Both Sides of the Table

SEPTEMBER 22, 2012

I think I’ve read Paul Graham’s post on “ Startup = Growth ” three or four times now. “The growth of a successful startup usually has three phases: There’s an initial period of slow or no growth while the startup tries to figure out what it’s doing. I talked about some of that here.

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Silicon Valley Venture Capital Startup Technical Review 390

Up and Running

SEPTEMBER 19, 2017

Capital investments are like gasoline on a startup business’s metaphorical fire. If you’re like most startup CEOs, your startup has been your personal fiefdom and baby. Background: Justin Klemm’s analytics and website uptime startup, Ghost Inspector , wants to revolutionize the way businesses manage their ecommerce funnels.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

The Startup Magazine

JUNE 8, 2022

Recording financial information, generating documentation related to finance, and doing analysis of financial data are all part of what is involved in accounting. The primary focus of public accounting is preparing financial documentation for clients that are required to be made public, such as tax documents.

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CPA Dallas Software Review Technical Review 152

VC Cafe

MAY 16, 2023

LLMs leadeboard in ChatBot Arena High competition and no moat is giving investors jitters According to the State of AI Q1’23 report by CB Insights, during Q1 2023, AI startups raised $5.4B, a 66% drop from the previous year’s figure and a 43% decline quarter-over-quarter.

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Artificial Inteligence ChatGPT Generative AI Open Source 179

Up and Running

SEPTEMBER 15, 2021

How to optimize SaaS startup development costs. In this blog, we are going to discuss some of the important practices to optimize product development and remove unnecessary startup expenses. Create a detailed requirement document. They were able to take their market valuation to $1.0 billion just with the iOS MVP. .

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Cost Developer Azure Cloud 158

Startup Professionals Musings

SEPTEMBER 10, 2018

I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a co-founder or two. The default answer, to keep peace in the family, is to split everything equally, but that’s a terrible answer, since now no one is in control, and startups need a clear leader. Now comes the reality check.

Equity 238

Equity Cofounder Technical Cofounder Intellectual Property 238

Startup Professionals Musings

AUGUST 24, 2016

I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a co-founder or two. The default answer, to keep peace in the family, is to split everything equally, but that’s a terrible answer, since now no one is in control, and startups need a clear leader. Now comes the reality check.

Equity 120

Equity Cofounder Technical Cofounder Intellectual Property 120

Startup Professionals Musings

AUGUST 21, 2021

When you see startups like SpaceX and Pinterest grow from a low valuation to a billion dollars in just a few years, it’s easy to assume that if you just keep doing what you are doing, you can get there as well. Formal documentation of strategy and progress will be expected by investors.

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Both Sides of the Table

SEPTEMBER 5, 2012

If I could persuade you that they’re already in these documents would you consider abandoning this structure? Those terms you fought so hard to get out of “clean term sheets” by using TheFunded, VentureHacks and the like are in your current documents. They’ll get priced soon enough by a VC.”

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Ratchet Liquidation Preference Equity Stock 354

Growthink Blog

MAY 20, 2011

So, Mike tells me he wants to raise a first round of venture capital based on a $100 million valuation. Getting a $100 Million valuation is impossible for a startup. In fact, getting above a $10 Million valuation is also virtually impossible unless you have at least some traction (e.g., you have customers).

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Venture Capital Valuation NDA Non-disclosure Agreement 109

Startup Professionals Musings

JANUARY 7, 2013

Based on the final report for 2012 from Thomson Reuters and the National Venture Capital Association (NVCA), it may appear that IPOs are back as a viable startup exit strategy. Angels are also moving up-stage, leaving a bigger and bigger black hole for new startups. To make this work, you will need an initial valuation of at least $5M.

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Venture Capital IPO Elevator Pitch Initial Public Offering 252

Startup Professionals Musings

AUGUST 31, 2012

Here are some tips which will signal traction and fundability to investors, as well as to your team: Document your business plan. Funding for pre-revenue startups used to be the domain of angel investors, but they have moved up-stage. If you have a product description, that’s necessary, but not sufficient. Become a visible expert.

