ReadWriteStart

JUNE 1, 2020

I have often been asked about Startup Funding by entrepreneurs. Many myths surround the subject of startup funding. Here is Startup Funding, a Comprehensive Guide for Entrepreneurs. You must have seen a lot of startups giving out promotions, discounts, and incentives at the early phase of their business.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

JULY 1, 2022

Wouldn’t you like to be one of the lucky people who joined Google and Facebook when these were startups, and now be a multi-millionaire or better? So people ask me “How many shares should I ask for or expect when I join a startup today?” Thus, options don’t “pay the mortgage” today, so to speak. 7% Product Manager,2 -.3%

Stock Options 343

Stock Options Advisory Board Stock Startup 343

Gust

APRIL 9, 2014

Equity dilution works when the same pie is divided among more people. Because the total percentage of equity will always equal exactly 100%, every time anyone gets another piece, by definition it “dilutes” all of the previous equity holders. Uncategorized company equity dilution founder investors startup'

Dilution 150

Dilution Equity Vesting Stock Options 150

Startup Professionals Musings

APRIL 27, 2019

Most investors and startup professionals expand this concept of focus to apply to key issues of every aspect of strategic and tactical planning in a startup. It takes focus to resist adding a long list of features that seem to make the opportunity larger, but dilute to focus of both you and potential customers.

Technical Review 255

Technical Review Dilution Early Stage Product Development 255

Startup Professionals Musings

NOVEMBER 10, 2012

Most investors and startup professionals expand this concept of focus to apply to key issues of every aspect of strategic and tactical planning in a startup. It takes focus to resist adding a long list of features that seem to make the opportunity larger, but dilute to focus of both you and potential customers.

Startup 254

Startup Technical Review Dilution Early Stage 254

Startup Professionals Musings

MAY 8, 2022

Most entrepreneurs struggle with many startup founders quandaries in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. The downside is loss of control and financial dilution. Otherwise exit and startup with another idea.

Founder 325

Founder Hockey Stick Cofounder Liquidity Event 325

Startup Professionals Musings

SEPTEMBER 27, 2023

Startup owners need to assume a three to five year wait for a liquidity event, such as acquisition or going public, before they can cash out. Make sure the government waits for a stock sale to collect taxes. Retain the right to reclaim stock from anyone leaving the startup. This is called stock dilution control.

Stock 240

Stock .Net Vesting Founder Vesting 240

YoungUpstarts

MAY 6, 2019

by Arsalan Sajid, startup community manager at Cloudways. Life is not a box of chocolates and startups are not always easy to start. There is a complete process that governs the startup lifecycle including inception to exit. This startup stage starts from the day you decide to work on a startup idea. Early Stage.

Startup 113

Startup Technical Cofounder Merger Early Stage 113

YoungUpstarts

SEPTEMBER 23, 2017

Investing more money in stage one won’t really help, as spending twice as much on sales won’t produce twice the sales. You should also be able to start to build some pointers on how increasing expenditure could increase sales, and gross margin, in order to plan future growth. Often, this is considered as a mistake.

Cofounder 124

Cofounder Sweat Equity Equity Dilution 124

Both Sides of the Table

MARCH 21, 2013

I recently wrote a blog post in which I pointed out that many investors & advisors discourage enterprise startups from having a professional services (PS) business and I think this is a big mistake. I think it’s important for enterprise startups to layer in professional services into your revenue stream.

Software Review 321

Software Review Software IP Technical Review 321

Startup Professionals Musings

APRIL 23, 2017

Most investors and startup professionals expand this concept of focus to apply to key issues of every aspect of strategic and tactical planning in a startup. It takes focus to resist adding a long list of features that seem to make the opportunity larger, but dilute to focus of both you and potential customers.

Customer 191

Customer Entrepreneur Technical Review Dilution 191

Startup Professionals Musings

JANUARY 15, 2021

Startup owners need to assume a three to five year wait for a liquidity event, such as acquisition or going public, before they can cash out. Make sure the government waits for a stock sale to collect taxes. Retain the right to reclaim stock from anyone leaving the startup. This is called stock dilution control.

