Startup Professionals Musings

AUGUST 9, 2020

Building a new business is quite different from an executive role in a mature company, so people from these backgrounds are often a liability. Value is embodied in previous success with investors, proven problem solving ability, and having built and executed a business plan with minimal resources.

Cofounder 435

Cofounder Technical Cofounder Equity Intellectual Property 435

The Startup Magazine

AUGUST 11, 2023

Analysts perform a valuation of the company in question before the beginning of any round of funding. The management of a company, its established track record, the size of the market, and the level of risk all play a role in determining a company’s valuation. What is the Evaluation of the Funding?

Seed Stage 126

Seed Stage Technical Review Early Stage Due Diligence 126

Startup Professionals Musings

MAY 1, 2023

Building a new business is quite different from an executive role in a mature company, so people from these backgrounds are often a liability. Value is embodied in previous success with investors, proven problem-solving ability, and having built and executed a business plan with minimal resources.

Technical Cofounder 247

Technical Cofounder Equity Distribution Cofounder 247

Startup Professionals Musings

NOVEMBER 28, 2020

Who would not want to join 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 404

Intellectual Property Startup Angel Groups Social Media 404

Startup Professionals Musings

JUNE 11, 2022

You still start the process with a business plan, but then you look for a philanthropist rather than an investor. Some nonprofit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Angel Investor 327

Angel Investor Equity Technical Review Exit Strategy 327

ReadWriteStart

JUNE 1, 2020

You can get a personal loan without a business plan. The bridge or exit stage is generally of very large transactions and for companies with substantial valuation. These phases are focused on inorganic growth, mergers, buyouts, acquisitions, and exit preparation for the business. Bridge or exit stage.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

MARCH 10, 2021

Often, the number one question that entrepreneurs fail to address is: “How much money do you need, and what valuation do you place on your company?” After a good elevator pitch or initial presentation, investors will ask for your formal business plan and financial projections. Lack of clear objectives/goals.

Software Review 307

Software Review Due Diligence Elevator Pitch Early Stage 307

Both Sides of the Table

MAY 28, 2018

Let me check my plan.” There are many things a VC is looking for in reviewing your business plan but beyond things the like the quality of revenue, margins, OPEX and CAPEX there’s a really simple rule I call, “Cash In, Cash Out, Milestones Achieved.” Every VC knows that the amount you raise is often a proxy for your valuation.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

Up and Running

OCTOBER 3, 2018

What they don’t usually show on screen on shows like Flip or Flop is that writing a business plan is a must. If you’re thinking about starting a business that buys up homes, fixes them up and then re-sells them at a profit, the first step is to write a business plan. It serves as a mini version of your entire plan.

El Paso 61

El Paso Business Plan Technical Review Forecast 61

The Startup Magazine

MARCH 14, 2022

It is here that the groundwork is laid and the business model developed. A business plan is drawn up to attract investors and partners. The legalities of starting the business are addressed to create a structure for attracting funding. At this stage, the idea is pitched mainly to family and friends. 3) Company formation.

Technical Review 145

Technical Review Due Diligence India Startup 145

Up and Running

JULY 24, 2017

An executive summary is the brief introduction to a business plan. It should describe your business, the problem that it solves, your target market, and financial highlights. Start with your business’s name, location, and contact information. What you offer and the problem your business solves. Who you are.

Software Review 151

Software Review SBA Due Diligence Business Plan 151

Both Sides of the Table

JULY 17, 2018

One thing that comes with being a venture capitalist is you see hundreds and hundreds of businesses. You get to have interesting conversations with founders and review business plans and then see how these businesses evolve over the years. But if you raise at too high a price you make it harder to raise next round.

Founder 242

Founder Dilution Software Review Later Stage 242

Startup Professionals Musings

SEPTEMBER 8, 2019

You still start the process with a business plan, but then you look for a philanthropist rather than an investor. Some nonprofit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Equity 235

Equity Angel Investor Technical Review Exit Strategy 235

Steve Blank

APRIL 23, 2014

VCs like acquisitions as much as IPOs because the acquiring companies often can rationalize paying large multiples over the current valuation of the startup. 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

Steve Blank

SEPTEMBER 5, 2018

Startups wrote business plans, generated expansive 5-year forecasts and executed (hired, spent and built) to the plan. What matters to investors now is to drive startup valuations into unicorn territory (valued at $1 billion or more) via rapid growth – usually users, revenue, engagements but almost never profits.

Lean 335

Lean Burn Rate Startup IPO 335

Startup Professionals Musings

SEPTEMBER 10, 2018

Building a new business is quite different from an executive role in a mature company, so people from these backgrounds are often a liability. Value is embodied in previous success with investors, proven problem solving ability, and having built and executed a business plan with minimal resources.

