Startup Professionals Musings

DECEMBER 30, 2022

Every business owner and entrepreneur I meet in my consulting rounds dreams of finding that “ disruptive ” innovation that will supercharge their business and move it into the ranks of business unicorns (billion-dollar valuations), such as SpaceX and Apple. Invest in communication skills and use all platforms.

Technical Review 252

Technical Review Silicon Valley Software Review Metrics 252

Startup Professionals Musings

APRIL 11, 2021

Early partners or co-founders often drop out of the picture early due to disagreements, and you forget about them, but they don’t forget about the verbal or email promises you made. Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share.

Cost 363

Cost Non-Compete Accredited Investor Cofounder 363

YoungUpstarts

APRIL 12, 2019

Each spouse just was sure that the division was going to occur his or her way, so then, they both were unpleasantly surprised with the partner’s opposite point of view. As a result, neither party will be in charge of the ex-partner liabilities and debts. And finally, you can buy out your partner’s interest.

Small Business 113

Small Business Valuation .Net Balance Sheet 113

The Startup Magazine

FEBRUARY 21, 2024

The most poignant of these challenges was the quest for capital partners, which was not just about securing capital but about finding collaborators who were willing to believe in the vision and commit to the long-term journey. Simultaneously, we conducted a thorough operational review to identify inefficiencies and areas for cost reduction.

Technical Review 131

Technical Review Due Diligence Bankruptcy Intellectual Property 131

View from Seed

OCTOBER 21, 2014

Using NextView as an example, since we both seek to lead the seed round and only lead during this round, I’ve seen this trend manifest in one of two ways: In a priced round, the entrepreneur will often share their valuation ask (or a stated floor) for the pre-money valuation of their company much sooner in the process.

Valuation 336

Valuation Founder Seed Stage Angel Investor 336

Both Sides of the Table

FEBRUARY 12, 2019

You might like to think that a bunch of savvy venture capitalists saw a market niche for raising smaller funds or perhaps there was a generational shift where disgruntled junior partners spun out of bigger firms to start their own gigs. Between 1999–2005 the costs went down by 90% and between 2005–2010 they went down a further 90%.

Venture Capital 328

Venture Capital Technical Review Seed Stage IPO 328

Startup Professionals Musings

SEPTEMBER 10, 2018

The next default of waiting until later is equally bad, since partners who bow out early will still expect an equal share of that first billion you make later. Investors may not be called co-founders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation.

Equity 238

Equity Cofounder Technical Cofounder Intellectual Property 238

Steve Blank

SEPTEMBER 5, 2018

Since NewTV won’t be making the content, they will be licensing from and partnering with traditional entertainment producers. NewTV will depend on partners like telcos to distribute the content. And if the company does go public, the valuations are at least 10x of the last bubble. The result? Carpe Diem – Seize the Cash.

Lean 335

Lean Burn Rate Startup IPO 335

Startup Professionals Musings

AUGUST 25, 2018

The cost of rolling out a business has never been lower – it only takes a few hundred dollars to incorporate a Limited Liability Corp (LLC) online, create your own website, use social media to get attention, and you are in business. In the early Internet days, it would cost a million dollars to get this far.

Technical Cofounder 184

Technical Cofounder Intellectual Property Silicon Valley LLC 184

Startup Professionals Musings

OCTOBER 17, 2022

The cost of entry for tech startups continues to go down. Twenty years ago, it cost several million dollars to launch an e-commerce startup, which can be done today for a few thousand dollars. Mobile and web software apps may cost even less. Super angels sometimes drive up valuations.

Angel Investor 342

Angel Investor Venture Capital Silicon Valley Portfolio 342

Steve Blank

JUNE 27, 2017

If they select a business model that targets industry incumbents, they don’t have to worry about upsetting existing customers, partners or distribution channels. Uber – current valuation >$70 billion – knew the day they started that their ridesharing service violated the law in most jurisdictions.

Startup 275

Startup New York City Valuation Distribution 275

View from Seed

OCTOBER 31, 2018

Today, it takes an average of 72 days to sell a home and costs the average seller $15,000. In executing against this vision he has a perfect partner and co-founder, Jude Rasmus , a real estate veteran who has sold over $2 billion of real estate over a 25-year career. homeowners. Enter Properly , the better way to sell your home.

