ReadWriteStart

JUNE 1, 2020

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. Reasons for funding. ? Scale up your operations. Now you may want to scale up your operations or expand your presence. Forms of funding. ? Equity investment.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

David Teten

AUGUST 19, 2019

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. So what is Revenue Based Investing?

Revenue 60

Revenue Term Sheet Founder Technical Review 60

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Payments are commonly delayed for a grace period of 12-36 months.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

David Teten

MARCH 14, 2018

I’ve listed them below in *very* roughly descending order of efficiency, measured by increased dollars one can put to work, divided by the operational dollars required to implement each strategy. . Sophisticated VC and private equity funds have a wide array of options for leveraging outside operating executives.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

David Teten

SEPTEMBER 23, 2017

Private equity and venture capital investors are copying our sisters in the hedge fund and mutual fund world: we’re trying to automate more of our job. High-frequency trading, algorithmic by its nature, is estimated to account for at least 50% of US equity markets trading volume. . But we’re doing it slowly. 4) Manage deal flow.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

ReadWriteStart

MARCH 3, 2021

Growing a business is always challenging, but it’s often the hardest in the earliest stages of development. You’ll be operating with limited resources, limited knowledge, and quite possibly, a business model poised to change in the immediate future. Limited brand equity. Core Challenges to Overcome in Growth Strategies.

Early Stage 125

Early Stage PPC Retention Churn Rate 125

Startup Professionals Musings

JULY 16, 2012

The good news is that he is all about helping early-stage startups. These are emerging group of professional investors (venture capitalists, ala VCs), who are investing from a fund of other people’s money, with a particular focus on seed-stage startup opportunities. Early-stage startup. Super Angels. Lean startup.

Early Stage 253

Early Stage Finance Seed Stage Entrepreneur 253

Up and Running

SEPTEMBER 19, 2017

When you accept outside money, particularly a private equity (PE) investment, however, that changes. In this article, I’ll provide some personal stories of how investors have navigated the balance between raising private equity capital and not losing control of their startup. You make all the decisions, when you want, how you want.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Startup Professionals Musings

MAY 1, 2011

The good news is that he is all about helping early-stage startups, the hard part for entrepreneurs is figuring out what it takes to play. These are emerging group of professional investors (venture capitalists, ala VCs), who are investing from a fund of other people’s money, with a particular focus on seed-stage startup opportunities.

Early Stage 231

Early Stage Seed Stage Angel Investor Silicon Valley 231

YoungUpstarts

OCTOBER 12, 2017

To outside investors, the future of early stage and startup companies can be murky. Many of these companies are pre-revenue and in the cash burn stage as they try to establish their technology and market. Many of these companies operate at a loss with a negative cash flow, which begs the going concern question.

San Francisco 133

San Francisco Forecast Early Stage Term Sheet 133

Both Sides of the Table

SEPTEMBER 28, 2014

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. Plus, most early-stage M&A fails so this isn’t likely a good use of capital for a young company). Gross burn is the total amount of money you are spending per month.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Both Sides of the Table

MAY 27, 2013

In his tenure as CEO of DataSift we have never missed a monthly revenue figure. He has grown our US operations from 1 employee (him) to a global organization of 75 employees that will finish the year with 8-digit revenues (90+% recurring) and more than 350% year-over-year growth. Ask for short conference calls.

Advisory Board 365

Advisory Board CTO Hire Fractional CTO Los Angeles 365

Startup Professionals Musings

OCTOBER 16, 2023

Yet every business requires revenue and volumes, as certainly as it requires a product to sell. As a rule of thumb, most viable businesses need a gross margin above 50 percent, even on wholesale prices, to cover operational expenses and survive as a business. Don’t assume penetration numbers greater than 5 percent in early periods.

Forecast 290

Forecast Burn Rate Widget Business Plan 290

This is going to be BIG.