Intellectual Property 260

Intellectual Property Sweat Equity CTO Hire Fractional CTO 260

Startup Professionals Musings

MAY 4, 2016

The number of startups rose in 2015 for the first time in five years, with the largest year-over-year increase in two decades. Who would not want to joint the unicorns (recent startups with a current valuation of over $1 billion)? Successful startup teams today have a mix of remote employees, freelancers, and contractors.

Intellectual Property 120

Intellectual Property Startup Angel Groups Social Media 120

Both Sides of the Table

OCTOBER 15, 2009

This is part of my ongoing series Startup Advice. When you’re an early-stage startup that hasn’t raised any institutional money you end up doing almost every job function of the company yourself. When I founded my first company along with Brian Moran (whose idea it was) I had no real experience running startups.

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Founder Technical Review Startup Venture Capital 299

Startup Professionals Musings

JUNE 17, 2011

Here are some tips which will signal traction and fundability to investors, as well as to your team: Document your business plan. Funding for pre-revenue startups used to be the domain of angel investors, but they have moved up-stage. If you have a product description, that’s necessary, but not sufficient. Become a visible expert.

Intellectual Property 253

Intellectual Property Sweat Equity CTO Hire Fractional CTO 253

Startup Professionals Musings

AUGUST 25, 2018

Those that do it right also have the unprecedented opportunity to join the elite ranks of 250 unicorns (relatively new companies with a current valuation of over $1 billion). I suggest the following sequence of startup preparation steps: Create a business entity early to isolate business efforts.

Technical Cofounder 184

Technical Cofounder Intellectual Property Silicon Valley LLC 184

Startup Professionals Musings

AUGUST 4, 2014

Two heads are better than one, so the first task in many startups is finding a co-founder or two. The default answer, to keep peace in the family, is to split everything equally, but that’s a terrible answer, since now no one is in control, and startups need a clear leader. Now comes the reality check.

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Cofounder Stock Founder Technical Cofounder 261

View from Seed

MARCH 24, 2021

Free Template for Great Startup Pitch Decks, Direct from VCs. What Are Your Valuation Expectations? ’ like all startups have to, but also “why invest now?'” Seed stage startups are now graded on a curve.” After each mini-excerpt, you’ll find the author of the piece in parentheses. Happy reading!

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Seed Stage Hiring IPO Analytics 177

Startup Professionals Musings

APRIL 11, 2021

Although every startup is unique, there are certain common avoidable mistakes that can lead to legal complications which jeopardize the long-term success of the business. Here are five of the most common examples: Failure to document a Founder agreement at the beginning. Trouble with the IRS over Founders stock value.

Cost 363

Cost Non-Compete Accredited Investor Cofounder 363

Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success. Term-sheets and Valuations: Thinking about Negotiations. The Valuation Question. When companies seeking their first round of serious funding are good enough to receive a term-sheet from an investor, the first issue that always arises is valuation. Let’s start at the end.

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Term Sheet Valuation Dividend Liquidation Preference 68

www.seriesseed.com

DECEMBER 9, 2012

Series Seed Financing Documents Blog. « About the Series Seed Documents | Main. Series Seed Financing Documents. Please note, these are the latest versions of the Series Seed Documents.    These are the original versions of the Series Seed Documents.  SeriesSeed.com. Blog Archives.

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Finance Term Sheet Vesting LLC 40

Startup Company Lawyer

MARCH 14, 2010

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). under $500K).

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Version One Ventures

DECEMBER 20, 2021

Over the past 18 months, the pandemic has reset these expectations, leading to huge increases in valuations for both public and private tech companies…not to mention venture capital returns that are far better than what we have traditionally seen! Read the post: Resetting venture capital expectations: is 10x the new 3x? 2/ Climate and energy.