Atlanta 159

Atlanta Cofounder Software Review Technical Review 159

Steve Blank

APRIL 23, 2014

Companies manage these three types of innovation with an innovation portfolio – they build innovation internally, they buy it or they partner with resources outside their company. Corporate business development and strategic partner executives are flocking to Silicon Valley to find these five types of innovation.

Acquisition 332

Acquisition Intellectual Property Silicon Valley Startup 332

ReadWriteStart

JULY 15, 2020

New talk of capital efficiency is gratifying, but there was another lesson from pre-COVID-19 valuation struggles. Venture capitalists and early-stage investors have told all of us, founders are critical to a startup’s valuation. Remember Morality Impacts Valuation appeared first on ReadWrite. Morality matters. Bank on it.

Valuation 91

Valuation South Carolina San Jose Balance Sheet 91

View from Seed

AUGUST 17, 2021

It’s by far the longest time I’ve spent working on any one thing, and I feel very blessed to have been able to work with my partners, colleagues, founders, and collaborators. My partners will tell you that I am an incredibly impatient person. Effective post money is the effective valuation of an investor’s dollars at any one time.

IRR 205

IRR Dilution Founder Portfolio 205

Both Sides of the Table

JULY 23, 2014

We are in a bubble (with so many private $1bn+ valuations). Lower costs to start a business (95% reduction), many more companies created & funded by angels / seed. Limited Partners or LPs (the people who invest into VC funds) have taken notice as 2014 is by all accounts the busiest year for LPs since the Great Recession began. .”

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

Startup Professionals Musings

FEBRUARY 15, 2023

It’s more possible to bootstrap today than a few years ago, as the cost of entry continues to go down. Likewise, too many volunteers and interns will only increase your workload and rework costs. Use your equity for key executives and business partners. Use your networking to get advice, but all jobs can be do-it-yourself.

Equity 349

Equity Hockey Stick Bootstrapping Sweat Equity 349

Startup Professionals Musings

AUGUST 25, 2017

In case you haven’t noticed it, the rapid evolution of do-it-yourself (DIY) facilities for developers, including 3-D printers, SketchUp and makerspaces such as TechShop , have scaled down the cost of prototypes and hardware design by an order of magnitude. Quick low-cost design and fabrication alternatives are extremely valuable.

Technical Cofounder 153

Technical Cofounder Intellectual Property Wiki Cofounder 153

David Teten

JANUARY 19, 2021

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. Yes, via conversion rights at a valuation cap.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

View from Seed

AUGUST 17, 2021

It’s by far the longest time I’ve spent working on any one thing, and I feel very blessed to have been able to work with my partners, colleagues, founders, and collaborators. My partners will tell you that I am an incredibly impatient person. Effective post money is the effective valuation of an investor’s dollars at any one time.

IRR 156

IRR Dilution Founder Portfolio 156

Both Sides of the Table

SEPTEMBER 22, 2012

He also nails the reason why venture capital is still necessary to grow large businesses quickly in a world where the costs of running startups have fallen dramatically. After all, growth equals high valuations and loads of venture capital! He talks about making things that people want & going after a big enough market.

Silicon Valley 390

Silicon Valley Venture Capital Startup Technical Review 390

YoungUpstarts

OCTOBER 28, 2015

by John Vrionis, partner at Lightspeed Venture Partners. “And if you have a valuation cap; a higher cap is always better than a lower cap.” ” The Cost of Financing. Startups bear the costs of their financing, from the first seed investment to the sale of Series A stock. Convertible Securities.

Convertible Security 100

Convertible Security IP Technical Review Software Review 100

Startup Professionals Musings

JUNE 26, 2013

It’s higher risk, but higher return, to pick the big winners early, before Angels have set unreasonable valuations and restrictive terms. Technology costs are plummeting, meaning you can do more with less. Twenty years ago, it cost $5 million to really launch a high-tech startup, when the same thing can be done today for $500 thousand.

Angel Investor 231

Angel Investor Entrepreneur Early Stage Silicon Valley 231

Startup Professionals Musings

SEPTEMBER 20, 2021

Thus entrepreneurs were able to build prototypes and design new products without the traditional huge prototyping cost. Here are some key positives from an entrepreneur perspective: Shorten the time and cost from idea to prototype. In today’s fast moving market, the basic product development cost and time are critical to survival.

