Up and Running

SEPTEMBER 19, 2017

When you accept outside money, particularly a private equity (PE) investment, however, that changes. In this article, I’ll provide some personal stories of how investors have navigated the balance between raising private equity capital and not losing control of their startup. You make all the decisions, when you want, how you want.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Startup Professionals Musings

OCTOBER 7, 2022

Angel investors will perk up if you have a prototype or a few real customers, while venture capitalists will likely choose to wait until you have achieved several million in revenue or customer count. Here is where projections of cost, pricing, volumes and cash flow are critical. How much equity ownership are you willing to offer?

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

Startup Professionals Musings

AUGUST 5, 2023

Talk to thought leaders at relevant industry events. Getting to know leaders at these events will get you visibility and credibility, as well as valuable feedback on your strategy and solution. In my experience, an introduction to an investor from a mutual friend or business associate will double or triple your odds of closing a deal.

Angel Investor 246

Angel Investor Stealth Bootstrapping Early Stage 246

Startup Professionals Musings

AUGUST 31, 2012

Every investor expects to see some business traction, both before and after a funding event. Don’t expect them to believe your $100M revenue projection, if you are still waiting for the first revenue dollar. Get a real customer and real revenue. Traction means forward progress. Only real results count.

Intellectual Property 260

Intellectual Property Sweat Equity CTO Hire Fractional CTO 260

www.inc.com

SEPTEMBER 24, 2011

Will Work for Equity. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. But with the help of Grahams company, which specializes in creating tech systems for start-ups, Jumpstart grew to more than $50 million in revenue--enough to make it an attractive acquisition for media conglomerate Hachette Filipacchi.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Startup Professionals Musings

NOVEMBER 22, 2020

Talk to thought leaders at relevant industry events. Getting to know leaders at these events will get you visibility and credibility, as well as valuable feedback on your strategy and solution. In my experience, an introduction to an investor from a mutual friend or business associate will double or triple your odds of closing a deal.

Stealth 434

Stealth Startup Angel Investor Bootstrapping 434

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78

Equity Revenue Cofounder Colorado 78

YoungUpstarts

OCTOBER 24, 2012

Nearly four in five CEOs complained that CMOs can’t explain how brand equity can be linked to recognized financial measures such as firm equity. He was building a better enterprise software product, and to get the word out, he organized ‘City Tour’ events and neighborhood ‘street teams.’ Build strong customer communities.

Marketing 234

Marketing Software Review Technical Review Social Network 234

Startup Professionals Musings

JUNE 17, 2011

Every investor expects to see some business traction, both before and after a funding event. Don’t expect them to believe your $100M revenue projection, if you are still waiting for the first revenue dollar. Get a real customer and real revenue. Traction means forward progress. Only real results count.

Intellectual Property 253

Intellectual Property Sweat Equity CTO Hire Fractional CTO 253

Startup Professionals Musings

JANUARY 4, 2020

Angel investors will perk up if you have a prototype or a few real customers, while venture capitalists will likely choose to wait until you have achieved several million in revenue or customer count. Here is where projections of cost, pricing, volumes and cash flow are critical. How much equity ownership are you willing to offer?

Startup 337

Startup Preferred Stock Exit Strategy Equity 337

David Teten

AUGUST 21, 2019

Most founders who are raising capital look first to traditional equity VCs. Or should they look to one of the new wave of Revenue-Based Investors? Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. Who are the major Revenue-Based Investing VCs?

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Up and Running

MARCH 9, 2022

Everyday business events such as expansion projects, acquisitions, low cash on hand, increased fixed expenses, increased borrowing, and even an increase in sales can be signs that it’s time to reevaluate your business risk. It costs about $8 for labor and manufacturing to make each unit. . Operating leverage effect (OLE) ratio.

Equity 136

Equity .Net Balance Sheet Operations 136

Startup Professionals Musings

MAY 22, 2010

Every investor expects to see some traction, both before and after a funding event. Don’t expect them to believe your $100M revenue projection, if you are still waiting for the first revenue dollar. Get a real customer and real revenue. Without revenue, your investors are largely limited to friends, family and fools.

