Lightspeed Venture Partners

OCTOBER 7, 2012

The company has done $400k in sales in less than two years and had an early test deal with a local supermarket chain that they were massively overperforming on. He had been at it for 6 months and had no sales or distribution lined up yet. The entrepreneur launched Zomm in late 2010 and did $700k in sales that year.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

Lightspeed Venture Partners

OCTOBER 29, 2012

The company sought to raise $125,000 for 25% of the comapny, implying a $375,000 pre money valuation. It had done about $30,000 in sales in a little over a year, and had emerged from a natural trade show with interest but no orders. Unsurprisingly, all the sharks passed, based on market size and valuation expectations.

Pre-Money Valuation 97

Pre-Money Valuation Offshore Valuation Cofounder 97

A Smart Bear: Startups and Marketing for Geeks

AUGUST 18, 2015

They have everything: money, brand, momentum, existing customers, press, product teams, distribution channels, expertise, market insight, analysts, sales offices, product features, and, by definition, a working business model. In the big-boy and big-girl world of real, at-scale companies, valuation is about total future earnings.

Technical Review 120

Technical Review Valuation Flash Revenue 120

Gust

DECEMBER 6, 2011

A medical device company, on the other hand, may need cash resources to pay for FDA testing, designing the prototype, manufacturing the product, establishing an inventory of the devices and establishing marketing and sales channels for the products. Most high-impact companies need substantial cash resources to sustain their rapid grow.

Angel Investor 179

Angel Investor Venture Capital Valuation Software Engineering 179

Both Sides of the Table

NOVEMBER 14, 2017

We realized that operating a business in distributed markets presented multi-city coordination efforts that we weren’t prepared for. were more distributed. The flawed assumptions are now kind of obvious but when you’re running at a thousand miles an hour it’s easy to miss some signs.

Operations 286

Operations New York City Technical Review Startup 286

YoungUpstarts

OCTOBER 23, 2017

The combination of services and infrastructure traditionally housed under one roof – underwriting, research, sales & trading, supported by large back office operations, and monitored by compliance systems – will remain at the sector’s core. At least for investment banks the answer is not so clear cut.

Technical Review 154

Technical Review Artificial Inteligence Software Review IPO 154

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. This method compares the target company to typical angel-funded startup ventures and adjusts the average valuation of recently funded companies in the region to establish a pre-money valuation of the target.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

Up and Running

JUNE 14, 2017

Then, about two weeks before launch, I distributed a survey to those 256 partners. Although Recycler Spotter was perceived as a great model for increasing awareness and sales, most partners decided to wait for the product launch. It wasn’t a scalable solution, but it was a start. 60 percent of respondents chose premium!

Technical Review 96

Technical Review Distribution Redemption Demand 96

Both Sides of the Table

MAY 19, 2010

The “private sale” market phenomenon was started in France by Vente-Privee (literally means “private sale”) and was replicated in Germany by BrandsforFriends. Gilt Group is currently the largest private sale web site in US. To be fair to Ben Horowitz – I think he thinks this as well. Time will tell. Total raised: $29.5mm.

Partner 240

Partner New York City Cofounder Syndicate 240

Startup Professionals Musings

JULY 27, 2018

Potential investors love to see gross margins in the fifty percent range or greater, with recurring revenue through subscriptions, follow-on sales, or services. Customized marketing strategy and realistic sales plans. “If Business model showing costs, pricing, and margins. Team skills depth, domain experience, and track record.

Product 145

Product Intellectual Property Liquidity Event Exit Strategy 145

Austin Startup

OCTOBER 15, 2017

Will his digital presence measurably affect sales of his newest book What Unites Us ? 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. What happens to his digital property when he passes?

Technical Review 48

Technical Review Software Review Nevada Silicon Valley 48

Lightspeed Venture Partners

SEPTEMBER 21, 2013

to fund the company at a $6M post money valuation from a number of investors including Selena Gomez. pre money valuation and planned to use the money to market the app. pre money valuation). pre money valuation. pre money valuation and a $2.7M The smartphone app that enables this is free but it costs $2.49

Pre-Money Valuation 167

Pre-Money Valuation Valuation Dilution Distribution 167

crowdSPRING Blog

FEBRUARY 7, 2013

On the strength of that ad, Go Daddy had its biggest sales day ever. Valuations in the Series A and Series B Market are Booming – [link]. An Ode to Distributed Teams | iDoneThis blog – [link]. Here are some of the links that I’ve liked and shared this past week!

