Berkonomics
OCTOBER 5, 2023
How about young or pre-revenue companies? Although young companies rarely measure profitability this repeatedly, more mature companies usually can bring from five to ten percent of revenues to the bottom line in the form of net profit. And we were able to secure that investment along with a partner from that firm joining our board.
Steve Blank
NOVEMBER 2, 2009
In times when venture capital is hard to get, investors extract high costs for failure (down-rounds, cram downs , new management teams, shut down the company.) Sales people cost money, and when they’re not bringing in revenue, their wandering in the woods is time consuming, cash-draining and demoralizing.
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Both Sides of the Table
JUNE 5, 2011
2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. I raised my A round at a $31.5 million post-money valuation with no revenue.
Berkonomics
AUGUST 10, 2017
Although young companies rarely measure profitability this repeatedly, more mature companies usually can bring from five to ten percent of revenues to the bottom line in the form of net profit. It is not a strong bargaining position for the CEO to ask for money to complete a product promised for completion with the previous round of funding.
YoungUpstarts
JUNE 26, 2020
Here are three pieces of advice that are tossed around Silicon Valley as if they are gospel, but they are really Startup Myths. I don’t know exactly when it happened but at some point, Silicon Valley became obsessed with the word billion. Myth #1: Build a Billion Dollar Company. What happens then?
Berkonomics
MARCH 30, 2010
Although young companies rarely measure profitability this repeatedly, more mature companies usually can bring from five to ten percent of revenues to the bottom line in the form of net profit. And we were able to secure that investment along with a partner from that firm joining our board. Hedging against downturns The fight for quality.
abovethecrowd.com
APRIL 20, 2016
John was the first to uncover that just because a company can raise money from a handful of investors at a very high price, it does not guarantee (i) everything is going well at the company, or (ii) those shares are permanently worth the last round valuation. Their own ego is also a factor – will a down round signal weakness?
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