Both Sides of the Table

MAY 28, 2018

Every VC knows that the amount you raise is often a proxy for your valuation. So when you say $8–10m is your goal and you aren’t at all thinking about your valuation know that a VC hears “$24–40 million pre-money valuation expectations.” Every VC wants to fund a deal that seems to have too much demand. Happy raising.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

YoungUpstarts

NOVEMBER 19, 2020

EBITDA is the most important profitability metric to consider as many valuations are based on a multiple of this metric. Therefore, the higher your EBITDA is, the higher the price you can demand in the sale of your business. That being said, it makes sense that when business is booming, your valuation will be higher.

Exit Strategy 246

Exit Strategy Intellectual Property Valuation Metrics 246

View from Seed

OCTOBER 21, 2014

Using NextView as an example, since we both seek to lead the seed round and only lead during this round, I’ve seen this trend manifest in one of two ways: In a priced round, the entrepreneur will often share their valuation ask (or a stated floor) for the pre-money valuation of their company much sooner in the process.

Valuation 336

Valuation Founder Seed Stage Angel Investor 336

Startup Professionals Musings

OCTOBER 27, 2014

I always advise software startups to file patents to protect their “secret sauce” from competitors, and to increase their valuation. The good news is that a patent can scare off or at least delay competitors, and as a “rule of thumb” patents can add up to $1M to your startup valuation for investors or M&A exits (merger and acquisition).

Software Review 250

Software Review Software Technical Review Intellectual Property 250

Steve Blank

NOVEMBER 2, 2021

We discussed whether 1) that was true or just anecdotal 2) if true, was it the same in other research universities, 3) why it happened (software startups are getting funded at obscene valuations)? The goal is to meet its local chip demand by 2030. is dependent on TSMC , located in Taiwan, for its most advanced logic chips.

Technical Review 366

Technical Review Taiwan Technology Artificial Inteligence 366

View from Seed

OCTOBER 31, 2018

The main value propositions are: user experience and value – home sellers can manage the entirety of their selling activities through its app and cloud-based platform, from valuation to showing scheduling to negotiation and closing, while paying a $5,000 flat fee vs. the industry tradition of 3% commission.

Atlanta 159

Atlanta Cofounder Software Review Technical Review 159

ReadWriteStart

JULY 2, 2022

To be successful, you need to deal with products in strong demand. Conforming with Torchbankz, the dropshipping industry is expected to reach a market valuation of $557.9 Purchase several copies of each item to understand what will be more in demand and what is better to remove from the catalog altogether. Dropshipping.

Cost 140

Cost Software Review Technical Review Cloud 140

Up and Running

SEPTEMBER 15, 2021

It is an ideal and highly recommended strategy to reduce costs and validate if there is demand for your product or service. . They were able to take their market valuation to $1.0 Having an on-demand tester will keep your testing cost and application performance in check. billion just with the iOS MVP. . Do your design first.

Cost 158

Cost Developer Azure Cloud 158

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). In addition, global scaling will likely require additional investors, who will demand to see real revenue and customer demand.

Technical Cofounder 184

Technical Cofounder Intellectual Property Silicon Valley LLC 184

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

NOVEMBER 25, 2020

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of those demanding angel investment groups and venture capital organizations. Lack of checks and balances on startup valuations. These groups are now largely run by volunteers at no cost to entrepreneurs.

Equity 411

Equity Angel Groups Accredited Investor Due Diligence 411

View from Seed

NOVEMBER 18, 2020

Every ask implicitly suggests a valuation range. Conversely, a series A with a $6M ask suggests a lower valuation. Because every ask suggests a valuation, make sure it is market appropriate. It is true that a lower ask suggests a lower valuation. That said…. The post Sizing the Ask appeared first on NextView Ventures.

Valuation 418

Valuation Founder Conversion Demand 418

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 120

Artificial Inteligence Technical Review Entrepreneur Social Media 120

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

Gust

OCTOBER 19, 2014

I always advise software startups to file patents to protect their “secret sauce” from competitors, and to increase their valuation. The good news is that a patent can scare off or at least delay competitors, and as a “rule of thumb” patents can add up to $1M to your startup valuation for investors or M&A exits (merger and acquisition).

