VC Cafe

APRIL 4, 2024

How can startups even compete against big tech, scale ups and other startups? Counter position – Kill the value-proposition of the competition with a new, superior business model, which the incumbent does not mimic due to anticipated damage to their existing business. How many of them do you know?

Generative AI 78

Generative AI Artificial Inteligence Technical Review ChatGPT 78

Both Sides of the Table

FEBRUARY 12, 2019

The reality is that as a result of two major trends the costs of starting a technology startup went down massively. So What Impact Did the Drop in Tech Founding Costs Have on VC? was originally published in Both Sides of the Table on Medium, where people are continuing the conversation by highlighting and responding to this story.

Venture Capital 328

Venture Capital Technical Review Seed Stage IPO 328

Both Sides of the Table

JUNE 30, 2016

conversation literally every week with startups. How much you raise determines valuation I know it sounds crazy but at the earliest stages of a company your valuation often is determined by how much money you raise. A $15–20 million valuation sounds better than an $8 million valuation, doesn’t it? Justin is right.

Pre-Money Valuation 292

Pre-Money Valuation Valuation Early Stage Startup 292

Austin Startup

APRIL 25, 2017

In summary: Snap’s current business doesn’t justify a $20B valuation. How can one justify a $20B valuation for Snap? Additionally, our products often use new technologies and require people to change their behavior, such as using a camera to talk with their friends. That’s it. Global smartphone revenue is about $420B.

Valuation 48

Valuation Technical Review Forecast Social Network 48

Both Sides of the Table

JUNE 28, 2018

How could Bird really be worth the reported $2 billion valuation that I read about in this press? While I promised not to comment on the exact valuation you can assume that it is very large and perhaps the fastest rise from zero to what some have called a “unicorn” valuation. Forget the valuation?—?I Not really.

San Francisco 256

San Francisco Valuation Technical Review Los Angeles 256

Both Sides of the Table

MAY 28, 2018

There’s a quick litmus-test conversation any early-stage VC will have with the founder and it’s one that you should be as prepared for as your elevator pitch. Conversely many VCs believe that constraining cash can often lead to increases in creative solutions at a startup. Founder: “$8–10 million” VC: “What’s your current burn rate?”

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

Both Sides of the Table

NOVEMBER 14, 2017

Nearly every successful tech startup I’ve observed over the past 20 years has gone through a similar growth pattern: Innovate, systematize then scale operations. At MakeSpace we had to build complex models to tell us how our pricing and conversion compared down to the neighborhood level. Seriously, this happens.

Operations 286

Operations New York City Technical Review Startup 286

Both Sides of the Table

SEPTEMBER 28, 2014

Conversely if you’re burning $600,000 per month (yes, some companies do) then you only have 5 months of cash left. Valuation. I wanted to call out special attention to valuation in this debate. So a large part of your personal assessment on how much you can afford to burn also has to be your current valuation.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Up and Running

SEPTEMBER 10, 2014

Angels invest in one out of every forty deals they review (2.5%) versus the one out of 400 by VC’s (0.25%). They are professionals with full-time jobs, who often don’t have time for due diligence (and may not even know how to do it) and often make decisions through trusted referrals or based on gut feelings (more on gut feelings later).

Angel Investor 159

Angel Investor Technical Review Software Review Accredited Investor 159

Both Sides of the Table

FEBRUARY 16, 2017

Every tech or major news journal in the country is preparing to write their Snap, Inc (creators of Snapchat, Spectacles, etc) stories and many of them seem to want a “How does it feel to have missed this investment story.” We felt proud to be the lead investor in Maker Studios at a sub $5 million valuation. Another firm funded them.

IPO 214

IPO Los Angeles Technical Review Silicon Valley 214

Both Sides of the Table

JUNE 5, 2011

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. As the risks below get eliminated the higher the valuation investors are prepared to pay.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

David Teten

JANUARY 19, 2021

Our categorization is not a technical one. Additionally, Flexible VC can accommodate all types of companies, not just asset-lite, tech-enabled companies.”. Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Technology-centric businesses. Minimum requirements.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

VC Cafe

JANUARY 27, 2021

Towards the end of 2020, however, the company’s shares were trading lower — potentially due to profit-taking — but also perhaps because of the many alternatives that had sprung by then like virtual mushrooms after a pandemic. It managed to overcome security and privacy controversies and maintain a stronghold in video-call land.