Vesting 298

Vesting Dilution Stock Founder Vesting 298

Startup Professionals Musings

AUGUST 27, 2010

Most investors and startup professionals expand this concept of focus to apply to key issues of every aspect of strategic and tactical planning in a startup. It takes focus to resist adding a long list of features that seem to make the opportunity larger, but dilute to focus of both you and potential customers. Marty Zwilling.

Startup 227

Startup Technical Review Dilution Early Stage 227

Both Sides of the Table

MAY 9, 2018

I also had to negotiate a follow-on round at a portfolio company because new investors were trying to force a bit option-pool top-up that would dilute the founders and existing shareholders and existing investors were fighting over prorata rights. I always tell people that fund raising is a sales process. You’re in control.

Software Review 381

Software Review Churn Rate Due Diligence New York 381

Business Plan Blog

JANUARY 9, 2014

Steve Rowles has been serving the San Diego startup ecosystem for over 20 years. Steve recently spoke to a group of entrepreneurs about the top 10 reasons why startups fail. Top 10 Reasons Why Startups Fail. Fear of Dilution. Avoid chart junk, wild forecasts and top-down sales forecasting. Startup Funding'

San Diego 74

San Diego Dilution Technical Review Forecast 74

Gust

NOVEMBER 1, 2011

We recently started a series of posts on establishing the pre-money valuation of pre-revenue startup companies for purposes of investment by seed and startup investors. It is one of the useful methods for establishing the pre-money valuation of pre-revenue startup ventures.

Venture Capital 161

Venture Capital Valuation Pre-Money Valuation Post-Money Valuation 161

The Startup Magazine

SEPTEMBER 11, 2023

In the bustling world of startups, budget constraints are a common theme. By leveraging external expertise, startups not only optimize their operations but also set the stage for sustained growth. Power of Third-Party Expertise Harnessing external talent offers startups a unique edge.

Cost 140

Cost Startup Non-Compete Dilution 140

Steve Blank

NOVEMBER 13, 2018

If you’re an early employee at a startup, one day you will wake up to find that what you worked on 24/7 for the last year is no longer the most important thing – you’re no longer the most important employee, and process, meetings, paperwork and managers and bosses have shown up. I know a change is going to come. That doesn’t scale.”

Part-Time VPE 333

Part-Time VPE Employee Cofounder Hiring 333

Startup Professionals Musings

DECEMBER 18, 2013

Most investors and startup professionals expand this concept of focus to apply to key issues of every aspect of strategic and tactical planning in a startup. It takes focus to resist adding a long list of features that seem to make the opportunity larger, but dilute to focus of both you and potential customers. Marty Zwilling.

Entrepreneur 252

Entrepreneur Marketing Technical Review Dilution 252

Austin Startup

FEBRUARY 4, 2019

L to R: Tiara Zolniez (Co-Founder & Sales), Dr. Roshawnna Novellus (Co-Founder & CEO), Alisha Griffey (COO) The Forrest Four-Cast: February 4, 2019 Fifty diverse startups will aim to impress a panel of judges and a live audience with their skills, creativity and innovation at SXSW Pitch Presented by Cyndx.

Startup 50

Startup Cofounder Technical Review Equity 50

Both Sides of the Table

OCTOBER 11, 2009

This is part of my ongoing series Startup Advice. Many startup companies hire advisory boards. When they’re first approached it sounds exciting to be involved with a startup and if they’re offered free shares – why not? Tags: Start-up Advice startup technology vc venture capital. Not enough time.

Advisory Board 306

Advisory Board Startup Equity Valuation 306

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

View from Seed

APRIL 30, 2015

There’s been a lot of digital ink spilled around the various types of capital available to startups today. As a startup grows, venture debt becomes a viable option to continue that growth. Glen is an active contributor to the local tech ecosystem and well-versed in how and when startups can use venture debt to their advantage.

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

Startup Professionals Musings

OCTOBER 13, 2021

It’s easy to say “yes” to one more feature request after another, until the potential for real impact gets diluted. Obsessive sales – must meet revenue goals. Otherwise, your most innovative and disruptive product thinking will be diluted and lost, killing your dream of a better world.

