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?” This time I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points. All principals and employees add value.

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?” This time I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points. All principals and employees add value.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

ConversionXL

AUGUST 11, 2021

But it’s not as simple as reaching out to a company you want to collaborate with and putting their name on your website in exchange for cash. If your audience isn’t interested in a sponsor’s product or service, then putting their name to your offer won’t deliver the ROI they’re looking for, ruining any chance of a long-term partnership.

Audience 139

Audience Social Media Email Ruby 139

Steve Blank

MARCH 31, 2014

I’m sure many of you have heard his name. Companies horde cash and squeeze the most revenue and margin from the money they use. Look at the valuations of companies like Tesla, Illumina, and Twitter. The companies that can show “startup-like” growth rates of 50% plus per year will get stratospheric market valuations.

Private Equity 328

Private Equity Metrics China Intellectual Property 328

This is going to be BIG.

SEPTEMBER 12, 2022

I found it very hard to believe that any of the problems The Wing faced in 2020 and its lead up were dramatically different from anything going on in any brand name hotel, restaurant group, or any other hospitality business. The Wing imagined itself to be different and promoted itself to be. I don’t think that’s happening this time.

Cofounder 140

Cofounder Venture Capital Community PR 140

David Teten

DECEMBER 3, 2019

Point Nine Capital uses 15Five for continuous employee feedback. Pro Publica has a Nonprofit Explorer database searchable by principal name on all nonprofit filings, so you can see a person’s nonprofit activities. . Lighter Capital, a Revenue Based Investing VC, offers a Cost of Capital Calculator. 7) Negotiate .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

YoungUpstarts

MAY 17, 2019

But every year thousands of entrepreneurs become millionaires by buying and growing businesses without the startup headaches of venture capitalists, zero revenue, and no business processes. The employees depend on their expertise and training. The diligence: Interview customers, vendors, and employees. They make all the sales.

Due Diligence 185

Due Diligence Forecast Deal Structure Valuation 185

Austin Startup

OCTOBER 15, 2017

followers on Facebook and is energetically remaining in the public square, but he commented that he’s personally carrying the freight for about 10 employees working on his website. In the torrent of real and fake news, what’s his competitive edge other than name recognition? He has over 1.2M What would you do in his shoes?

Technical Review 48

Technical Review Software Review Nevada Silicon Valley 48

YoungUpstarts

JULY 6, 2020

The truth is that if a startup doesn’t have the potential to disrupt an industry worth billions and generate north of $100M in annual revenue, then it simply won’t make financial sense for a venture capitalist to bet on it. Moreover, as the name suggests, the team is more than one person. Traction: Demonstrate Momentum.

Venture Capital 226

Venture Capital Software B2B Early Stage 226

Duct Tape Marketing

FEBRUARY 3, 2022

Questions I ask Amanda Dixon: [1:14] What’s the story behind your company name? [1:57] John Jantsch (01:14): So I have to start with the name. Amanda Dixon (01:33): Know what, there is not a story, but I need to make one up because everyone asks the story is we needed a name and a domain. So Amanda, welcome to the show.

Entrepreneur 78

Entrepreneur Technical Review Cofounder Valuation 78

Transformify

APRIL 12, 2020

Coronavirus pandemic had an unexpected side effect – organizations that were reluctant to adopt home office and remote work had no other choice than asking their employees to work from home. ‘’ No doubt, remote workers need to have equal rights as in-office employees. Classifying Remote Workers.

Bangladesh 98

Bangladesh Philippines Salary Cofounder 98

YoungUpstarts

APRIL 5, 2019

Entrepreneurs nowadays want to boast about brand-name investors, huge rounds of funding, and a team of high-skill employees. Are you fresh out of Y Combinator with $1 million in funding at a $10 million valuation? Call me old school, but I believe in metrics like growth, revenue, and profit. It’s not exactly glamorous.

Valuation 162

Valuation Cofounder Metrics SEC 162

Hippoland

JULY 24, 2016

Valuation is a nebulous topic amongst early stage startups, so I thought I’d really spell it out in detail. In short: Valuations for seed stage companies are fairly arbitrary and driven solely by supply and demand. Your startup’s valuation is not based on a proforma of your revenue.

