, or they are not able to find a buyer at all. The primary reason given was that they had planned poorly or not at all. million in sales revenue.

Acquisition 92

Acquisition Technical Review Revenue Exit Strategy 92

Gust

JUNE 17, 2012

Just don’t quit your day job before your new company is producing revenue. Use this approach before you have a real valuation, a real product, or any real customers. Your funding strategy is a key part of every business plan, so don’t hesitate to check out the real alternatives. Friends and family.

Technical Review 164

Technical Review Bootstrapping Venture Capital Incubator 164

Gust

OCTOBER 20, 2011

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Scorecard Valuation Methodology. Such comparisons can only be made for companies at the same stage of development, in this case, for pre-revenue startup ventures. The range of the data is from a low pre-money valuation of $0.8

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146