Startup Professionals Musings

JUNE 30, 2019

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Commit to a major customer.

Intellectual Property 219

Intellectual Property Technical Review Startup Incubator 219

A Smart Bear: Startups and Marketing for Geeks

JANUARY 4, 2018

Late last year we passed $100M in annual recurring revenue. That revenue is in on 75,000 customers, earned through the hard work of 500 employees across six offices on three continents. Every day, 5% of the entire online world visits a customer running on the WP Engine Digital Experience Platform.

Engineer 152

Engineer Revenue San Francisco Security 152

The Startup Magazine

AUGUST 11, 2023

The following is a condensed explanation of seed funding: Seed money is a form of early-stage financing that new businesses receive from investors in exchange for a share of ownership in the company. This could be a proportion of the company’s equity or investment; in other instances, it could be a portion of its later-stage profits.

Seed Stage 148

Seed Stage Technical Review Early Stage Due Diligence 148

VC Cafe

MARCH 1, 2024

AI to build enterprise software – In the future, every enterprise could have their own custom ERP, CRM or HRIS that is continually updating itself as the company itself is changing. Technological Convergence – The global equity market value associated with disruptive innovation could increase to 60% by 2030.

Artificial Inteligence 176

Artificial Inteligence Technical Review Software Review Generative AI 176

David Teten

AUGUST 19, 2019

Does the traditional VC financing model make sense for all companies? A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. So what is Revenue Based Investing? Absolutely not.

Revenue 60

Revenue Term Sheet Founder Technical Review 60

David Teten

AUGUST 20, 2019

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital.

Revenue 60

Revenue Cofounder Founder Venture Capital 60

Startup Professionals Musings

JULY 14, 2014

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Commit to a major customer.

Entrepreneur 283

Entrepreneur Intellectual Property Technical Review Incubator 283

Startup Professionals Musings

JULY 1, 2017

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Commit to a major customer.

Product Development 177

Product Development Cost Developer Product 177

The Startup Magazine

FEBRUARY 21, 2024

TEC is one of Canada’s largest and most experienced private credit firms, specializing in providing asset-based capital solutions to companies that are underserved or overlooked by traditional sources of financing, primarily banks. Are there new revenue streams you can tap into? The firm has made more than $4.5

Technical Review 158

Technical Review Due Diligence Bankruptcy Intellectual Property 158

Startup Professionals Musings

FEBRUARY 19, 2013

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Commit to a major customer.

Intellectual Property 309

Intellectual Property Technical Review Venture Capital Startup 309

Startup Professionals Musings

JANUARY 12, 2018

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Commit to a major customer.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

View from Seed

SEPTEMBER 18, 2019

The point here is not to do a granular forecast of revenue or number of users/customers, but to put a stake in the ground so investors understand what you believe is achievable with X amount of resources given Y timeframe. The post Pitch Deck Month: The “Where Are You Going?

Part-Time VPE 195

Part-Time VPE Seed Stage CTO Hire Forecast 195

ReadWriteStart

JUNE 1, 2020

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. Any custom manufactured IoT device would require software development as well as hardware customization. Forms of funding. ? Equity investment.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

JULY 8, 2015

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Commit to a major customer.

Entrepreneur 120

Entrepreneur Intellectual Property Technical Review Incubator 120

Up and Running

JUNE 23, 2022

On the other hand, some of these are not easily fixable so you’ll have to look for alternative solutions to your financing problems. Back to the fundamentals—sell more, sell more in cash than on credit, sell off unused or old inventory, and coax your customers to pay their invoices more quickly. Explore other financing options.

SBA 163

SBA Finance Balance Sheet Technical Review 163

The Startup Magazine

MAY 11, 2020

Whether you are new in business or an established entrepreneur, you need to be diligent with your finances. There are several reasons a bank will reject financing applications, but the most common is a low credit score. If your business credit score is low, applying for a bad credit loan can help you secure the financing you need.

Software Review 123

Software Review Small Business Management Bankruptcy 123

The Startup Magazine

AUGUST 29, 2019

Bank provides two types of finances, namely, working capital and funding. The working capital loan is required to run a complete cycle of revenue-generating operations. It is, in fact, one of the easiest and quickest ways of obtaining finance for a new business. Bank loans.

Startup 122

Startup Government Valuation Technical Review 122

Tim Keane

MARCH 9, 2011

How should I finance my new venture? It’s a deceptively simple question:  what is the optimal way to finance a new startup? This seems like an easy topic – debt where there is appropriate cash flow, equity when there isn’t.  What are the reasons to choose one financing structure over another?

Finance 83

Finance Bootstrapping Startup Equity 83

The Startup Magazine

OCTOBER 26, 2020

Don’t forget to review the customer as well as supplier contracts. Equity agreements and powers of attorney. Customers and Sales. It’s also important to understand the target company’s customer base. This should include the concentration of its customers and the sales pipeline. Look at the customer concentration.

Technical Review 120

Technical Review Software Review Due Diligence Merger 120

The Startup Magazine

JULY 13, 2021

Using that home equity for a startup certainly looks enticing right now, doesn’t it? The Amount of Equity. Do you have significant home equity for a startup? It’s tempting to look at $20,000 or so in equity and think every little bit counts. Every shiny new startup has a chance to succeed and win big.

Equity 158

Equity Startup Stock Business Plan 158

Both Sides of the Table

MAY 27, 2013

In his tenure as CEO of DataSift we have never missed a monthly revenue figure. He has grown our US operations from 1 employee (him) to a global organization of 75 employees that will finish the year with 8-digit revenues (90+% recurring) and more than 350% year-over-year growth. In his spare time he raised nearly $30 million.

