VC Adventure

AUGUST 15, 2018

However the board could determine what that fair market value was and, generally speaking, there wasn’t a practical way that these valuations could be challenged. It was and is imprecise science but – at least in the case of venture backed startups – there wasn’t much harm in an option being priced low.

Valuation 48

Valuation Common Stock Cap Table Software Review 48

www.paulgraham.com

OCTOBER 23, 2010

Want to start a startup? August 2010 Two years ago I wrote about what I called " a huge, unexploitedopportunity in startup funding :" the growing disconnect betweenVCs, whose current business model requires them to invest largeamounts, and a large class of startups that need less than theyused to. Get funded by Y Combinator.

Startup 93

Startup Valuation Non-Compete Deal Flow 93

View from Seed

SEPTEMBER 14, 2021

That’s a bit of a cautionary tale to VC investors today who might think it’s inevitable that the private value they are enjoying in their portfolios will certainly translate to distributions in the near future. Or is there a major disconnect between a portfolio’s valuations and the actual dollars returned to LPs?

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

Lightspeed Venture Partners

OCTOBER 29, 2012

I’m posting my analysis of the most interesting story of Shark Tank season 4 episode 7 over there, and reviewing the rest of the pitches here. The company sought to raise $125,000 for 25% of the comapny, implying a $375,000 pre money valuation. The company was started six weeks ago, had no sales and no retail distribution yet.

Pre-Money Valuation 97

Pre-Money Valuation Offshore Valuation Cofounder 97

Lightspeed Venture Partners

OCTOBER 7, 2012

He had been at it for 6 months and had no sales or distribution lined up yet. They are seeking $40k for a 33% stake and want investors who can provide introductions for distribution and licensing on their behalf. That’s why most entrepreneurs do not make a specific ask on valuation, but wait to hear offers from investors.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

Up and Running

JUNE 14, 2017

In both scenarios, it seems that startup venture initiation and idea validation are strictly dependent on the app. To determine the viability of an app or startup idea without building out the full solution, entrepreneurs should: Test potential buyers’ real buying intentions by monitoring their willingness to pay for a beta version.

Technical Review 96

Technical Review Distribution Redemption Demand 96

VC Cafe

SEPTEMBER 21, 2020

Many startups are hoping to be the next name on that list. The landscape of consumer subscription startups is growing: Consumer SaaS landscape (Source: GP Bullhound ). The rest, like Disney+ and Spotify, might try to catch up by acquiring or launching their own bundles. Covid-19 US Consumer Survey (source: McKinsey ).

B2C 187

B2C Cloud Valuation Acquisition 187

Startup Professionals Musings

AUGUST 1, 2016

That approach may work for an entrepreneur who just sold a successful business for a huge profit, but it doesn’t work for the rest of us who are not proven successes yet, or don’t even have a business yet. Non-credible funding request or unreasonable valuation. Future unproven projections don’t set today’s valuation.

Due Diligence 120

Due Diligence Intellectual Property Preferred Stock Seed Stage 120

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. The world of building profitable startups as the primary goal of Venture Capital would end in 1995.

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

Both Sides of the Table

JULY 11, 2010

I recently wrote a blog post about why I believe that startup teams in close proximity perform better. I’m surprised how few people talk about valuations, term sheet terms, how much to pay recruiters, etc. We’re recommending to our companies that they be distributed.&#. We don’t believe in it anymore.

San Francisco 285

San Francisco Incubator Silicon Valley Startup 285

Feld Thoughts

APRIL 21, 2016

If you don’t know DPI, it’s “distributed to paid in capital and answers the question “If I gave you a dollar, how much money did you actually give me back?” If you are a founder, an employee in a startup, or an investor in a startup, you have to be playing a long term game. Long term is not a year.

Marketing 70

Marketing Down Round Startup IRR 70

ReadWriteStart

SEPTEMBER 6, 2019

While most companies focus on revenue and profitability, Silicon Valley leaders tend to view valuation as a success barometer. Like any new technology, the success or failure of blockchain’s adoption rests in its applications. But we can learn from Silicon Valley about blockchain Adoption. Improving Sourcing With Customer Data.

Silicon Valley 103

Silicon Valley Artificial Inteligence Database SQL 103

The Equity Kicker

MAY 14, 2012

The idea of thinking about value creation milestones comes from the observation that the value that investors put on a startup is generally moves in a step function, even when the company itself is making steady progress. Typical value creation milestones for technology startups include: launching a product. signing distribution deals.

Finance 118

Finance Valuation Venture Capital Dilution 118

Lightspeed Venture Partners

OCTOBER 14, 2012

The entrepreneur is seeking not just money, but primarily contacts with buyers at big retailers to get wider distribution. They argue over who can help Cozy Bug with distribution more. Given this context, plus Kevin being less likely to help on the distribution front, the equity offers are superior. And most startups go south.