Dilution 334

Dilution Metrics Acquisition Revenue 334

Both Sides of the Table

AUGUST 3, 2010

There is a telltale sign of an inexperienced startup entrepreneur. As a startup you shouldn’t focus on buying other companies until you’ve figured out your own business. A close friend of mine in LA who is 3 years into his startup called me about 2.5 How much dilution should I take for it?

Merger 276

Merger Technical Review Early Stage Dilution 276

Both Sides of the Table

JUNE 17, 2017

There are certain topics that even some of the smartest people I talk with who aren’t startup oriented can’t fully grok. It’s common cocktail party chatter to hear people confidently pronounce that some well known startup is sure to blow up because, “How could they succeed when they’re not even profitable!”

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

The Startup Magazine

JULY 1, 2022

Technology startups are all the rage these days. But what many people don’t realize is that starting a technology startup is not as easy as it seems. This article will discuss some things that experts like Mark Stifler think technology startups should know about the business. Financing Your Startup.

Technology 137

Technology Venture Capital Finance Startup 137

Hunter Walker

JANUARY 2, 2017

And the narrative for 2017 is OLD ECONOMY COMPANIES WANT TO BUY YOUR STARTUP. 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. So, is it true? ” Next Level – Buying Product.

Technical Review 115

Technical Review Cap Table Acquisition Startup 115

Startup Professionals Musings

AUGUST 10, 2019

Most entrepreneurs struggle with many startup founders quandaries in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. The downside is loss of control and financial dilution. Otherwise exit and startup with another idea.

Hockey Stick 243

Hockey Stick Cofounder Liquidity Event Startup 243

Startup Professionals Musings

AUGUST 31, 2018

This experience includes browsing your website, social media interactions, the sales process, as well as your support and follow-up. Totally new and risky products will dilute your focus, and may confuse existing customers. These days, customers remember the total experience with a company longer than they remember the price they paid.

Angel Investor 167

Angel Investor Dilution Software Review Distribution 167

Startup Professionals Musings

SEPTEMBER 13, 2011

Most investors and startup professionals expand this concept of focus to apply to key issues of every aspect of strategic and tactical planning in a startup. It takes focus to resist adding a long list of features that seem to make the opportunity larger, but dilute to focus of both you and potential customers.

Marketing 238

Marketing Entrepreneur Technical Review Dilution 238

Both Sides of the Table

JANUARY 4, 2014

Yesterday I wrote a post about “ the politics of startups ” in which I asserted that all companies have politics, which in its purest sense is just about understanding human psychology. – while the other might want a quick sale and pocket some bucks while the tech market is hot. Those are the easy cases.

Founder 340

Founder Sacramento Cofounder Technical Review 340

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

Both Sides of the Table

JULY 22, 2010

So taking the same fund raising round and assuming that the VC wants the options including before he or she funds (and before is totally standard) then the math works like this: Assuming a 15% option pool post funding then you need a 20% option pool pre funding (because the pool gets diluted by 25% also when the VC invests their money).

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

YoungUpstarts

SEPTEMBER 16, 2015

Startups don’t raise all the money they are ever going to need to achieve the end goal in the Seed or Series A round. What’s critical for entrepreneurs to understand is that valuations for startups do not increase at a linear rate; they increase geometrically based on achieving the right milestones. Think baby steps.

Valuation 100

Valuation Dilution Chicago Technical Review 100

ReadWriteStart

APRIL 4, 2023

From paying attention to fees to balancing what works for you, here are 13 answers to the question, “Is crowdfunding for startups a good idea? While these fees may seem reasonable at first glance, they can add up quickly and significantly impact the amount of capital that the startup receives from the crowdfunding campaign.

Startup 141

Startup Campaign Cofounder Venture Capital 141

JANUARY 9, 2014

No clear vision or purpose This should be the starting point for any startup founder, but it’s often overlooked. Tony Hsieh Without a clear purpose, a startup can meander along without much momentum. in business we can create much deeper connections with our audience and give our startups a better chance of success.

Early Stage 102

Early Stage Startup Cofounder Design 102