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

David Teten

JANUARY 19, 2021

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. This structure allows for alignment on the front end, and real-time flexibility for performance metrics,” says Samira Salman , a family office investor and advisor. . Yes, via conversion rights at a valuation cap.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Startup Professionals Musings

MAY 1, 2019

With the real data from that surge, you need to take a hard look at business model realities, cost of customer acquisition, inventory costs, and other key metrics. Even huge valuation increases will evaporate overnight when profitability is nowhere in sight, and you run out of money.

Silicon Valley 215

Silicon Valley Bankruptcy Metrics Valuation 215

Feld Thoughts

JULY 9, 2019

This was before the IPO Summer of 2019 when all conventional valuation metrics have entered the land of “suspension of disbelief” which is short-term good and long-term well-we-will-see-…-eventually. We ended up talking about using Gross Profit, instead of Revenue, to do valuation analysis.

Revenue 179

Revenue Valuation .Net IPO 179

Startup Professionals Musings

JULY 31, 2020

Many aspiring entrepreneurs are so focused on their technology, that they display no interest or credible understand of the financials and metrics of growing a business. Before looking for an investor, you or a partner need to demonstrate an understanding of the implications of startup valuation, revenue projections, break-even, and ROI.

Entrepreneur 312

Entrepreneur Angel Investor Valuation Leadership 312

Genuine VC

JULY 19, 2010

I think that the number of players in this devloping class of what I’d call “Micro VCs” will continue to increase over the coming years: the model fits into an opportunity on the capital supply side, as well as more importantly becomes the right product for many entrepreneurs on the demand side. Structural.

Seed Stage 175

Seed Stage Technical Review Dilution Offshore 175

Both Sides of the Table

NOVEMBER 14, 2017

and we were met with weak demand, slow growth and high costs. Raise too soon and likely take on more dilution, wait and get valuation up (as our metrics continue to rise) but then run to a point where you have a lower cash balance and place more risks on the business.

Operations 286

Operations New York City Technical Review Startup 286

Startup Lessons Learned

SEPTEMBER 22, 2008

Master of 500 Hats: Startup Metrics for Pirates (SeedCamp 2008, London) This presentation should be required reading for anyone creating a startup with an online service component. He also has a discussion of how your choice of business model determines which of these metric areas you want to focus on. Choose one.

San Francisco 167

San Francisco CPA SEM CTO Hire 167

The Next Web

SEPTEMBER 13, 2013

Many Asian entrepreneurs tell me that they want to raise funds from Silicon Valley firms because they perceive the valuations to be higher. Valuations are based more on typical later-stage type of metrics. This is driven both by supply and demand. Finally, don’t over-optimize on valuation.

Asia 132

Asia Silicon Valley India Term Sheet 132

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. 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. Each industry typically has its unique valuation methodologies.

Valuation 167

Valuation Forecast Seed Stage .Net 167

Growthink Blog

APRIL 15, 2015

On a macro level, this has a lot to do with simple supply and demand. So easy to understand and believe in are Software-as-Services Models like Domo''s, with business models often boiling down to a simple cost of customer acquisition cost divided by lifetime customer value metric (in Domo''s case, over $50,000 per customer!).

Valuation 48

Valuation Venture Capital Finance Acquisition 48

David Teten

SEPTEMBER 23, 2017

An investor had few hard metrics other than the actual financials, and little technology to make the process scaleable. Over the past few decades, better metrics became available, and investors could take a more analytical, data-driven approach. ” Historically, investing was a manual, artisan process.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

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

Reid Hoffman

MARCH 23, 2021

The metrics from the dashboard are the key inputs for collective decisions. You can always instrument your business and gather metrics, but that doesn’t mean the data you gather will be useful. Just track metrics that help you improve the product. They’re how you understand if you’re making progress or not.

Venture Capital 46

Venture Capital Metrics Investment Bankers Framework 46

Startup Professionals Musings

MAY 9, 2016

You can’t demand total loyalty from all, so you have to learn to accept criticism without being defensive. As an executive, the business will demand your attention on a 24-hour basis and you must interact with employees and customers every day to keep the momentum going. Happy to work and live on your own terms.

Social Network 120

Social Network Demand Valuation Acquisition 120

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

www.forentrepreneurs.com

FEBRUARY 2, 2010

Business model viability, in the majority of startups, will come down to balancing two variables: Cost to Acquire Customers (CAC) The ability to monetize those customers, or LTV (which stands for Lifetime Value of a Customer) Successful web businesses have long understood these metrics as they have such an easy way to measure them.

Acquisition 103

Acquisition Cost Customer Entrepreneur 103

Pascal's View

AUGUST 21, 2011

Welcome to the latest passionate debate over the ‘valuation bubble or not?’ Capital Markets Advisory Partners cleaves the demand for pre-public VC-backed equities into two worlds: “Demand Pull (Buzz) and Supply Push (No Buzz) companies. question in venture capital. It is intentional.

Valuation 50

Valuation Social Media Media IPO 50

Startup Professionals Musings

AUGUST 8, 2016

Investors look for sales at full price, to people you don’t know, to validate demand, price, and margin. The smart ones identify and budget innovative approaches, and use metrics to tools to monitor effectiveness. Giving free beta copies of your solution to customers to elicit testimonials does not validate a business model.

Intellectual Property 120

Intellectual Property Entrepreneur Elevator Pitch Exit Strategy 120

thebarefootvc

DECEMBER 18, 2020

Guggenheim CIO Scott Minerd appeared on Bloomberg TV and put a $400K price on BTC, based on its “scarcity and relative valuation of such things as gold as a percentage of GDP”. Later in the day US crypto exchange Coinbase filed a confidential S1 with the SEC to go public. All in one day!

