Startup Professionals Musings

JUNE 6, 2014

With the recent apparent successes of several startups in taking their company public (initial public offering) and raising billions of dollars, I’m hearing a groundswell of enthusiasm from new entrepreneurs to follow in their footsteps to fund their companies and become billionaires overnight.

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IPO Initial Public Offering Startup Small Business Administration 236

Startup Professionals Musings

DECEMBER 8, 2019

Thus I’m getting more questions on new mechanisms, like crowd funding, or going public through the side door as a reverse merger. Other than raising money, the reverse merger may be the quickest way to get you to other benefits of a public company.

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Merger OTC IPO Due Diligence 303

VC Cafe

JANUARY 15, 2024

M&A/ Exits – This situation is compounded by a narrowing window for mergers and acquisitions (M&A) and initial public offerings (IPOs).

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IPO Valuation Private Equity 88

YoungUpstarts

MAY 31, 2016

Hire smart, ambitious, get-it-done employees and lead them with emotionally intelligent innovation leadership skills. Yes, cash flow is king and every start-up wants to achieve greatness or hit a sizable IPO, initial public offering sooner than later. Always remember, that businesses are only as great as their employees.

Technical Review 100

Technical Review Leadership Early Stage Initial Public Offering 100

The Startup Magazine

MAY 4, 2018

Is the goal to grow the business through salaried employees or will there only be occasional independent contractors? The reason why it is the best business structure for people who need a lot of capital is that it offers an “Initial Public Offering” where outsiders can give money by purchasing stocks.

Limited Liability Company 119

Limited Liability Company Initial Public Offering LLC Salary 119

Startup Professionals Musings

JANUARY 13, 2018

Thus I’m getting more questions on new mechanisms, like crowd funding, or going public through the side door as a reverse merger. Other than raising money, the reverse merger may be the quickest way to get you to other benefits of a public company.

Merger 198

Merger OTC IPO Due Diligence 198

Berkonomics

JANUARY 7, 2021

[Email readers, continue here…] Often, if not co-founders, this group is rewarded through issuance of stock options from a pool of available options that usually totals 15-20% of the total company’s equity divided among all employees.

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Liquidity Event Pre-Money Valuation Cofounder Initial Public Offering 96

Startup Professionals Musings

AUGUST 26, 2018

Despite the fact that the number of IPOs (Initial Public Offerings) for startups have continued to stay low, I still hear it touted often as the preferred exit strategy. Public companies bring new expectations of benefits. Everyone dreams of becoming a billionaire overnight. Analysts want escalating profits.

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Exit Strategy IPO Initial Public Offering SEC 128

The Next Web

JANUARY 16, 2014

The firm now has 600+ employees with Facebook vice-president Jay Parikh and former Symantec chief executive Enrique Salem on its board as of August 2013. From starting the company on a AUD $10k credit card in 2002 to raising $60m from Atlas Partners in 2010, Sydney-based enterprise software firm counts Twitter and NASA among their clients.

Australia 146

Australia San Francisco IPO Cofounder 146

Startup Professionals Musings

MAY 3, 2014

A reverse merger is the acquisition of an already public company (usually a dormant shell) to avoid the Initial Public Offering (IPO) process and cost, to quickly get your startup on a public exchange for fund raising through visibility and selling stock.

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Merger OTC IPO Stock 246

Startup Professionals Musings

FEBRUARY 19, 2012

Assuming your startup takes off, you will probably find that the fun is gone by the time you reach 50 employees, or a few million in revenue. Initial Public Offering (IPO). Even three years is a long time to wait for any pay check. Entrepreneurs love the art of the start.

Exit Strategy 241

Exit Strategy Initial Public Offering IPO Startup 241

Startup Professionals Musings

AUGUST 7, 2016

Despite the fact that the number of IPOs (Initial Public Offerings) for startups have continued to decrease, I still hear it touted often as the preferred exit strategy. Public companies bring new expectations of benefits. Everyone dreams of becoming a billionaire overnight. Analysts want escalating profits.

IPO 120

IPO Initial Public Offering SEC Stock Options 120

Startup Professionals Musings

FEBRUARY 5, 2012

This normally means more then 30 employees, and more then $1 million in revenue. At this stage, you need investment bankers to negotiate a merger or acquisition (M&A), go private, or help you go public with an Initial Public Offering (IPO). Exit stage.

Investment Bankers 241

Investment Bankers Venture Capital Startup Initial Public Offering 241

Austin Startup

FEBRUARY 12, 2019

How much you raised during your last round and how many employees you have are viewed primarily through the lens of how much money is at hand, mission of your business be damned. One of the biggest myths alive and well in startup land, particularly in Silicon Valley and even in Austin’s tech scene, is that money rules all.

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Silicon Valley Technical Review Venture Capital San Francisco 48

Startup Professionals Musings

JANUARY 16, 2011

It has been at least a decade since going public via an Initial Public Offering (IPO) has been considered a credible exit strategy for startups. Liquidity can help attract new employees and keep current ones happy. Do you need this for recruitment and retention? Do you need this for your image?

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IPO Social Media Media Exit Strategy 223

Startup Professionals Musings

SEPTEMBER 7, 2015

They haven’t yet faced the realities of new employee benefits, escalating salaries and the true overhead of scaling the business. This means an acquisition or initial public offering that will generate at least five times your fifth-year revenues, at a commensurate equity ownership.

