Startup Professionals Musings

FEBRUARY 19, 2013

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Use crowd funding.

Intellectual Property 309

Intellectual Property Technical Review Venture Capital Startup 309

Startup Professionals Musings

JANUARY 12, 2018

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Join a startup incubator.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

Startup Professionals Musings

JULY 8, 2015

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Join a startup incubator.

Entrepreneur 120

Entrepreneur Intellectual Property Technical Review Incubator 120

Feld Thoughts

JULY 9, 2019

We ended up talking about using Gross Profit, instead of Revenue, to do valuation analysis. Since we invest across a number of different themes, we’ve had to deal with very different revenue and gross margin profiles since the beginning, whether we realized it or not. Some people also refer to GM as Gross Profit Margin.

Revenue 179

Revenue Valuation .Net IPO 179

ReadWriteStart

JANUARY 28, 2022

With the rise of startups and growing businesses , it has become more critical for investors to have a thorough understanding of equity to be aware of all of the advantages they are receiving from the companies they have invested in. What is Company Equity? Types of equity. Common stock. Preferred shares.

Valuation 108

Valuation Equity Warrant Common Stock 108

ConversionXL

OCTOBER 7, 2021

Depending on its complexity, new product development can last for years, accruing research, prototyping, and production costs without bringing in revenue. The rapid skimming strategy involves launching your product at a high price with high promotional costs. Rapid skimming. Slow skimming. Establishing strong brand identity.

Product 142

Product Marketing Software Review Social Media 142

Up and Running

JULY 22, 2014

It’s a table that lists all of your revenue streams and all of your expenses—typically for a three-month period—and lists at the very bottom the total amount of net profit or loss. A typical profit and loss statement should include: your revenue (also called sales), followed by. how you make money.

Balance Sheet 148

Balance Sheet Forecast Equity .Net 148

This is going to be BIG.

JANUARY 18, 2024

Still, there are a lot of downsides to taking venture money—the push to grow at all costs, our desire to be all up in your business, literally, and sometimes, we’re kind of obnoxious. I’m talking about what someone I know recently referred to as “dentists”. It will save everyone a lot of cost and time.

.Net 88

.Net Cap Table Startup Technical Review 88

Startup Professionals Musings

SEPTEMBER 11, 2023

I refer back to the classic book, “ A Crowdfunder’s Strategy Guide ,” by Jamey Stegmaier, one of the biggest thought leaders on crowdfunding, and who has also run several successful Kickstarter projects, that together have raised many millions of dollars. Making something awesome will cost more than you expect.

Accredited Investor 252

Accredited Investor SEC Campaign Equity 252

ConversionXL

JANUARY 18, 2022

It partners with sales to close more revenue, informs product teams to deliver better products, and in some cases, co-owns demand generation activities with marketing teams. Founder Nathan Barry launched in 2013 to help creators sell their books and courses but failed to meet revenue goals and eventually stalled.

Marketing 110

Marketing Product Audience Equity 110

Startup Professionals Musings

JULY 5, 2023

It won’t work, it costs time and money, and hurts your credibility when you need them later. Sometimes these will ask for 5%-15% of your equity for their support services. They are not trying to make money, but simply to recoup their costs over time. Support organizations are investment banks, similar to the preceding stage.

Incubator 305

Incubator Startup Exit Strategy Institutional Investors 305

ConversionXL

NOVEMBER 6, 2019

For this article, we asked 14 SaaS CEOs a simple question: “How much did you spend on your MVP before you had your first dollar of revenue?”. We also got lucky and qualified for some startup benefits with companies like Rackspace, who covered our infrastructure costs for the first year,” continues Arsenault. “We Image source).

Sweat Equity 78

Sweat Equity Software Review Vesting Cofounder 78

The Startup Magazine

MAY 11, 2020

However, this will depend on whether you have enough equity or collateral to meet the lender’s requirements. Once you have an account of unpaid dues, keep the list somewhere you can easily refer to as soon as you make the first payment. Eliminate Non-essential Costs. Boost Sales and Revenue. Revise Your Budget.