Intellectual Property 222

Intellectual Property Sweat Equity CTO Hire Fractional CTO 222

Both Sides of the Table

NOVEMBER 19, 2009

There’s a guy in Los Angeles that I met at several tech networking events. He wanted to know how to get started and “Could I intro him to a couple of local angels?&# One night after a DealMaker Media event we got 20 minutes together after the event ended. A couple of quick stories / examples: 1. “Why?

Entrepreneur 414

Entrepreneur Fractional CTO Technical Review CTO Hire 414

Startup Professionals Musings

NOVEMBER 4, 2011

Here is my list of top ten action items to best prepare you for success in achieving a funding event with angels: Incorporate the business now. The corporate entity lends itself best to the concept of “sharing” equity required by investors, and unincorporated entities don’t get funding. Close at least one initial customer.

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

ConversionXL

JANUARY 18, 2022

Coca-Cola has brand equity that makes people gravitate towards it. In this article, you’ll understand what brand equity is and how to build it so your audience reaches for your product, service, or solution over the rest. Why brand equity matters now more than ever. Brand equity. It’s the safer bet. Every day in the U.S.,

Equity 94

Equity Marketing Social Media Software Review 94

Version One Ventures

OCTOBER 15, 2020

While questions remain around the long-term legal feasibility of such a solution, the larger point is that the speed and cost benefits of Lightning can now be abstracted away for the end user’s benefit without any knowledge of bitcoin the asset. . And >40% of that revenue is coming from in-game purchases.

Networking 168

Networking Global OTC Security 168

Duct Tape Marketing

AUGUST 23, 2023

Marketing was like me, and we bootstrapped this business to 10 million in revenue through building this traction community where we're bringing our ICP, our audience together around their aspiration and their goals. It costs twice as much to generate the same results from the same marketing tactics. We were expecting twins.

Community 54

Community Kuwait Cofounder Bootstrapping 54

Hearpreneur

JULY 24, 2020

5- More due to low costs. The cost of technology and the services needed to start and run a business has come down dramatically. Managing a business for a side-income helps secure a person’s security in case an unexpected event happens again in the future. Thanks to Mark Woodbury, Minerva Equity ! #12-

Entrepreneur 136

Entrepreneur Technical Review Security Demand 136

Startup Professionals Musings

AUGUST 17, 2014

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. Here are some basic “rules of thumb” that every Angel or venture capital equity investor uses, to help you anticipate their reactions.

Liquidity Event 249

Liquidity Event Equity Venture Capital Merger 249

Startup Professionals Musings

SEPTEMBER 23, 2010

Here is my list of top ten action items to best prepare you for success in achieving a funding event with angels: Incorporate the business now. The corporate entity lends itself best to the concept of “sharing” equity required by investors, and unincorporated entities don’t get funding. Close at least one initial customer.

Angel Investor 224

Angel Investor Intellectual Property Technical Review Elevator Pitch 224

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Startup Professionals Musings

MAY 28, 2013

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. Here are some basic “rules of thumb” that every Angel or venture capital equity investor uses, to help you anticipate their reactions.

Liquidity Event 243

Liquidity Event Startup Equity Venture Capital 243

Startup Professionals Musings

FEBRUARY 25, 2023

Yet one of the first things a potential equity investor asks about is your exit strategy. Here are three important reasons for the question: Good investment paybacks normally require an exit event. Equity investments are not loans, so there is no loan payback period or interest payments. You can kick-off your next startup.

Exit Strategy 264

Exit Strategy Private Equity Equity Technical Review 264

Startup Professionals Musings

JULY 27, 2018

Business model showing costs, pricing, and margins. Potential investors love to see gross margins in the fifty percent range or greater, with recurring revenue through subscriptions, follow-on sales, or services. Five-year financial projections of revenue and expenses. Specific investment size request, and equity offered.

