VC Cafe

SEPTEMBER 10, 2021

It takes a LOT of courage to say no to potential revenue, especially in the very early stages of a startup. Revenue in Q2 2021 was up 127% to $454.1m. . Thinking ahead 5-10 yearsm we believe that Toya will be one of the leading IP owners of the virtual world. million to 42.1 billion to 9.7

Technical Review 178

Technical Review South Korea Due Diligence IP 178

YoungUpstarts

MAY 19, 2016

by Gadiel Morantes , chief revenue officer at Early Growth Financial Services. Look no further than Google and Oracle , and you’ll see that no company is immune from IP impasses. Obtain a Confidential Information and Invention Assignment Agreement as early as possible to make sure the IP is clearly (and legally) assigned.

Technical Review 124

Technical Review Burn Rate IP Intellectual Property 124

VC Cafe

JULY 21, 2022

NPD reported on Friday that consumers spent 10% less in the first six months of 2022 than they did during the same time period last year, with game industry revenue down to $26.3 While mobile game revenue was down 6.6% billion in Q2 2022 with over half of total amount raised by early-stage companies. as they reached 28.1

Forecast 190

Forecast IP Mobile Acquisition 190

VC Cafe

AUGUST 2, 2022

As an early stage investor in the world of gaming and metaverse technology at Remagine Ventures, I find these companies have the potential to set the agenda, become the potential platforms for developers building in this space and future acquirers/consolidators of startups building the next generation of the Internet.

IP 206

IP Cofounder Valuation Acquisition 206

YoungUpstarts

JULY 31, 2019

Billions of dollars are being poured into companies that have yet to clear the value chasm, as entrepreneurs use early traction that isn’t necessarily financially-oriented, but shows a certain level of uptick or success, to raise capital and convince early stage investors that their horse is the one to bet on.

Cofounder 127

Cofounder Burn Rate Technical Cofounder Seed Capital 127

YoungUpstarts

NOVEMBER 20, 2019

Among these opportunities, the chance to pitch an investor and secure funding is perhaps the greatest of all — at least in the early stages of your startup career — as it can ultimately determine the long-term fate of your company. You may be able to generate revenue, but VCs want exponential growth. Be ready when it counts.

Technical Review 140

Technical Review Due Diligence Early Stage Differentiation 140

YoungUpstarts

JUNE 1, 2019

Next thing they know it’s too late: They have joined the 80+ percent of startups that find themselves auctioning off their IP for pennies at best, boarding up their doors and joining the ranks of Munchery, Path, Apprenda, Klout and many, many others. But there’s a way to survive – even thrive – in this high-stakes environment.

Cleveland 150

Cleveland Framework Marketing Early Stage 150

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Of the Inc. 5000 companies, only 6.5% raised from angels.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Up and Running

NOVEMBER 19, 2015

Nearly all businesses, whether they are small or large, are comprised of intellectual property (IP) and trade secrets, which can serve as the foundation for commercial success. The World Intellectual Property Organization defines IP as, “creations of the mind,” which, depending on the business, can take many forms. Any type of design.

Intellectual Property 60

Intellectual Property Business Plan IP Early Stage 60

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

DECEMBER 13, 2010

Since that date the S&P 500 is up 2.45% while Accenture stock is up 206% with revenue of $23 billion and a market cap of $32 billion. It’s why as an investor I look for talented teams with long-term vision, a unique point-of-view, differentiated IP and a desire to build something enduring.

Turkey 302

Turkey Differentiation IP Technical Review 302

Both Sides of the Table

OCTOBER 6, 2010

But in my experience as an entrepreneur and now spending my time amongst investors I can generalize that almost all VC investments in early stage technology & Internet investments come down to just four key factors. Everyone has their own definition of momentum (user numbers, revenue, channel partners, biz dev deals, whatever).

Early Stage 360

Early Stage Startup Venture Capital Seed Stage 360

Berkonomics

DECEMBER 20, 2018

Why are you so strongly sold on royalty licensing as the most effective way to finance a tech-based early stage company? Email readers, continue here…] Arthur: This is a matter between the owner of your IP (you) and the would-be user of your IP. So, there you have it.

