Both Sides of the Table

APRIL 26, 2016

The key to being able to run a business that isn’t yet profitable (on operating margin) is availability of capital to finance losses and preferably at a cost that isn’t too punitive to the founders and employees. CAC is often measured incorrectly and doesn’t often doesn’t capture the true costs of acquisition. The first input is CAC.

Metrics 150

Metrics Cost Acquisition Startup 150

Startup Professionals Musings

MAY 14, 2023

Things will cost more than you expect. For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity. You will make mistakes.

Burn Rate 258

Burn Rate Hockey Stick Management Salary 258

Both Sides of the Table

MARCH 21, 2013

deliver profitable revenue that while on gross margins of 50% vs. software at 85-95% it is still profits to help you cover fixed costs. You don’t want to run the risk that having a PS business that takes your eye of off the ball of growing a large software business. That is the software business. rollout support.

Software Review 321

Software Review Software IP Technical Review 321

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. Be sure to hire and cultivate new talent with the right mindset.

Technical Review 252

Technical Review Silicon Valley Software Review Metrics 252

The Startup Magazine

APRIL 19, 2024

link] Therefore, reducing costs in fleet management is a priority for most businesses, as it directly affects the bottom line. This article explores several cost-saving strategies in fleet management and offers tips to reduce expenses without compromising efficiency and performance. rise in fleet operating costs in 2022.

Cost 148

Cost Management Massachusetts Acquisition 148

Both Sides of the Table

SEPTEMBER 28, 2014

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. This is why investors really like SaaS software companies where you have recurring revenue and your largest customer accounts for < 5% of your revenue and your renewals rates are > 90%.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Steve Blank

NOVEMBER 2, 2021

INTERACTIVE CHART “ Average Cost of Hard Drive Storage per Gigabyte 1980-2014” Human Progress. They heard from a professor that the ratio of Stanford students taking software versus hardware courses was 10-to-1 software, a complete reversal from decades ago. Moore’s Law & the Global Semiconductor Industry.

Technical Review 366

Technical Review Taiwan Technology Artificial Inteligence 366

Startup Professionals Musings

AUGUST 19, 2020

Things will cost more than you expect. For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity. You will make mistakes.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Austin Startup

APRIL 25, 2017

I won’t dive into cost structure in this blog post, but let’s think through how Snap could grow revenue 20x. In summary: Snap’s current business doesn’t justify a $20B valuation. How can one justify a $20B valuation for Snap? The product that could most likely justify Snap’s $20B valuation is Spectacles.

Valuation 48

Valuation Technical Review Forecast Social Network 48

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. Properly provides full-service brokerage service through its data and software platform, just like what you’d get from a traditional agent. Each year over $30 billion is spent on residential listing commissions by U.S. homeowners.

Atlanta 159

Atlanta Cofounder Software Review Technical Review 159

YoungUpstarts

JUNE 29, 2020

Medical industry manufacturers and suppliers can benefit from the injection molding manufacturing process because of its cost-efficiency. estimates in their recent report that medical products will have a very high global market valuation, crossing 30 billion US dollars by 2026. Check here for more details on injectiion molding.

Demand 173

Demand Product Artificial Inteligence Software Review 173

YoungUpstarts

JULY 10, 2017

A change in revenue recognition means a change in the due diligence process, specifically accounting diligence, modeling, quality of earnings and cost of integration. In certain industries, such as Software as a Service (SaaS) and hardware companies, the new standard is a minor tweak. Effects on valuation. What are the changes?

Technical Review 124

Technical Review Revenue Software Review Due Diligence 124

YoungUpstarts

APRIL 12, 2019

Intangible property means trademarks, patents, copyrights, software and even reputation and trust of customers. So, unlike the assets and property, liabilities mean the things that cost the business money. Use one of two business valuation formulas. The first is known as “the book value method.”

Small Business 113

Small Business Valuation .Net Balance Sheet 113

Both Sides of the Table

APRIL 18, 2019

The valuations were too high! The key is being able to dial back variable costs during these period. This year we’re in > 100+ cities and 100+ campuses and we’re operational with street teams, better software, better bikes and a more informed ridership. Their time is free and there is no “driver COGS” (costs of goods sold).

South America 250

South America Global New York City Software Review 250

Startup Professionals Musings

NOVEMBER 26, 2012

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.

