K9 Ventures

JUNE 12, 2012

You get a situation whether investors are incentivized to put in more money into a company, not only to buy more equity, but also to fund the quick growth. Founders typically get their equity in a company once — at the time of founding and then get diluted with each subsequent round of financing.

Venture Capital 105

Venture Capital Silicon Valley Founder Seed Stage 105

The Next Web

FEBRUARY 27, 2014

Supply and demand. To start, let’s not forget about the obvious: the natural economic principles of supply and demand apply to valuing your business. your equity in a hot new patented technology business), the higher the demand (e.g., your equity in a hot new patented technology business), the higher the demand (e.g.,

Valuation 167

Valuation Forecast Seed Stage .Net 167

Startup Professionals Musings

SEPTEMBER 5, 2016

Many aspiring entrepreneurs jump ship from corporate environments, complaining that they want to be their own boss, only to find that investors are more demanding bosses than the ones they left. You don’t have to fight for your equity, and no one can slow you down in decision making. Spread your equity internally to build the team.

Bootstrapping 120

Bootstrapping Entrepreneur Startup Exit Strategy 120

Tim Keane

JANUARY 12, 2010

The investors and the entrepreneurs are – or should be – aware that the price of the company’s equity is set by the market – in simplest terms, what an informed buyer is willing to pay.   Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

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. The founders have more demand than they know what to do with, and want to raise $55k for 5% equity in the company to buy a second truck. They have more demand than they can fulfill already.

Pre-Money Valuation 101

Pre-Money Valuation Valuation Dilution Differentiation 101

Up and Running

APRIL 24, 2018

Not only that, but global equity funding to digital health companies reached $3.67 You and your team must know how to think about problems from new angles and adapt to changing market and customer demands. That’s why having a revenue-minded focus from the early stages helps to secure funding.

SBIR 73

SBIR Startup Artificial Inteligence Intellectual Property 73

K9 Ventures

OCTOBER 10, 2017

Unless every aspect of product development is covered by founders who are only receiving equity, there are other parts of building a product that will require hiring highly qualified people. Seed is the new Series A. (~$2M used get for building product, establishing product-market fit and early revenue). Series B is the new Series C.

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

Both Sides of the Table

APRIL 25, 2011

A great recent example of this was a successful group of entrepreneurs who had created a company that will do $10-12 million in revenue at their system integration business (read: services business) in 2011 after having done $5 million or so in 2010 and $2-3 million in 2009. That is $12 million in profits over 3 years.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

Gust

OCTOBER 12, 2011

Thus, it’s in everyone’s best interest to see the startup raise more capital rather than declaring default and demanding repayment. In rare cases where a startup is cash flow positive very early in its lifecycle, it may actually be able to pay off the notes without raising any equity investment.

Finance 107

Finance Term Sheet Pre-Money Valuation Early Stage 107

crowdSPRING Blog

AUGUST 7, 2011

Businesses large and small will continue to struggle as long as demand is soft and business budgets are constrained. This means that the shock to the economy will be diluted and consumers will not feel the impact immediately. Cost of capital may increase. Uncertainty may abate. Tax increases may be ahead. Photo: Kevin Krejci.

Small Business 86

Small Business IRR Government United States 86

Seeing Both Sides

JANUARY 4, 2012

After three or four years of jamming on your start-up, you've finally crossed a few million in revenue, gotten north of 10-20 employees, and it's all starting to click. Your employees start doing what I call "phantom equity math" (if this company were worth a billion dollars, I'd become a multimillionare!), Just scale wisely.

Lean 53

Lean Dilution Revenue Hiring 53

maplebutter.com

JANUARY 8, 2013

I would focus on one product and set a goal to generate $1M in yearly revenue from it. Outsourcing is something a big company, with a known customer / problem (that has revenue & traction) does to save cost. I have a proposal written up including full cost and revenue projections. Once you’ve done that – then. 1) Hire A’s.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

crowdSPRING Blog

DECEMBER 13, 2018

But if you want to accelerate growth and improve your revenues and profits, you need to up your game. It is a key factor in the success and prosperity of all businesses and nonprofits, regardless of their revenues. If your brand tries to be too many things at once, the message becomes scattered and the brand grows diluted.

Marketing 162

Marketing Charlotte Naming Design 162

Both Sides of the Table

FEBRUARY 14, 2016

The Laws of Supply & Demand. The most basic chart of microeconomics is a supply & demand curve. Demand represents a buyer and supply a seller. In the case of startups the “buyer” is the VC looking to part cash for “purchasing” equity in your startup. Now for every dollar a VC raises $2.50

Valuation 150

Valuation Down Round Startup Later Stage 150

www.paulgraham.com

APRIL 28, 2010

A lawyer I asked about it said: When the company goes public, the SEC will carefully study all prior issuances of stock by the company and demand that it take immediate action to cure any past violations of securities laws. There never has to be atime when you have no revenues. Whatkind of anti-dilution protection do they want?

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

abovethecrowd.com

APRIL 20, 2016

A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue. It will also minimize future dilution. One response from the LP community might be to demand commitments from new funds that prohibit inside-led rounds and cross-fund investing.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

www.paulgraham.com

OCTOBER 23, 2010

Founders never really likedgiving up as much equity as VCs wanted. 5 ] But the advantage of these medium-sized rounds is not just thatthey cause less dilution. They dont take boardseats, so they dont need a big percentage of your company. It was a lot of the companyto give up in one shot. You also lose less control.

Valuation 92

Valuation Stock Partner Founder 92

ConversionXL

JANUARY 18, 2022

Founded in 2015, revenue intelligence startup Gong is now valued at $7.25 Once you know your goal, there are two approaches to take to a social media strategy: meeting demand and generating demand: Meeting demand tries to discover what’s out there already and respond to it to stay relevant to the target market.

Social Media 145

Social Media Audience Media Marketing 145

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 Time Period IPO Pop* 1980-1989 6.1%

SEC 36

SEC Accredited Investor IPO Technical Review 36