Vertical 148

Vertical Video Technical Review Europe 148

YoungUpstarts

JANUARY 10, 2018

How do you find the balance between not too small to prove itself but not too big to have an off-putting valuation? You’ll find exceptions to this rule, like Snapchat, which was operating at a loss at its IPO, when it experienced high initial trading prices due to its huge popularity and untapped monetization capabilities.

Valuation 145

Valuation Technical Review Exit Strategy Metrics 145

YoungUpstarts

OCTOBER 28, 2015

Craig Schmitz, a partner in the Technology Companies Group at law firm Godwin Proctor LLP who works on corporate, governance, board and fundraising issues, and Erika Fisher, an associate in the firm’s Business Law Department who deals with IP, fielded questions about the legal issues startups face. ” The Cost of Financing.

Convertible Security 100

Convertible Security IP Technical Review Software Review 100

The Startup Magazine

OCTOBER 29, 2023

Essential Metrics for Comprehensive Customer Journey Analysis Conversion Rates Conversion Rates are fundamental metrics in evaluating the effectiveness of each touchpoint within the customer journey. By optimizing engagement levels, you not only improve the customer experience but also increase the likelihood of successful conversions.

Metrics 158

Metrics Customer Harvest Acquisition 158

Both Sides of the Table

MARCH 1, 2016

At the Upfront Summit in early February, we had a chance to have many off-the-record conversations with Limited Partners (LPs) who fund Venture Capital (VC) funds about their views of the market. LPs See The Over-Valuations and Don’t Like It. …But LPs Have Been Putting Out More Money Than They Are Getting Back.

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

Both Sides of the Table

APRIL 18, 2019

The valuations were too high! Turns Out There Are Competitive Moats There were some tech meme’s out there last year that scooter companies had no moats. While the ride-hailing market sees autonomous vehicles as nirvana due to no driver costs, the e-scooter market already has this built in. We are now in Act IV.

South America 250

South America Global New York City Software Review 250

ReadWriteStart

OCTOBER 7, 2010

At today's roundtable we had some interesting companies and a lot of fundraising discussions, and I will review them shortly. As a thumb rule, try to get enough validation so that you can get to at least a $2 million pre-money valuation before raising equity capital. Bottom line, early stage equity is very, very expensive.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

A Smart Bear: Startups and Marketing for Geeks

AUGUST 18, 2015

A startup with new cost structures, new technology, and new ideas can compete with a good-enough product at 1/2, 1/4, or possibly even 1/10th the price, and start cleaning up. The current valuation of the company is based on continued growth in revenue and earnings, not erosion due to ankle-biters. Not anymore.

Technical Review 120

Technical Review Valuation Flash Revenue 120

David Teten

DECEMBER 3, 2019

When I met my now-wife, I realized that any technology that can find me a spouse is a killer app. I’d argue that the same type of technologies that have revolutionized dating can revolutionize our industry. . I walk through below how progressive investors are using technology and analytics throughout all of their operations.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Up and Running

SEPTEMBER 19, 2017

They allow you to hire more people, purchase new technology, and establish new business connections, among many other benefits. Proposed private equity deal: Eventually, this business will require private equity to provide sufficient funding to develop some of the more robust aspects of the technology that will attract Fortune 500 clients.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Both Sides of the Table

AUGUST 14, 2017

was originally published in Both Sides of the Table on Medium, where people are continuing the conversation by highlighting and responding to this story. The administrative work we actually do at board meetings? Photo credit: jpeepz via VisualHunt / CC BY-NC What Do Boards Actually Do?

Cofounder 217

Cofounder Stock Options Equity Technical Review 217

Start Up Blog

MAY 28, 2020

Some people (not us) nod politely and move onto the next conversation. Uber has lost $38 billion since 2013 and yet still has a market valuation of around $60 billion. – Tesla $ valuation per car sold = $302k. – GM $ valuation per car = $5k. – Ford $ valuation per car sold = $17k.

