Startup Professionals Musings

MARCH 25, 2023

Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $1 trillion. Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation. Both have worked. Most are still confused about the right priority.

Valuation 235

Valuation Revenue Viral Retention 235

Startup Professionals Musings

NOVEMBER 26, 2012

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” The founders now need a $1M Angel investment to do the marketing for a national NewCo rollout, build a team to manage the rollout, and maybe even pay themselves a salary.

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

ReadWriteStart

JULY 2, 2022

Conforming with Torchbankz, the dropshipping industry is expected to reach a market valuation of $557.9 Since there are a lot of office workers and not everyone can afford to go to a cafe for lunch, you will quickly gain a loyal audience and strengthen your position in the market. billion before 2025.

Cost 140

Cost Software Review Technical Review Cloud 140

Both Sides of the Table

AUGUST 14, 2017

As a starting point the board is intended to have legal and financial responsibilities to a few key constituencies: shareholders, debt holders, creditors, employees, government and major parties with whom the business operates. ICOs certainly have a place in startup financing. So, too, a healthy and skeptical board.

Cofounder 217

Cofounder Stock Options Equity Technical Review 217

VC Adventure

AUGUST 15, 2018

As is true today, there was a requirement that options be priced at or above the “fair market value” of the underlying stock (otherwise there would be tax consequences to the optionee and sometimes to the company as well). Over night a cottage industry was created to conduct these valuations.

Valuation 48

Valuation Common Stock Cap Table Software Review 48

Tim Keane

MARCH 9, 2011

How should I finance my new venture? It’s a deceptively simple question:  what is the optimal way to finance a new startup? But, what constitutes success for the parties involved – investors, entrepreneurs, employees, and customers – can vary dramatically. « Leaving a Trail | Main. | Align Everyone’s Interests.

Finance 83

Finance Bootstrapping Startup Equity 83

Startup Professionals Musings

JUNE 21, 2020

Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $1 trillion. Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation. Both have worked. Most are still confused about the right priority.

Revenue 434

Revenue Valuation Viral Retention 434

The Startup Magazine

AUGUST 15, 2022

In many cases, your advisor will identify key employees and create a business plan to help you find a buyer and negotiate the best price possible. Identifying key employees. In addition, your employees may have insight into how much value they bring to the company. Source: Pixabay. Creating a business plan. Finding a buyer.

Merger 158

Merger Acquisition Due Diligence Valuation 158

Both Sides of the Table

JULY 29, 2010

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. The best thing to get is a “right sized&# valuation. A: It’s not best.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

Tim Keane

JANUARY 12, 2010

Bottom Up Market Sizing » January 12, 2010. 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.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

www.avc.com

SEPTEMBER 22, 2011

Employee Equity: How Much? The most common comment in this long and complicated MBA Mondays series on Employee Equity is the question of how much equity should you grant when you make a hire. Once you have assembled a core team that is operating the business, you need to move from art to science in terms of granting employee equity.

Equity 64

Equity Employee CTO Hire Fractional CTO 64

Both Sides of the Table

NOVEMBER 14, 2017

Sam also had a vision as early as 2012 about how MakeSpace would be a large employer of middle-income jobs: The company would hire employees rather than just have contractors and he would lead the effort to ensure they had opportunities for growth and benefits for their families. How profitable is my product or service?

Operations 286

Operations New York City Technical Review Startup 286

YoungUpstarts

MARCH 11, 2015

With the daily demands of running a business along with the financial pressures and challenges inherent in early-stage companies, a business valuation may not be the first thing an entrepreneur thinks of when he awakes each morning. When does a startup company need a business valuation? The timing will vary depending on the purpose.

Valuation 100

Valuation Stock Options CPA Merger 100

Both Sides of the Table

APRIL 26, 2016

The key to being able to run a business that isn’t yet profitable (on operating margin) is availability of capital to finance losses and preferably at a cost that isn’t too punitive to the founders and employees. The reason one would accept losses is when they are investments in fueling faster growth.

