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. Effects on valuation. The new standard will affect revenue multiples, margin analysis and overall cost of integration of the target company.

Technical Review 124

Technical Review Revenue Software Review Due Diligence 124

ReadWriteStart

JULY 12, 2019

To gather and organize vast amounts of training data needed to build effective AI solutions is cost prohibitive for a startup. There are plenty of entrepreneurs diligently working toward a better future. But in high-tech businesses, it’s crucial that the AI you build, promote, or invest in — is authentic.

Artificial Inteligence 132

Artificial Inteligence Technical Review Software Review Startup 132

Hearpreneur

JANUARY 22, 2023

We've also seen extensive use of technology and increased remote working. As a result, businesses in this field should leverage technology to provide interactive, easy-to-understand educational content that can help customers make health-related decisions and maintain healthy habits. Thanks to Erik Pham, Health Canal ! #2-

Artificial Inteligence 124

Artificial Inteligence Technical Review Entrepreneur Social Media 124

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

OCTOBER 27, 2014

I always advise software startups to file patents to protect their “secret sauce” from competitors, and to increase their valuation. The good news is that a patent can scare off or at least delay competitors, and as a “rule of thumb” patents can add up to $1M to your startup valuation for investors or M&A exits (merger and acquisition).

Software Review 250

Software Review Software Technical Review Intellectual Property 250

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. pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. Where are we today? The iPhone was released.

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

Both Sides of the Table

FEBRUARY 12, 2019

The reality is that as a result of two major trends the costs of starting a technology startup went down massively. Between 1999–2005 the costs went down by 90% and between 2005–2010 they went down a further 90%. So What Impact Did the Drop in Tech Founding Costs Have on VC? thus the rise of “pre seed” investing).

Venture Capital 328

Venture Capital Technical Review Seed Stage IPO 328

Haystack

DECEMBER 29, 2018

It’s that time of year, time to look back and reflect on the most significant storylines in the tech, startup, and VC world. Technology is, like water, flowing and seeping into nearly every sector and eventually into most of the global economy. companies, more sensitivity around technology IP and security.

Technical Review 165

Technical Review Venture Capital Russia China 165

YoungUpstarts

NOVEMBER 2, 2020

They might lack an aligned vision, or encounter resistance, or have the wrong technology. REASON 2: You Need to Gain the Efficiencies to Be Cost-Competitive. Similarly, Microsoft found in a study that 93 percent of millennials polled cited modern and up-to-date technology as one of the most important aspects of a workplace.

Valuation 264

Valuation Technical Review Revenue Operations 264

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. That’s it.

Valuation 48

Valuation Technical Review Forecast Social Network 48

Startup Professionals Musings

JANUARY 27, 2016

I still generally advise software startups to file a patent as a barrier to entry from competitors and to increase their valuation by investors, but every entrepreneur needs to understand the tradeoffs. That’s more than a lifetime in today’s technology. Patent offices can’t keep up with software technology.

Software Review 120

Software Review Intellectual Property Software Technical Review 120

The Startup Magazine

JANUARY 14, 2020

With advances in technology, green buildings can also be built at fairly competitive prices. The cumulative cost impact often adds to lower building operation and corresponding maintenance cost. Sustainability now ranks in the same level as demographic shift and technological advances in revolutionizing the real estate industry.

Green 136

Green California Government Valuation 136

YoungUpstarts

OCTOBER 24, 2013

One of the challenges for investing in startups has always been the lack of an established way for founders and investors to actually measure and decide on the valuation of the startup concerned. When you are clocking 80-hour weeks building your start-up from the ground-up on limited funds, neither of those options are attractive.”

Pre-Money Valuation 150

Pre-Money Valuation Web Technical Review Angel Investor 150

Both Sides of the Table

NOVEMBER 14, 2017

Nearly every successful tech startup I’ve observed over the past 20 years has gone through a similar growth pattern: Innovate, systematize then scale operations. MakeSpace (as he named it) would help you get your excess goods into low-cost warehouses. How long does it take me to pay back my original customer acquisition costs?

