VC Cafe

MAY 16, 2023

But asAI researcher Andrej Karpathy has identified several challenges that the open-source LLM ecosystem still faces, including the high costs of pre-training base models. This was largely unexpected given the supposed favourable market conditions for AI startups.

Artificial Inteligence 178

Artificial Inteligence ChatGPT Generative AI Open Source 178

VC Cafe

OCTOBER 31, 2022

It’s a tough time for a lot of startup founders right now. Mature startups with proven business models and the potential to reach the public markets within a few years will be the safest place to park any new venture capital that comes into the ecosystem. Startups, Don’t Pin Your Hopes on VC Dry Powder ( Source ).

Founder 173

Founder Technical Review Down Round Liquidation Preference 173

Startup Professionals Musings

JANUARY 27, 2016

For a software startup, a patent can be the intellectual property providing the key competitive advantage, or it can be an expensive non-defensible bureaucratic nightmare -- or both. The patent application and approval process is expensive and slow. Even if you start with the U.S. That’s more than a lifetime in today’s technology.

Software Review 120

Software Review Intellectual Property Software Technical Review 120

Startup Professionals Musings

AUGUST 31, 2012

It doesn’t prove your business model of pricing, distribution, and support. Funding for pre-revenue startups used to be the domain of angel investors, but they have moved up-stage. These are things that can cost very little money, but go a long ways in convincing someone that you are making progress. Become a visible expert.

Intellectual Property 260

Intellectual Property Sweat Equity CTO Hire Fractional CTO 260

Startup Professionals Musings

JUNE 17, 2011

It doesn’t prove your business model of pricing, distribution, and support. Funding for pre-revenue startups used to be the domain of angel investors, but they have moved up-stage. These are things that can cost very little money, but go a long ways in convincing someone that you are making progress. Become a visible expert.

Intellectual Property 253

Intellectual Property Sweat Equity CTO Hire Fractional CTO 253

Startup Professionals Musings

MARCH 14, 2020

Non-credible funding request or unreasonable valuation. Future unproven projections don’t set today’s valuation. Potential return on investment cannot be calculated without a clear understanding and evidence of actual costs, revenue flows, and margins. Investors are looking to buy a chunk of the business, not the product.

Due Diligence 308

Due Diligence Intellectual Property Preferred Stock Seed Stage 308

Startup Professionals Musings

DECEMBER 11, 2022

Non-credible funding request or unreasonable valuation. Future unproven projections don’t set today’s valuation. Potential return on investment cannot be calculated without a clear understanding and evidence of actual costs, revenue flows, and margins. Investors are looking to buy a chunk of the business, not the product.

Due Diligence 271

Due Diligence Intellectual Property Entrepreneur Preferred Stock 271

www.forentrepreneurs.com

FEBRUARY 2, 2010

Blog About Log in Register Startup Killer: the Cost of Customer Acquisition In the many thousands of articles advising entrepreneurs on what they have to focus on to build successful startups, much has been written about three key factors: team, product and market, with particular focus on the importance of product/market fit.

Acquisition 103

Acquisition Cost Customer Entrepreneur 103

View from Seed

SEPTEMBER 14, 2021

Q: What is going to happen to the cost of capital? Q: What is the opportunity cost of not being in tech? That’s a bit of a cautionary tale to VC investors today who might think it’s inevitable that the private value they are enjoying in their portfolios will certainly translate to distributions in the near future.

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

Startup Professionals Musings

SEPTEMBER 30, 2013

It doesn’t prove your business model of pricing, distribution, and support. Funding for pre-revenue startups used to be the domain of angel investors, but they have moved up-stage. These are things that can cost very little money, but go a long ways in convincing someone that you are making progress. Become a visible expert.

Intellectual Property 281

Intellectual Property Entrepreneur Sweat Equity CTO Hire 281

View from Seed

SEPTEMBER 14, 2021

Q: What is going to happen to the cost of capital? Q: What is the opportunity cost of not being in tech? That’s a bit of a cautionary tale to VC investors today who might think it’s inevitable that the private value they are enjoying in their portfolios will certainly translate to distributions in the near future.