Equity 164

Equity Dilution Redemption Distribution 164

The Next Web

NOVEMBER 20, 2013

Thomas Clayton is the CEO of Bubbly , a social media startup backed by Sequoia Capital, SingTel Innov8, and JAFCO. . which will help with recruiting employees, finding the best partners, fast-tracking distribution in key countries, and landing marquee customers. The region as a whole is the hottest market in Asia right now.

Asia 123

Asia Silicon Valley India China 123

The Next Web

SEPTEMBER 24, 2013

Waterloo, Canada-based Kik recently passed 80 million users, which was given particular significance from local media who noted that it took the 4-and-a-half year old startup past BlackBerry and its BBM mobile messaging solution. Far from a publicity stunt, the deal was a win-win for Kik’s investment and the startup scene in general.

Entrepreneur 167

Entrepreneur CTO Hire Startup Mobile 167

www.paulgraham.com

OCTOBER 23, 2010

Want to start a startup? Its equivalent toasking how to make a startup succeed—if you avoid every cause offailure, you succeed—and thats too big a question to answer onthe fly. 1 ] In a sense theres just one mistake that kills startups: not makingsomething users want. Get funded by Y Combinator.

Startup 108

Startup Software Review Hiring Detroit 108

The Startup Toolkit

AUGUST 29, 2012

Those numbers get completely thrown out when the advisor is your distribution channel. Unlike the rest of the team though, advisors get full acceleration on an exit (e.g. I’m running a 40 quid, full-day workshop on the foundations of lean startup strategy with Sal Virani. 2] Don’t quote me on this!

Equity 46

Equity Vesting Advisory Board Merger 46

Austin Startup

DECEMBER 20, 2010

“I have been very surprised at Austin’s strength in “IT consumerization&# – ideas that combine business software value with consumer internet distribution ideas,&# he said. Does this prove the “garage startup&# is a valid way to get off the ground? We asked Mike Maples about his investments in Austin.

Curation 118

Curation Austin Cofounder Ruby 118

Both Sides of the Table

NOVEMBER 8, 2010

Once this new service became popular then the media companies could control the rules of distribution & advertising. The goal of any cartel is to control production, distribution & marketing of a set of goods with the goal of maintaining high prices. This narrative has been confirmed to me by several senior studio executives.

Video 292

Video Technical Review Advertising Distribution 292

Steve Blank

FEBRUARY 26, 2020

Not all startups need outside investment to grow. What most founders don’t realize is: Every stage of a startup requires a different set of metrics and milestones and founder skills. Here’s the first 2½ years of a startup journey. The Startup Investment Landscape. Still, there are some benchmarks to keep in mind.

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

Lightspeed Venture Partners

SEPTEMBER 16, 2012

This founder isn’t ready to be a startup CEO. This way the investor knows that they can get their money out because they can control the payment of dividends, and can wind down the company and distribute cash if they determine that there is no future in the company. They should listen to advisors, of course. BEV BUCKLE.

Silicon Valley 167

Silicon Valley Salary Dilution Indiana 167

The Next Web

AUGUST 14, 2013

But since I’m relatively fresh off of the experience I get asked by first-time founders how they should go about raising money for their startup. But we had a solid product, strong weekly revenue growth (10% week over week), and two distribution/marketing channels that were already paying dividends. Cut expenses ruthlessly.

Founder 142

Founder Incubator Cofounder Accredited Investor 142

Up and Running

DECEMBER 9, 2014

I have been involved in startups since I graduated from college in 1996. My background with entrepreneurialism is this is my sixth startup. One, I’m an entrepreneur or in the startup stage of a business. This is really an exciting panel to be a part of. Bates: Fantastic. Thank you Sabrina. Joshua Reeves: Thanks, John.

Small Business 95

Small Business Finance Forecast Metrics 95

pandodaily.com

NOVEMBER 29, 2012

Incubators, too, helped flood the markets with even more startups, and AngelList played its part too. A name like 500 Startups says it all. Multiply that by literally a couple thousand, and that’s what 2013 is going to look like in Silicon Valley, and to a lesser degree some other startup ecosystems.

Technical Review 93

Technical Review Silicon Valley Incubator Syria 93

Steve Blank

DECEMBER 3, 2020

joined a startup; has been reelected to his third term, representing the 8th district of Wisconsin; and is on the House Armed Services Committee. To form a digital development fund to coordinate the R&D and the distribution pathways with our like-minded partners. It’s primarily because human beings got more expensive.

Technical Review 235

Technical Review Technology China Taiwan 235