Startup 397

Startup Cofounder Incubator Early Stage 397

Startup Professionals Musings

AUGUST 4, 2014

The next default of waiting until later is equally bad, since partners who bow out early will still expect an equal share of that first billion you make later. Investors may not be called co-founders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation.

Cofounder 261

Cofounder Stock Founder Technical Cofounder 261

VC Cafe

AUGUST 2, 2022

billion valuation) to invest in the Metaverse and build the future of digital entertainment Epic owns Fortnite, one of the most popular multiplayer games, enabling users to interact with each other online in an immersive way to play, socialise, attend to virtual concerts. For that, Yuga labs partnered with London based Improbable.

IP 206

IP Cofounder Valuation Acquisition 206

Both Sides of the Table

SEPTEMBER 29, 2009

They should heed the age old advice that raising slightly more money while you can is always better than trying to optimize future valuations. Should VC’s really be impacted by public market valuations when the money that they’re investing today should be for returns in 7-10 years? Short answer – yes.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

View from Seed

AUGUST 17, 2021

It’s by far the longest time I’ve spent working on any one thing, and I feel very blessed to have been able to work with my partners, colleagues, founders, and collaborators. My partners will tell you that I am an incredibly impatient person. Effective post money is the effective valuation of an investor’s dollars at any one time.

IRR 136

IRR Dilution Founder Portfolio 136

Startup Professionals Musings

MAY 4, 2016

But for founders who do their homework, the cost of entry is lower and the opportunity is higher than ever. Who would not want to joint the unicorns (recent startups with a current valuation of over $1 billion)? The cost of social media done well is low. Later cleanup can double your costs and risks. Marty Zwilling.

Intellectual Property 120

Intellectual Property Startup Angel Groups Social Media 120

Startup Professionals Musings

JANUARY 19, 2020

The cost of entry for tech startups continues to go down. Twenty years ago, it cost several million dollars to launch an e-commerce startup, which can be done today for a few thousand dollars. Mobile and web software apps may cost even less. Super angels sometimes drive up valuations.

Angel Investor 314

Angel Investor Venture Capital Silicon Valley Startup 314

Hearpreneur

JANUARY 22, 2023

However, that doesn't mean you should ignore cost or quality. Regarding trade financing, many banking partners have only begun their digital journey. This expedited shift to remote teams has opened the door for new, global staffing opportunities at a substantially lower cost. In the coming year, I predict we will see more U.S.

Artificial Inteligence 124

Artificial Inteligence Technical Review Entrepreneur Social Media 124

Startup Professionals Musings

MAY 18, 2020

It’s more possible to bootstrap today than a few years ago, as the cost of entry continues to go down. Likewise, too many volunteers and interns will only increase your workload and rework costs. Use your equity for key executives and business partners. Use your networking to get advice, but all jobs can be do-it-yourself.

Hockey Stick 423

Hockey Stick Bootstrapping Sweat Equity Intellectual Property 423

Both Sides of the Table

JUNE 22, 2011

In addition to FOMO it is partly driven by massive increase in valuations for earlier-stage companies who raised money at bit seed prices but who still have product risk. million pre-money valuation is now raising $1 million at a $12 million valuation the next investor has nowhere to go but up (or sit out the investment).

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

YoungUpstarts

JUNE 17, 2015

By Janis Kestenbaum , a partner in Perkins Coie. Privacy issues that come to light in the course of the due diligence process for an acquisition can also threaten their valuation. Privacy issues that come to light in the course of the due diligence process for an acquisition can also threaten their valuation.

Software Review 100

Software Review Technical Review Due Diligence Startup 100

The Equity Kicker

SEPTEMBER 24, 2014

We see this all the time at Forward Partners where we invest right from the idea stage and most of the companies get a first version of their product live for less than £30k (that generally includes founder salaries and time spent doing customer research). Forward Partners and Crowdcube are both attacking elements of these problems.

Early Stage 119

Early Stage Development Team Review Technical Review Software Review 119

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

Startup Professionals Musings

SEPTEMBER 30, 2013

Make sure your plan answers every relevant question that you could possibly imagine from your business partners, spouse, and potential investors. These are things that can cost very little money, but go a long ways in convincing someone that you are making progress. That means skip the jargon and include explanations and examples.

Intellectual Property 281

Intellectual Property Entrepreneur Sweat Equity CTO Hire 281