Metrics 150

Metrics Cost Acquisition Startup 150

Startup Professionals Musings

SEPTEMBER 6, 2010

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Gust

NOVEMBER 18, 2012

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” The founders now need a $1M Angel investment to do the marketing for a national NewCo rollout, build a team to manage the rollout, and maybe even pay themselves a salary.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Steve Blank

MARCH 31, 2014

Think about this; 7 years ago Nokia owned 50% of the handset market. Fast-forward to today—Apple is the most profitable Smartphone company in the world and in Spain Android commands a market share of more than 90%. Its worldwide market share of Smartphones has dwindled to 5%. Apple owned 0%.

Private Equity 328

Private Equity Metrics China Intellectual Property 328

YoungUpstarts

FEBRUARY 1, 2020

You are sure to be happy when your business reaches a Series B financing round because it usually means your company has a higher valuation. That can affect your first-time audit in two main ways: with stock option expensing and 409A Valuations. 409A Valuations. by Bryce Welker, founder of Crush The CPA Exam.

CPA 165

CPA Stock Options Valuation Stock 165

Up and Running

SEPTEMBER 19, 2017

That’s because obtaining a pre-money valuation for a concept level technology company in excess of $1 million is difficult, particularly for a startup founder without a proven track record. By contrast, obtaining a pre-money valuation of $5 million for a business with a new viable product and even very minimal sales is somewhat reasonable.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

The Startup Magazine

NOVEMBER 19, 2020

This might seem like the kind of platitude you might come across during the first week of an Economics 101 class, but when it comes to selling companies this rule is frequently — and more often than not— ignored by small business owners who only have the vaguest understanding of business valuation and the real market value of their enterprise.

Due Diligence 169

Due Diligence Valuation Small Business Channel 169

YoungUpstarts

JUNE 20, 2016

by Gabriel Cabot, digital marketing strategist at Firmex, Inc. The switch from PDRs to VDRs resulted in deal cycles and increased valuations. Corporations store employee records, confidential HR information and other management data in secure Virtual data rooms. The old PDRs were quite cumbersome due diligence processes.

Software Review 100

Software Review Technical Review Due Diligence Security 100

Up and Running

AUGUST 29, 2014

A venture feasibility study analyzes an idea from several perspectives: market opportunity, competition, resources available, resource gaps, financial viability, operational issues, intellectual property rights, development timeline and technology needs. Look for common employee behaviors. Census Bureau. Often this is not true.

Small Business 87

Small Business CPA Government North America 87

www.entrepreneur.com

SEPTEMBER 22, 2011

Entrepreneur Homepage Startups Starting a Business Home How-To Guides Startup Basics Business Ideas Business Planning Startup Financing Success Stories Home-Based Business Starting a Business Play Video How to Take a New Product from Just an Idea to a Business (Video). Financing Some Jobs Act Proposals Make Headway. July 31, 2007 |.

Sweat Equity 55

Sweat Equity Equity Fractional CTO CTO 55

YoungUpstarts

OCTOBER 23, 2017

This combinatorial model works because it’s diversified, can best withstand bear markets, benefits from technological synergies, and it’s the mix of products and services clients value. Here digital intercepts of consumer activities are aggregated into large data sets, analysed, and assessed versus market expectations. Underwriting.

Technical Review 154

Technical Review Artificial Inteligence Software Review IPO 154

Duct Tape Marketing

FEBRUARY 3, 2022

Helping Entrepreneurs Buy And Sell Their Agencies written by John Jantsch read more at Duct Tape Marketing. Marketing Podcast with Amanda Dixon. In this episode of the Duct Tape Marketing Podcast , I interview Amanda Dixon. Amanda is the Co-founder at Barney an M&A firm that specializes in the digital marketing space.