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

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

Startup Professionals Musings

SEPTEMBER 29, 2018

Things will cost more than you expect. For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity. You will make mistakes.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

ReadWriteStart

OCTOBER 7, 2010

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 As long as the deals cover his infrastructure costs, he should not be worried.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

Hunter Walker

SEPTEMBER 3, 2023

Holiday weekend here in the US means links for you to read Playing Different (Stupider) Games The Other End Of The Valuation Stick [Kyle Harrison, Contrary Capital] – Kyle puts out a new essay (almost) every Saturday and I really enjoy his consistent and clear eyed POV on venture capital.

Technical Cofounder 79

Technical Cofounder Cofounder Coder Canada 79

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

The Startup Magazine

JULY 17, 2022

If a corporation is eligible, claiming research and development tax credits might result in considerable cost savings and these advantages include the following: An increase in the flow of cash. Software development of new and enhanced versions. Creation and enhancement of network hardware as well as software.

Developer 134

Developer Germany Software Developers Software Development 134

Version One Ventures

DECEMBER 20, 2021

Over the past 18 months, the pandemic has reset these expectations, leading to huge increases in valuations for both public and private tech companies…not to mention venture capital returns that are far better than what we have traditionally seen! And more climate posts: Zero Marginal Cost Energy. 3/ Visions of Web 3.0.

Venture Capital 60

Venture Capital Technical Review Software Review IPO 60

Both Sides of the Table

JUNE 30, 2011

This is the final part of a 3-part series on the major changes in the structure of the software & the venture capital industries. Or the Cliff Note’s version: Open Source & Cloud Computing (led by Amazon) drove down tech startup costs by 90%. The lower costs & lower barriers to entry support this.

Venture Capital 289

Venture Capital Early Stage Valuation Angel Investor 289

ReadWriteStart

JUNE 1, 2020

Any custom manufactured IoT device would require software development as well as hardware customization. It is going to cost a lot of money just to get the initial batch of products to test the market and would definitely require external funding. Point number 3: Never raise money with an increased valuation.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

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

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. In April 2022, the company announced it has raised $2 billion (at $31.5

IP 206

IP Cofounder Valuation Acquisition 206

Startup Professionals Musings

SEPTEMBER 6, 2010

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.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Gust

NOVEMBER 18, 2012

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.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Startup Professionals Musings

OCTOBER 5, 2014

Things will cost more than you expect. For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity. You will make mistakes.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

Startup Professionals Musings

DECEMBER 13, 2012

I always advise software startups to file patents to protect their “secret sauce” from competitors, and to increase their valuation. Yes, the software patent process is a mess. I say this with conviction even after I survived the process, and have a software patent pending. Software technology changes rapidly.

Software 233

Software Intellectual Property Algorithm Startup 233

Startup Professionals Musings

FEBRUARY 21, 2012

The cost of giving up more equity early is often more than offset by the increased flexibility to recover from mistakes. Your startup will require more money than you expect, and the cost of going back to the well is very high. Another one to avoid cash burn for software development is a contract for percent of future revenue.

Burn Rate 232

Burn Rate Startup Salary Equity 232

Both Sides of the Table

NOVEMBER 14, 2017

He came to work in our offices at Upfront Ventures as an EIR and immediately began building software to improve how storage was picked up, photographed, scanned and routed to a warehouse. MakeSpace (as he named it) would help you get your excess goods into low-cost warehouses. How profitable is my product or service?

Operations 286

Operations New York City Technical Review Startup 286

Both Sides of the Table

FEBRUARY 15, 2016

There is much talk these days that startup valuations have decreased and may continue to do so and that the amount of time it takes to fund raise may take longer. The earlier the round, the less capital you need and the more reasonable your valuation the less time that is needed generally to raise capital. Only you know.

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

Hearpreneur

JANUARY 22, 2023

6- Datafication Photo Credit: Edward Mellett Datafication, in my perspective, is the transformation of everything in our lives into data-powered devices or software. However, that doesn't mean you should ignore cost or quality. corporations start to shift more dollars toward lower-cost developer hubs.

Artificial Inteligence 122

Artificial Inteligence Technical Review Entrepreneur Social Media 122

Both Sides of the Table

JUNE 28, 2011

In this three-part series I will explore the ways that the Venture Capital industry has changed over the past 5 years that I would argue are a direct result of changes in the software industry, not the other way around. When I built my first company starting in 1999 it cost $2.5 Open-Source Software & Horizontal Computing.

Venture Capital 334

Venture Capital Software PHP Open Source 334

Both Sides of the Table

JULY 29, 2010

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. The best thing to get is a “right sized&# valuation. A: It’s not best.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

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