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

VC Cafe

JANUARY 24, 2021

billion gamers worldwide will help the global games market generate revenues of $189.3 billion in revenue last year. According to Ark Invest’s research , revenue from virtual worlds will compound 17% annually from roughly $180 billion today to $390 billion by 2025. Fortnite alone made $1.8 Twitch stats in 2020.

Technical Review 207

Technical Review Audio Forecast Social Media 207

Berkonomics

JANUARY 3, 2013

Most every business can take advantage of continuing, recurring revenues from its customer base. Sometimes, products are designed to make all of their profit upon the recurring revenues from supplies or support. Usually that amount exceeds 50% of total revenues, and is often much more.

Revenue 79

Revenue Software Review Vertical Valuation 79

Startup Professionals Musings

AUGUST 25, 2018

Those that do it right also have the unprecedented opportunity to join the elite ranks of 250 unicorns (relatively new companies with a current valuation of over $1 billion). These days you can create a C-corp or LLC online quickly at a low cost, to serve you well in signing partners, intellectual property, investors, and revenue.

Technical Cofounder 184

Technical Cofounder Intellectual Property Silicon Valley LLC 184

Startup Professionals Musings

APRIL 17, 2023

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 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

ReadWriteStart

JUNE 1, 2020

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

OCTOBER 20, 2017

I endorse their list of the seven key drivers of digital opportunity, how to recognize them, and examples of how forward-thinking companies have capitalized on them, which I paraphrase and summarize here: Compression of supply and demand enables near instant fulfillment. Shifting demographics changes customer needs and expectations.

Technical Review 136

Technical Review Demand Valuation Business Model 136

YoungUpstarts

JUNE 16, 2020

Business valuation is defined as a way to determine the overall economic value of a company , and is a necessary component of a sound business plan and strategy. Any of these situations will demand a valuation to determine current and future projected value. . Three Methods of Valuation. Life happens to all of us.

Valuation 162

Valuation CPA Software Review Revenue 162

Startup Professionals Musings

AUGUST 25, 2017

They come at the early stage while a startup has no revenue or valuation, so professional investors are hard to find. Meeting the new consumer demand for customization. Customers today increasingly demand solutions that are customized just for them. Facilitates building skills and familiarity with new tools.

Technical Cofounder 153

Technical Cofounder Intellectual Property Wiki Cofounder 153

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

YoungUpstarts

JANUARY 24, 2018

However, the real staggering growth numbers of IoT are elsewhere: in how it’s transforming industries, powering start-ups, changing how we solve societal challenges and boosting demand for IoT-related jobs. IoT profiles, skills and job trends.

Internet 150

Internet Demand Software Engineering Agile 150

Startup Professionals Musings

SEPTEMBER 20, 2021

They come at the early stage while a startup has no revenue or valuation, so professional investors are hard to find. Meet the new consumer demand for customization. Customers today increasingly demand solutions that are customized just for them. Low-cost design and fabrication tools are extremely valuable.

Startup 397

Startup Cofounder Incubator Early Stage 397

Startup Professionals Musings

JUNE 5, 2021

Supply and demand ignored. We all believe that supply and demand meet to create stable prices (reflexive). But sometimes higher prices create higher demand, causing a boom. In startups, a great success like Google causes busts by stimulating more supply, without regard to demand. High valuation, low profit.

Demand 362

Demand Government Venture Capital Valuation 362

Hearpreneur

JANUARY 22, 2023

Regarding extended reality, gaming is a key sector for popular jobs that do not demand advanced degrees but do require a desire for online gaming. As a result, securing and properly storing our data has become an in-demand specialization in our economy. Thanks to Max Whiteside, Breaking Muscle ! #3-

Artificial Inteligence 124

Artificial Inteligence Technical Review Entrepreneur Social Media 124

Startup Professionals Musings

JUNE 26, 2013

It’s higher risk, but higher return, to pick the big winners early, before Angels have set unreasonable valuations and restrictive terms. More sources of funding for early-stage startups may drive up valuations on these deals, which will lower the returns for the Angels and super-Angels willing to do these deals.

