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Corporate Acquisitions of Startups: Why Do They Fail?

Steve Blank

VCs like acquisitions as much as IPOs because the acquiring companies often can rationalize paying large multiples over the current valuation of the startup. However, these nosebleed valuations make it even more important in getting the acquired company integrated correctly.

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Why Uber is The Revenge of the Founders

Steve Blank

If the founder was lucky, he got to stay as chairman or CTO. Continuous innovation requires the imagination and courage to challenge the initial hypotheses of your current business model (channel, cost, customers, products, supply chain, etc.) Schmidt had been the CEO of Novell and previously CTO of Sun Microsystems.

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Top 29 Startup Posts May 2010

SoCal CTO

Continuing my series of posts that I’ve been collecting that live at the intersection of Startups and being a Startup CTO : Startup CTO Top 30 Posts for April 16 Great Startup Posts from March here are the top posts from May 2010. Valuation is an important aspect of VC deal terms, and a major determinant of your ultimate outcome.

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How Investors Think About Valuation of Pre-Revenue Startups

SoCal CTO

Because of this, I've always tried to stay up-to-speed on how early-stage investors look at valuation of companies. Bill Payne is an expert on how early-stage investors should look at valuation. He just post: Establishing the Pre-money Valuation of Pre-revenue Startups. What are they really looking for? is a requirement.

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What is Sweat Equity Worth?

www.entrepreneur.com

Sweat equity is just one component of early-stage valuation. Foregone wages tends to be the anchor that keeps valuation negotiations from sailing into oblivion. First-time entrepreneurs often think "If I approach a VC with a chief technology officer or chief prototype designer in place, then I'm more likely to get funded."

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Entrepreneurs are Everywhere Show No. 20: Nayeem Hussain and Will Zell

Steve Blank

Funding challenges and other issues founders face in the early days of starting up were the focus of interviews with the latest guests on Entrepreneurs are Everywhere , my radio show on SiriusXM Channel 111 (airing weekly Thursdays at 1 pm Pacific, 4 pm Eastern). Tune in Thursday at 1 pm PT, 4 pm ET on Sirius XM Channel 111.

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Valuations 101: Scorecard Valuation Methodology

Gust

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Scorecard Valuation Methodology. This method compares the target company to typical angel-funded startup ventures and adjusts the average valuation of recently funded companies in the region to establish a pre-money valuation of the target.

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