IP 54

IP Intellectual Property Investment Bankers Product 54

NZ Entrepreneur

SEPTEMBER 29, 2021

Addressing real world problems, they thrive in uncertainty, generating new jobs and new revenue streams in new markets. In deep tech companies value creation milestones are more likely to be tagged to validating the technology and IP creation. It is our startup sector which will drive this innovative progress.

Technical Review 88

Technical Review Software Review New Zealand Due Diligence 88

Berkonomics

DECEMBER 20, 2018

Why are you so strongly sold on royalty licensing as the most effective way to finance a tech-based early stage company? Email readers, continue here…] Arthur: This is a matter between the owner of your IP (you) and the would-be user of your IP. So, there you have it.

IP 48

IP Intellectual Property Investment Bankers Product 48

Both Sides of the Table

OCTOBER 17, 2019

Invoca is now doing 10s of millions in recurring revenue and is growing > 75% year-over-year but it took the first 3 years to really build out the technology and acquire our initial enterprise clients. I mentioned that we sold our position in Kyriba for > $1 billion but when we invested it had virtually no revenue.

IP 223

IP Intellectual Property IRR Cofounder 223

Austin Startup

DECEMBER 17, 2017

Hurricane Irma had a major negative revenue impact on one whose fall book of business was mostly in Florida. The youngest of the litter has been busy tuning a very attractive general idea into a very specific and more IP-based product offering. We just closed out in 2017 our 10-year early-stage venture fund started in 2000.

Silicon Valley 48

Silicon Valley Atlanta Software Review Early Stage 48

David Teten

MARCH 14, 2018

USC Marshall Professor Noam Wasserman observes in Upside-Down Venture Capitalists and the Transition Toward Pyramidal Firms: Inevitable Progression, or Failed Experiment? : “T he early-stage VC industry was [historically] dominated by small firms composed primarily of senior staff members and only a few junior members.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

Both Sides of the Table

FEBRUARY 25, 2010

I’ve offered to fund an early stage company where I promised cash in bank in less than 30 days. If it’s a biz deal you might care about IP protection, revenue share, investment commitments to joint marketing – whatever. I’ve offered to fund an early stage company where I promised cash in bank in less than 30 days.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Both Sides of the Table

MAY 5, 2011

Chris Devore & Andy Sack have created Founder’s Coop with the goal of funding, incubating & launching more early-stage ventures in Seattle. I see this emerging in Seattle and the passion of “a few key individuals&# who can help shift the game. They’re doing stuff – just not enough. Elder Statesmen.

Seattle 317

Seattle Silicon Valley Technical Review Los Angeles 317

YoungUpstarts

NOVEMBER 17, 2014

Key to any early stage fundraising effort is a well-crafted Executive Summary, or Exec Summary. It may be some unique IP, a change in the applicable laws, the prowess of your founding team, or recent changes in the market. Or, this can be high-level projections about revenue and expenses.

Elevator Pitch 154

Elevator Pitch Early Stage Venture Capital IP 154

Steve Blank

MAY 26, 2009

You don’t need to worry about any Intellectual Property (IP) issues. The next week another team, working on a new type of solid oxide fuel cell, remarked, “Professor Blank, in our industry there’s a ton of patents and stuff and people tell us we shouldn’t be out there unless we start patent protecting all our IP.” Yeah, I said.

Vertical 149

Vertical Silicon Valley Intellectual Property RSS 149

Steve Blank

DECEMBER 8, 2015

Do we believe “startup-driven” innovation (innovation that comes from relationships with external, early-stage companies) should be part of the corporate innovation portfolio? Startups are developing IP relevant to the disruption. We’ll cover “ corporate moonshots ” in a subsequent post.).

Silicon Valley 120

Silicon Valley Acquisition Boston Early Stage 120

Austin Startup

AUGUST 20, 2017

Early stage startups have to survive one day at a time and are often presented with limited choices of the moment that enable them to continue. At early stages you probably don’t have an assembly line and can’t clearly define any particular job. But, later on they often wish they had the ability to erase many of them.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Both Sides of the Table

SEPTEMBER 18, 2014

Revenue multiple? How will you price the next round? Your A round? Him: On metrics. We’ll have some proof points by then. What proof points? How will the lead determine a value? EBITDA multiple? Cashflow projections? I’m not sure. Lawyers don’t make money on your seed round in any instance. A few M&A transactions.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

The Startup Magazine

SEPTEMBER 20, 2017

If you own the IP on a particular technology or information product, then you can create licensing agreements for other businesses to sell your product for you. Using licensees is an excellent way to boost your revenue without the need to hire and external sales force. 2 License Your Product. 3 Mergers, Partnerships and Acquisitions.

