Remove Employee Remove Marketing Remove Retention Remove Valuation
article thumbnail

Business Prenup: What To Do Before You Start A Company With A Partner

YoungUpstarts

Think about your employee and ownership hats. Is it prudent to have a set formula for valuation before you know how the company will perform or will you require the company to pay for an expert to value the company if one side wants to sell? Protect your company’s customers, employees and intellectual property.

Partner 208
article thumbnail

5 Considerations For Driving Growth In A New Business

Startup Professionals Musings

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
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

5 Strategies For Balancing Revenue Versus User Growth

Startup Professionals Musings

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
article thumbnail

A VC: Employee Equity: How Much?

www.avc.com

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
article thumbnail

Why Misunderstanding Startup Metrics Can Cost You Your Business

Both Sides of the Table

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. That’s because CAC needs to take into account all of your marketing spend to truly understand how much each customer costs you.

Metrics 150
article thumbnail

The Acquihire Market for Early Stage Startups is Ice Cold. One Better Strategy? Announce You’re For Sale.

Hunter Walker

The proverbial win-win-win: founders got to land their company often with some retention premium; employees got job offers; and we got capital back, that even if it wasn’t a power law return, allowed us to recycle into new investments or the existing portfolio. Not in today’s market conditions. Very different.

article thumbnail

Should a Startup Spend VC Funding on a Domain Name?

David Teten

Wesabe lost out to Mint.com ; Noah Kagan, employee #5 at Mint, later wrote that the awkward Wesabe name was a key reason. However, they remain key to your email identity, and fundamental to your marketing and even capital-raising. Foursquare won vs. Gowalla, Loopt, and others. A bad domain name can sink you.

Naming 114