Liquidity Event 120

Liquidity Event Startup Initial Public Offering Equity 120

Startup Professionals Musings

JUNE 15, 2015

Thus I’m getting more questions on new mechanisms, like crowd funding, or going public through the backdoor as a reverse merger. Other than raising money, the reverse merger may be the quickest way to get you to other benefits of a public company.

Merger 120

Merger OTC IPO Due Diligence 120

Startup Professionals Musings

JANUARY 5, 2011

Assuming your startup takes off, you will probably find that the fun is gone by the time you reach 50 employees, or a few million in revenue. Initial Public Offering (IPO). Even three years is a long time to wait for any pay check. Entrepreneurs love the art of the start.

Exit Strategy 231

Exit Strategy Initial Public Offering Startup IPO 231

YoungUpstarts

MARCH 11, 2015

But it’s an important consideration, especially for companies that plan to offer alternative compensation such as employee stock options, which will usually require a 409A valuation. Startup companies are often cash poor and have little in the form of current monetary compensation to offer their employees.

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Valuation Stock Options CPA Merger 100

Startup Professionals Musings

OCTOBER 13, 2010

This normally means more then 30 employees, and more then $1 million in revenue. At this stage, you need investment bankers to negotiate a merger or acquisition (M&A), go private, or help you go public with an Initial Public Offering (IPO). Exit stage.

Investment Bankers 231

Investment Bankers Venture Capital Startup Initial Public Offering 231

Startup Company Lawyer

MARCH 12, 2009

C corps, LLCs, and S corps differ significantly in the areas of taxation, ownership, fundraising, governance and structure, and employee compensation. I generally avoid LLCs as most technology startup companies need to grant options to employees and consultants, and there is no easy “off the rack&# method to do this. residents.

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LLC Stock Options Preferred Stock Stock 61

Austin Startup

AUGUST 26, 2011

In the “you knew this was coming&# category, Bazaarvoice filed for an Initial Public Offering (IPO) of it’s stock today. The company is one of the fastest growing in Austin, going from 70 employees in April 2007 to over 600 today. The news is being covered by TechCrunch and The Statesman.

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IPO Initial Public Offering Cofounder Stock 67

Gust

NOVEMBER 22, 2011

This normally means more then 30 employees, and more then $1 million in revenue. At this stage, you need investment bankers to negotiate a merger or acquisition (M&A), go private, or help you go public with an Initial Public Offering (IPO). Exit stage.

Venture Capital 171

Venture Capital Investment Bankers Angel Investor Initial Public Offering 171

Berkonomics

JUNE 12, 2014

Often, if not co-founders, this group is rewarded through issuance of stock options from a pool of available options that usually totals 15-20% of the total company’s equity divided among all employees. That risk deserves reward if there is a profitable sale or even an initial public offering, rare as that event is.

Liquidity Event 85

Liquidity Event Pre-Money Valuation Cofounder Initial Public Offering 85

YoungUpstarts

NOVEMBER 13, 2012

For years, the most desirable exit strategy for startup companies was to go public through an initial public offering. Just 18 months after this photo sharing program and social network was launched, Facebook offered to purchase Instagram for $1 billion in cash and stock. They only had 13 employees!

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IPO Exit Strategy San Francisco Startup 162

Rob Go

OCTOBER 1, 2014

It’s the eve of Wayfair’s Initial Public Offering, and I’m so excited for the company. I hope every employee and alum feels immense pride about having reached this milestone. But contrary to how I feel about most tech companies that go public, I think the future holds even more potential.

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Initial Public Offering Metrics Revenue Operations 51

Reid Hoffman

MARCH 19, 2019

But in today’s world, speed-to-scale entrepreneurship is what we need to improve society, transform industries, and create massive value for customers, employees, and investors. When the market conditions are right, you should blitzscale for the benefit of all stakeholders: customers, employees, investors, and society.

Cofounder 28

Cofounder Business Model IPO Non-Compete 28

Startup Professionals Musings

NOVEMBER 2, 2018

At the other extreme, I don’t condone greedy and unethical business practices to unjustly shake down customers and employees alike. Constituents look for a long-term strategy of continuing return, normally including an initial public offering (IPO) or merger/acquisition, to on-going value or option to cash out.

Intellectual Property 48

Intellectual Property Initial Public Offering Merger Acquisition 48

online.wsj.com

SEPTEMBER 23, 2012

At its peak, in 2010, Goodmail had roughly 40 employees. Both studies counted only incorporated companies with employees. The company raised $45 million in venture capital from firms including DCM, Emergence Capital Partners and Bessemer Venture Partners, and built partnerships with AOL Inc., Comcast Corp., entrepreneurship.

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Venture Capital Software Review Rhode Island North Dakota 107

Growthink Blog

MAY 10, 2012

Providing enough capital for 1 to 2 years of operations, funds obtained from the Series A round can be used for the full gamut of needs-from product development and marketing to employee salaries. Series B is the round that follows series A in early stage financing.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

online.wsj.com

JULY 11, 2012

About 14% of the technology firms that have held initial public offerings between January 2011 and the end of June 2012 went public with at least two share classes—more than twice the 6.4% Founders Larry Page and Sergey Brin and Executive Chairman Eric Schmidt now control nearly 66% of the voting power.

Silicon Valley 42

Silicon Valley Founder Software Review Technical Review 42