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success. Term-sheets and Valuations: Thinking about Negotiations. The Valuation Question. When companies seeking their first round of serious funding are good enough to receive a term-sheet from an investor, the first issue that always arises is valuation. Let’s start at the end.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

A Smart Bear: Startups and Marketing for Geeks

AUGUST 18, 2015

They have everything: money, brand, momentum, existing customers, press, product teams, distribution channels, expertise, market insight, analysts, sales offices, product features, and, by definition, a working business model. All a little startup has is a decent idea and extremely greasy elbows. Will that strategy work?

Technical Review 120

Technical Review Valuation Flash Revenue 120

Steve Blank

MARCH 31, 2014

Just look at the disruptive challenges that businesses face today– globalization, China as a manufacturer, China as a consumer, the Internet, and a steady stream of new startups. Perhaps that’s because where established companies might see risks or threats, startups see opportunity.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

VC Adventure

AUGUST 15, 2018

However the board could determine what that fair market value was and, generally speaking, there wasn’t a practical way that these valuations could be challenged. It was and is imprecise science but – at least in the case of venture backed startups – there wasn’t much harm in an option being priced low.

Valuation 48

Valuation Common Stock Cap Table Software Review 48

Steve Blank

FEBRUARY 26, 2020

Not all startups need outside investment to grow. What most founders don’t realize is: Every stage of a startup requires a different set of metrics and milestones and founder skills. Here’s the first 2½ years of a startup journey. The Startup Investment Landscape. Still, there are some benchmarks to keep in mind.

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

Agile VC

APRIL 17, 2011

AGILEVC My idle thoughts on tech startups. Distribution revenue is CPC and CPA. . Historically more revenue came from distribution/lead-gen (57% in 2007), but this tipped in 2008 though appears to be steady from 2009 to 2010 at about 58% advertising and 42% distribution. Kayak generates both distribution (i.e.

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

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. It’s conventional wisdom to say that it doesn’t, and that startups should keep their head down and execute. How can this happen?

IRR 205

IRR Dilution Founder Portfolio 205

The Startup Magazine

JUNE 8, 2022

In that case, the CPA will issue an auditor’s opinion regarding the client’s financial statements that will accompany the statements when they are distributed to third parties. A review is an inferior form of an audit, and customers may prefer reviews due to the cheaper cost of inspections. Consultation.

CPA 110

CPA Dallas Software Review Technical Review 110

View from Seed

SEPTEMBER 14, 2021

Q: What is going to happen to the cost of capital? Q: What is the opportunity cost of not being in tech? That’s a bit of a cautionary tale to VC investors today who might think it’s inevitable that the private value they are enjoying in their portfolios will certainly translate to distributions in the near future.

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

Steve Blank

DECEMBER 3, 2020

joined a startup; has been reelected to his third term, representing the 8th district of Wisconsin; and is on the House Armed Services Committee. To form a digital development fund to coordinate the R&D and the distribution pathways with our like-minded partners. Personnel Costs and the DoD Budget.

Technical Review 235

Technical Review Technology China Taiwan 235

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. It’s conventional wisdom to say that it doesn’t, and that startups should keep their head down and execute. How can this happen?

IRR 156

IRR Dilution Founder Portfolio 156

ReadWriteStart

JULY 17, 2023

India’s furniture rental startup, Furlenco, is all set to sell a 35% stake to Sheela Foam , the maker of the popular mattress brand Sleepwell. In the financial year ending in March this year, the startup generated a revenue of $18.5 The deal, proposed at $36.5 million, has valued Furlenco at about $104.3

India 104

India Acquisition Merger Curation 104

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Flexible VC creates early liquidity which can be either reinvested or distributed to LPs. That said, nothing is cost-free. Of the Inc.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

YoungUpstarts

NOVEMBER 20, 2019

In the startup world, opportunities are fleeting, and obstacles are ubiquitous. Competition from other startups and established incumbents, constraints on time and capital, and limited access to talent and technology resources are just a few of the hurdles nearly every first-time founder faces while trying to build a business.