JANUARY 18, 2024

On the other hand, they could be the opposite—much more focused on near-term cash distributions than long-term equity appreciation. They might not understand how a pre-revenue startup could be worth anything, let alone be valued at $5mm. It will save everyone a lot of cost and time. On one hand, I get this.

.Net 88

.Net Cap Table Startup Technical Review 88

Gust

JULY 8, 2012

The good news is that he is all about helping early-stage startups. These are emerging group of professional investors (venture capitalists, ala VCs), who are investing from a fund of other people’s money, with a particular focus on seed-stage startup opportunities. Early-stage startup. Super Angels. Lean startup.

Early Stage 177

Early Stage Finance Seed Stage Entrepreneur 177

Startup Professionals Musings

AUGUST 5, 2023

The advantages are many, including avoiding all the cost, pain, and distractions of finding and managing external investors, allowing you to retain full control and all your hard-earned equity for yourself. The right investor also changes as you move through the different startup stages.

Angel Investor 246

Angel Investor Stealth Bootstrapping Early Stage 246

Both Sides of the Table

AUGUST 3, 2010

I can save tons of development time and I think I can buy it for all equity. How much dilution should I take for it?&# My friend’s company was pre-revenue. The only thing worse than your early-stage company buying another early stage company is you trying to pull off a merger of equals.

Merger 276

Merger Technical Review Early Stage Dilution 276

Startup Professionals Musings

MARCH 22, 2020

Tie payments to your product or service revenue. With “cash flow” obligations, investors receive a percentage of your operating cash flow (if any) until they have been repaid in full, or have achieved a specified percentage return on their investment. Loans are a safer option than equity.

Management 308

Management Cram Down Angel Investor Equity 308

Startup Professionals Musings

NOVEMBER 22, 2020

The advantages are many, including avoiding all the cost, pain, and distractions of finding and managing external investors, allowing you to retain full control and all your hard-earned equity for yourself. The right investor also changes as you move through the different startup stages.

Stealth 434

Stealth Startup Angel Investor Bootstrapping 434

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78

Equity Revenue Cofounder Colorado 78

Startup Professionals Musings

MAY 30, 2022

Early-stage entrepreneurs rightly keep their focus on creating an innovative product or service. After celebrating success at that level, they often find themselves ill-prepared to move to the next stage, for scaling their business into a high-performing enterprise. There is no free lunch. Install a real board of directors.

Mezzanine 368

Mezzanine Private Equity Bandwidth Metrics 368

The Startup Magazine

JULY 19, 2017

Courtesy of popular equity crowdfunding site StartEngine , the public will have the opportunity to invest and acquire equity in a growing television network that is rapidly building its distribution partnerships and viewership. A tip for all startups is to look at equity crowdfunding as a capital source.

Networking 63

Networking Technical Review Equity Demand 63

NZ Entrepreneur

SEPTEMBER 29, 2021

Addressing real world problems, they thrive in uncertainty, generating new jobs and new revenue streams in new markets. It is not uncommon for startup directors to be more deeply involved in the operations of the business when the company is entering a new market, hiring critical team members or raising capital.

Technical Review 88

Technical Review Software Review New Zealand Due Diligence 88

Steve Blank

MARCH 17, 2020

Here are a few thoughts about operating in uncertainty in a pandemic. Next, take a look at your actual revenue each month – not forecast, but real revenue coming in each month. If you’re an early stage company, that number may be zero. And what’s in my lifeboat?”. This math works in a normal market….

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

www.inc.com

SEPTEMBER 24, 2011

Office and Operations. Will Work for Equity. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. Determined not to miss another opportunity, Graham has begun waiving fees and instead taking equity in clients he thinks have a good shot at success. Naming a Business. How to Incorporate. Franchises.

Arizona 40

Arizona Equity Iowa Venture Capital 40

David Teten

AUGUST 21, 2019

Most founders who are raising capital look first to traditional equity VCs. Or should they look to one of the new wave of Revenue-Based Investors? Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. Who are the major Revenue-Based Investing VCs?