LBO 64

LBO Merger Social Media Startup 64

infochachkie.com

SEPTEMBER 24, 2011

For instance, if a consultant proposes to help you with public relations, pay them a commission equivalent to the greater of a flat fee per story placed or a percentage of revenue generated from the PR coverage. At the early stages of your company’s life, you cannot rely on disinterested, hired guns to define your company’s key tasks.

Equity 40

Equity Silicon Valley Cofounder Technical Review 40

Scalable Startup

MARCH 7, 2012

Investor groups are cutting out the management, bus dev, sales, and marketing professionals, trying to get raw, young engineering teams that have never negotiated a term sheet to give away their IP rights and equity for next to nothing. Some of these projects will produce amazing companies. Not just this weeks buzz or a $25,000 seed round.

Software Review 26

Software Review Technical Review Los Angeles Due Diligence 26

Both Sides of the Table

JULY 10, 2010

The importance of the conference is that it assembles most of the top privately held early-to-mid-stage technology companies in the country (and some globally) as well as most VC’s, growth equity funds and corporate development departments from large industry players looking at technology acquisitions. Revenue of ~$160mm in 2008.

IPO 242

IPO Venture Capital Private Placement Cofounder 242

A Smart Bear: Startups and Marketing for Geeks

SEPTEMBER 4, 2012

They now do extra- merchandise so fan selling other fans merchandise that they made but this time with IP rights and everybody makes money, which is pretty cool. I mean, it’s easy to talk to very little bands and just say I feel like the amount of revenue for you is very little. Gelie: That’s not the only revenue stream.

Cofounder 199

Cofounder Technical Review Chicago Technical Cofounder 199

ReadWriteStart

OCTOBER 21, 2010

Vinod wants to raise a significant amount of money to buy out an IP vendor that sells semiconductor interconnect IP, and offer value added services around them. The IP vendor does about $2 million to $3 million a quarter, but the market leader is EDA giant Synopsys. Choose one segment, one service, and one geography.

Bootstrapping 113

Bootstrapping IP India Silicon Valley 113

Startup Lessons Learned

JULY 15, 2020

That's why the Corona Initiative is a Public Benefit Corporation--a for-profit company dedicated to the public good that aims to fund its research with its revenues. On the one hand, I do think that there's a role for basically high risk tolerance faster, like early stage investment mentality and research and academia.

Technical Review 68

Technical Review Software Review Finance Technology 68

Gust

SEPTEMBER 17, 2014

Revenue multiple? They only people I have heard promoting them tend to be super early stage investors or accelerators and often when I talk to them about the structure they’ve never given much thought beyond “they’re easier,” “they’re cheaper” or “it’s faster to raise this way” none of which is actually true. Your A round?

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Tim Keane

JANUARY 12, 2010

3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model.   A cumulative dividend can get to be very expensive and is not often a feature in early stage terms.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

www.paulgraham.com

OCTOBER 23, 2010

But its hard to raise money with an IP cloud over your head, becauseinvestors cant judge how serious it is. Before you consummate a startup, ask everyone about their previous IP history. In those days you could go public as adogfood portal, so as a company with a real product and real revenues,we might have done well.

Startup 105

Startup Cofounder Software Stock 105

Steve Blank

MAY 4, 2009

But without sales there is no revenue, and without revenue there is no company. All the strategic thinking in the world won’t make up for a missed revenue plan. If sales revenue and profits are high enough, we could take the company public or sell it, and the stock would be worth more than the paper it was printed on.

Silicon Valley 126

Silicon Valley RSS Non-Compete California 126

www.currentlyobsessed.com

MAY 28, 2010

It hardly deserves any attention at all in the early stages. For some closing thoughts, I’ll just add that: Valuation tends to be too much of a focus for most early stage companies. I know this sounds crazy, but it’s not. Read more about deal math on Brad Feld’s blog.

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42