SEC 45

SEC Valuation Institutional Investors Global 45

This is going to be BIG.

MARCH 30, 2015

I have a feeling that a lot of these "on demand" companies aren''t going to be as gamechanging as we think--and will come back down to earth with valuations that look more like temp agencies than the next big thing. But at what valuation? There are lots of those around. So where does that leave us? That is the real question.

Hockey Stick 60

Hockey Stick Valuation Startup Maryland 60

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. Lean Case provides standard business models & metrics, so you can apply a standard approach to business planning, modeling, and profitability tracking.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

Revenue multiples, profit multiples, premium over the previous financing — these are metrics used by sellers to help determine a minimum acceptable price. Even for startups, it takes years for a new product to become good enough to demand many millions of dollars in revenue.). Remember this is revenue , not valuation.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

Cracking the Code

JANUARY 22, 2009

For SaaS companies, we found that MRR is the best metric on which to base sales commissions. I'm very happy to have "bumped" into it now as we are in the process of rolling out our on demand SaaS for making, sharing and using vector maps. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). Ajay Mathur.

Software Review 91

Software Review Clawback Sales Salary 91

Cracking the Code

JANUARY 28, 2008

Eloqua is bringing this revolution to the B2B marketers by providing on-demand applications and best-practice expertise for B2B marketers to execute, automate and measure effective marketing programs that drive revenue. Cornerstone on Demand is a fast growing Learning and Talent management company based in Los Angeles. My Investments.

Software Review 48

Software Review Technical Review Los Angeles Europe 48

Ben's Blog

OCTOBER 29, 2020

The laws of supply and demand, and marginal pricing, withstand the test of time. Demand matters: IPOs are a bull market product Gauging demand for an IPO can be difficult, in part because so many IPO order books are over-subscribed. IPO “over-subscription” has also become a vanity metric for the bankers and the issuing company.

IPO 36

IPO Securities and Exchange Commission Demand SEC 36

K9 Ventures

OCTOBER 10, 2017

If the Micro-VCs are looking for Series A-like metrics, what does a company do when it’s just getting started? In order for a company to attract a full Seed round ($2M – $3M), that company needs to show an almost completed product, an advanced prototype, or some kind of traction/demand metrics.

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

Board Effect

MAY 13, 2019

The realistic demands of cap table management will increase as your business grows and matures—that much is a no-brainer. At this stage, startups should be taking the time to develop a cap table structure that supports growth; plugging in the formulas to eventually model valuations and equity dilution during seed-stage negotiations.

Cap Table 40

Cap Table Management Liquidity Event Dilution 40

Software By Rob

APRIL 2, 2014

It also opens up the potential buyer universe to non-software specialists, which is a considerable pool of demand for a business seller to tap in to. As a general rule of thumb, any passive income stream in an online business will attractive a premium valuation. Build and utilise the mailing list.

Affiliate 67

Affiliate Valuation Reputation Sales 67

K9 Ventures

APRIL 9, 2014

The low supply and high demand is driving up the valuations and deal sizes. They’re starting to use similar metrics and structures as what the old Series A folks used to. Massive late stage rounds The late stage (Series B and Series C) investors are hunting for breakout companies that have serious traction.

Mezzanine 134

Mezzanine Seed Stage Early Stage IPO 134

abovethecrowd.com

MAY 20, 2013

Private company valuation techniques are particularly specious (this contrasts with a public company that every day has a definitive market capitalization). Anyone can create any number they want (within reason), as there is no one specific formula or metric for such work. I call this the “dueling blowfish” problem.

Merger 53

Merger Institutional Investors Liquidation Preference Preferred Stock 53

Hearpreneur

AUGUST 5, 2020

This means that creating a simplified and easy-to-navigate software that allows real-time metrics and communication to be had in a professional management environment is currently an industry for the taking. They are demanding more and more transparency and are products that are sustainably and ethically sourced. 19- Silvertech.

Technical Review 154

Technical Review Software Review Entrepreneur China 154

crowdSPRING Blog

MARCH 13, 2014

The Essential Email Marketing Metrics You Should Be Tracking | Hubspot blog – crowdspring.co/1gY786G. Does A Billion-Dollar Valuation Buy Employee Happiness? The Essential Email Marketing Metrics You Should Be Tracking | Hubspot blog – crowdspring.co/1gY786G. ReadWrite – crowdspring.co/1ekm5xR. 1gYcVJm.

Social Media 96

Social Media Small Business Design Media 96

Software By Rob

APRIL 2, 2014

It also opens up the potential buyer universe to non-software specialists, which is a considerable pool of demand for a business seller to tap in to. As a general rule of thumb, any passive income stream in an online business will attractive a premium valuation. Build and utilise the mailing list.

Affiliate 27

Affiliate Valuation Reputation Sales 27

abovethecrowd.com

APRIL 20, 2016

One key to this population growth has been the remarkable ease of the Unicorn fundraising process: Pick a new valuation well above your last one, put together a presentation deck, solicit offers, and watch the hundreds of million of dollars flow into your bank account. By January of 2016, that number had ballooned to 229.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Steve Blank

NOVEMBER 5, 2009

This post describes how companies using the Customer Development model can increase their credibility, valuation and probability of getting a first round of funding by presenting their results in a “Lesson Learned&# venture pitch. Did the VC’s like your team ?

Customer Development 262

Customer Development Developer Customer Silicon Valley 262

Up and Running

FEBRUARY 17, 2016

A new system might be subject to delays, especially if demand from other breweries is high, but you’ll be able to design to your needs and specifications, and you’ll have support when issues arise (and they will). Metrics: Know your numbers. What do you need for equipment for the next six months to keep up with demand?

Oregon 60

Oregon Jordan SBA Cofounder 60