Up and Running

JULY 2, 2014

My business partner and I made many mistakes in our first tech startup, and so many of them were the result of choosing a lawyer who was a terrible fit. After a couple of due diligence meetings with the investor and our attorneys, he gave us the check. ownership and never dilute. My business partner and I were elated.

Technical Review 118

Technical Review Angel Investor Due Diligence Dilution 118

Both Sides of the Table

MARCH 19, 2013

And of course the most successful technology companies: Google, Facebook, Salesforce.com [duh], Oracle, Microsoft all have loads of sales people. As in, “Well, as a tech firm we put tons of effort into APIs so that you can do your own integrations. But they’re technology people not sales people!

Technical Review 403

Technical Review Software Review Startup API 403

Hunter Walker

JANUARY 2, 2017

When Satya and I started Homebrew in 2013 one of our bets for the coming decades was that non-traditional acquirers would become more aggressive in their pursuit of technology startups. We had our first taste of this trend playing out early in 2016 when GM acquired self-driving tech startup Cruise for north of $1b.

Technical Review 115

Technical Review Cap Table Acquisition Startup 115

Both Sides of the Table

NOVEMBER 14, 2017

Nearly every successful tech startup I’ve observed over the past 20 years has gone through a similar growth pattern: Innovate, systematize then scale operations. We have well financed competitors whom despite competing with we respect deeply and when you see your competition launching in many markets it’s tempting to follow suit.

Operations 286

Operations New York City Technical Review Startup 286

Both Sides of the Table

MAY 28, 2018

There are many things a VC is looking for in reviewing your business plan but beyond things the like the quality of revenue, margins, OPEX and CAPEX there’s a really simple rule I call, “Cash In, Cash Out, Milestones Achieved.” Most VCs lead one round of financing in your company and are looking for other VCs to lead subsequent rounds.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

Startup Professionals Musings

DECEMBER 16, 2017

David is one of the most active angel investors in New York, and also the CEO of Gust , which is an online platform for startup financing used by 500,000 entrepreneurs over the years, and funding over 1800 startups in just the last 12 months. Rose, according to his latest book, “ Angel Investing.”

Angel Investor 190

Angel Investor Accredited Investor IRR Angel Groups 190

Both Sides of the Table

OCTOBER 12, 2014

Prorata rights are one of the most important rights of a private market technology investors and yet are seldom fully understood. In the old days there weren’t many fights about whether angels would take their prorata rights in financing rounds. Because tech companies are getting bigger more quickly than at any time in history.

Technical Review 336

Technical Review Later Stage Early Stage LP 336

Both Sides of the Table

FEBRUARY 8, 2016

Much has changed in the past four months of the technology startup world and how outsiders value the business. Optimize for a W more than % dilution in these circumstances. Founders hate them because they’re dilutive. The terrible consequence is that some great companies struggle to get financed. Start early.

Burn Rate 150

Burn Rate Cap Table Balance Sheet Valuation 150

Both Sides of the Table

MARCH 21, 2013

In the Ad Tech world PS revenue often means providing “media services” as a value-add to using your product. The closest analogy I have for a PS person is a “sales engineer” who is normally a technical staff member who assists in sales campaigns. rollout support. integration with other systems. configuration.

Software Review 321

Software Review Software IP Technical Review 321

David Teten

JANUARY 19, 2021

Our categorization is not a technical one. Additionally, Flexible VC can accommodate all types of companies, not just asset-lite, tech-enabled companies.”. Early-stage: Cofounder with engineering/ product background from top-tier university or major technology company. Flexible VC offers you this. Minimum requirements.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Startup Professionals Musings

MAY 9, 2014

David is also the CEO of Gust , which is an online platform for startup financing used by over 50,000 accredited angel investors, 1000 angel groups and venture capital funds, and 250,000 entrepreneurs. I just finished a new book, “ Angel Investing ,” by a friend and one of the most active angel investors in New York, David S.

Angel Investor 278

Angel Investor Angel Groups Accredited Investor IRR 278

Both Sides of the Table

AUGUST 14, 2017

ICOs certainly have a place in startup financing. Boards are not appointed to be founder-friendly lapdogs for the 1–3 founders who start companies and usually own the largest equity positions in the company.