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Venture Capital Technical Review Software Review IPO 60

Both Sides of the Table

SEPTEMBER 10, 2021

I’m over-paying for every check I write into the VC ecosystem and valuations are being pushed up to absurd levels and many of these valuations and companies won’t hold in the long term. On the one hand, you’re over paying for every investment and valuations aren’t rational. The legends of Silicon Valley?

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

Startup Professionals Musings

SEPTEMBER 30, 2013

Here are some tips which will signal traction and fundability to investors, as well as to your team: Document your business plan. Funding for pre-revenue startups used to be the domain of angel investors, but they have moved up-stage. milestones entrepreneur startup funding business' Register some intellectual property.

Intellectual Property 281

Intellectual Property Entrepreneur Sweat Equity CTO Hire 281

The Startup Magazine

JULY 17, 2022

To do this, the qualifying expenditures must be established and documented with precision. The creation of concepts, in addition to planning and documentation. The post The Research and Development Tax Credit: A Comprehensive Guide appeared first on The Startup Magazine. Annually, the project expenses are claimed against the.

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Startup Professionals Musings

JANUARY 22, 2020

As a long-time advisor to entrepreneurs, and a former angel myself, I still find startups confused about the definition of an angel investor, and how and when to attract one. You need to know why and how they invest, and then focus on the ones who are the best match for your startup. Document your plan and your financial projections.

Angel Investor 322

Angel Investor Valuation Syndicate Syndication 322

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

Both Sides of the Table

FEBRUARY 25, 2010

million at a $15 million pre-money valuation. Morgan Stanley had proposed a higher valuation to let them in. You know that every turn of the legal documents can add weeks. They’re not bothered when the lawyers didn’t get the documents out when they promised. Push hard to document turns. Yes, this was stupid.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

VC Cafe

FEBRUARY 11, 2020

According to the 2019 Annual European Venture Report by PitchBook , European startups raised €32.4 The definition of “startup” varies as Snap and Slack for example are publicly traded companies. For the purposes of this post, startups are companies started post financial crisis (since 2008), either private or public.

Balance Sheet 201

Balance Sheet Startup IPO Venture Capital 201

The Startup Magazine

SEPTEMBER 12, 2022

A home mortgage refinancing allows you to save money or tap equity you can use for your startup business. The common charges you may pay include; Early termination fees. Loan establishment fees. Valuation. Lenders mortgage insurance. Mortgage stamp duty. Review and Sign the Loan Documents.

Equity 146

Equity Valuation Cost Startup 146

Austin Startup

SEPTEMBER 10, 2017

TL;DR: Using a “tiered” valuation cap structure in a convertible note or SAFE can provide flexibility that bridges the gap between (i) what founders expect their company to be worth in the near future, and (ii) what investors are comfortable accepting now. Did you get a “good” valuation? What a valuation cap isn’t.

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Valuation Dilution Silicon Valley Seed Stage 48

YoungUpstarts

MAY 30, 2016

Looking at the startup scene through the lens of TechCrunch or VentureBeat, one may not be faulted for assuming that securing VC capital is the default way to raise a business. Yet, a study from the Kauffman Foundation reveals that less than 1 percent of startups actually receive VC funding.

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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. I think there’s only been two defense related startups that have had a valuation north of a billion dollars in the last couple decades: SpaceX and Palantir.

Technical Review 244

Technical Review Technology China Taiwan 244

Up and Running

JULY 24, 2017

For a startup, it might be a brief description of aspirations, such as a sales goal for the next year or three years from now. Investors often ask startups to send a summary memo instead of a full business plan. It might be a short document, often attached to an email, or simply a summary in an email. Mention your exit strategy.

Software Review 151

Software Review SBA Due Diligence Business Plan 151

Gust

SEPTEMBER 27, 2014

Browse through the many hundreds of video answers to startup questions that we’ve filmed from the world’s leading VCs and angels. You really should have spent a heck of a lot of time beforehand in thinking through all of the issues surrounding your startup.

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Angel Groups Elevator Pitch Software Review Deal Flow 159

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.

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Cofounder Seed Stage Valuation Metrics 429