Berkonomics

AUGUST 3, 2023

When the need is high… For the rest of us, desiring to build large, valuable enterprises quickly, the need for outside capital is high on our list of requirements and even the source for some sleepless nights as we worry over the availability and cost of capital. Professional angels: This is the arena where I work and play.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Startup Professionals Musings

JANUARY 22, 2020

Despite the recent growth of crowdfunding, angels continue to be one of the major sources of financing for new ventures, so it behooves every aspiring entrepreneur to understand who these people are. You need to know why and how they invest, and then focus on the ones who are the best match for your startup.

Angel Investor 322

Angel Investor Valuation Syndicate Syndication 322

Startup Professionals Musings

DECEMBER 27, 2014

Based on the best evidence I can find, the genesis of this trend and the advantages come from several evolutionary changes in the startup investment industry, and some innovations driven by the recent recession: Venture capital funds are still recovering from the recession. The cost of entry for tech startups continues to go down.

Angel Investor 260

Angel Investor Silicon Valley Startup Portfolio 260

Steve Blank

MARCH 31, 2014

As the venture capital business has come roaring back in the last 5 years, startups are awash in available capital. Look at the valuations of companies like Tesla, Illumina, and Twitter. The companies that can show “startup-like” growth rates of 50% plus per year will get stratospheric market valuations.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

K9 Ventures

JUNE 5, 2015

Low supply of companies with traction drove the valuations and deal sizes up. The risk here is what I refer to as the curse of over-capitalization. That in turn requires more capital. In addition, the competition for and the cost of hiring people, especially in the San Francisco Bay Area, has gone up dramatically.

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

Steve Blank

FEBRUARY 10, 2016

Your product and company vision needs to match your appetite for funding. And know that just because a venture failed doesn’t mean that you’re a failure. He stressed that your product and company vision needs to match your appetite for funding: One thing that we learned very early on was, have a plan for fund-raising. …

Silicon Valley 120

Silicon Valley Ohio Columbus Entrepreneur 120

This is going to be BIG.

JULY 30, 2015

You incorporate expected company returns, mortality rates, and fee structures to try to predict how a venture capital fund works from a cash in, cash out, and NAV standpoint. And no, the numbers don't exactly add up--but they're more than close enough for venture capital. It's also not the "average fund". So here goes.

Venture Capital 60

Venture Capital Pre-Money Valuation IRR Valuation 60

Startup Professionals Musings

FEBRUARY 5, 2018

These are companies that not only have a familiar brand, but carry from five to 35 billion dollar valuations. Today as companies use tools to collect massive amounts of data on desired consumers, brands are able to increasingly market to very specific groups of people, at less cost. Time is of the essence.

IRR 143

IRR Marketing Startup Angel Investor 143

Cracking the Code

NOVEMBER 10, 2009

Cloud accounting is all about matching revenue and costs to consumption…well, except for professional services! In regards to calculatimg the "Magic Number" - should the amount included as sales and marketing costs match the length of the sales cycle? SaaS 13 Index Valuation. Venture Capital. (3).

Software Review 48

Software Review Cloud Technical Review Sales Cycle 48

Up and Running

DECEMBER 11, 2013

Watch how the sharks deal with valuation. That establishes their proposed valuation. So for example, if they want to give 10 percent of the company for $100,000, that’s a valuation of $1 million; and 30 percent for $150,000 is a valuation of $500,000. But the importance of valuation is also always there.

Valuation 136

Valuation Oregon Burn Rate Angel Groups 136

Start Up Blog

NOVEMBER 18, 2020

Here are some of their key numbers below: Filed to float with a valuation of around $13b USD. The problem is that it has a technology company valuation. The app delivery sector seems to be falsely propped up by Venture Capital investments so they can expand quickly, even if they lose money. Valuation around $30b.

IPO 62

IPO Valuation Software Venture Capital 62

Berkonomics

JUNE 8, 2017

For the rest of us desiring to build large, valuable enterprises quickly, the need for outside capital is high on our list of requirements and even the source for some sleepless nights as we worry over the availability and cost of capital. Do not expect grand valuations of your enterprise from these professional angels.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Startup Professionals Musings

MAY 13, 2016

The first step is to set your criteria, including a match for your sector type and stage, and then proactively seek out and contact the best candidates: Review profiles on professional social media sites. Friends and family are key at the idea and early development stages, when you have minimal business valuation.

Stealth 120

Stealth Startup Angel Investor Bootstrapping 120

The Equity Kicker

JULY 8, 2019

When I started in venture capital in the late 1990s VCs were regularly lambasted for taking long summer holidays and spending too much time on the golf course. This is what brings us to the second big difference: the cost of Applied Venture is too large to finance from a standard VC management fee. .

Portfolio 84

Portfolio LP Venture Capital Partner 84

Cracking the Code

DECEMBER 2, 2006

potential, share of wallet) and therefore have difficulty to segment them and serve them effectively (2) The existing direct (tele)sales model coverage is failing to provide adequate returns as companies face increased pressure to lower cost of sales. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation.