Equity 238

Equity Cofounder Technical Cofounder Intellectual Property 238

Startup Professionals Musings

MARCH 25, 2023

Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation. A business only achieved critical mass by becoming cash-flow positive. The business plan must reflect both growth phases. Most are still confused about the right priority.

Valuation 235

Valuation Revenue Viral Retention 235

Startup Professionals Musings

MARCH 12, 2023

VCs tend to demand more control of your spending and strategic decisions, with required board seats and lower valuations. Angels will likely agree to simpler term sheets, better valuations, and less restrictive terms on potential dilution, voting rights, exit options, and executive roles. How big is your startup opportunity?

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246

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.

Intellectual Property 120

Intellectual Property Valuation Technical Review Equity 120

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

It was said that Facebook drastically overpaid (a billion dollars for a company with fanatical users but zero revenue) but also that that Instagram was stupid to sell so early (because after more “inevitable” growth it would be worth much more, and would “inevitably” be bought or go public at that larger valuation).

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

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

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. Include a current valuation estimate. See where your cashflow bottoms out.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

YoungUpstarts

SEPTEMBER 11, 2013

Sometimes the list of challenges may feel never ending – from writing the business plan to finding the right partner – but one of the single most important challenges entrepreneurs face is calculating a realistic, defensible pre-money valuation. . What is a pre-money valuation and why should I care?

Pre-Money Valuation 133

Pre-Money Valuation Valuation Angel Investor Cofounder 133

The Startup Magazine

AUGUST 29, 2019

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. The working capital loan is required to run a complete cycle of revenue-generating operations.

Startup 96

Startup Government Valuation Technical Review 96

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

NOVEMBER 14, 2010

We look for many attributes amongst the team, including communication, leadership and management skills, subject matter knowledge, business expertise, relevant experience, openness to influence, team cohesion, motivation, integrity and credibility. Unfortunately, we read far more poorly written business plans at Main Street than good ones.

Intellectual Property 265

Intellectual Property Balance Sheet Phoenix Arizona 265

Startup Professionals Musings

APRIL 17, 2023

It never hurts to start networking personally with all levels of investors early, but sending out teasers and business plans to every name you can find on the Internet is a waste of your time and theirs. Tune your investor pitch and funding expectations accordingly.

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

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. Include a current valuation estimate. See where your cashflow bottoms out.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

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). A full business plan and financial modelling can come later to add details. Ideas are not enough to gauge business potential.

Technical Cofounder 184

Technical Cofounder Intellectual Property Silicon Valley LLC 184

Startup Professionals Musings

JUNE 21, 2020

Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation. A business only achieved critical mass by becoming cash-flow positive. The business plan must reflect both growth phases. Most are still confused about the right priority.

Revenue 434

Revenue Valuation Viral Retention 434

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

JUNE 13, 2020

VCs tend to demand more control of your spending and strategic decisions, with required board seats and lower valuations. Angels will likely agree to simpler term sheets, better valuations, and less restrictive terms on potential dilution, voting rights, exit options, and executive roles. How big is your startup opportunity?

Angel Investor 314

Angel Investor Entrepreneur IRR Valuation 314

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

AUGUST 4, 2014

Building a new business is quite different from an executive role in a mature company, so people from these backgrounds are often a liability. Value is embodied in previous success with investors, proven problem-solving ability, and having built and executed a business plan with minimal resources.

Cofounder 261

Cofounder Stock Founder Technical Cofounder 261

Startup Professionals Musings

MARCH 11, 2016

Angel investors expect to review a short executive summary before booking time to hear an investor presentation or taking the time to analyze a full business plan. Remember that angel investors are buying equity in your business, so they are not impressed with a customer presentation.

Angel Investor 120

Angel Investor Intellectual Property Accredited Investor Angel Groups 120

The Startup Magazine

AUGUST 15, 2022

In many cases, your advisor will identify key employees and create a business plan to help you find a buyer and negotiate the best price possible. Creating a business plan. The first step in creating a business plan to sell your startup to an acquirer is to create a valuation of your company.

Merger 130

Merger Acquisition Due Diligence Valuation 130

Startup Professionals Musings

JANUARY 7, 2013

Here are some key action items that may give your business some visibility: Start with an investment-grade business plan. This means build a plan that hits all the hot buttons; problem/solution, executive team, competition, business model, reasonable financial projections, and what’s in it for the investor.

Venture Capital 252

Venture Capital IPO Elevator Pitch Initial Public Offering 252