Valuation 48

Valuation Technical Review Singapore India 48

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. A good example is the marketing technology sector. No further conversations ensued.

Technical Review 48

Technical Review Software Review Nevada Silicon Valley 48

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

The Startup Magazine

MARCH 17, 2020

intellectual properties or proprietary technologies) are giving you a competitive advantage, what makes your brand attractive to its target audience, and what tangible or intangible attributes are elevating your reputation in the marketplace. Improve conversion rates on your website. Conclusion.

Marketing 151

Marketing Intellectual Property eCommerce Advertising 151

Gust

JULY 12, 2012

On Wednesday, April 18th, I gave a keynote speech on US Startup Valuation Trends for the 1st Irish Angel Meetup. Topics of conversation included how to identify fundable companies, trends in funding, business plans, and pitching to investors.

Community 121

Community Estonia Ireland Finland 121

Duct Tape Marketing

FEBRUARY 3, 2022

Since 2015, her company, Barney, has guided over 150 media, marketing & tech companies through acquisitions. Click on over and give us a review on iTunes, please! Not necessarily marketing services, a tech platform that, that sold and the process, this was seven years ago. Amanda’s Website. Like this show?

Entrepreneur 77

Entrepreneur Technical Review Cofounder Valuation 77

Austin Startup

JULY 18, 2018

2017 Capital Factory Accelerator Diversity (out of 61 companies) We know that there is a systemic discrimination problem in the tech industry caused by hundreds of years of institutional racism. Diversity in tech and in business leads to greater chances of success. We organize Blacks in Tech and Women in Tech summits.

Technical Review 56

Technical Review San Antonio Houston Software Review 56

This is going to be BIG.

OCTOBER 12, 2020

Moat, the biggest exit out of the bunch, was sourced when I met Mike Walrath at a tech event. That leaves me out raising with two funds under my belt and no big exit and no unicorn valuations. One just got a seed term sheet for twice the valuation I put in at in the pre-seed and the other is doing $200k/month in revenue.

LP 147

LP Technical Review Software Review Valuation 147

Both Sides of the Table

AUGUST 15, 2017

The board’s job is to review the company’s financial performance and strategy and help provide counsel to the executive team. Nothing drives me more bonkers than board members who want to hold dissertations on 409a valuations, product feature minutiae or spend 30 minutes on how many people they know that they can introduce you to.

Early Stage 212

Early Stage Technical Review Email Valuation 212

Both Sides of the Table

APRIL 26, 2016

So it might actually be more productive for you to improve your conversion than to improve your ad buying, for example. PR and non programmatic marketing often have a lagging affect so if you ran a big out-of-home marketing campaign that created brand awareness you may find that conversion actually takes place 60–90 days later.

Metrics 150

Metrics Cost Acquisition Startup 150

Agile VC

MAY 26, 2011

AGILEVC My idle thoughts on tech startups. Silicon Valley is still emerging from the tech bubble and massive downturn of late 2000-2002. Not long after the product launch we began the initial conversations with VCs for a Series A round. It was a pretty good valuation for the time. How to Evaluate Firms for a Seed VC.

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

Austin Startup

AUGUST 20, 2017

There are many ways to measure technical skills and check work histories and achievements, but assessment of team chemistry is a high art form. Keep the valuations consistent with company progress. Make your choices only after you’ve done some due diligence with other companies where they’ve served.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Pascal's View

JULY 9, 2017

Andrew Krowne and I recently co-wrote an article in Tech Crunch , Why SAFE Notes Are Not Safe for Entrepreneurs. This is a fundamental issue that does, indeed, boil down to understanding the post-money valuation of a company. But it is also a topic that many find esoteric and difficult to grasp.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

Both Sides of the Table

AUGUST 23, 2010

I was an early user of Quora and like all new technologies they take a bit of playing with them for a while, discussing them with others and reflecting on them to let them sink in. What I notice is that people further the conversation, talk with each other, network, try to get noticed (linking to their websites, etc.). No, really.

Silicon Valley 301

Silicon Valley Pre-Money Valuation Technical Review Software Review 301