Software Review 105

Software Review Small Business Management Bankruptcy 105

Startup Professionals Musings

DECEMBER 26, 2020

I refer back to the classic book, “ A Crowdfunder’s Strategy Guide ,” by Jamey Stegmaier, one of the biggest thought leaders on crowdfunding, and who has also run several successful Kickstarter projects, that together have raised many millions of dollars. Making something awesome will cost more than you expect.

Accredited Investor 378

Accredited Investor SEC Campaign Equity 378

Startup Professionals Musings

OCTOBER 12, 2020

It won’t work, it costs time and money, and hurts your credibility when you need them later. Sometimes these will ask for 5%-15% of your equity for their support services. They are not trying to make money, but simply to recoup their costs over time. Support organizations are investment banks, similar to the preceding stage.

Incubator 429

Incubator Startup Exit Strategy Institutional Investors 429

YoungUpstarts

JULY 6, 2017

ANGEL INVESTOR : These are individuals who offer capital to startups in exchange for equity, partial ownership or convertible debt. This strategy, known as bootstrapping, is ideally suited to businesses which don’t need a large influx of capital early on in order to finance growth and which are already generating revenues.

Syndicate 127

Syndicate Syndication Software Review Angel Investor 127

ConversionXL

NOVEMBER 6, 2019

For this article, we asked 14 SaaS CEOs a simple question: “How much did you spend on your MVP before you had your first dollar of revenue?”. We also got lucky and qualified for some startup benefits with companies like Rackspace, who covered our infrastructure costs for the first year,” continues Arsenault. “We Image source).

Sweat Equity 50

Sweat Equity Software Review Vesting Cofounder 50

Steve Blank

MAY 17, 2022

The “deep” in deep learning refers to the depth of layers in a neural network.) Engineers can input design goals into AI-driven generative design software , along with parameters such as performance or spatial requirements, materials, manufacturing methods, and cost constraints. Neural networks make up the backbone of deep learning.

Artificial Inteligence 417

Artificial Inteligence Software Review Algorithm Technical Review 417

Steve Blank

FEBRUARY 26, 2020

There are two reasons to raise money: You have a killer idea that is only partially validated, that you think can get to $50M+ of revenue in 5 years with 80%+ gross margins (if margins are lower, you need a lot more revenue)and you need money to get to product-market fit, or. Revenue per customer? Revenue, Gross Margin?

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

Startup Professionals Musings

DECEMBER 28, 2018

It won’t work, it costs time and money, and hurts your credibility when you need them later. Sometimes these will ask for 5%-15% of your equity for their support services. They are not trying to make money, but simply to recoup their costs over time. Support organizations are investment banks, similar to the preceding stage.

Incubator 236

Incubator Exit Strategy Institutional Investors Angel Investor 236

ReadWriteStart

OCTOBER 7, 2010

Bottom line, early stage equity is very, very expensive. 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. That is debt financing that converts into equity at the Series A valuation once the price for that is set. (I

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

ReadWriteStart

JULY 18, 2011

He believes that equity need not be distributed equally, as long as everyone involved is happy with their arrangement. And as long as founders don't have an argument about equity shares in front of the investors they are pitching. That will come at the cost of another 20 to 25% of the company.

Investment Bankers 153

Investment Bankers Technical Review Cofounder Due Diligence 153

Agile VC

APRIL 17, 2011

How They Make Money: Majority of Kayak’s revenue actually comes from advertising on their site (55%), not lead generation or referral fees to travel suppliers as you might think (more on this below). Financial Snapshot: 2010 Revenue: $170 million. Revenue growth: 51% YoY (2010), 1% YoY (2009), 131% YoY (2008).

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Both Sides of the Table

MAY 19, 2018

A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. The buyer is shopping for equity in startups and the seller is looking for cash in exchange for equity and shared governing control of his or her company.