Operations 286

Operations New York City Technical Review Startup 286

Startup Professionals Musings

OCTOBER 19, 2015

I usually envision a 50-50 ownership split for their efforts, but every engineer believes the technology side deserves the majority share. If you consider yourself a technologist, you probably believe and may be propagating one of the following myths: The first priority for funding should be to develop the technology.

Technical Review 120

Technical Review Intellectual Property Cofounder Bootstrapping 120

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. Gross margin (GM) is the amount of profit you make per sale of your product or service taking into account your total costs of selling that product or service. Valuation.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Gust

OCTOBER 19, 2014

I always advise software startups to file patents to protect their “secret sauce” from competitors, and to increase their valuation. The good news is that a patent can scare off or at least delay competitors, and as a “rule of thumb” patents can add up to $1M to your startup valuation for investors or M&A exits (merger and acquisition).

Software Review 173

Software Review Software Technical Review Intellectual Property 173

YoungUpstarts

OCTOBER 23, 2017

This combinatorial model works because it’s diversified, can best withstand bear markets, benefits from technological synergies, and it’s the mix of products and services clients value. To dig deeper, let’s first review the influence of technology on the core components. However each component will change dramatically.

Technical Review 154

Technical Review Artificial Inteligence Software Review IPO 154

Steve Blank

SEPTEMBER 5, 2018

A version of this article first appeared in the Harvard Business Review. Tech IPO prices exploded and subsequent trading prices rose to dizzying heights as the stock prices became disconnected from the traditional metrics of revenue and profits. Then the cycle repeats with a new set of technologies. The result?

Lean 335

Lean Burn Rate Startup IPO 335

YoungUpstarts

JUNE 20, 2016

Before the advent of cloud technology and the Internet, company files had to be stored away in physical data rooms (PDRs). This required high operational costs like round the clock staff, abundant paper supplies and couriers. The old PDRs were quite cumbersome due diligence processes. What are Virtual Data Rooms?

Software Review 100

Software Review Technical Review Due Diligence Security 100

Steve Blank

JUNE 27, 2017

This article originally appeared in the Harvard Business Review. As more and more companies face disruption from globalization, new technology, and startups that have more capital than the incumbents, the continuing cry from Wall Street investors is, “Why can’t companies be as innovative as startups?”. What can a company do?

Startup 275

Startup New York City Valuation Distribution 275

Both Sides of the Table

SEPTEMBER 22, 2012

Growth will slow, partly due to internal limits and partly because the company is starting to bump up against the limits of the markets it serves.” 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. Grow or die.

Silicon Valley 390

Silicon Valley Venture Capital Startup Technical Review 390

YoungUpstarts

NOVEMBER 20, 2019

Competition from other startups and established incumbents, constraints on time and capital, and limited access to talent and technology resources are just a few of the hurdles nearly every first-time founder faces while trying to build a business. Have a reasonable attitude about your early-stage valuation, and don’t get too hung up on it.

Technical Review 140

Technical Review Due Diligence Early Stage Differentiation 140

David Teten

JANUARY 19, 2021

Our categorization is not a technical one. Additionally, Flexible VC can accommodate all types of companies, not just asset-lite, tech-enabled companies.”. Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. That said, nothing is cost-free. Flexible VC offers you this.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

The Equity Kicker

SEPTEMBER 24, 2014

When startups can do more with less money the returns from investing small amounts of money go up, and that can be seen in rising Series A valuations and declines in the average amount of money raised before exit. That makes it possible for investors to cost-effectively invest small amounts and make lots of small bets on different startups.

Early Stage 119

Early Stage Development Team Review Technical Review Software Review 119

Version One Ventures

DECEMBER 20, 2021

And if you haven’t seen it already, you can read our Year in Review post, where we reflect on the incredible pace of the start-up market in 2021. . Everyone (investors and founders alike) has underestimated the size of the addressable market for tech over the past decade. And more climate posts: Zero Marginal Cost Energy.