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

VC Cafe

JULY 4, 2012

Amongst the different types of crowdfunding: Donation, Reward, Lending and Equity, the latter is on the rise as a fundraising mechanism for European startups. investors can then, through the platform, buy small parts of this equity stake. Below is a table of the equity Crowdfunding platforms operating in Europe: Location.

Equity 160

Equity Europe Due Diligence Startup 160

Startup Professionals Musings

SEPTEMBER 1, 2019

Early-stage entrepreneurs rightly keep their focus on creating an innovative product or service. After celebrating success at that level, they often find themselves ill-prepared to move to the next stage, for scaling their business into a high-performing enterprise. There is no free lunch. Install a real board of directors.

Mezzanine 244

Mezzanine Private Equity Startup Bandwidth 244

Startup Professionals Musings

MARCH 9, 2018

Tie payments to your product or service revenue. With “cash flow” obligations, investors receive a percentage of your operating cash flow (if any) until they have been repaid in full, or have achieved a specified percentage return on their investment. Loans are a safer option than equity.

Cram Down 148

Cram Down Angel Investor Equity Dividend 148

Startup Professionals Musings

OCTOBER 10, 2014

Tie payments to your product or service revenue. With “cash flow” obligations, investors receive a percentage of your operating cash flow (if any) until they have been repaid in full, or have achieved a specified percentage return on their investment. Loans are a safer option than equity.

Founder 254

Founder Cram Down Angel Investor Equity 254

Growthink Blog

MAY 10, 2012

When seeking equity investments, the source of capital is, for the most part, tied to the stage of capital being raised. You see, equity capital is raised in stages or rounds. The five main stages include the following: 1. Early Stage Investment (Series A & B) 4. Pre-Seed Funding 2.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

K9 Ventures

JUNE 12, 2012

VCs also operate in a limited time window that is determined by the duration of their funds. You get a situation whether investors are incentivized to put in more money into a company, not only to buy more equity, but also to fund the quick growth. This is because excessive capital becomes toxic for an early stage company.

Venture Capital 117

Venture Capital Silicon Valley Founder Seed Stage 117

K9 Ventures

JUNE 12, 2012

VCs also operate in a limited time window that is determined by the duration of their funds. You get a situation whether investors are incentivized to put in more money into a company, not only to buy more equity, but also to fund the quick growth. This is because excessive capital becomes toxic for an early stage company.

Venture Capital 105

Venture Capital Silicon Valley Founder Seed Stage 105

Duct Tape Marketing

NOVEMBER 3, 2022

9:19] Is there an equity emphasis? [11:06] So everything from a retail operation to, you know, a dry cleaner on the corner to a consultant, it's really typically most of our business owners are less than 10 employees. Air is the leading platform for marketing teams to manage and automate their creative operations.

Entrepreneur 80

Entrepreneur Technical Review Networking Community 80

Startup Professionals Musings

NOVEMBER 11, 2015

Tie payments to your product or service revenue. With “cash flow” obligations, investors receive a percentage of your operating cash flow (if any) until they have been repaid in full, or have achieved a specified percentage return on their investment. Loans are a safer option than equity.

Cram Down 120

Cram Down Angel Investor Equity Dividend 120

David Teten

SEPTEMBER 5, 2014

I’ve written on the expert network industry a fair amount in the past: see How to Earn More Consulting Revenue from Expert Networks and How Executives Can Work with Private Equity and Venture Capital Portfolio Companies. David Teten: As you know, almost every VC fund operates as effectively a mini expert network.

New York 114

New York Technical Review Networking Advisory Board 114

Berkonomics

DECEMBER 17, 2020

Let’s take a few minutes to examine the kind of equity financing available to small or early stage businesses. In most cases, these applicants for equity funding must be rooted in technology to apply to this limited discussion. The post When should you go for equity financing? Friends and family investors.

Equity 62

Equity Finance Liquidity Event Angel Groups 62