Software Review 173

Software Review Software Technical Review Intellectual Property 173

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

ReadWriteStart

JUNE 1, 2020

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. The bridge or exit stage is generally of very large transactions and for companies with substantial valuation. Bridge or exit stage. It might be tempting to do so.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Haystack

DECEMBER 29, 2018

Also during this time, the underlying metrics in that business can change positively, potentially trapping companies to accept the initially-agreed upon valuation. by a mile, continued to soar in volume and valuation. The shift in consumer behavior and the intensity of the Scooter demand was undeniable.

Technical Review 165

Technical Review Venture Capital Russia China 165

Startup Professionals Musings

AUGUST 6, 2023

Lack of checks and balances on startup valuations. A startup that is listed on a crowdfunding platform gets no formal pushback or negotiation on its declared valuation. Unreasonably high early valuations hurt the entrepreneurs, as well as professional investors, later when a second round becomes a down round or can’t be negotiated.

Angel Groups 201

Angel Groups Accredited Investor Due Diligence Equity 201

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. Quick low-cost design and fabrication alternatives are extremely valuable.

Technical Cofounder 153

Technical Cofounder Intellectual Property Wiki Cofounder 153

The Equity Kicker

DECEMBER 6, 2013

Venturebeat reported yesterday that US startup valuations have reached ten year highs. You can see from the charts above that median valuations have been increasing at all stages from seed through to Series D or later.

Valuation 162

Valuation Venture Capital Startup Europe 162

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

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

VC Cafe

JANUARY 24, 2021

Companies like iHeartMedia, SiriusXM, and Spotify are investing in and leading the evolution of audio, focused on music streaming (on-demand and lean-back modalities), podcasting and content production. Trillion Hours, 218 Billion Downloads – demand for new apps and games still grows globally, up 7% YoY.

Technical Review 207

Technical Review Audio Forecast Social Media 207

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

Startup Professionals Musings

APRIL 17, 2023

It’s time to scale up and I need money to keep up with demand.” Another good indicator of your real stage is the valuation you can set for your company at any given moment, to determine what portion of your equity an investor will expect of his money. Congratulations! Tune your investor pitch and funding expectations accordingly.

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

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 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. Marty Zwilling.

Angel Investor 231

Angel Investor Entrepreneur Early Stage Silicon Valley 231

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

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

Startup Professionals Musings

SEPTEMBER 26, 2015

Perhaps they're way off in their valuation (usually far too high), or paralyzed by fear at seeing the other terms, because they have no idea what's normal, and what's worth a fight to the death (their startup's). In very early startups, which have no valuation, the term sheet may specify a convertible note.

Term Sheet 120

Term Sheet Demand Preferred Stock Liquidation Preference 120

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

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.

Valuation 69

Valuation Startup Down Round Early Stage 69

ReadWriteStart

JANUARY 13, 2024

Startups in the cybersecurity sector are facing a daunting market environment , contending with decreased valuations and increasing pressure to sell while competing for vital funding and collaborations.

Down Round 154

Down Round Marketing Artificial Inteligence Startup 154

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

The Startup Magazine

FEBRUARY 21, 2022

With a present valuation of over $35 billion, the frozen food market is likely to increase in size by 1.3% That is a 40% increase in value from the market’s 2018 frozen food business valuation of $260 billion. The rise in its value is directly related to the increasing demand for frozen food products. Source: Unsplash.

Valuation 153

Valuation Demand Business Plan Social Media 153

Austin Startup

MARCH 22, 2021

In recent years we’ve seen mega-rounds of investment and sky-high valuations. billion Series D round giving the company a valuation of about $14 billion!* You’ll get quicker and quicker each time you do it, and soon your reputation will precede you due to pent-up demand from buyers and sellers. They raised a whopping $2.4

Software Review 100

Software Review San Francisco Valuation Stock 100