Gust

DECEMBER 6, 2011

This graphic shows that the distribution of funding is not uniform across the spectrum of rounds size in dollars. So, generally, these three major sources of capital are complementary, not competitive. The figure below shows the number of investors by investment size for startup ventures. Copyright BillPayne.com 2011. million and $4 million.

Angel Investor 179

Angel Investor Venture Capital Valuation Software Engineering 179

Gust

JANUARY 31, 2013

The first question is a fact-based analysis that involves reviewing Netflix’ public disclosures up until that time, determining the effects on revenue and earnings of the growth in hours streamed, etc. Quoting one commentator, Fortune’s Dan Primack : Remember, this isn’t just limited to Facebook.

SEC 158

SEC Prospectus United States Technical Review 158

Gust

OCTOBER 16, 2012

This summer I conducted our third annual survey of the pre-money valuation of pre-revenue companies recently funded by angel groups in North America. For the first time, we asked for data from specific business sectors, as follows: All pre-revenue deals. Pre-revenue life Science, biotech and medical device deals. Number: 30.

Angel Groups 169

Angel Groups Valuation Pre-Money Valuation North Dakota 169

Gust

JANUARY 5, 2014

Your revenue model has to make sense. Many of the Internet business plans I see these days say the service is free, and revenue will come later from a huge user base. To get the reach you need probably requires one or two levels of distribution, partnerships, or joint ventures.

Business Model 171

Business Model Sales Customer Distribution 171

Gust

OCTOBER 11, 2011

Outline the revenue model. This could be a patent, key partners, domain expertise, or a better distribution channel. Make sure you clarify how large the market is, how much money they have to spend, and a positive level of growth. A product may be great, but it won’t make a business if you don’t hit customers with money to spend.

Elevator Pitch 174

Elevator Pitch Startup Differentiation Distribution 174

Gust

DECEMBER 8, 2011

Strategic partnership or distribution agreements. Sales contracts accounting for significant revenue. In the case of revenue contracts, they help pay for the related legal work. Confidentiality or non-disclosure agreements (NDAs). Employment handbooks and policies. Website terms of use and privacy policies.

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

Gust

OCTOBER 20, 2011

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Such comparisons can only be made for companies at the same stage of development, in this case, for pre-revenue startup ventures. As can be seen the average (mean) pre-money valuation for recent pre-revenue deals is $2.1

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146