Startup Professionals Musings

JULY 22, 2020

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

Hearpreneur

JANUARY 1, 2023

As I've taken the time to invest in companies and programs that can manage various facets of my business on my behalf, I've been able to increase my revenue and provide better financial insulation for my firm to help it withstand the negative effects of a recession. This will keep them sustainable should revenues take a dive.

Entrepreneur 96

Entrepreneur Software Review Technical Review Revenue 96

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. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Hire more help than helpers. There is no free lunch.

Mezzanine 368

Mezzanine Private Equity Bandwidth Metrics 368

Startup Professionals Musings

OCTOBER 12, 2020

The alternative is to work with an innovation institute to evaluate your technology, or hire a consultant. Sometimes these will ask for 5%-15% of your equity for their support services. This normally means more than 30 employees, and more than $1 million in revenue. If you need money now, is has to come from friends and family.

Incubator 429

Incubator Startup Exit Strategy Institutional Investors 429

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

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 21, 2011

It’s among the most-asked questions on startup forums, and an issue we’re dealing with right now at WPEngine as we bring on new employees: How do you decide how much equity (shares) to give a new employee or partner? The question is further complicated when the new hire is getting a salary. What about $Y/mo?&#

Equity 276

Equity Salary Hiring Institutional Investors 276

YoungUpstarts

OCTOBER 24, 2012

Nearly four in five CEOs complained that CMOs can’t explain how brand equity can be linked to recognized financial measures such as firm equity. In circumstances like this, most firms call their legal departments and start issuing cease and desist demands. Build strong customer communities. But LEGO took a smarter approach.

Marketing 234

Marketing Software Review Technical Review Social Network 234

ReadWriteStart

AUGUST 28, 2012

But when it comes to core technical skills, more and more entrepreneurs are opting to partner with technical co-founders rather than hiring someone for an in-house position. I really believe that what’s most important for a founder is the ability to have a vision for the company, make sales and hire well. Laura Roeder , LKR.

Technical Review 131

Technical Review Cofounder Founder Software Review 131

YoungUpstarts

NOVEMBER 27, 2018

From there, it’s time to inquire what the value of the company currently is and if their investment is going towards equity or loans. A concrete monetization strategy, or at the very least a revenue model, gives investors detailed insight into how a startup plans to generate profit once an established network is set into place.

Early Stage 160

Early Stage Cofounder Startup Security 160

Startup Professionals Musings

JUNE 8, 2019

A recent high-profile one, Theranos , the blood-testing company, had no trouble getting customers, but promised more than their technology could deliver, Another, Shyp , an early on-demand delivery platform, blamed their demise on premature scaling. Demand continuous innovation to keep up with change.

Angel Investor 220

Angel Investor Equity Leadership Demand 220

Up and Running

DECEMBER 4, 2017

Sticking your neck out to secure the startup capital, hiring the right employees, and establishing cash flow are just a few of the risks that send would-be entrepreneurs running away from the idea of starting their own business. Is the business profitable with healthy revenues and cash flow? Are you ready to be in charge?

Due Diligence 97

Due Diligence Acquisition Demand Small Business 97

Growthink Blog

DECEMBER 20, 2017

The shedding process will be different for each of us - some of us like to read inspirational business books, or meditate, or exercise, or group brainstorm, or hire an advisor to help us work through it. And with liabilities down and assets up, we are left with that most beautiful piece of our business balance sheet - equity.

Balance Sheet 48

Balance Sheet Malaysia Indonesia Finance 48

ReadWriteStart

AUGUST 28, 2012

But when it comes to core technical skills, more and more entrepreneurs are opting to partner with technical co-founders rather than hiring someone for an in-house position. You Need To Know Tech Basics I really believe that what’s most important for a founder is the ability to have a vision for the company, make sales and hire well.

Technical Review 79

Technical Review Cofounder Founder Software Review 79

A Smart Bear: Startups and Marketing for Geeks

JANUARY 7, 2014

It’s not a ruse devised by greedy vulture capitalists vying for extra points of equity. Costs arise ahead of associated revenue, especially for SaaS companies, so you need a cash investment to fund that growth. But what if, nine months from now, revenue isn’t growing quite as quickly as you planned?

Revenue 270

Revenue Finance Equity Engineer 270

Startup Professionals Musings

AUGUST 19, 2018

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Angel Investor 184

Angel Investor Intellectual Property Investment Bankers Private Equity 184

Startup Professionals Musings

SEPTEMBER 1, 2019

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. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Hire more help than helpers. There is no free lunch.

Mezzanine 244

Mezzanine Private Equity Startup Bandwidth 244

Startup Professionals Musings

DECEMBER 28, 2018

The alternative is to work with an innovation institute to evaluate your technology, or hire a consultant. Sometimes these will ask for 5%-15% of your equity for their support services. This normally means more than 30 employees, and more than $1 million in revenue. If you need money now, is has to come from friends and family.

Incubator 236

Incubator Exit Strategy Institutional Investors Angel Investor 236

YoungUpstarts

SEPTEMBER 12, 2011

of small businesses say they will hire in the next six months as compared to 38.1% who say they do not plan to hire. Access To Capital Key Reason Why Small Businesses Not Able To Hire. Positions In Demand. of companies planning to hire indicate they’d need to train those they hire. were successful. “If

Small Business 145

Small Business Hiring Private Equity Angel Financing 145

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 117

Venture Capital Silicon Valley Founder Seed Stage 117

Berkonomics

JUNE 10, 2021

If sudden demand for a product takes management by surprise, having solved these key issues will remove the key barrier to ramping production and taking advantage of the opportunity. In an early-stage company, the key issue is most often finding the way to start the revenue flowing from services and sales.