Cofounder 217

Cofounder Stock Options Equity Technical Review 217

YoungUpstarts

SEPTEMBER 23, 2017

In some ways, you’ll feel as if you’re losing control over your original ideas and won’t know how to get it back, due to owing the investors return on investment. If you are having any issues with cash flow, you always have the option of opting for alternate business finance. Eventually, you’ll start to feel discontented and stifled.

Cofounder 124

Cofounder Sweat Equity Equity Dilution 124

Genuine VC

JULY 19, 2010

Of course CapEx has been transformed into OpEx via changes in the tech infrastructure layer (open source, virtualization & cloud computing, offshoring, etc.). All of these above changes aren’t just due to market inefficiencies (like the supply side), but are truly marked changed that are intensifying. That’s no secret.

Seed Stage 175

Seed Stage Technical Review Dilution Offshore 175

Pascal's View

OCTOBER 11, 2013

I first visited the Museum of American Finance a couple of years ago, and it is not only a great space,it is a useful resource for visitors interested in a wide range of current exhibits on current capital markets topics, as well as documents and artifacts related to capital markets, money and banking.

New York 31

New York Technical Review Angel Investor Finance 31

Austin Startup

JULY 6, 2018

Re: cash, the more “unbundled” types of accelerators (less formalized, less equity) tend to not provide any cash upfront, but also typically “cost” less in equity, often just 1–2% of your fully diluted capitalization. Anti-Dilution. See: Startup Accelerator Anti-Dilution Provisions; The Fine Print.

Dilution 48

Dilution Startup Technical Review Equity 48

Feld Thoughts

MARCH 24, 2017

In general, these investments were rarely competitive at the time of their first financing. They’re a rare venture fund that doesn’t exercise pro-rata rights over the lifetime of an investment, meaning they dilute alongside company founders, which they believe better aligns their interests as seed investors with the entrepreneurs.

Founder 75

Founder LP Technical Review Seed Stage 75

View from Seed

DECEMBER 4, 2019

If you aren’t familiar with these metrics, I recommend reading the original post to get a sense of the numbers that I’ll be reviewing here. Over the last 10 years, we’ve been in a bull market with considerable froth in late stage financing activity and valuations. This would suggest that TVPI would be performing well.

LP 256

LP IRR Distribution Portfolio 256

Startup Professionals Musings

JUNE 5, 2015

David is one of the most active angel investors in New York, and also the CEO of Gust , which is an online platform for startup financing used by over 45,000 accredited angel investors, 1000 angel groups and venture capital funds, and 200,000 entrepreneurs. Rose, according to his recent book, “ Angel Investing.” billion collected in 2014.

Angel Investor 120

Angel Investor Angel Groups Accredited Investor IRR 120

www.seriesseed.com

MARCH 2, 2010

SeriesSeed.com Series Seed Financing Documents Blog Home Documents Blog Archives Subscribe 09/02/2010 Version 2.0   That’s because there are not that many issues to negotiate in a simple equity financing. price based anti-dilution). Then they laugh at you. Then they fight you. Then you win.”

Finance 58

Finance Term Sheet Equity Aggregator 58

Both Sides of the Table

JUNE 5, 2011

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. That’s the deal you get when you’re raising in a good market for startup financing.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Austin Startup

MARCH 26, 2019

I frequently see promising startups with a great product and strong initial economics hit a wall due to the piling up of problems relating to these questions, or what I like to call the ‘DTC death by a thousand cuts’. Bloggers are especially valuable in the early days when consumers are looking for actual reviews that are searchable.

Technical Review 49

Technical Review Software Review China Acquisition 49

Austin Startup

FEBRUARY 4, 2019

A finalist in the Social and Culture category , which will pitch at 11 am Saturday, March 9, EnrichHER Funding , based in Atlanta, is fueling the growth of women-led businesses by enabling women founders to secure capital in an affordable and non-dilutive way. What tech trend are you most excited about?

Startup 50

Startup Cofounder Technical Review Equity 50

rapidrollout.wordpress.com

JANUARY 15, 2011

He or she might call himself a “consulting CTO,&# “freelance CTO,&# “on-demand CTO,&# “CTO on call,&# “CTO for hire,&# or just a “technology strategy advisor.&# Most likely, this is a person who is a serial entrepreneur and was the chief technology officer for two or more web startups.

