David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Flexible VC 101: Equity Meets Revenue Share. Where else can fast-growing companies get funding? Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

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Your revenue plans are no longer valid.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. Others are cutting their valuations. How many months of cash do you have?

South Korea 333

South Korea Salary Business Model China 333

Both Sides of the Table

JUNE 5, 2011

2: As expected at least one person accused me of writing this post because I want to see lower valuations. As the risks below get eliminated the higher the valuation investors are prepared to pay. So rounds tend to be “range bound&# where the top end of the valuation spectrum often being done in boom markets (i.e.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Startup Professionals Musings

NOVEMBER 13, 2021

Until I read the classic book “ The Business of Sharing, ” by Alex Stephany, who founded JustPark (current valuation estimated at £80M), I too had no idea of the scope of opportunities, and the 300 or more players already out there. Usually these are revenue-generating e-commerce sites, or have the potential to be revenue-generating.

Cuba 316

Cuba Venture Capital Community Valuation 316

Both Sides of the Table

NOVEMBER 14, 2017

This financial leader could well have come through the finance org at another startup or at a larger company but they often also can come from strategy consulting (Bain, BCG or McKinsey) or through investment banking (Goldman Sachs, Morgan Stanley, etc.). and we were met with weak demand, slow growth and high costs.

Operations 286

Operations New York City Technical Review Startup 286

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

thebarefootvc

JANUARY 27, 2014

Do I think we are in a valuation bubble? I think that later stage valuations are frothy (for reasons I explain below) while earlier stage valuations are starting to stabilize from previous highs (with the exception of the superstar serial entrepreneur) - turns out scaling in a sea of competition (both startup and entrenched) is not so easy.

Technical Review 63

Technical Review Valuation Venture Capital Investment Bankers 63

YoungUpstarts

MARCH 11, 2015

With the daily demands of running a business along with the financial pressures and challenges inherent in early-stage companies, a business valuation may not be the first thing an entrepreneur thinks of when he awakes each morning. When does a startup company need a business valuation? by Janet Chase, Kaufman Rossin.

Valuation 100

Valuation Stock Options CPA Merger 100

Both Sides of the Table

JULY 29, 2010

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. The best thing to get is a “right sized&# valuation. A: It’s not best.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

Version One Ventures

OCTOBER 15, 2020

Let’s now explore the major developments and ultimate use cases for the Lightning Network in two categories: A) payments/finance and B) Web3. . Use Case I: Payments and Finance . And >40% of that revenue is coming from in-game purchases. 1) Generalizable Payments . At least not yet.

Networking 168

Networking Global OTC Security 168

VC Cafe

JANUARY 2, 2023

On a global level, venture financing of private companies dropped 33% year over year, from a record $733B in 2021 to $490B in 2022. While 7,838 tech jobs were lost across 120 companies in 2022, according to an analysis by Tech12 , the demand for engineers remained high with 13,100 open engineering roles. Source: Vintage ).

Valuation 158

Valuation Down Round Venture Capital 158

YoungUpstarts

OCTOBER 23, 2017

PC and mobile interfaces dynamically display portfolio valuations and exposures, along with system-generated investment recommendations tailored to a specific client’s financial goals and risk appetite. According to research from JP Morgan, revenues from investment banking peaked in 2009 at $207.7 Underwriting.

Technical Review 154

Technical Review Artificial Inteligence Software Review IPO 154

ithacaVC

NOVEMBER 14, 2014

I have written about startup valuations previously. If you are advising startup founders, I strongly suggest having them read all 4 of the posts to get the lay of the startup valuation land. There’s a reason it’s so difficult to figure out – valuations have little basis in reality for early stage companies. Market size.

Valuation 69

Valuation Startup Down Round Early Stage 69

Startup Professionals Musings

FEBRUARY 2, 2019

Until I read the classic book “ The Business of Sharing, ” by Alex Stephany, who founded JustPark (current valuation estimated at £33M), I too had no idea of the scope of opportunities, and the 350 or more players already out there. Usually these are revenue-generating e-commerce sites, or have the potential to be revenue-generating.

