Startup Professionals Musings

MAY 22, 2010

Don’t expect them to believe your $100M revenue projection, if you are still waiting for the first revenue dollar. Get a real customer and real revenue. It doesn’t prove your business model of pricing, distribution, and support. Without revenue, your investors are largely limited to friends, family and fools.

Intellectual Property 222

Intellectual Property Sweat Equity CTO Hire Fractional CTO 222

Steve Blank

MARCH 31, 2014

I’m sure many of you have heard his name. Companies horde cash and squeeze the most revenue and margin from the money they use. Look at the valuations of companies like Tesla, Illumina, and Twitter. The companies that can show “startup-like” growth rates of 50% plus per year will get stratospheric market valuations.

Private Equity 329

Private Equity Metrics China Intellectual Property 329

VC Cafe

APRIL 28, 2021

And elsewhere creator monetisation tools and revenue streams continue to expand: Ads and bran deals – Youtube reported $6 billion in revenue for Q1 2021 , a 50% growth rate from the equivalent period last year. The sum is equivalent to the combined annual revenue of Snap and Twitter for 2020. — ??????

Audio 167

Audio Valuation Stealth B2C 167

ReadWriteStart

JULY 17, 2023

In the financial year ending in March this year, the startup generated a revenue of $18.5 The company is the maker of the popular mattress brand Sleepwell, which has been a household name in India for over four decades. For Furlenco, it provides access to Sheela Foam’s extensive distribution network and marketing expertise.

India 104

India Acquisition Merger Curation 104

Austin Startup

OCTOBER 15, 2017

In the torrent of real and fake news, what’s his competitive edge other than name recognition? What seems to be the best way to create customers and revenue may result in a business model that is out of vogue with the investment world and shortchanges you on enterprise valuation.

Technical Review 48

Technical Review Software Review Nevada Silicon Valley 48

VC Adventure

MAY 5, 2022

How many of those valuations will hold remains to be seen, but that kind of market clearly advantaged funds that deployed capital very quickly. Gone was the J-curve (named because often early fund returns are negative – mostly due to fees that drag down NAV prior to initial company write-ups). Many will not. But not now.

IRR 116

IRR Metrics Valuation LP 116

Gust

OCTOBER 20, 2011

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Scorecard Valuation Methodology. Such comparisons can only be made for companies at the same stage of development, in this case, for pre-revenue startup ventures. million, indicating a somewhat normal distribution.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

Steve Blank

SEPTEMBER 14, 2009

Five Quarters of Profitability During the 1980’s and through the mid 1990’s startups going public had to do something that most companies today never heard of – they had to show a track record of increasing revenue and consistent profitability. There was now a public market for companies with no revenue, no profit and big claims.

Silicon Valley 235

Silicon Valley IPO Technical Review Venture Capital 235

Steve Blank

MARCH 18, 2011

The signals are loud and clear : seed and late stage valuations are getting frothy and wacky, and hiring talent in Silicon Valley is the toughest it has been since the dot.com bubble. VC’s worked with entrepreneurs to build profitable and scalable businesses, with increasing revenue and consistent profitability – quarter after quarter.

Internet 335

Internet IPO Silicon Valley Agile 335

www.inc.com

SEPTEMBER 24, 2011

Naming a Business. But with the help of Grahams company, which specializes in creating tech systems for start-ups, Jumpstart grew to more than $50 million in revenue--enough to make it an attractive acquisition for media conglomerate Hachette Filipacchi. Arizona Bay has also blended equity payments with revenue-sharing deals.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Austin Startup

MARCH 23, 2017

Priced equity financings make sense as they provide clarity around valuation and ownership dilution, while creating alignment between the investors and founders. I point back to Fred Wilson’s blog, specifically a guest post by Andy Sack on revenue based financing. instrument (for a lack of a better name).

Dilution 54

Dilution Equity Warrant Distribution 54

VC Cafe

JUNE 10, 2022

According to new research by Pitchbook , the trickle down effect has already started in seed and series A startups with round sizes and valuations shrinking in size compared to 2021. But recently those round sizes and valuations have tumbled to about $10 million and $50 million, respectively, he said.