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

Tim Keane

MARCH 9, 2011

This seems like an easy topic – debt where there is appropriate cash flow, equity when there isn’t.  The overarching idea, of course, is to reduce the cost of capital while maintaining appropriate flexibility for the venture.  2]   Aligning interests in structure: cost and risk.  This would imply a recap. 

Finance 83

Finance Bootstrapping Startup Equity 83

Duct Tape Marketing

SEPTEMBER 10, 2019

And I’m guessing one of them certainly is a lot of, “What’s the revenue? So what’s your top-line revenue? The more revenue you have, the more valuable your company is going to be, generally. The more revenue you have, the more valuable your company is going to be, generally. Here’s why.

Entrepreneur 49

Entrepreneur Switzerland Revenue Differentiation 49

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. Are your customers happy?

Revenue 48

Revenue Startup Burn Rate Cofounder 48

Up and Running

AUGUST 28, 2018

In the medical field, this Lean Plan idea is also sometimes called a proforma, though a proforma sometimes refers specifically to the financial part of the plan. Financial summary: Explain your business model, startup costs, revenues, and liabilities to the company. Do they self-pay or use insurance? Be specific. Operations.

Business Plan 72

Business Plan Technical Review Exit Strategy Oregon 72

Up and Running

JUNE 17, 2019

No doubt you refer to your income statement (also called profit and loss statement or P&L) and your bank account for the basics. . The business income statement, also referred to as a profit and loss (P&L) statement, is a useful tool for providing an overview of how your business is doing over time.

Balance Sheet 120

Balance Sheet Small Business Finance .Net 120

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

Startup Professionals Musings

JUNE 15, 2013

It won’t work, it costs time and money, and hurts your credibility when you need them later. Sometimes these will ask for 5%-15% of your equity for their support services. They are not trying to make money, but simply to recoup their costs over time. Support organizations are investment banks, similar to the preceding stage.

Incubator 256

Incubator Entrepreneur Exit Strategy Institutional Investors 256

Duct Tape Marketing

AUGUST 23, 2023

Furthermore, he explains six common traits, referred to as “CAMPER” – Connection, Autonomy, Mastery, Purpose, Energy, and Recognition – which are crucial for building thriving and sustainable communities. It costs twice as much to generate the same results from the same marketing tactics.

Community 53

Community Kuwait Cofounder Bootstrapping 53

Both Sides of the Table

DECEMBER 3, 2013

I’m super proud to announce that DataSift has just completed a $42 million financing round coming at the end of a year where its revenue grew several hundred percent year-over-year. Considering our revenue is SaaS revenue this achievement is even more remarkable. ” What gives? We knew we had a winner.

Iran 358

Iran API San Francisco Nigeria 358

Startup Professionals Musings

NOVEMBER 27, 2016

It won’t work, it costs time and money, and hurts your credibility when you need them later. Sometimes these will ask for 5%-15% of your equity for their support services. They are not trying to make money, but simply to recoup their costs over time. Support organizations are investment banks, similar to the preceding stage.

Incubator 120

Incubator Startup Exit Strategy Institutional Investors 120

Startup Professionals Musings

MAY 16, 2012

It won’t work, it costs time and money, and hurts your credibility for when you need them later. Sometimes these will ask for 5%-15% of your equity for their support services. They are not trying to make money, but simply to recoup their costs over time. Support organizations are investment banks, similar to the preceding stage.

Incubator 237

Incubator Startup Exit Strategy Institutional Investors 237

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

ReadWriteStart

MARCH 3, 2021

Many new businesses have a small customer base, limited revenue, and a finite amount of funding to work with. Limited brand equity. If you focus too much on short-term measures, you’ll have trouble sustaining long-term growth in a cost-efficient way. For example, if the cost per click (CPC) is $0.50

Early Stage 125

Early Stage PPC Retention Churn Rate 125