Cuba 246

Cuba Venture Capital Community Valuation 246

The Next Web

FEBRUARY 27, 2014

One of the questions I get, more often than not, is what is the appropriate valuation of my business. This is typically in conjunction with an upcoming financing or pending takeover offer. Supply and demand. your equity in a hot new patented technology business), the higher the demand (e.g., The more scarce a supply (e.g.,

Valuation 167

Valuation Forecast Seed Stage .Net 167

David Teten

DECEMBER 3, 2019

Tim Friedman, Founder, PE Stack , said, “If I could offer one piece of advice to today’s managers, it would be to take the time to understand the demands of the modern institutional LP. Lighter Capital, a Revenue Based Investing VC, offers a Cost of Capital Calculator. 3) Raise capital. If you have one, please contact me.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Hearpreneur

AUGUST 5, 2020

It helped them to engage already existing customers with the brand and kept the revenues steady. They are demanding more and more transparency and are products that are sustainably and ethically sourced. In China, Delivery app Meituan Dianping has started using autonomous vehicles to deliver grocery orders to customers. 16- Coffee.

Technical Review 156

Technical Review Software Review Entrepreneur China 156

Up and Running

JUNE 14, 2017

Others believe in the start small, grow strong approach: build a small version of the app, test user demand, and then take it from there. But when I ran the numbers, the revenue from just the first three months from the 150 who were interested in premium would cover the investment and more. He ended up saying that he would rather wait.

Technical Review 96

Technical Review Distribution Redemption Demand 96

Startup Professionals Musings

MARCH 20, 2013

In finance, a bubble is too much money chasing assets, greater asset production and a herd mentality. In finance, “this time is different” is the beginning of a new bubble. Supply and demand ignored. We all believe that supply and demand meet to create stable prices (reflexive). High valuation, low profit.

Demand 224

Demand Green Finance Government 224

Cracking the Code

SEPTEMBER 12, 2021

As the company announces its $530 million Series F at a valuation of $8.5 As at the beginning, we’re helping users in the region embrace the product by fulfilling inbound demand, and reaching out to similar users to ensure they’re aware of Snyk. Snyk’s been very proactive throughout its lifecycle, raising rounds ahead of time.

Community 62

Community Cofounder Security Open Source 62

This is going to be BIG.

MAY 9, 2022

5) Is the post-money on your last round north of $30mm and you’ve yet to show meaningful and repeatable revenue traction that comes with positive contribution margins? It was super hard to get any kind of financing before, and it will remain so. 3) Do you need to raise a large amount of growth capital in 2022? But, you know what?

Stock 97

Stock Marketing Valuation Later Stage 97

The Startup Magazine

JUNE 1, 2023

We’re hitting record revenue months, weeks, and margins. There are currently tons of “zombie” startups that have runway, but growth has slowed and they have valuations that they won’t be able to grow into. Sokolovsky also operated an on-demand food delivery startup based in Berkeley, before entering eCommerce logistics.

Early Stage 108

Early Stage Los Angeles Silicon Valley Cofounder 108

Gust

OCTOBER 12, 2011

Last week , we took the plunge and began dissecting an example term sheet for a convertible debt financing round piece by piece. In Part II, we looked at the mandatory conversion language that is at the heart of any convertible debt financing. First, a word about the maturity date.

Finance 107

Finance Term Sheet Pre-Money Valuation Early Stage 107

Feld Thoughts

OCTOBER 30, 2014

He’d gotten a random note asking about his valuation when we invested relative to another financing that was just announced. The other company, which was much smaller at the point of investment, got an 11x ARR valuation. My response to the specific situation was: Valuations have increased on a relative basis.

Valuation 143

Valuation Stock Angel Investor IPO 143

Startup Professionals Musings

MARCH 25, 2011

In finance, a bubble is too much money chasing assets, greater asset production and a herd mentality. In finance, “this time is different” is the beginning of a new bubble. Supply and demand ignored. We all believe that supply and demand meet to create stable prices (reflexive). High valuation, low profit.

Startup 225

Startup Demand Green Government 225

Steve Blank

NOVEMBER 5, 2009

Unfortunately in early stage startups the drive for financing hijacks the corporate DNA and becomes the raison d’etre of the company. A Progress Graph on the right visually shows how far you’ve come (in whatever units of goodness you’re tracking – revenue, units, users, etc.) Did the VC’s like your team ?