Seed Stage 48

Seed Stage Valuation Vertical Demand 48

Duct Tape Marketing

FEBRUARY 16, 2023

So we could go, we could spend the rest of our time talking about valuation. The government, for example, often defines small business by the number of employees. because a main street business creates the connotation in our head of that small mom and pop kind of business, maybe with a few employees.

Technical Review 80

Technical Review Wisconsin Non-disclosure Agreement Salary 80

Transformify

AUGUST 27, 2017

Your team is directly correlated with the valuation of your startup. Also, once your MVP is tested, if it appears that there is no good product – market fit, you can cut the cost easily as there are no employees that need to be fired. Hire full-time employees. Team comes first. The downside? We have been there.

Hiring 64

Hiring Software Review Burn Rate Startup 64

Up and Running

SEPTEMBER 20, 2021

For instance, the cap table will help you with various possibilities while running business activities like available options and pre-money valuations faster. The data presents a historical insight on a cap table that can affect the valuation of your startup when it comes time for a new round of fundraising. Total share ownership.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

SoCal CTO

OCTOBER 5, 2010

want to sidestep the argument about whether or not it's good to be " stealth " or not, and work with the assumption that if you've purchased the domain name, you're going to put up some sort of website. Except they won’t be called Product Managers. That crazy chicken. Burger King’s brave new world. It’s simple.

Technology 191

Technology Product San Francisco CTO Hire 191

Cracking the Code

SEPTEMBER 12, 2021

As the company announces its $530 million Series F at a valuation of $8.5 As an employee, I never waited for instructions to do something. You need close partners in that journey and you get many sorts of partners - investors, employees etc. - The hardest thing has been saying no to exciting opportunities in the name of focus.

Community 62

Community Cofounder Security Open Source 62

abovethecrowd.com

JUNE 2, 2021

This “gain” ($34B last year alone) is a result of a direct wealth-transfer to these individuals FROM the previous owners of the company — founders, executives, employees, and venture investors. The founders, the CEO, the CFO, the executives, the employees, and the venture investors. Party B: The investment banks.

IPO 82

IPO Customer Matching Silicon Valley 82

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?” This time I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points. All principals and employees add value.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

abovethecrowd.com

APRIL 20, 2016

One key to this population growth has been the remarkable ease of the Unicorn fundraising process: Pick a new valuation well above your last one, put together a presentation deck, solicit offers, and watch the hundreds of million of dollars flow into your bank account. By January of 2016, that number had ballooned to 229.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Steve Blank

SEPTEMBER 14, 2009

In theory when you went public, everyone’s shares were now tradable on the stock exchange, but usually the underwriters required a six month “lockup” when company insiders (employees and investors) couldn’t sell. While there was an occasional bad apple, the public markets rewarded companies with revenue growth and sustainable profits.

Silicon Valley 233

Silicon Valley IPO Technical Review Venture Capital 233

Up and Running

OCTOBER 3, 2018

Your executive summary will include the following sections: Who you are: Your business name, location, and contact information. . Financial Summary: Explain your business model, startup costs, revenues, and liabilities to the company. Company history if it’s an existing company: This provides background for potential new employees.

El Paso 61

El Paso Business Plan Technical Review Forecast 61

www.inc.com

SEPTEMBER 24, 2011

Naming a Business. Employee Benefits. Jumpstart wasnt much at the time, just four employees working from home offices. In the past few years, hundreds of small companies have been snatched up by private equity firms willing to agree to ever-rising valuations. Tools & Research. Newsletters. Subscriptions. Franchises.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Up and Running

APRIL 11, 2016

When asked how he figured out who his target market was, he responded, “I looked at the volume of sales in my city, from the property valuation administrator, and then looked for the ‘sweet spot.’ For Tim, choosing a company name was a strategic action. “My The Complete Guide to Registering Your Business Name.

Reputation 60

Reputation Cofounder Naming Business Plan 60

Both Sides of the Table

FEBRUARY 12, 2017

(there’s a great story from Jonah in the video but you have to watch to hear it :)) But it’s undeniable that it has become a digital media powerhouse having raised around $500 million in capital with a valuation reported at $1.7 billion and revenues likely exceeding $250 million (Wikipedia lists 2015 revenue at $167 million).

