David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Flexible VC: Revenue -based. Of the Inc.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Both Sides of the Table

MAY 19, 2010

Founded in November 2007 in New York City by Alexis Maybank and Kevin Ryan (co-founder of DoubleClick); CEO is Susan Lyne (ex-CEO Marta Stewart Living Omnimedia) Revenue estimates: $50mm in 2008; $170mm in 2009 (versus budget of $150mm); $450mm forecasted for 2010. Note that these are “gross” revenue numbers. OTHER DEALS: 1.

Partner 240

Partner New York City Cofounder Syndicate 240

Startup Professionals Musings

SEPTEMBER 6, 2010

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Gust

NOVEMBER 18, 2012

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

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. multiple interested investors competing for the deal, and driving up your valuation in the process). Never have an investor think they are the only investor pursuing your business, as that will hurt your valuation.

Valuation 167

Valuation Forecast Seed Stage .Net 167

Agile VC

MAY 26, 2011

In another we decended into a debate about our 5 year forecasts (I built the models so fielded most of these questions), and it became clear they probably weren’t the best fit for our Series A round (this group is no longer in the early-stage VC business). It was a pretty good valuation for the time. It was a $4.7M

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

Startup Professionals Musings

SEPTEMBER 30, 2011

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

Start Up Blog

MAY 26, 2022

Imagine if an industry spent $4 to generate $1 in revenue. It really is astonishing: Forecast VOD streaming content spend = $US230 billion Forecast VOD streaming revenue = $US83.4 Tech companies have been getting a free pass for a long time on their valuations. Don’t forget – this is before profit.

Forecast 62

Forecast Viral Stock Curation 62

Berkonomics

MARCH 21, 2019

If you are a going business with a track record of revenues, then the importance of accurate current financial statements cannot be overstated. If there is no record of revenues, see the “The Berkus Method” available with any search query for valuing the business before revenues. Careful about “hockey stick” forecasts.

Hockey Stick 63

Hockey Stick Liquidity Event Valuation Balance Sheet 63

David Teten

SEPTEMBER 23, 2017

produced this analysis of engineering representation within VC firms: Selected VCs with Highest Representation of Developers in Workforce. HOF Capital is currently developing a proprietary sourcing tool to automatically filter for potential deal prospects that fit our criteria. VC Firm. $ Tech % of workforce. Google Ventures (GV).

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Tim Keane

MARCH 9, 2011

How to prepare a sales forecast for a business plan » March 09, 2011. Example two:  Explosive market share growth and revenue in an expanding market with acquisitive players available.   She has developed a water additive that purifies brown water making it suitable for drinking.  five years.). . 

Finance 83

Finance Bootstrapping Startup Equity 83

Startup Professionals Musings

FEBRUARY 13, 2016

Entrepreneurs who are looking to attract investors need to develop and pitch a plan -- preferably written -- that answers every potential investor question about your startup before it is asked. Justify funding requirements, use of funds and specify a current valuation estimate. Quantify founder investments, both cash and sweat-equity.

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

gigaom.com

JULY 10, 2012

Ma Bell has taken the locks off of its Watson speech application programming interfaces (APIs), allowing any developer to access them. Like Nuance, AT&T has developed specific taxonomies for specific use cases, allowing its servers to anticipate the words and phrasing consumers are likely to speak in a particular context.

API 50

API Technical Review Artificial Inteligence RSS 50

Startup Professionals Musings

OCTOBER 12, 2010

That’s because a company’s value is a composite of all of the quantitative and qualitative factors that comprise a company: revenues, expenses, risks, growth prospects, quality of the management team, competitive advantages, strength of the intellectual property, and so forth. In business, one important measure is the value of the company.

Intellectual Property 223

Intellectual Property .Net Valuation Distribution 223

Startup Professionals Musings

AUGUST 7, 2015

Every customer understands that your solution has to generate more revenue than cost, but you should not put that data in a customer pitch. Projected revenues and expenses over the strategic period. This allows them to calculate burn rates, break-even points and forecast the company valuation over time.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

ReadWriteStart

JANUARY 28, 2022

This article will assist you in gaining a fundamental understanding of equity valuation, kinds of equity, and other related topics. The market regards equity as an ownership “share” in a corporation’s income revenue stream. Importance of equity valuation. What is Company Equity? Types of equity.

Valuation 108

Valuation Equity Warrant Common Stock 108

Steve Blank

APRIL 1, 2020

Your revenue plans are no longer valid. What’s your monthly cash burn at your new low revenue level? Forecasted recovery date. Sales pipeline/forecast. The CEO should dial through as many of the largest existing customers to get a firsthand understanding of the magnitude of any revenue shortfall. Unemployment %.

South Korea 333

South Korea Salary Business Model China 333

Cracking the Code

JANUARY 22, 2009

While it may make sense to offer very slight adjustments for favorable payment terms and one time revenue, net additions to MRR should dominate the sales rep’s thoughts. 1 of MRR generates $12 of annual revenue, so $1 commission equals 1/12=8.3% of Year One Revenue Sounds high, but is that considered a reasonable package?

Software Review 91

Software Review Clawback Sales Salary 91

VC Cafe

SEPTEMBER 26, 2022

It can mean addressing the UN’s SDGs (Sustainable Development Goals) and thinking about the impact of your startup on wider society and the planet as a whole. We should all care about the UN Sustainable Development Goals. ValuatIon should be a function of value, not ego. Our goals, their goals. subtract $250,000.

