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

David Teten

JANUARY 19, 2021

In all these cases, capital is provided to fuel forecasted growth without creating a commitment to a particular vision for future funding rounds, exit goals, and associated blitzscaling. Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. That said, nothing is cost-free.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Up and Running

JULY 14, 2015

Any investor will put their valuation on your business based on a number of factors, including looking at important metrics for your business, patents, or assets. But raising too much money will cause the valuation to increase. Let’s say the valuation an investor puts on your business is $2 million.

Technical Review 60

Technical Review Valuation Due Diligence Finder 60

Cracking the Code

FEBRUARY 23, 2011

In comparison, the overall technology sector growth was projected at 9-10% in early 2010 and this forecast did not change significantly today. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. McKinsey highlight #1: the art of cost cutting or. Wednesday, February 23, 2011. My Investments.

Software Review 101

Software Review Technical Review Valuation Europe 101

YoungUpstarts

MAY 17, 2019

The risk: You base your purchase price, valuation, loans, and cash forecast off historical financials, only to find out a few months into owning the business that the numbers were all wrong and you are losing cash. Use the cash forecast in the report to secure better terms on your business loan or lock the owner into seller financing.

Due Diligence 185

Due Diligence Forecast Deal Structure Valuation 185

The Startup Magazine

FEBRUARY 8, 2024

billion by 2027, according to forecasts. With so many platforms available, it is necessary to carefully evaluate each option according to various factors like scalability, user friendliness, integration capabilities, support services, and cost effectiveness. billion in 2022 to $43.6

Forecast 138

Forecast Analytics Framework Employee 138

David Teten

AUGUST 6, 2015

So often I speak with companies that have charged ahead building an ultra-complex daily or weekly model with thousands of assumptions and complex dashboard outputs, when their potential investors simply want a high-level 24 month forecast with 12 months of reconciling historical data.”. HOW TO MAKE YOUR CELLS READABLE.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

Startup Professionals Musings

SEPTEMBER 30, 2011

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

www.entrepreneur.com

SEPTEMBER 22, 2011

Franchises Franchises Home Franchise 500 Home-Based Low Cost Top New Fast Growing Top Global Biz Opportunities Franchises for Sale Franchises A Bright Forecast for a Solar Panel Installation Franchise. Sweat equity is just one component of early-stage valuation. How to Estimate Startup Costs. Online Business. This Month.

Sweat Equity 55

Sweat Equity Equity Fractional CTO CTO 55

Cracking the Code

MARCH 12, 2010

So, here is the first edition, including the recent Q4 2009 earnings and the updated 2010 forecast. If we consider that 2009 was probably the worst year in the past 5 years, forecasting the same growth for 2010 is not very encouraging. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation.

Software Review 63

Software Review Technical Review Cloud Forecast 63

Startup Professionals Musings

FEBRUARY 13, 2016

The business model has to clearly define who is your customer, market penetration expected, how much customers pay versus total costs and the investment required to sustain cash flow. Justify funding requirements, use of funds and specify a current valuation estimate. What are your forecasts for revenue, expenses and cash flow?

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

abovethecrowd.com

JULY 10, 2014

Financial models, especially valuation models, are interesting in that they can be particularly precise. While it may seem like a tough question to answer, I would argue that most practitioners of valuation analysis would state “not very high.” It is not my aim to specifically convince anyone that Uber is worth any specific valuation.

San Francisco 111

San Francisco San Jose Marketing Technical Review 111

Berkonomics

MARCH 21, 2019

If the business is not a startup, expect to supply income statements for the past several years as well, to emphasize trends in revenue and costs. Careful about “hockey stick” forecasts. Here’s a valuation example for you based on amount to be raised. It is a fact that very few businesses reach the $40,000,000 valuation hurdle.

Hockey Stick 63

Hockey Stick Liquidity Event Valuation Balance Sheet 63

Startup Professionals Musings

AUGUST 8, 2016

By profit, I simply mean offering a product or service to customers for a price that exceeds the total costs associated with the solution, thus providing some basis for recovering sunk costs and generating a return for stakeholders. Customers typically won’t switch to a new vendor for less than a twenty percent cost advantage.