Venture Capital 60

Venture Capital Technical Review Software Review IPO 60

Startup Professionals Musings

JUNE 26, 2013

Due to the struggling economy as well, traditional individual Angel investors haven’t been able to fill the gap. 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.

Angel Investor 231

Angel Investor Entrepreneur Early Stage Silicon Valley 231

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. One Properly client said it best (and there are many more glowing reviews ): “We had a great experience selling our home with Properly. Each year over $30 billion is spent on residential listing commissions by U.S. homeowners.

Atlanta 159

Atlanta Cofounder Software Review Technical Review 159

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. Turns Out There Are Competitive Moats There were some tech meme’s out there last year that scooter companies had no moats. Their time is free and there is no “driver COGS” (costs of goods sold). We are now in Act IV.

South America 250

South America Global New York City Software Review 250

YoungUpstarts

OCTOBER 28, 2015

Craig Schmitz, a partner in the Technology Companies Group at law firm Godwin Proctor LLP who works on corporate, governance, board and fundraising issues, and Erika Fisher, an associate in the firm’s Business Law Department who deals with IP, fielded questions about the legal issues startups face. ” The Cost of Financing.

Convertible Security 100

Convertible Security IP Technical Review Software Review 100

YoungUpstarts

JUNE 17, 2015

Privacy issues that come to light in the course of the due diligence process for an acquisition can also threaten their valuation. Many startups have learned that being young and small does not keep them off the radar screens of privacy regulators, and they can be vulnerable to costly investigations.

Software Review 100

Software Review Technical Review Due Diligence Startup 100

David Teten

SEPTEMBER 23, 2017

VCs tout themselves as frontier technology investors, but most are using the same infrastructure tools they have used for the past 20+ years: Excel and recent college grads searching Google. According to Knowledge.VC , under 5% of US VCs have a full-time team member focused on technology. . But we’re doing it slowly.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Startup Professionals Musings

JUNE 25, 2012

Use this approach before you have a real valuation, a real product, or any real customers. This source often gets overlooked, but it should be a major focus these days due to government initiatives on alternative energy and technology. Bartering technically means exchanging goods or services as a substitute for money.

Technical Review 257

Technical Review Bootstrapping Venture Capital Incubator 257

Both Sides of the Table

JUNE 22, 2011

Responses ranged from, “hey, they’re in a HUGE market&# to “it is an amazing company and their technology rocks.&# It’s like people arguing that there’s a beautiful beach house in 2006 that represents great long-term value due to scarcity of similar property. But everything has intrinsic value.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Startup Professionals Musings

SEPTEMBER 9, 2010

I conclude that the genesis of this trend seems to come from several forces, including the following: Less investment capital available due to the recession. Due to the economy as well, traditional individual angel investors haven’t been able to fill the gap. Technology costs are plummeting, meaning you can do more with less.

Technical Review 215

Technical Review Early Stage Venture Capital Startup 215

A Smart Bear: Startups and Marketing for Geeks

AUGUST 18, 2015

This market is willing to pay far more than cost for this product (else profits wouldn’t be generated). A startup with new cost structures, new technology, and new ideas can compete with a good-enough product at 1/2, 1/4, or possibly even 1/10th the price, and start cleaning up. Not anymore. That’s a young company’s game.

Technical Review 120

Technical Review Valuation Flash Revenue 120

YoungUpstarts

JUNE 29, 2020

Personal protective equipment (PPE) are now being routinely used to ensure health and safety, virtual shopping is at an all-time high due to qurantine and lockdown, and physical interactions have been limited to mobile and online platforms. Also, this process has exceptional accuracy, durability, and contaminant resistance.

Demand 173

Demand Product Artificial Inteligence Software Review 173