Advisory Board 365

Advisory Board CTO Hire Fractional CTO Los Angeles 365

Hearpreneur

JANUARY 1, 2023

Make a budget and keep a close watch on the finances , ensuring that there are no unnecessary expenses. This will keep them sustainable should revenues take a dive. Thanks to Corey Philip, Acumen Equity Advisors ! #7- The ideal amount is about 6 months' worth of expenses. 5- Focus on team wellness. Photo Credit: Corey Philip.

Entrepreneur 95

Entrepreneur Software Review Technical Review Revenue 95

YoungUpstarts

MARCH 30, 2020

Are you having trouble getting financing for your business through your bank or credit union? If you can’t get a traditional loan through your financial institution, you should consider alternative financing. To see what alternative financing options you have, keep reading below. Short-Term Loans.

Finance 147

Finance SBA Small Business Administration Startup 147

Up and Running

DECEMBER 16, 2021

Metrics such as discretionary cash flow or business revenue are used. A company’s goodwill might be worth 2x more than the discretionary cash flow, or the accounting practice’s value might be worth 1 to 1.35x the annual revenue + work-in-progress (inventory). their net commission revenue. It has $600,000 in EBITDA.

Valuation 86

Valuation .Net Metrics Balance Sheet 86

www.inc.com

SEPTEMBER 24, 2011

Finance | Tuesdays. Financing a Small Business. Financing A Small Business. Personal Finance. Will Work for Equity. Why Arizona Bay started taking stock from its customers instead of cash. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. Start-up | Mondays. Technology | Thursdays.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Startup Professionals Musings

MAY 30, 2022

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. Very few startups are cash-rich enough to self-finance aggressive second-stage growth. These only come with the proper training, investment in tools, and focus on customer relationships.

Mezzanine 368

Mezzanine Private Equity Bandwidth Metrics 368

Startup Professionals Musings

AUGUST 18, 2023

Some argue the only way to start is to drop everything and jump in with both feet, while others recommend an overlapped approach to the lifestyle, including not quitting your day job until you have revenue and a proven business model. McGinnis, a well-known venture capitalist and private equity investor.

Private Equity 255

Private Equity Salary Cofounder Equity 255

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78

Equity Revenue Cofounder Colorado 78

YoungUpstarts

MAY 14, 2018

Marks, founder and managing partner of High Rock Partners and author of “ Middle Market M & A: Handbook for Investment Banking and Business Consulting “ Conventional wisdom says that a company grows by reaching new customers, increasing its workforce, expanding marketing or launching new products or services.

Acquisition 124

Acquisition Finance Raleigh Mezzanine 124

Startup Professionals Musings

SEPTEMBER 22, 2021

As you may have seen on the Shark Tank TV show, offering a tiny equity amount for a large investment will not endear you to investors. They need to believe your valuation, based on current revenue and intellectual property, and feel the equity offered gives them a real return for the risk.

Intellectual Property 352

Intellectual Property Equity Bootstrapping Valuation 352

YoungUpstarts

MAY 25, 2018

And his biggest project to date just might be Brabble, a Disruptive Technology Company that combines social media and eCommerce with valuable patented technology that drives revenue for customers. Give these people equity to get them on board early on when cash is low.

Developer 159

Developer Investment Bankers eCommerce Social Media 159

Up and Running

MARCH 14, 2018

Your revenue or business model. Customer acquisition: Marketing and sales strategy. How will you reach your customers? Your financials should easily allow you to calculate your customer acquisition costs. Show what you’re projecting in revenue (per product) over the next three to five years. How much will it cost?

Hockey Stick 164

Hockey Stick Exit Strategy Technical Review Angel Investor 164

Berkonomics

DECEMBER 24, 2020

Use creative fundraising instead of equity or debt? I had located a beautiful home that would be a stretch to finance and had arranged for a first mortgage from the bank, and a second from the seller. You will have later expenses to pay when the revenues have already been received and presumably spent. By Dave Berkus.

Equity 62

Equity Partner Finance Revenue 62

Startup Professionals Musings

OCTOBER 19, 2015

That’s why I recommend that they find a co-founder who loves business challenges, including marketing and finance. Thus it’s a waste of time for most entrepreneurs to be looking for investors until they have a product and some customer revenue. The ultimate risk is trying to sell a solution that customers don’t need or want.

Technical Review 120

Technical Review Intellectual Property Cofounder Bootstrapping 120

ReadWriteStart

SEPTEMBER 10, 2010

This company provides a crowdsourced customer service solution to enterprises. Gio pitched it to me as a crowdsourced BPO, but I think he will have more success if he simply focuses on customer service as his core value proposition. They already have several customers including some telcos, and are at about $350,000 in revenues.

Cloud 115

Cloud Silicon Valley Incubator Finance 115

Startup Professionals Musings

JULY 16, 2012

Seed-stage means promising companies that don’t yet have a revenue stream, and may not yet have a proof of concept. Since the economic downturn started, neither angels nor VCs have given much attention to startups without a product and a revenue stream. For VCs, early-stage means customer revenue is less than $10M.

Early Stage 253

Early Stage Finance Seed Stage Entrepreneur 253

Startup Professionals Musings

NOVEMBER 30, 2020

Some argue the only way to start is to drop everything and jump in with both feet, while others recommend an overlapped approach to the lifestyle, including not quitting your day job until you have revenue and a proven business model. McGinnis, a well-known venture capitalist and private equity investor.

Entrepreneur 321

Entrepreneur Private Equity Startup Salary 321