Fractional CTO 40

Fractional CTO CTO CTO Hire Fractional VPE 40

Life Beyond Code

SEPTEMBER 27, 2011

Through this journey, we have raised the visibility of fundamental issues like the causes of exorbitantly high infant entrepreneur mortality, and alerted the entrepreneur community with a simple observation: Entrepreneurship = (Customer + Revenue + Profits); Financing is Optional. The rest of the services are for paying members only.

Programming 116

Programming Silicon Valley Bootstrapping Technical Review 116

ReadWriteStart

SEPTEMBER 10, 2010

I call it drip-financing. Most entrepreneurs have no choice but to avail of this sort of financing along with the mentoring and the contacts that could come with it (doesn't always come along, though). In 1M/1M, our preferred financing strategy is customers. You can get cash without diluting your ownership in the company.

Cloud 115

Cloud Silicon Valley Incubator Finance 115

Ben's Blog

MAY 24, 2021

The value of mutual fund investments in private tech companies was estimated at just north of $7 billion in 2016, or about.05% Before offering some suggestions about how we might improve capital formation, I’d like to review the current state of the IPO market. 05% of total US mutual fund assets.

SEC 36

SEC Accredited Investor IPO Technical Review 36

ConversionXL

AUGUST 30, 2018

Reviewing real-time user tests to understand users’ thought processes as they try to complete a task on a website. The finance team understands that content customers are less likely to churn and destabilize revenue flows. Your established structure protects the ideas and process from free-wheeling input that can dilute your message.

Design 111

Design Framework Product Development Technical Review 111

www.seriesseed.com

DECEMBER 9, 2012

Series Seed Financing Documents Blog.   That’s because there are not that many issues to negotiate in a simple equity financing.   When one studies the (admittedly highly technical) benefits of Series Seed vs. price debt, Series Seed is a better solution. SeriesSeed.com. Blog Archives. 09/02/2010. Then you win.”

Term Sheet 40

Term Sheet Ratchet Dilution Equity 40

This is going to be BIG.

FEBRUARY 27, 2011

You get dilution sensitive and you start optimizing on price of a financing deal, versus finding the right partners or raising enough money to grow. You grab who you can, because you’re desperate for bodies to fill roles and you make due—only to realize that six months from now, things aren’t really any easier.

Dilution 104

Dilution Equity Hiring Partner 104

Hunter Walker

JANUARY 15, 2016

My answer was, and still is, that socially-oriented purpose-driven for-profits outcompete their marketplace competitors due to superior revenues generated from deeply loyal customers and expense saving from free word-of-mouth marketing and long-term employee retention (and even sacrifice). It’s been an amazing run.

Technical Review 48

Technical Review Startup Cofounder SMS 48

Both Sides of the Table

SEPTEMBER 29, 2009

High burn-rates fueled by over investment – One of the most damning things that happened to the start-up markets in 97-00 and 05-08 was the overfunding of technology companies. This came in part due to the huge influx of money into VC but also because hedge funds and private equity shops with no VC experience wanted part of the action.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

Tim Keane

JANUARY 12, 2010

For angel groups, the distinction between groups and VCs on this issue is dwindling, especially as angel groups do bigger rounds of financing.   Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors.   First , dividends.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. In late 2015, many public technology companies saw a significant retrenchment in their share prices primarily as a result of a reduction in valuation multiples. By the first quarter of 2016, the late-stage financing market had changed materially.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

crowdSPRING Blog

DECEMBER 13, 2018

If your brand tries to be too many things at once, the message becomes scattered and the brand grows diluted. You may also want to consider measuring social media engagement and keeping an eye on your online reviews. Speaking with people who have only glowing reviews is great, but does not paint the entire picture. Typography.

Marketing 162

Marketing Charlotte Naming Design 162

www.mattbartus.com

SEPTEMBER 24, 2011

We will grant him/her X% fully diluted shares up front, and every time he/she makes an introduction, he/she will vest in 100 shares.” Common-yet-sticky situations are everywhere, and no VC and few attorney bloggers (but you, apparently) gives them the due attention they deserve. Keep on rocking! link] Matt Bartus. Thanks Casey!

Equity 40

Equity Vesting Silicon Valley Intellectual Property 40

maplebutter.com

JANUARY 8, 2013

I have the knowledge in tech to implement it. If you’re looking for technical talent – go to the dev meetups. what are the most crucial steps to be taken by a new tech startup when outsourcing major part of the tech to IT firms or outsourcing “product development” eg new social media website project?

Technical Review 44

Technical Review Startup Cofounder Software Review 44