Customer Development 264

Customer Development Developer Customer Silicon Valley 264

Up and Running

FEBRUARY 17, 2016

In this two-part guide to starting a brewery, we’re going to talk with brewers who’ve been there-done-that, and we’ll get insights from experts in supporting industries such as insurance and finance, as well as discuss regulatory issues. In part two, we’ll discuss finances, insurance, and regulations for breweries. Keep on reading!

Oregon 60

Oregon Jordan SBA Cofounder 60

Startup Professionals Musings

MAY 11, 2016

Until I read a recent book “ The Business of Sharing, ” by Alex Stephany, who founded JustPark (current valuation estimated at £20M), I too had no idea of the scope of opportunities, and the 200 or more players already out there. Usually these are revenue-generating e-commerce sites, or have the potential to be revenue-generating.

Cuba 120

Cuba Marketing Venture Capital Community 120

Hearpreneur

JANUARY 20, 2021

Specifically, here is what we’re planning to work on: Quadruple our gross revenue and total cases/consultations. Add an income stream (new area of practice) that will be diversifying our business’ revenue. Thanks to Josh Stomel, Turbo Finance ! #8- Ideally, I’d like to hire two more attorneys. Photo Credit: Mark Lizada.

Entrepreneur 118

Entrepreneur Mobile Valuation Global 118

VC Cafe

SEPTEMBER 16, 2021

Let’s start with a short definition: [the creator economy] is defined as the class of businesses built by over 50 million independent content creators, curators, and community builders including social media influencers, bloggers, and videographers, plus the software and finance tools designed to help them with growth and monetization.

Startup 207

Startup Social Media Venture Capital Audio 207

Cracking the Code

NOVEMBER 13, 2008

Fifteen CFOs participated - about half of them from Bessemer portfolio SaaS companies (Cornerstone On Demand, Intacct. It is time to fix your key SaaS metrics: P&L: MRR = MRE: you control your destiny when your monthly revenue equals your monthly expenses Sales & Marketing: Your cost of capital doubled, so if a CAC ratio > 0.5

Software Review 48

Software Review Technical Review Valuation Portfolio 48

abovethecrowd.com

JULY 10, 2014

On June 18, Aswath Damodaran , a finance professor at NYU’s Stern School of Business, published an article on FiveThirtyEight titled “ Uber Isn’t Worth $17 Billion. Financial models, especially valuation models, are interesting in that they can be particularly precise. billion, far short of the value recently determined by the market.

San Francisco 111

San Francisco San Jose Marketing Technical Review 111

Startup Professionals Musings

MAY 8, 2015

Until I read a new book “ The Business of Sharing, ” by Alex Stephany, who founded JustPark (current valuation estimated at £20M), I too had no idea of the scope of opportunities, and the 200 or more players already out there. Usually these are revenue-generating e-commerce sites, or have the potential to be revenue-generating.

Cuba 120

Cuba Entrepreneur Venture Capital Community 120

Austin Startup

AUGUST 20, 2017

Keep the valuations consistent with company progress. Messy cap tables can come back to haunt you when you do a financing or sell the company. The bottom line is that the pedigree of your investors will have much to do with your ultimate valuation and with your enjoyment of the startup experience. Are the logistics manageable?

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

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

Agile VC

NOVEMBER 9, 2015

There’s been ample coverage in the popular press of course highlighting everything from the company’s revenue growth, lack of profitability, and the well-publicized fact that founder/CEO Jack Dorsey is also CEO of Twitter so would theoretically be running two public companies simultaneously. Revenue Composition.

IPO 165

IPO .Net Revenue Acquisition 165

techcrunch.com

FEBRUARY 19, 2010

Tweet View Comments Sarah Lacy Feb 19, 2010 Pepperdine has a new study out that attempts to shed some light on the clubby, shadowy world of private finance. Paglia, Pepperdiine’s Denney Academic Chair and Associate Professor of Finance. Think Again. Not a big shock, but things don’t look pretty, especially in the venture capital world.

Venture Capital 62

Venture Capital Technical Review Sweat Equity Valuation 62