Media 210

Media Los Angeles Russia Viral 210

Duct Tape Marketing

JUNE 20, 2023

12:22] Would you look at the value derived by digital technologies differently than by producing customer value or revenue? [14:23] And the model we had in mind, there's a book called Valuation, which our, our firm has had an updated every year for the past 20 years or more. It sort of gives the field almost a bad name, right?

Technical Review 65

Technical Review Silicon Valley Generative AI Arizona 65

Austin Startup

FEBRUARY 12, 2019

Almost immediately, people started to dig what we were doing: Digital Trends named Localeur one of their favorite new apps of SXSW 2013 and other press followed. 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.

Silicon Valley 48

Silicon Valley Technical Review Venture Capital San Francisco 48

David Teten

SEPTEMBER 23, 2017

It seamlessly creates a deal folder (company name) in our Google Drive, and notifies us that a new deal has entered the pipeline via Slack. Close to 80% responded that manual processes, such as tracking down support, preparing reports and pulling data from different sources, are the biggest pain points they face in the valuation process.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

reidhoffman.org

NOVEMBER 12, 2013

Friendster’s valuation set the tone for the entire social networking space. we had no revenue. As a result, we knew that our pitch would need to steer into investors’ biggest concern: the lack of revenue. And remember, LinkedIn was a consumer internet play with moderate consumer traction and without a dime of revenue.

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111

www.paulgraham.com

APRIL 28, 2010

There never has to be atime when you have no revenues. The reason is that employees are investors too—oftheir time—and they want just as much to be able to cash out. Another concept we need to introduce now is valuation. I say "in theory" because in early stageinvesting, valuations are voodoo.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Steve Blank

FEBRUARY 10, 2016

Keen Home appeared on the TV show, Shark Tank , in 2012, landing one of the highest valuations in the show’s history. Inbound interest for partnerships, for employment, for investment (increased) — you name it from small companies, small HVAC contractors to large companies like AT&T. Thankfully my team members always have.

Silicon Valley 120

Silicon Valley Ohio Columbus Entrepreneur 120

Steve Blank

JANUARY 4, 2010

Now with customers and early revenue, it was out raising its first round of venture money. Staring at us in the board meeting were three term-sheets from brand name VC’s and an unexpected buy-out offer from Google. In fact, Google’s offer for $15 Million was equal to the highest valuation from the venture firms. In the U.S.

Hockey Stick 296

Hockey Stick Venture Capital Startup Cofounder 296

Up and Running

DECEMBER 9, 2014

My name is John Bates. After college, I was a very early employee at a web company called Tumblr. It’s designed for small and mid size companies and it all started based on a focus of the employees. Our slogan is, “We heart employees,” and everything that we do is designed around usability for the employees.

Small Business 95

Small Business Finance Forecast Metrics 95

www.paulgraham.com

OCTOBER 23, 2010

If you work your way down the Forbes 400 making an x next to the name of each person with an MBA, youll learn something importantabout business school. If you give an investor new shares equal to 5% ofthose already outstanding in return for $100,000, then youve donethe deal at a pre-money valuation of $2 million.

Startup 105

Startup Cofounder Software Stock 105

Ben's Blog

APRIL 28, 2010

Andy Grove was Intel’s third employee (after the two cofounders Robert Noyce and Gordon E. Felix Salmon, for instance, points out that Fortune’s editorial staff considered twelve other candidates including Warren Buffett, Carlos Slim, and Martha Stewart before naming Steve Jobs the best CEO of the decade in November 2009.

Technical Review 78

Technical Review Cofounder Technical Cofounder Software Review 78

discuss.joelonsoftware.com

NOVEMBER 1, 2010

This community works best when people use their real names. Right now, my business is just myself and a part-time employee who does support, testing, and product usability design. An employee is normally paid a salary or wages. A part of Joel on Software. Please register for a free account. The key here is motivation.

Sweat Equity 40

Sweat Equity Equity Angel Investor Affiliate 40