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. For bigger companies, it’s a more efficient and quicker way to grow their revenue than creating new products organically. Initial Public Offering (IPO).

Exit Strategy 241

Exit Strategy Initial Public Offering IPO Startup 241

Startup Professionals Musings

SEPTEMBER 7, 2015

I recently saw a startup projecting $50 million in revenue for the first year. I recommend five-year projections, to show the evolution of revenues and expenses and funding and profitability expectations over time. My rule of thumb is that startup-revenue projections in the fifth year better be between $20 million and $100 million.

Liquidity Event 120

Liquidity Event Startup Initial Public Offering Equity 120

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. Being a public company isn’t cheap or easy.

Merger 246

Merger OTC IPO Stock 246

Startup Professionals Musings

FEBRUARY 5, 2012

At this stage, your startup better be selling a commercial offering, have price and cost validated, with significant customer sales and a real revenue stream. This normally means more then 30 employees, and more then $1 million in revenue. Lesser amounts remain in the angel realm. Growth stage. Exit stage.

Investment Bankers 241

Investment Bankers Venture Capital Startup Initial Public Offering 241

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. For bigger companies, it’s a more efficient and quicker way to grow their revenue than creating new products organically. Initial Public Offering (IPO).

Exit Strategy 231

Exit Strategy Initial Public Offering Startup IPO 231

Startup Professionals Musings

OCTOBER 13, 2010

At this stage, your startup better be selling a commercial offering, have price and cost validated, with significant customer sales and a real revenue stream. This normally means more then 30 employees, and more then $1 million in revenue. Lesser amounts remain in the angel realm. Growth stage. Exit stage.

Investment Bankers 231

Investment Bankers Venture Capital Startup Initial Public Offering 231

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. Draper III, in his new book titled “ The Startup Game.” Do you need this for your image?

IPO 223

IPO Social Media Media Exit Strategy 223

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. Being a public company isn’t cheap or easy. Experts estimate the burden of public companies at up to $1M a year. Is your startup really ready to play in the corporate world?

Merger 120

Merger OTC IPO Due Diligence 120

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. I still want to have as large an impact as possible, but I don’t need to create it directly, or capture it in the form of our revenue or our valuation.”

Silicon Valley 48

Silicon Valley Technical Review Venture Capital San Francisco 48

Gust

NOVEMBER 22, 2011

At this stage, your startup better be selling a commercial offering, have price and cost validated, with significant customer sales and a real revenue stream. This normally means more then 30 employees, and more then $1 million in revenue. Lesser amounts remain in the angel realm. Growth stage. Exit stage.

Venture Capital 171

Venture Capital Investment Bankers Angel Investor Initial Public Offering 171

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.

Valuation 100

Valuation Stock Options CPA Merger 100

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.

Initial Public Offering 51

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

If failure is defined as failing to see the projected return on investment—say, a specific revenue growth rate or date to break even on cash flow—then more than 95% of start-ups fail, based on Mr. Ghoshs research. At its peak, in 2010, Goodmail had roughly 40 employees. start-ups fail, he says. Comcast Corp.,

Venture Capital 107

Venture Capital Software Review Rhode Island North Dakota 107

Growthink Blog

MAY 10, 2012

Necessary machinery, an initial website, your first batch of inventory-things you can't function without. Put everything else on your "wish list" to buy with revenues from sales or additional financing. Series B is the round that follows series A in early stage financing.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88