Early Stage 62

Early Stage Equity Distribution Revenue 62

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

Startup Professionals Musings

JULY 4, 2014

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Angel Investor 232

Angel Investor Intellectual Property Investment Bankers Private Equity 232

socialmatchbox.com

OCTOBER 23, 2010

If they hire an accountant to help prepare and file their taxes that may cost around $500. Founders seem to take for granted exactly how in demand a good programmer is. Simultaneously, founders tend to take for granted how in demand bad programmers are too. There is a huge demand for programmers in America – good and bad.

Part-Time VPE 41

Part-Time VPE Sweat Equity DC Washington 41

Startup Professionals Musings

AUGUST 13, 2016

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Matching 120

Matching Angel Investor Intellectual Property Investment Bankers 120

YoungUpstarts

OCTOBER 8, 2019

As your company begins to operate, you need to stock up your inventory to keep up with the customer demand. You can utilize the proceeds of your loan to keep your business afloat when revenues are low. By hiring and paying people to perform specific jobs for you, you can keep your company efficient and innovative.

Finance 133

Finance Equity Operations Stock 133

Austin Startup

AUGUST 20, 2017

Hiring is a chapter unto itself, but it deserves to lead off any discussion of context. Compensation decisions obviously affect hiring and retention. They’re looking to be paid properly in the context of the overall salary structure, including cash, benefits, and equity, and to be paid commensurate with performance.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Startup Professionals Musings

JUNE 15, 2013

The alternative is to work with an innovation institute to evaluate your technology, or hire a consultant. Sometimes these will ask for 5%-15% of your equity for their support services. This normally means more then 30 employees, and more then $1 million in revenue. If you need money now, is has to come from friends and family.

Incubator 256

Incubator Entrepreneur Exit Strategy Institutional Investors 256

Startup Professionals Musings

SEPTEMBER 13, 2017

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. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Hire more help than helpers. There is no free lunch.

Mezzanine 141

Mezzanine Private Equity Startup Bandwidth 141

ReadWriteStart

MARCH 3, 2021

Many new businesses have a small customer base, limited revenue, and a finite amount of funding to work with. You can’t afford to hire a full team or place a Super Bowl ad, so you’ll need something more reasonably priced. Limited brand equity. In some situations, that renders the marketing budget exhausted from the start.

Early Stage 125

Early Stage PPC Retention Churn Rate 125

Startup Professionals Musings

NOVEMBER 3, 2013

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. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Hire more help than helpers. There is no free lunch.

Mezzanine 240

Mezzanine Private Equity Bandwidth Metrics 240

infochachkie.com

SEPTEMBER 24, 2011

Instead of hearing from your long lost third-cousin, you will be inundated with an avalanche of ‘congratulatory’ emails, calls and letters from people who want to relieve you of the burden of your hard-earned equity round. Given all the demands on your time, the hours spent educating a consultant regarding your business are costly.

Equity 40

Equity Silicon Valley Cofounder Technical Review 40

Startup Professionals Musings

NOVEMBER 27, 2016

The alternative is to work with an innovation institute to evaluate your technology, or hire a consultant. Sometimes these will ask for 5%-15% of your equity for their support services. This normally means more than 30 employees, and more than $1 million in revenue. If you need money now, is has to come from friends and family.

Incubator 120

Incubator Startup Exit Strategy Institutional Investors 120

YoungUpstarts

AUGUST 31, 2017

And as the Internal Revenue Service continues to wage war against fraud and identity theft, filing clean, complete returns is key — especially as your business scales. For instance, if your startup is in the Bay Area but you hire a New York engineer, that engineer may fall under New York’s filing requirements. Plan ahead.

Ratchet 113

Ratchet Merger New York Engineer 113

Startup Professionals Musings

MAY 16, 2012

The alternative is to work with an innovation institute to evaluate your technology, or hire a consultant. Sometimes these will ask for 5%-15% of your equity for their support services. This normally means more then 30 employees, and more then $1 million in revenue. If you need money now, is has to come from friends and family.

Incubator 237

Incubator Startup Exit Strategy Institutional Investors 237

K9 Ventures

APRIL 9, 2014

The low supply and high demand is driving up the valuations and deal sizes. Threshold for an IPO is higher Ten years ago, if you had $20M in revenue you were ready to go public. If you have <$100M in revenue, you’re probably going to stay private. And the hiring costs are higher.

Mezzanine 134

Mezzanine Seed Stage Early Stage IPO 134

Steve Blank

APRIL 1, 2020

Your revenue plans are no longer valid. What’s your monthly cash burn at your new low revenue level? The CEO should dial through as many of the largest existing customers to get a firsthand understanding of the magnitude of any revenue shortfall. Award equity to employees equal to the value of their reduced salaries.

South Korea 333

South Korea Salary Business Model China 333

Berkonomics

NOVEMBER 26, 2014

If sudden demand for a product takes management by surprise, having solved these key issues will remove the key barrier to ramping production and taking advantage of the opportunity. In a young company, the key issue is most often finding the way to start the revenue flowing from services and sales.

Equity 66

Equity Distribution Revenue Channel 66