crowdSPRING Blog

MARCH 1, 2013

More founders reject VC money | Crain’s New York Business – [link]. The Truth About Founder Burnout – [link]. “if you really want to dilute your ownership stake quickly, then assume that your vision is perfect.” 5 Unexpected Factors That Change How We Forecast The Future – [link].

Social Media 97

Social Media Small Business Design Media 97

Hunter Walker

FEBRUARY 20, 2018

And the verbal gymnastics of some founders! Why does this matter to founders (and to us)? Asking founders to prematurely perfectly forecast the amount of capital they need to get to a Series A is an unnecessary constraint. Why should I expect premature precision in budgeting and forecasting the capital requirements?

Forecast 108

Forecast Early Stage Dilution Later Stage 108

The Next Web

AUGUST 19, 2013

He is the co-­founder and CEO of Quote Roller and PandaDoc. It’s always better to be earn money, not just raise it, as money you earn doesn’t dilute your ownership and reassures your investors. It’s always better to be earn money, not just raise it, as money you earn doesn’t dilute your ownership and reassures your investors.

Belarus 137

Belarus Viral Channel Startup 137

The Next Web

FEBRUARY 27, 2014

a discounted cash flow analysis of forecasted cash flows from your business. Forecasted earnings growth is typically the #1 driver of your valuation (e.g., While at the same time, M&A transactions can come at a 25 percent to 35 percent premium to financing valuations, as the founders are taking all their upside off the table.

Valuation 167

Valuation Forecast Seed Stage .Net 167

Up and Running

DECEMBER 9, 2014

My founders and I started the company about three years ago. What I did is I learned the art of a pro forma and the value of a pro forma which basically is a forecast. If you don’t know what your cash flow forecast is, you don’t really understand your capital needs.

Small Business 95

Small Business Finance Forecast Metrics 95

Austin Startup

OCTOBER 4, 2017

Dilution, overvaluation, free money, TNSTAAFL, and how to deal with VCs like a pro. First time founders are typically the most likely to object to dilution when fundraising. They do this to avoid dilution, which on the surface seems like a good idea, but can prove deadly to your start up when you get to the A round.

Dilution 59

Dilution Valuation Equity Balance Sheet 59

Both Sides of the Table

MARCH 30, 2016

Investors sat with the founder & CEO, Jason Spievak, and asked him what he wanted to do about the future. Here are some stats to give you a sense: • Year over year revenue grew 51% in 2015 and we’re forecasting the same again for 2016. forward sales with some as high as 12x sales. Total customers grew 20% year/year.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

Tim Keane

JANUARY 12, 2010

  In a bottom up approach, the forecast is built from actual user projections. These include: ·       Vesting of Founder Stock.   A full ratchet anti-dilution clause is very unfriendly to entrepreneurs; it requires them to make up the entire difference in price from their own holdings.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Ben's Blog

AUGUST 17, 2020

When speaking with founders and private growth investors, we hear countless references to “multiples paid” on current or near-term revenue; both obsess over this because a higher multiple translates to a higher valuation. cash flows beyond that forecast period). It starts with the complexity involved in valuing companies in general.

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

Up and Running

MAY 21, 2015

They generally also get additional rights that common shareholders don’t get, such as anti-dilution protection, and liquidation preference (discussed further below). Anti-dilution protection. That risk of a decrease in the overall ownership percentage triggers an important term called an anti-dilution protection clause.

Covenant 60

Covenant Liquidation Preference Ratchet Dilution 60

Up and Running

NOVEMBER 5, 2018

And it interferes with the estimates and dilutes their value. So, a seasoned entrepreneur would round that up and add more, because forecasts are never exactly right. Founders have spent $11,500 on startup expenses. This is where you put loans from founders, family members, or friends.

Cost 150

Cost Balance Sheet Startup Intellectual Property 150

Up and Running

JULY 14, 2015

Read also: Q&A with Business Incubator Co-founder Joe Maruschak. Peter: Yeah, that’s a perfect question for a recent article we posted called Q&A with Business Incubator Co-founder Joe Maruschak. The second reason is actually still a part of team but it’s the single founder. Startup Incubators – (2:13).

Incubator 60

Incubator Email Startup Oregon 60

Both Sides of the Table

FEBRUARY 14, 2016

Valuing any company can be difficult because it requires a degree of forecasting future growth & competition and ultimately the profits of the organization. Many founders don’t understand why inside rounds are so difficult. Plus, down rounds trigger anti-dilution provisions. Why Inside Rounds are Difficult?

Valuation 150

Valuation Down Round Startup Later Stage 150

www.paulgraham.com

OCTOBER 23, 2010

Rounds Whatever the outcome, the conflict between VCs and super-angels isgood news for founders. Founders never really likedgiving up as much equity as VCs wanted. 5 ] But the advantage of these medium-sized rounds is not just thatthey cause less dilution. What does that mean for founders? You also lose less control.

Valuation 92

Valuation Stock Partner Founder 92

Seeing Both Sides

OCTOBER 24, 2015

Thus, the cost of capital for a start-up (and the dilution a founder faces in exchange for that capital) is very high. A mentor of mine is fond of saying that every business plan contains the same word in relation to its forecasts: "conservative".

Churn Rate 20

Churn Rate Early Stage Revenue Metrics 20