Product 145

Product Intellectual Property Liquidity Event Exit Strategy 145

K9 Ventures

MAY 28, 2015

At K9 we invest in companies which have a clear/direct revenue model and typically don’t invest in companies that follow the Ubiquity first Revenue Later (URL) revenue model made famous by Eric Schmidt in 2007. I call this Revenue Development and have written about it before. >$0/month.

Revenue 48

Revenue Startup Burn Rate Cofounder 48

Gust

AUGUST 10, 2014

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. Here are some basic rules of thumb that every Angel or venture capital equity investor uses, to help you anticipate their reactions.

Liquidity Event 176

Liquidity Event Equity Venture Capital Merger 176

Startup Professionals Musings

MAY 25, 2020

Yet one of the first things a potential equity investor asks about is your exit strategy. Here are three important reasons for the question: Good investment paybacks normally require an exit event. Equity investments are not loans, so there is no loan payback period or interest payments. You can kick-off your next startup.

Exit Strategy 376

Exit Strategy Startup Private Equity Equity 376

David Teten

NOVEMBER 14, 2019

I wrote recently about Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? Since then, I’ve talked with a number of other firms, and greatly expanded my database: Who are the major Revenue-Based (RBI) Investing VCs? Revenue-based investing VC. Venture debt. See Debanked’s list.

SBIC 60

SBIC SBA Cap Table Database 60

Both Sides of the Table

JUNE 22, 2011

Ah, but today’s Internet companies have real revenue! But this mania to not miss out on the next big thing is driving some investors to pay growth-equity prices for traditional market risk (as in, they’re paying up before it is clear there is product / market fit). I said that at the Founder Showcase, too. and profits!

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Up and Running

JULY 18, 2014

My name is Zach and I will be hosting today’s event. Typically a C Corporation is a good idea when: You need to raise equity, to maximize medical deductions or you plan on using multiple classes of stock. Only the costs related to business are deductible–the expenses must be allocated between business and personal use.

Small Business 87

Small Business LLC Nevada Software Review 87

Berkonomics

MARCH 21, 2019

If you are a going business with a track record of revenues, then the importance of accurate current financial statements cannot be overstated. If there is no record of revenues, see the “The Berkus Method” available with any search query for valuing the business before revenues. Let’s start with the basics.

Hockey Stick 63

Hockey Stick Liquidity Event Valuation Balance Sheet 63

socialmatchbox.com

OCTOBER 23, 2010

If you have a friend who is a recruiter then ask them to tell you what they recommend that will not cost anything. This means considering what the opportunity cost for working on a high risk venture is relative to other things they can spend their time on. If they own a Mac Book Pro that may cost around $1,800 bucks (new).

Part-Time VPE 41

Part-Time VPE Sweat Equity DC Washington 41

Austin Startup

AUGUST 20, 2017

They’re looking to be paid properly in the context of the overall salary structure, including cash, benefits, and equity, and to be paid commensurate with performance. Can you acquire them at a sustainable cost? I am very surprised when that cool thing actually meets a customer need or drives revenue. You’ve just got to listen.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 11, 2014

If you like this, go see his Shockwave Innovations blog ) Anyone that has taken an accounting class or learned basic business financials knows the interaction between key elements of a P&L (revenue, cost, expense) and a balance sheet (assets, liabilities, equity). Now let’s cover those nuances I mentioned.

Churn Rate 288

Churn Rate .Net Metrics Hosting 288

Hearpreneur

MARCH 4, 2022

Four years ago, I had an idea to create a company that could cost-effectively recreate meat experiences without animals and lighten humanity's footprint on the planet. Thanks to Adam Wood, Revenue Geeks ! #16- And getting to know that our business has fostered the environment for that is my favorite part. 9- Making impact.

Entrepreneur 128

Entrepreneur Technical Review Restful Colorado 128

Startup Professionals Musings

AUGUST 13, 2012

Explain in terms your mother could understand, and quantify the “cost-of-pain” in dollars or time. Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Industry & market sizing. Explain the business model.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283