Valuation 151

Valuation Marketing Venture Capital 151

Lightspeed Venture Partners

OCTOBER 22, 2012

The company has gotten off to a fast start, $150k in revenue in the first two months, with all the marketing coming from social media. This implies a pre money valuation of $1.045M. See my breakdown of week 2 for more on how to calculate pre money valuation.). There was a lot of discussion about competition.

Pre-Money Valuation 101

Pre-Money Valuation Valuation Dilution Differentiation 101

Austin Startup

SEPTEMBER 17, 2017

Further, you demonstrate on your spreadsheet that a venture return to early investors is plausible at a valuation that gives you enough equity to get the job done and to take care of you and your team at exit time. We took an advisor named Howard out there. But, the manner in which you get paid can swing your valuation considerably.

Valuation 48

Valuation Forecast Seed Money Business Model 48

Up and Running

JANUARY 5, 2018

The company also changed its official name from Wal-Mart Stores to Walmart last December in order to highlight its growing omnichannel focus. Everlane raised seed funding in 2011, but has been revenue-funded since. Allbirds’ expanding appeal, range of products, and distribution channels could attract Walmart. Madison Reed.

Acquisition 94

Acquisition Hawaii Partner Non-Compete 94

Bryce Dot VC

SEPTEMBER 28, 2015

I know it’s an uncomfortable contradiction because every time I talk to Andy Baio about it, the conversation starts with, oh, that name. Are you really going to use that name? Because that name. He doesn’t like the name. I get that he doesn’t like the name but that’s the point. It’s supposed to be uncomfortable.

Venture Capital 40

Venture Capital Valuation Los Angeles Chicago 40

David Teten

DECEMBER 3, 2019

Pro Publica has a Nonprofit Explorer database searchable by principal name on all nonprofit filings, so you can see a person’s nonprofit activities. . Lighter Capital, a Revenue Based Investing VC, offers a Cost of Capital Calculator. Pacer is useful to search prior litigation, bankruptcies, etc. If you have one, please contact me.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Start Up Blog

FEBRUARY 13, 2016

In case you don’t know, many of them of have the pleasure of only paying 1% tax on their revenue. Their ‘so called’ profit numbers are much lower than you’d expect them to be based on their revenues. So low, that you’d probably close down the business if your profit to revenue ratios ever got that low. tax on $10 of revenue.

Intellectual Property 48

Intellectual Property Australia Singapore Government 48

Both Sides of the Table

DECEMBER 5, 2010

There were chat rooms, discussion groups, dating, classified ads – you name it. AOL was controlled by one company and the Internet was distributed. billion in annual subscription revenues not including advertising or eCommerce). They controlled distribution to the masses. AOL was closed, the Internet was open.

Social Network 318

Social Network Networking Internet Technical Review 318

SoCal CTO

OCTOBER 5, 2010

want to sidestep the argument about whether or not it's good to be " stealth " or not, and work with the assumption that if you've purchased the domain name, you're going to put up some sort of website. APIs provide a way to “federate&# web services from a single website to a distributed network of 3rd party sites.

Technology 191

Technology Product San Francisco CTO Hire 191

www.pakman.com

SEPTEMBER 27, 2012

To build the online media giants of tomorrow, companies need models where the costs of both content and distribution are near zero. At that scale, you can reach billions of dollars in revenue. You are here: Home > Not All Traffic Is Created Equal. 26 September 2012. 20 Comments. Not All Traffic Is Created Equal.

Social Media 47

Social Media Vertical Advertising Distribution 47

ConversionXL

OCTOBER 22, 2018

To get marketing a seat at the table and prove that it can drive revenue and pipeline, we’ve become borderline obsessed with numbers. To reframe marketing as an investment rather than a cost center, we must connect all the dots to revenue—but it’s hard to do without the right tools and models to get started. form fills).