Technical Review 140

Technical Review Due Diligence Early Stage Differentiation 140

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. It’s conventional wisdom to say that it doesn’t, and that startups should keep their head down and execute. How can this happen?

IRR 136

IRR Dilution Founder Portfolio 136

Startup Professionals Musings

MAY 22, 2010

It doesn’t prove your business model of pricing, distribution, and support. Funding for pre-revenue startups used to be the domain of angel investors, but they have moved up-stage. These are things that can cost very little money, but go a long ways in convincing someone that you are making progress. Become a visible expert.

Intellectual Property 222

Intellectual Property Sweat Equity CTO Hire Fractional CTO 222

Lightspeed Venture Partners

OCTOBER 29, 2012

The company sought to raise $125,000 for 25% of the comapny, implying a $375,000 pre money valuation. Unsurprisingly, all the sharks passed, based on market size and valuation expectations. The company was started six weeks ago, had no sales and no retail distribution yet.

Pre-Money Valuation 97

Pre-Money Valuation Offshore Valuation Cofounder 97

David Teten

DECEMBER 3, 2019

See Bessemer Venture Partners’ A comprehensive guide to security for startups. Data companies focused on early-stage startups include Aingel , fundsUP , Preseries , PredictLeads , and Sploda. For more on gathering data and using it to assess companies, see How to Assess Startups Using Machine Learning. 2) Market .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Austin Startup

OCTOBER 15, 2017

As is often the case in startups, the desire to create may be outweighing the motivation to monetize, particularly if there are no hungry investors expecting venture returns. That last sentence gets at the heart of the primary monetization tension in a startup. Price is no longer cost + markup = customer price.

Technical Review 48

Technical Review Software Review Nevada Silicon Valley 48

The Startup Magazine

SEPTEMBER 10, 2020

Finally, all TMS systems will include business management features, such as payment distribution, analytics dashboards, and rate sheets. It’s also beneficial if you think about the total cost of ownership for the next two to five years. As you consider the core functional areas, limit your priorities to three important functions.

Management 109

Management Non-Compete Technical Support Software 109

Lightspeed Venture Partners

OCTOBER 7, 2012

He had been at it for 6 months and had no sales or distribution lined up yet. They are seeking $40k for a 33% stake and want investors who can provide introductions for distribution and licensing on their behalf. As he said, “Great innovations solve problems or reduce costs. The last company was a bit of a puzzler.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

Up and Running

JUNE 14, 2017

In both scenarios, it seems that startup venture initiation and idea validation are strictly dependent on the app. To determine the viability of an app or startup idea without building out the full solution, entrepreneurs should: Test potential buyers’ real buying intentions by monitoring their willingness to pay for a beta version.

Technical Review 96

Technical Review Distribution Redemption Demand 96

VC Cafe

APRIL 28, 2021

Donations/pledges – Patreon, the early mover of creator monetisation tools, raised $155M on a $4 billion valuation in April 2021 , tripling the valuation from a previous round in Sept 2020. They already distribute over $100M a month amongst their 200,000+ creators. Platform take rates = tax.

Audio 167

Audio Valuation Stealth B2C 167

steveblank.com

JULY 8, 2011

Useful blogs and links for startups Click Here ————– 2.

Software Review 110

Software Review Startup Silicon Valley Analytics 110

Up and Running

OCTOBER 13, 2014

Decision-makers at larger companies often have a “don’t rock the boat mentality” because of fear of making a mistake that could cost the company a lot of money and as a consequence cause them to lose status within the company or even their position. Big corporations are constantly on the hunt for smaller startups that can fill a void.

Intellectual Property 106

Intellectual Property Philadelphia Small Business California 106

The Startup Magazine

OCTOBER 5, 2022

Prospective buyers get the leverage to pay an upfront cost initially and can pay off the balance and interest down the road. However, this realtor strategy requires substantial capital to bear upfront maintenance costs and to cover months when there are no tenants. Source: Pixabay. Pros: Many tax-deductible associated expenses.

Dividend 114

Dividend Valuation Stock Finance 114