Software Review 48

Software Review Technical Review Europe Software 48

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. Payroll costs/other variable costs. Sources of additional capital – For existing companies: debt commitments, and new lenders. Others are cutting their valuations. Unemployment %.

South Korea 333

South Korea Salary Business Model China 333

Babbling VC

APRIL 3, 2011

It's kind of funny that the majority of people coming to me are obviously looking to raise venture capital and don't have this discussion with me. I have no idea whether any other VC would so openly say this but if you can avoid taking venture capital, do so at all costs. Venture capital screws everything up.

Venture Capital 81

Venture Capital Bootstrapping Global Valuation 81

Both Sides of the Table

AUGUST 1, 2010

They either do too many seed investments (for which they can spend no quality time with any) or they treat it as an option (“if you succeed come back and see us and we’ll match any term sheet you get&# ) – they view it as a sort of “right of first refusal.&#. The signaling affect is overrated. Ask their strategy.

Post-Money Valuation 298

Post-Money Valuation Term Sheet Warrant Partner 298

Ben's Blog

MARCH 24, 2011

Since so many distinguished people report a broad variety of qualitative bubble signs, let’s attempt to pattern match the quantitative data. As we do so, keep in mind that the relevant bubble statistic is not valuation. High valuations are fine if the underlying value is there. Venture capital flows.

Technical Review 78

Technical Review Venture Capital Valuation Database 78

Berkonomics

JANUARY 20, 2010

For the rest of us desiring to build large, valuable enterprises quickly, the need for outside capital is high on our list of requirements and even the source for some sleepless nights as we worry over the availability and cost of capital. Do not expect grand valuations of your enterprise from these professional angels.

Private Equity 69

Private Equity Valuation Cap Table Accredited Investor 69

This is going to be BIG.

NOVEMBER 7, 2011

Valuations. There are a ton of companies being funded at $500+ million valuations--seriously limiting exit opportunities. Many of the private companies like AirBnb, Dropbox, and Square and that have been rumored to have big valuations are real, growing businesses. Are their valuations justified? A bubble burst?

Angel Investor 104

Angel Investor Valuation Startup Revenue 104

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. Which means it is hard to ramp up or down expenses smoothly to match revenues. This allowed our revenue to skyrocket from $1.8

Revenue 54

Revenue Valuation Churn Rate Portfolio 54

Up and Running

AUGUST 19, 2014

And what have been the pros and cons of taking venture capital? I’m impressed when entrepreneurs know their numbers inside and out and are realistic about their valuations. Use a bare-bones streamlined business plan as the storyboard and make sure the summary memo, pitch deck, and main stories all match.

Angel Investor 161

Angel Investor Technical Review Due Diligence Startup 161

VC Cafe

NOVEMBER 30, 2022

Companies have raised record amounts of venture capital money in 2020 and 2021. According to Pitchbook’s Q3 2022 European VC Valuations Report , Europe minted 40 unicorns in the first 3 quarters of 2022. It matched the rate of unicorn creation in Q1 and Q2, before dipping in Q3, which only saw 4 new unicorns created.

Europe 97

Europe Balance Sheet Valuation 97

Steve Blank

FEBRUARY 26, 2020

At the end of this post, we’ll discuss the valuation at each step (how much the investors value your company and therefore how much of it you need to give up to get this money) and how much revenue you should generate at each step.). On the other hand, in a SaaS business $1 in recurring annual revenue equals ~10x in valuation.).

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

www.currentlyobsessed.com

MAY 28, 2010

Snapvine was my first experience being in the driver’s seat of the fund-raising process, and in the 3 years prior to our acquisition we raised over $10mm in venture capital. Valuation is an important aspect of VC deal terms, and a major determinant of your ultimate outcome. Or is it?

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42

reidhoffman.org

NOVEMBER 12, 2013

Friendster’s valuation set the tone for the entire social networking space. Great businesses can be built off this network, starting with matching talent and opportunity. The usual tempo for raising money from venture capital is at a minimum of a year between financings. But now it was time to get to revenue.

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111

Both Sides of the Table

AUGUST 30, 2010

Yes, I studied Ricardo’s theory of Comparative Advantage in college that says that lower-skilled jobs should move to countries with lower labor costs, but Andy Grove’s point about loss of skills in manufacturing leading to a decline in innovation in the next technology wave is both real and troubling. In the end.

Entrepreneur 298

Entrepreneur Technical Review Balance Sheet Government 298

Ben's Blog

MAY 24, 2021

billion multi-stage venture capital firm focused on IT-related investments… I also serve on various investment committees, including for the St. Jude Children’s Cancer Hospital and the Stanford Medical Center, and teach entrepreneurship and venture capital at the Stanford Graduate School of Business.

SEC 36

SEC Accredited Investor IPO Technical Review 36

abovethecrowd.com

JUNE 2, 2021

According to an interview with Elon Musk, this campaign cost Paypal about $60 million , which most Silicon Valley historians would consider money well spent. It would cost a tremendous amount of money to run such a program. Investment banks simply do not match supply and demand. Billions of dollars. Wouldn’t that be great?

IPO 82

IPO Customer Matching Silicon Valley 82