B2B 131

B2B Marketing Analytics Campaign 131

Eric Friedman

AUGUST 18, 2021

In 2007, he was named the Anne Armstrong Leadership Fellow, a position given annually to the most promising young foreign policy professional. On Describing His Current Work without Naming His Fund/Investments. They talk about] businesses which are not contractually recurring revenue in the parlance of recurring revenue run rates.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

abovethecrowd.com

APRIL 20, 2016

One key to this population growth has been the remarkable ease of the Unicorn fundraising process: Pick a new valuation well above your last one, put together a presentation deck, solicit offers, and watch the hundreds of million of dollars flow into your bank account. By January of 2016, that number had ballooned to 229.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Ben's Blog

APRIL 28, 2010

Looking across these nearly 50 companies, the study finds that founding CEOs consistently beat the professional CEOs on a broad range of metrics ranging from capital efficiency (amount of funding raised), time to exit, exit valuations, and return on investment. Total commitment to the long term. The company is their life’s work.

Technical Review 78

Technical Review Cofounder Technical Cofounder Software Review 78

NZ Entrepreneur

JULY 8, 2019

I waited for the ‘casino-like’ world of startup investing until I was 28 years old, putting $10,000 into a friend’s software distribution company – a tidy sum for me at that age. I later discovered that this investment form gathered a name – angel investing. Valuations. Seven years later, I exited for $220,000.

New Zealand 43

New Zealand Entrepreneur Valuation Dilution 43

David Teten

MARCH 18, 2021

Thirty-four VC firms in OpenVC call themselves “early-stage” Yet, 30% of those don’t actually invest in pre-revenue startups. However, we’d argue that for most smaller managers who are not brand names, it’s better to be highly identified in your niche than being a generalist. Valuation: $1M – $3M.

Technical Review 78

Technical Review Cofounder Venture Capital Deal Flow 78

The Next Web

AUGUST 14, 2013

If you aren’t sure about the traction that you do have, that can lead to being timid about pitching big name investors who have backed the likes of Facebook or Google. How could you possibly be confident in pitching an investor who has had epic payouts from the biggest names in tech? Traction is different for every product.

Founder 142

Founder Incubator Cofounder Accredited Investor 142

Entrepreneurs-Journey.com by Yaro Starak

JANUARY 21, 2011

For now, Sunil answers the question of why leave a well paying corporate job to become an online entrepreneur… My name is Sunil and the title of this blog post refers to me. Not so much because of the chump change we made (my distribution partner and I), but more so because of the invaluable lessons learned in the process.

Internet 80

Internet Technical Review Stock Due Diligence 80

Up and Running

DECEMBER 9, 2014

My name is John Bates. Two, revenue. The most obvious place that businesses and or accountants turn to for their small business clients is generally banks, big banks, community banks, you name it. I’m the CEO of Executive Speaking Success and I’m a long-time entrepreneur. Bates: Fantastic. What do you do?

Small Business 95

Small Business Finance Forecast Metrics 95

www.quora.com

JANUARY 16, 2011

You can argue that the DNA created by Microsoft's over emphasis on distribution (Steve) and development (Bill), has ultimately cost it $50bn or more in lost revenue, market share and market capitalization. Perhaps the nomenclature is off, but a distributor suggests that there is something to distribute.

Technical Review 51

Technical Review Startup CTO Hire Cofounder 51

pandodaily.com

NOVEMBER 29, 2012

A name like 500 Startups says it all. Lastly, seed-stage entrepreneurs who have pushed for the maximum valuation possible haven’t done themselves any favors. Meanwhile, their seed investors aren’t particularly incentivized to get them a Series A that crams the previous valuation down. Source VentureBeat ]. -

Technical Review 93

Technical Review Silicon Valley Incubator Syria 93

Both Sides of the Table

FEBRUARY 12, 2017

(there’s a great story from Jonah in the video but you have to watch to hear it :)) But it’s undeniable that it has become a digital media powerhouse having raised around $500 million in capital with a valuation reported at $1.7 billion and revenues likely exceeding $250 million (Wikipedia lists 2015 revenue at $167 million).

Media 210

Media Los Angeles Russia Viral 210