Social Media 106

Social Media Small Business Technical Review Design 106

David Teten

JANUARY 19, 2021

Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Flexible VC creates early liquidity which can be either reinvested or distributed to LPs. Typically stable, high margins; repeatable sales model; clear path to profitability; and high growth potential. Early liquidity.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Up and Running

DECEMBER 11, 2013

Watch how the sharks deal with valuation. That establishes their proposed valuation. So for example, if they want to give 10 percent of the company for $100,000, that’s a valuation of $1 million; and 30 percent for $150,000 is a valuation of $500,000. But the importance of valuation is also always there.

Valuation 136

Valuation Oregon Burn Rate Angel Groups 136

ConversionXL

MAY 1, 2017

Reporting in the Harvard Business Review on a major study of growth stalls they conducted, Olson and his colleagues cite the case of the iconic brand Levi Strauss, which hit a historic high mark of sales in 1995, reaching revenue of $7 billion, but then, starting in 1996, saw a decline in sales so precipitous that by 2000, revenue was down to $4.6

Technical Review 127

Technical Review Algorithm Channel Analytics 127

YoungUpstarts

MAY 7, 2015

For example, in most third-party sales with a business broker or investment banking firm, a commission or “success fee” will be charged as a percentage of the sales price. Fact: This issue is often the elephant in the room from a valuation perspective. ESOPs generally increase the after-tax proceeds of a sale.

Stock 100

Stock Employee Private Equity Valuation 100

Startup Professionals Musings

OCTOBER 12, 2010

You can also use this space to keep track of innovators (R&D personnel) and rainmakers (sales & marketing personnel). Customers: A company’s only sustainable source of cash is sales, so you need to keep track of your business development efforts. Tags: scorecard venture value Akira Hirai business valuation.

Intellectual Property 223

Intellectual Property .Net Valuation Distribution 223

crowdSPRING Blog

NOVEMBER 30, 2012

… Checking In on Foursquare’s Valuation – [link]. What a pile of crap … Facebook Reveals How Samsung Turned A $10 Million Ad Buy To $129 In Sales | Business Insider – [link]. How PRWeb Helps Distribute Crap Into Google & News Sites – [link]. Just got acquired? – [link].

Social Media 100

Social Media Small Business Central African Republic Design 100

Lightspeed Venture Partners

NOVEMBER 19, 2012

They talked about a referral program, as well as direct sales. The company did $250,000 in sales last year and is profitable. The first 15,000 units sold out in six weeks in specialty retailers that distributed it in the Quantico area, and another 80,000 are being made now. 75,000 for 10% implies a $675,000 pre money valuation.

Pre-Money Valuation 166

Pre-Money Valuation Alabama Valuation Churn Rate 166

Startup Professionals Musings

AUGUST 7, 2015

Customers may be attracted to your marketing message, but investors look harder at the startup team, seeking superior expertise in the key areas of growing a business, product domain, financial, marketing and sales. Specific elements of your marketing and sales plans. Projected revenues and expenses over the strategic period.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

www.inc.com

SEPTEMBER 24, 2011

Sales & Marketing | Wednesdays. SALES & MARKETING. In the past few years, hundreds of small companies have been snatched up by private equity firms willing to agree to ever-rising valuations. CDW your 1-stop resource for configuration, activation & distribution. The Goods: Your Business Toolbox | Thursdays. Newsletters.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Startup Company Lawyer

MARCH 14, 2010

The only practical situation that I can think of where a dividend preference is beneficial to a stockholder is where a company does a partial sale of assets and wishes to distribute the proceeds to stockholders. Co-sale rights. Changes in preferred and merger/sale of assets only. under $500K). Registration rights.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

The Equity Kicker

MAY 14, 2012

There are certain types of events that investors look to as evidence that a company has overcome certain challenges and has therefore reduced risk in the business and become deserving of a higher valuation. demonstrating a repeatable sales model (typically telephone sales, direct sales, or channel sales).

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. Three sharks make an offer.