Intellectual Property 120

Intellectual Property Entrepreneur Elevator Pitch Exit Strategy 120

ReadWriteStart

JANUARY 28, 2022

This article will assist you in gaining a fundamental understanding of equity valuation, kinds of equity, and other related topics. Considering that a warrant is often issued to decrease the cost of a debt issuer, the expiration period is typically more than two years after the warrant is first issued. Importance of equity valuation.

Valuation 108

Valuation Equity Warrant Common Stock 108

Tim Keane

MARCH 9, 2011

How to prepare a sales forecast for a business plan » March 09, 2011. 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. Startups and angels: Along the way to success. five years.).

Finance 83

Finance Bootstrapping Startup Equity 83

Steve Blank

APRIL 1, 2020

Any place with a fixed cost that relies on foot traffic will come under pressure. Cut costs to stay alive for 24 months. Forecasted recovery date. Sales pipeline/forecast. Payroll costs/other variable costs. Others are cutting their valuations. How many months of cash do you have? External Assessment.

South Korea 333

South Korea Salary Business Model China 333

David Teten

SEPTEMBER 23, 2017

Sources like Crunchbase , Angel List , and Seed Invest even give this data away for free or very low cost. Satisfying LP demands and streamlining the valuation process are primary drivers in those clients’ adoption of Ipreo’s portfolio monitoring and valuation solutions, iLEVEL, iVAL, and Qval. .

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Startup Professionals Musings

AUGUST 13, 2012

Explain in terms your mother could understand, and quantify the “cost-of-pain” in dollars or time. Include a current valuation estimate. The most credible sizing approach is to do your financial model first with the volume, cost, and pricing parameters you want. Financial forecast and metrics.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Startup Professionals Musings

AUGUST 7, 2015

Every customer understands that your solution has to generate more revenue than cost, but you should not put that data in a customer pitch. This allows them to calculate burn rates, break-even points and forecast the company valuation over time. How the solution and business model work to fund the business.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

David Teten

AUGUST 7, 2019

than comparable companies in the same sector that raised at a higher valuation. But if they’re so competent, aren’t they going to negotiate up the valuation to take advantage of their known status, up to the highest possible point? THEREFORE: we don’t need to be valuation-sensitive. LTV / CAC, revenue growth, etc.)

Venture Capital 60

Venture Capital Valuation Stock NDA 60

gigaom.com

JULY 10, 2012

Registered developers will get 5000 points a month and any speech transaction of a minute or less will cost one point. Mobile Q4: The scramble for spectrum continues Updated: Forecast: global mobile subscribers, 2010–2015 Carrier IQ and the continued erosion of operator trust. Previous What’s wrong with the tech valuations?

API 50

API Technical Review Artificial Inteligence RSS 50

Startup Professionals Musings

OCTOBER 12, 2010

Items that paint a big picture include revenue by major product area, cost of goods, and operating expenses by category. Tags: scorecard venture value Akira Hirai business valuation. Part of your Venture Value Scorecard should be devoted to summarizing your income statement. Detail isn’t important; tracking your progress is.

Intellectual Property 223

Intellectual Property .Net Valuation Distribution 223

Startup Professionals Musings

MAY 13, 2011

Explain in terms your mother could understand, and quantify the “cost-of-pain” in dollars or time. Include a current valuation estimate. The most credible sizing approach is to do your financial model first with the volume, cost, and pricing parameters you want. Financial forecast and metrics.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

VC Cafe

SEPTEMBER 26, 2022

The press took notice, especially since just a few months later startups were laying off employees en-masse to cut costs. Sustainable growth: Prioritise sales efficiency over growth at all costs. ValuatIon should be a function of value, not ego. 2022 VC Market Update Median valuations January through April Pre-seed: $7M ? $9M

Founder 187

Founder Startup Valuation Pre-Money Valuation 187

Austin Startup

SEPTEMBER 17, 2017

The goal of model building is to prove that if you take all the baby steps in the right order, and you test out pricing and cost assumptions as best you can along the way, and you keep listening to potential customers as you progress, then you develop reasonable confidence that success is mathematically possible.