Angel Investor 231

Angel Investor Entrepreneur Early Stage Silicon Valley 231

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. Flexible VC: Revenue -based. Gross Revenues (generally 2-8%).

Cofounder 78

Cofounder Technical Review Equity Dividend 78

The Startup Magazine

OCTOBER 22, 2020

Each product has a diverse customer base and demand trends. For example, you can ascertain which products earn you the most revenue, which products generate the most goodwill, the seasonal demands of the products, etc. Not every product aims at the entire market. It is the exact recipe for increased profits.

Analytics 132

Analytics Portfolio Advertising Technical Review 132

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

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

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

Berkonomics

MARCH 5, 2020

So, it is important for the entrepreneur to identify, address and mitigate each of these in order to increase valuation and decrease the risk of ultimate loss of the business. Reduction or elimination of one or more of these risks increases the valuation of the company and certainly improves its chances of survival and growth.

Valuation 62

Valuation Down Round Early Stage Demand 62

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

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 6, 2016

You also ran the risk that if you hired employees quickly and then demand wasn’t as strong as expected it was incredibility hard to fire people. In France in some ways it was worse because if you failed as a startup founder you shouldered personal liabilities that don’t exist in the US under our bankruptcy laws.

South Korea 261

South Korea Silicon Valley Los Angeles Japan 261

Both Sides of the Table

NOVEMBER 14, 2017

and we were met with weak demand, slow growth and high costs. Throughout the first year we made many fixes and saw our revenue base in these markets accelerate so we felt we were ready to attack Los Angeles, amongst the most important storage markets in the country.

Operations 286

Operations New York City Technical Review Startup 286

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

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

YoungUpstarts

NOVEMBER 20, 2019

You may be able to generate revenue, but VCs want exponential growth. VCs want to see that there’s a demand for your product and that you’re able to meet that demand. Have a reasonable attitude about your early-stage valuation, and don’t get too hung up on it. Like you, they’re looking for opportunity.

Technical Review 140

Technical Review Due Diligence Early Stage Differentiation 140

Feld Thoughts

JANUARY 7, 2015

Companies were being bought (and valued) at 10x forward revenue only to be valued at between 0.5x revenue several years later. We were bought for a more reasonable 1x revenue (and about 4x pre-tax income) when the value of the AmeriData stock, options, and cash we took out were factored in. I’d argue the 0.5x

Stock Options 70

Stock Options Cofounder Revenue Hosting 70

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

Technical Review 154

Technical Review Artificial Inteligence Software Review IPO 154

Hippoland

JULY 24, 2016

Valuation is a nebulous topic amongst early stage startups, so I thought I’d really spell it out in detail. In short: Valuations for seed stage companies are fairly arbitrary and driven solely by supply and demand. Supply - amount of your round and Demand - investor demand.

Seed Stage 48

Seed Stage Valuation Vertical Demand 48

Both Sides of the Table

OCTOBER 1, 2009

It is also a result of pent-up demand. Consumer spending is 70% of the economy and will continue to be stretched – We can look all we want at tech innovation, VC funding cycles and hot M&A deals, but ultimately growth and therefore investment must be underpinned by revenue. then the world will be fine for fund raising.

Technical Review 269

Technical Review Stock Hawaii Early Stage 269

Lightspeed Venture Partners

OCTOBER 29, 2012

The company sought to raise $125,000 for 25% of the comapny, implying a $375,000 pre money valuation. Unsurprisingly, all the sharks passed, based on market size and valuation expectations. Shelton came under intense questioning about how she justified her valuation given no proof of demand.

Pre-Money Valuation 97

Pre-Money Valuation Offshore Valuation Cofounder 97

Version One Ventures

OCTOBER 15, 2020

And >40% of that revenue is coming from in-game purchases. P2P exchanges like HodlHodl were early adopters of Lightning, but have put the project on “hodl” while waiting for more consumer demand and technology advancements. The app could then take a small % of all revenue from “paid” messages. At least not yet.

Networking 168

Networking Global OTC Security 168

Startup Professionals Musings

JULY 31, 2020

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. They position competitors as a base for their solution advantages, and an indication of existing market demand.

Entrepreneur 312

Entrepreneur Angel Investor Valuation Leadership 312

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

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