Start Up Blog

NOVEMBER 9, 2022

The MetaVerse will definitely be a thing – a big thing in fact, just not a social thing. 1) Gaming & Entertainment: Video gaming is no small industry with an expected revenue of over $200 billion in 2022. Here’s why: The Metaverse has all the inconvenience of catching up in real life without any of the benefits.

Valuation 48

Valuation Differentiation Distribution Video 48

Startup Professionals Musings

JUNE 5, 2016

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited Angel investors. Let’s consider some basic definitions. VCs tend to demand more control of your spending and strategic decisions, with required board seats and lower valuations.

Angel Investor 120

Angel Investor IRR Valuation Startup 120

Startup Lessons Learned

SEPTEMBER 22, 2008

is an elegant way to model any service-oriented business: Acquisition Activation Retention Referral Revenue We used a very similar scheme at IMVU, although we werent lucky enough to have started with this framework, and so had to derive a lot of it ourselves via trial and error. The AARRR model (hence pirates, get it?)

San Francisco 167

San Francisco CPA SEM CTO Hire 167

reidhoffman.org

NOVEMBER 12, 2013

Friendster’s valuation set the tone for the entire social networking space. we had no revenue. As a result, we knew that our pitch would need to steer into investors’ biggest concern: the lack of revenue. And remember, LinkedIn was a consumer internet play with moderate consumer traction and without a dime of revenue.

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111

abovethecrowd.com

JUNE 2, 2021

Those that are allocated shares have definitive and explicit monetary gain within a 24 hour period of receiving an allocation. If you look up a definition of underwriting it involves “taking on financial risk” and “putting capital at risk” which they do not actually do in a typical IPO transaction. Party B: The investment banks.

IPO 82

IPO Customer Matching Silicon Valley 82

Lightspeed Venture Partners

SEPTEMBER 21, 2013

to fund the company at a $6M post money valuation from a number of investors including Selena Gomez. Despite having over 500k downloads and making $450k in revenue over the last 21 months, he had only $185k left in the bank, which meant that he would be out of business in 90 days if he didn’t raise more money.

Pre-Money Valuation 167

Pre-Money Valuation Valuation Dilution Distribution 167

Lightspeed Venture Partners

OCTOBER 22, 2012

The company has gotten off to a fast start, $150k in revenue in the first two months, with all the marketing coming from social media. This implies a pre money valuation of $1.045M. See my breakdown of week 2 for more on how to calculate pre money valuation.). There was a lot of discussion about competition.

Pre-Money Valuation 101

Pre-Money Valuation Valuation Dilution Differentiation 101

Ben's Blog

MAY 24, 2021

Small” IPOs — companies with less than $50m in annual revenue at the time of IPO – have declined from more than 50% of all IPOs in the 1980-2000 timeframe to about 25% of IPOs from 2001-2016; Companies are staying private much longer — the median time to IPO from founding hovered around 6.5 To ensure U.S.

SEC 36

SEC Accredited Investor IPO Technical Review 36

www.pakman.com

SEPTEMBER 27, 2012

At that scale, you can reach billions of dollars in revenue. Much of the valuations around the consumer web are rationalizing, and because of that, investors are once again focused on understanding business models. In my book, that is the purest definition of a media company on the web. But they do $50B in revenue.

Social Media 47

Social Media Vertical Advertising Distribution 47

techcrunch.com

FEBRUARY 19, 2010

According to VCs, there’s been a 65% decrease in up-rounds (where a company gets a bigger valuation) in the last six months and more than 60% of those polled expect a longer wait for an exit. link] Kameko Oliver I definitely feel the decline in enthusiastic investing as of late. A lot of the stats weren’t surprising. just my 2 cents.

Venture Capital 62

Venture Capital Technical Review Sweat Equity Valuation 62

David Teten

FEBRUARY 9, 2015

I’ve listed below the points I recommend you cover when pitching your business to early-stage investors, including but definitely not limited to ff Venture Capital. If you are testing the market to see what terms you can get, just say, “We are targeting to raise $X at pre-money valuation of $Y.” Financial Overview.

Venture Capital 60

Venture Capital Pre-Money Valuation Prospectus Early Stage 60

Up and Running

APRIL 11, 2016

When asked how he figured out who his target market was, he responded, “I looked at the volume of sales in my city, from the property valuation administrator, and then looked for the ‘sweet spot.’ Cheryl Julcher of Yellow Brick Properties differentiated her brand from competitors by developing a brand of homes called Zoetic Homes™.

Reputation 60

Reputation Cofounder Naming Business Plan 60

Software By Rob

AUGUST 18, 2010

The only thing that seemed to be consistent about my growth was that my revenue was relatively flat while my user base kept growing. This turned out to be a good move since it doubled their revenue that month. He has a great stats page that shows everything from monthly revenue to the breakdown of users by plan type.

Software Review 78

Software Review Software Revenue Cofounder 78

The Next Web

JUNE 28, 2012

Yes, you should most definitely take a moment to celebrate your funding. Focus on what exactly you’re doing that differentiates you from other startups and highlight that. For instance, yes, you might be another photo sharing app, but your differentiator is timed delivery of photos. That’s how you got funded.

Hiring 143

Hiring Differentiation Non-Compete Equity 143

www.readwriteweb.com

OCTOBER 18, 2010

These are areas that may be gaps in the portfolio of large companies, and are perfect for M&A deals in three to five years after building enough validation and $10-$20 million in revenue. By definition, the capital investment needs to be relatively low such that the investors and the entrepreneurs all make a healthy return on investment.

Marketing 52

Marketing Bootstrapping Incubator Angel Investor 52

www.readwriteweb.com

OCTOBER 18, 2010

These are areas that may be gaps in the portfolio of large companies, and are perfect for M&A deals in three to five years after building enough validation and $10-$20 million in revenue. By definition, the capital investment needs to be relatively low such that the investors and the entrepreneurs all make a healthy return on investment.

Marketing 52

Marketing Bootstrapping Incubator Angel Investor 52