Equity 164

Equity Dilution Redemption Distribution 164

Steve Blank

SEPTEMBER 14, 2009

billion for a company with less than $50 million in sales. Underwriters realized that as long as the public was happy snapping up shares, they could make huge profits on the inflated valuations (regardless of whether or not the company should have ever been public.) billion.)

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

www.forentrepreneurs.com

FEBRUARY 2, 2010

To compute the cost to acquire a customer, CAC, you would take your entire cost of sales and marketing over a given period, including salaries and other headcount related expenses, and divide it by the number of customers that you acquired in that period. (In This number is heavily dependant on the productivity of your sales teams.

Acquisition 103

Acquisition Cost Customer Entrepreneur 103

www.inc.com

SEPTEMBER 24, 2011

Sales & Marketing | Wednesdays. SALES & MARKETING. As you think about how much equity to offer, have a reasonable valuation in mind thats been determined using professional advice. CDW your 1-stop resource for configuration, activation & distribution. The Goods: Your Business Toolbox | Thursdays. Finance | Tuesdays.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Growthink Blog

JANUARY 24, 2011

liquidate their shares) before any distribution of proceeds in the event of a sale of a company. at 1/3 of its original post-money valuation), then if the investor owned common shares (or preferred shares without the liquidation preference), then they would receive back $1,666,666 of their original $5,000,000 investment.

Preferred Stock 93

Preferred Stock Stock Common Stock Liquidation Preference 93

abovethecrowd.com

JULY 10, 2014

Financial models, especially valuation models, are interesting in that they can be particularly precise. While it may seem like a tough question to answer, I would argue that most practitioners of valuation analysis would state “not very high.” It is not my aim to specifically convince anyone that Uber is worth any specific valuation.

San Francisco 111

San Francisco San Jose Marketing Technical Review 111

David Teten

APRIL 28, 2016

Since 2011, companies that originated at Flashpoint have raised more than $300 million and grown to a combined valuation of nearly $1 billion. SalesTing = sales-obsessed marketing. Enterprise marketers invest significant resources into creating assets for use by their sales teams but are unable to see what works or not.

Georgia 60

Georgia New York New York City Venture Capital 60

Lightspeed Venture Partners

OCTOBER 22, 2012

This implies a pre money valuation of $1.045M. See my breakdown of week 2 for more on how to calculate pre money valuation.). The sharks greeted this with skepticism, and rightfully so, especially given the short time the company has been in business and the relatively low sales volume. Tanya had invested $75k into the company.

Pre-Money Valuation 101

Pre-Money Valuation Valuation Dilution Differentiation 101

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. The most frustrating answer to almost any question is “it depends”. The question of which instrument should a company fundraise on is unfortunately no different.

Dilution 54

Dilution Equity Warrant Distribution 54

ReadWriteStart

APRIL 18, 2018

billion merger with 21 st -Century Fox, many experts feel Netflix will need a stronger distribution and acquisition arm in order to compete. In summer 2017, talk bubbled over about Slack’s possible acquisition; it was reported in June that Slack was focused on raising half a billion dollars on a $5 billion valuation.

Merger 70

Merger Acquisition Stock Valuation 70

thebarefootvc

DECEMBER 16, 2011

Discovery, in contrast to search, took center stage as Pinterest displayed hockey stick growth (and raised VC money near a $200M valuation in late 2011). The viral nature of social media no doubt aided this growth, as did improvements in the online shopping experience. What’s Next in 2012…. And Beyond….

Technical Review 110

Technical Review India Mobile Hockey Stick 110

Life Beyond Code

JULY 10, 2012

The Trigger was the Instagram Sale. For about six photos (out of about hundred) I used the promote feature on Facebook fan page to extend the distribution. Sometimes the experiment works. This was one of those times that it worked. I am sharing it in the hopes that some of you will take advantage of the learnings from here. The Result.

Valuation 101

Valuation Distribution Sales Marketing 101

David Teten

DECEMBER 3, 2019

I previously posted a detailed presentation with sales technology tools useful for B2B sales. Many VC funds rely on general-purpose CRM and sales funnel solutions like Copper , Pipedrive, Salesforce , Streak , and ZenDesk. She is a model for us all! 5) Manage relationships (CRM). If you have one, please contact me.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78