Valuation 48

Valuation Forecast Seed Money Business Model 48

Cracking the Code

JANUARY 22, 2009

What is my cost of capital and how much is worth an incremental upfront payment? If you assume that the cost to renew a contract costs you 20% of the MRR, then adding increasing the commission by 10% for each additional year seems reasonable. Accelerating bonuses for upfront cash payment depends on your cost of capital.

Software Review 91

Software Review Clawback Sales Salary 91

Gust

AUGUST 5, 2012

Explain in terms your mother could understand, and quantify the “cost-of-pain” in dollars or time. Include a current valuation estimate. The most credible sizing approach is to do your financial model first with the volume, cost, and pricing parameters you want. Financial forecast and metrics.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Rob Go

MAY 26, 2016

The first is practical and real – it’s hard to forecast and plan expenses when revenue might swing significantly. You probably should take a haircut in valuation for the unpredictability, but there should be a pretty healthy market for these businesses. That is not good. Some categories just are this way.

Revenue 53

Revenue NPV Valuation Forecast 53

Up and Running

AUGUST 21, 2017

It’s understandable, then, that the term “unicorn” has come to be used routinely in the world of business funding to refer to those rare and beautiful privately funded startups—especially in the tech space—that have reached the upper echelon of valuation, being valued at over $1 billion. at around 27 million.

Silicon Valley 86

Silicon Valley Venture Capital Valuation Later Stage 86

The Next Web

MARCH 2, 2014

This process included several rounds of financial forecasting to understand the cost of achieving where we wanted the business and brand to be, and whether we could pay for that cost ourselves. What are the main considerations when exploring third-party investments?

Liquidity Event 139

Liquidity Event Equity Finance Stock Options 139

Startup Professionals Musings

APRIL 22, 2010

Explain in terms your mother could understand, and quantify the “cost-of-pain” in dollars or time. Include a current valuation estimate. The most credible sizing approach is to do your financial model first with the volume, cost, and pricing parameters you want. Financial forecast and metrics.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

Startup Professionals Musings

NOVEMBER 2, 2018

As an investor myself, I look for a balanced story focused on the major elements that drive profitability, including the following: A 5-year financial forecast achieving a positive cash flow early. They are looking for solutions that will reduce their costs by 20%, or double productivity, or cut traffic accidents by a third.

Intellectual Property 48

Intellectual Property Initial Public Offering Merger Acquisition 48

Both Sides of the Table

OCTOBER 1, 2009

You can’t get paid for sitting on the sidelines – I always tell people that when recessions start managers in large companies get rewarded for cutting costs. The growth and $1 billion valuation of Twitter and its impact on business – The Big Thaw discussion would obviously not be complete without discussing Twitter.

IPO 255

IPO Investment Bankers Venture Capital Marketing 255

Seeing Both Sides

JULY 21, 2014

million in one year, the year we went public at a billion dollar valuation (ok, it was 1996; everyone went public in 1996 with a billion dollar valuation), and then $61 million the following year. Your forecasting process is much more accurate. This allowed our revenue to skyrocket from $1.8 million to $22.5

Revenue 54

Revenue Valuation Churn Rate Portfolio 54

Startup Professionals Musings

MARCH 13, 2020

In that context, I offer the following financial projection strategies, from my own experience: Forecast a business that has plenty of room to grow quickly. Even if you work harder than everyone else, you probably won’t stay ahead of rising costs and new competitors. > Back up your projections with a simple financial model.

Liquidity Event 308

Liquidity Event Forecast Exit Strategy Bootstrapping 308

Tim Keane

FEBRUARY 3, 2010

« Term-sheets and Valuations: Thinking about Negotiations | Main. | OVP Venture Partners) My own take on this is that a business plan with a bottom up forecast demonstrates an understanding of the potential market that investors love.  Startups and angels: Along the way to success. Do we really need this help?

Marketing 116

Marketing Wisconsin Startup Angel Investor 116