Entrepreneur 78

Entrepreneur Technical Review Cofounder Valuation 78

ithacaVC

NOVEMBER 28, 2012

On October 17th I posted on seed and early stage startup valuations. This morning I read a post by Marty Zwilling on startup valuations. His post on startup valuations lists the following rules of thumb (i.e., All principals and employees add value. Find “comparables” who have received financing (market approach).

Valuation 69

Valuation Intellectual Property Startup Early Stage 69

David Teten

NOVEMBER 17, 2011

I’ve often found it helpful to have on hand a simple model showing the impact of each financing stages on all team members, suitable for sharing with everyone in the company. Download the Startup Options Valuation model here. Such a model is particularly helpful for those founders looking for a co-founder or key employee.

Employee 155

Employee IRR Startup Mexico 155

ReadWriteStart

SEPTEMBER 10, 2010

Whether it is in the emerging markets or in the U.S., I call it drip-financing. Most entrepreneurs have no choice but to avail of this sort of financing along with the mentoring and the contacts that could come with it (doesn't always come along, though). In 1M/1M, our preferred financing strategy is customers.

Cloud 115

Cloud Silicon Valley Incubator Finance 115

The Startup Magazine

JUNE 1, 2023

There are currently tons of “zombie” startups that have runway, but growth has slowed and they have valuations that they won’t be able to grow into. Be honest with yourself VCs are now going to be looking closer at margins, cost structures and true sales, and product market fit. they still aren’t profitable.

Early Stage 146

Early Stage Los Angeles Silicon Valley Cofounder 146

Both Sides of the Table

SEPTEMBER 18, 2014

It’s like we need a finance 101 course for entrepreneurs. Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. It’s simply what a market is willing to pay based on a future belief that your company will grow and non-linear rates and be worth much more in the future.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Startup Professionals Musings

SEPTEMBER 30, 2011

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” The founders now need a $1M Angel investment to do the marketing for a national NewCo rollout, build a team to manage the rollout, and maybe even pay themselves a salary.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

Gust

NOVEMBER 4, 2011

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. Valuation caps can come into play in settings other than seed-stage convertible note financing rounds. Read on for a fuller explanation.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

VC Cafe

FEBRUARY 27, 2024

While the answers are somewhat semantic, the pre-seed funding round is making a comeback in 2024 startup financing. Seed is about showing initial product market fit. What’s the difference between an angel round and pre-seed round and why do I believe we’ll see more pre-seed rounds taking place in 2024?

Valuation 186

Valuation Software Review Generative AI Technical Review 186

ReadWriteStart

MARCH 24, 2011

In addition, Priyanshu is also considering an enterprise solution with the notion of cleaning up the profiles of employees (based on social media policies) of objectionable material. The discussion today was around Social Media financing and go-to-market strategy. This pretty much rules out SEO, PPC, affiliate marketing, etc.

Illinois 114

Illinois Entrepreneur Silicon Valley Chicago 114

Startup Professionals Musings

JUNE 26, 2016

Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $400B. Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation. Both have worked. Most are still confused about the right priority.

Revenue 145

Revenue Valuation Startup Viral 145

Startup Professionals Musings

AUGUST 10, 2014

Both have worked.Google reached $1 billion in revenue within five years of incorporation, and now has a market capitalization of over $400 billion. Should they focus on increasing revenues and profitability, or entice more and more users with free services to increase their valuation. Traditionally, it was simple.

Revenue 246

Revenue Entrepreneur Valuation Viral 246

www.inc.com

SEPTEMBER 24, 2011

Finance | Tuesdays. Sales & Marketing | Wednesdays. Financing a Small Business. Financing A Small Business. Personal Finance. Employee Benefits. SALES & MARKETING. Online Marketing. Bringing Innovation to Market. Small Business Success | Mondays and Thursdays. Innovation | Fridays.

Arizona 40

Arizona Equity Iowa Venture Capital 40