Both Sides of the Table

APRIL 25, 2011

A great recent example of this was a successful group of entrepreneurs who had created a company that will do $10-12 million in revenue at their system integration business (read: services business) in 2011 after having done $5 million or so in 2010 and $2-3 million in 2009. You own the IP you create.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

Both Sides of the Table

SEPTEMBER 18, 2014

Revenue multiple? And now I have to explain to team that they’re taking more dilution than they expected if we do a down round. Me: More dilution? How will you price the next round? Your A round? Him: On metrics. We’ll have some proof points by then. What proof points? How will the lead determine a value? Employment.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Tim Keane

JANUARY 12, 2010

3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model.   Pre-bubble Siliicon Valley deals were popularly valued at multiples of revenue. This is why a bottom up approach is more credible.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Gust

SEPTEMBER 17, 2014

Revenue multiple? And now I have to explain to team that they’re taking more dilution than they expected if we do a down round. Me: More dilution? How will you price the next round? Your A round? Him: On metrics. We’ll have some proof points by then. What proof points? How will the lead determine a value? EBITDA multiple?

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Both Sides of the Table

APRIL 27, 2010

and we ultimately sold when we hit $14 million and had more than $30 million in backlog revenue. I learned about revenue recognition. But the firm that funded my first startup was loyal to me for having stuck around in what they knew to be pretty tough times and having suffered much dilution. million, then $5.9m, $7.7m

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

blog.simeonov.com

FEBRUARY 22, 2010

It outlines key points of agreement between founders around IP ownership, equity ownership, vesting, etc. For example, without a clear vehicle (a company) to contribute intellectual property into, a founder who walks away may mean that the future company won’t own its own IP. of the fully-diluted capitalization of the company.

Founder 44

Founder Vesting Agile Startup 44

Both Sides of the Table

FEBRUARY 25, 2010

But we weren’t optimizing for dilution – we were building a $1 billion+ company and we wanted the runway to succeed. If it’s a biz deal you might care about IP protection, revenue share, investment commitments to joint marketing – whatever. We ended up agreeing a term sheet for $16.5 Yes, this was stupid. Yes, this was stupid.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Austin Startup

MARCH 26, 2019

Discounts too early can also have the adverse effect of diluting a brand when targeting a more affluent customer segment. Have you thought about how potential IP theft would impact your business? Are you prepared for continued investment in customer service? Is China still the cheapest option when you add a 25% tariff?

Technical Review 49

Technical Review Software Review China Acquisition 49

www.paulgraham.com

OCTOBER 23, 2010

But its hard to raise money with an IP cloud over your head, becauseinvestors cant judge how serious it is. Before you consummate a startup, ask everyone about their previous IP history. They get the same kind of stock and get diluted the same amount in futurerounds. A rich companyis one with large revenues.

Startup 105

Startup Cofounder Software Stock 105

maplebutter.com

JANUARY 8, 2013

I would focus on one product and set a goal to generate $1M in yearly revenue from it. Outsourcing is something a big company, with a known customer / problem (that has revenue & traction) does to save cost. I have a proposal written up including full cost and revenue projections. Once you’ve done that – then. 1) Hire A’s.

Technical Review 44

Technical Review Startup Cofounder Software Review 44