Founder 187

Founder Startup Valuation Pre-Money Valuation 187

Austin Startup

SEPTEMBER 17, 2017

The goal of model building is to prove that if you take all the baby steps in the right order, and you test out pricing and cost assumptions as best you can along the way, and you keep listening to potential customers as you progress, then you develop reasonable confidence that success is mathematically possible.

Valuation 48

Valuation Forecast Seed Money Business Model 48

ReadWriteStart

MARCH 3, 2011

It's a bit all over the place, trying to cater to everybody and their mother (literally), including refugees from developing countries. Then Greg Snead, also from Tacoma, discussed Orbiter , an RFID venture that is moving along quite nicely, having clocked more than $700,000 in revenue last year. Happy Grasshopper.

San Jose 115

San Jose Entrepreneur United States Washington 115

Startup Professionals Musings

MARCH 13, 2020

In that context, I offer the following financial projection strategies, from my own experience: Forecast a business that has plenty of room to grow quickly. Find some credible opportunity statistics that can support your own revenue expectations of between $20 million and $100 million in the fifth year.

Liquidity Event 308

Liquidity Event Forecast Exit Strategy Bootstrapping 308

Seeing Both Sides

AUGUST 3, 2012

Facebook and Google would be obvious choices for this, but so much has been written about each of them and they represent such special business models, I worried that it would be both hard for entrepreneurs to relate and hard for me to develop new insights. In 2012, analysts forecast the company will achieve nearly $1.5 Market Cap.

Distribution 49

Distribution Lean Massachusetts Cofounder 49

Up and Running

OCTOBER 3, 2018

Set a specific time each month to review it , comparing forecasts to actuals and revising as necessary. Financial Summary: Explain your business model, startup costs, revenues, and liabilities to the company. Name the products/services you will offer as your company earns more money and as your market develops new needs.

El Paso 61

El Paso Business Plan Technical Review Forecast 61

Duct Tape Marketing

JUNE 20, 2023

12:22] Would you look at the value derived by digital technologies differently than by producing customer value or revenue? [14:23] And the model we had in mind, there's a book called Valuation, which our, our firm has had an updated every year for the past 20 years or more. So this was a very conscious step on our part.

Technical Review 66

Technical Review Silicon Valley Generative AI Arizona 66

Duct Tape Marketing

DECEMBER 14, 2017

He’s been a developer/hacker for over 15 years, and he sold his first startup, VinSolutions for $150 million. I grew up working in flea markets, and my family was entrepreneurial, not in the tech side of things or anything, but in different ways, and was always working side projects and jobs for people as a developer.

Kansas City 40

Kansas City CTO Hire Las Vegas Software Developers 40

Berkonomics

DECEMBER 19, 2013

In the process of raising funds to create and develop a business, entrepreneurs make many statements to those they seek to attract as investors. Revenue projections: What will happen to the company if the revenues and earnings projected on a worst case basis are not achieved as predicted? By: Arthur Lipper.

Pre-Money Valuation 105

Pre-Money Valuation Liquidity Event Cofounder Valuation 105

Up and Running

SEPTEMBER 20, 2016

enabling you to expand on an already working business model), and if you’re in the extremely early stages of building your company, you still need to develop your product. Product development. When it comes to product development and marketing in the early stages of your tech startup, funding is optional.

Early Stage 60

Early Stage Startup Forecast Channel 60

Up and Running

MAY 15, 2019

They’re constantly hard at work on business development and recipe formulation, navigating bureaucracy, and enduring the inevitable delays that come with brewery construction, equipment delivery, and regulatory approval. “We The Hughes brothers developed a solid business plan and built a core team to bring their vision to reality.

Oregon 24

Oregon Jordan Software Review Distribution 24

Cracking the Code

OCTOBER 13, 2020

This summer saw two record transactions within a month, as UiPath became the first European Cloud decacorn in July and Visma, a Norwegian company, became the world’s largest ever software buyout with a $12B+ valuation. The average revenue multiple is now 17x+, close to 10 times higher than during the 2008 crisis!

Europe 71

Europe Cloud Silicon Valley 71

ConversionXL

APRIL 12, 2017

No, the first 2% is more valuable in terms of revenue. Create a revenue forecast before you even run the experiment. You can forecast what you think your forecast + seasonal curves will look like. You need to track the right revenue goals. Sell CRO by calculating the valuation increase. 10K / 1M = 1%.

San Antonio 86

San Antonio Metrics B2B Analytics 86

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

SEC 36

SEC Accredited Investor IPO Technical Review 36

Up and Running

DECEMBER 9, 2014

I joined when there were around seven people there and ran business development there for a little over a year. What I did is I learned the art of a pro forma and the value of a pro forma which basically is a forecast. Two, revenue. I can hire a development team. You heard a little bit from others about that.

Small Business 95

Small Business Finance Forecast Metrics 95

VC Cafe

AUGUST 15, 2011

Investment Bank Morgan Stanley raised its growth forecast for Israel to 4.8% for both 2011 and 2012 from its previous growth forecast of 4.3%, noting that the Israeli economy “remains one of the robust and well managed among both the developed and the emerging market economies.&#. Newport Corp, a U.S.

China 90

China Cofounder India 90