Startup Professionals Musings

SEPTEMBER 16, 2023

Who would not want to join the unicorns (recent startups with a current valuation of over $1 billion)? Rounding out the team with employees and freelancers. Successful startup teams today have a mix of remote employees, freelancers, and contractors. Fundraising through online platforms and crowdfunding.

Intellectual Property 261

Intellectual Property Entrepreneur Angel Groups Social Media 261

Startup Professionals Musings

JUNE 11, 2022

Personal loans from individuals, employees and board members. As in any company, they can lead to employee problems, or messy legal issues. This could work to get you legal or accounting services, but won’t get you cash to pay employee salaries. Personal loans are certainly an option, but should be avoided if possible.

Angel Investor 327

Angel Investor Equity Technical Review Exit Strategy 327

VC Cafe

SEPTEMBER 26, 2022

A combination of competition for top talent and an effort to bring employees back to the office drove startups in Israel to throw extravagant parties and all-inclusive retreats abroad. The press took notice, especially since just a few months later startups were laying off employees en-masse to cut costs. Our goals, their goals.

Founder 187

Founder Startup Valuation Pre-Money Valuation 187

VC Cafe

JUNE 10, 2022

According to new research by Pitchbook , the trickle down effect has already started in seed and series A startups with round sizes and valuations shrinking in size compared to 2021. But recently those round sizes and valuations have tumbled to about $10 million and $50 million, respectively, he said. Lemkin #????????????

Valuation 151

Valuation Marketing Venture Capital 151

Startup Professionals Musings

MAY 14, 2023

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity.

Burn Rate 258

Burn Rate Hockey Stick Management Salary 258

Startup Professionals Musings

NOVEMBER 28, 2020

Who would not want to join the unicorns (recent startups with a current valuation of over $1 billion)? Rounding out the team with employees and freelancers. Successful startup teams today have a mix of remote employees, freelancers, and contractors. Fundraising through online platforms and crowdfunding.

Intellectual Property 404

Intellectual Property Startup Angel Groups Social Media 404

ReadWriteStart

JANUARY 28, 2022

This article will assist you in gaining a fundamental understanding of equity valuation, kinds of equity, and other related topics. Also, equity is utilized to incentivize employees to work together toward a similar goal, whether that objective is to become the next unicorn or to be acquired by a major corporation. Equity for Advisor.

Valuation 108

Valuation Equity Warrant Common Stock 108

Startup Professionals Musings

DECEMBER 30, 2022

Every business owner and entrepreneur I meet in my consulting rounds dreams of finding that “ disruptive ” innovation that will supercharge their business and move it into the ranks of business unicorns (billion-dollar valuations), such as SpaceX and Apple. Before you act, shut up and listen to employees, customers, and futurists.

Technical Review 252

Technical Review Silicon Valley Software Review Metrics 252

YoungUpstarts

OCTOBER 24, 2017

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

Partner Technical Review Intellectual Property Due Diligence 208

YoungUpstarts

NOVEMBER 19, 2020

People refers to the management and employees that are currently employed by the business. Committed employees and tenured management teams can act as a value driver as they are directly involved with the direction and growth of your company. Processes refers to operating procedures and employee handbooks.

Exit Strategy 246

Exit Strategy Intellectual Property Valuation Metrics 246

The Startup Magazine

AUGUST 11, 2023

Analysts perform a valuation of the company in question before the beginning of any round of funding. The management of a company, its established track record, the size of the market, and the level of risk all play a role in determining a company’s valuation. What is the Evaluation of the Funding?

Seed Stage 126

Seed Stage Technical Review Early Stage Due Diligence 126

Startup Professionals Musings

AUGUST 19, 2020

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Both Sides of the Table

JULY 17, 2018

Be sure you can grow into your valuation by next fund-raising or your last raise could become existential or extremely dilutive  —  @msuster 7/ If you know an employee is a negative energy in the office don't delay parting ways. But if you raise at too high a price you make it harder to raise next round.

Founder 242

Founder Dilution Software Review Later Stage 242

ReadWriteStart

JULY 15, 2020

New talk of capital efficiency is gratifying, but there was another lesson from pre-COVID-19 valuation struggles. Venture capitalists and early-stage investors have told all of us, founders are critical to a startup’s valuation. Companies that prompt employees to speak up about ethical lapses tend to be more profitable.

Valuation 91

Valuation South Carolina San Jose Balance Sheet 91

Startup Professionals Musings

SEPTEMBER 8, 2019

Personal loans from individuals, employees and board members. As in any company, they can lead to employee problems, or messy legal issues. This could work to get you legal or accounting services, but won’t get you cash to pay employee salaries. Personal loans are certainly an option, but should be avoided if possible.

Equity 235

Equity Angel Investor Technical Review Exit Strategy 235

The Startup Magazine

MARCH 14, 2022

Here, the company’s valuation benchmark is set, and funding is solicited accordingly. Organisations in our country now trust their employees with remote and hybrid work, improving their productivity and boosting morale. Group mediclaim policies provided by startups to their employees attract hard-working talent to these entities.

Technical Review 145

Technical Review Due Diligence India Startup 145

Steve Blank

JULY 11, 2017

After the director left, I must have looked pretty surprised as the CFO explained, “We have tens of thousands of employees, and at the rate we’re growing it’s almost impossible to keep up with our space needs in the Bay Area. This founder’s reality distortion field attracted a large number of employees who shared his vision.

Part-Time VPE 308

Part-Time VPE Liquidity Event Stock Engineer 308

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?” 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 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

Steve Blank

JUNE 27, 2017

Its employees and investors don’t depend on an existing revenue stream. Uber – current valuation >$70 billion – knew the day they started that their ridesharing service violated the law in most jurisdictions. Airbnb – current valuation $31 billion – allows people to rent out their homes, rooms or apartments to visitors.

Startup 275

Startup New York City Valuation Distribution 275

VC Cafe

JANUARY 14, 2022

The Israeli innovation authority deems the sector suffers from ‘ chronic employee shortage’ The battle for talent has meant that companies had to lure potential employees with billboards, influencer videos, referral schemes, etc. Why do Israeli startups might find them attractive?

Technical Review 158

Technical Review Lock-up Period South Korea 158

YoungUpstarts

MARCH 14, 2016

There are many reasons why you need a current valuation of your business and many business owners assume that it is only necessary when selling but actually, this is not the case. Business valuations and wealth management. A shareholder, employee share ownership plan or management buyout may be credible options in many cases.

Valuation 100

Valuation Sales Employee Management 100

VC Cafe

SEPTEMBER 22, 2022

But becoming a Unicorn, or receiving a billion dollar valuation is no longer an indication of growth. “The Centaur is a business that reaches $100 million of annual recurring revenue (ARR)—a rare breed of cloud business, part of an elite subset of the growing unicorn herd.” ” Bessemer.

Software Review 109

Software Review B2C Open Source 109

Startup Professionals Musings

NOVEMBER 4, 2015

In a new book, “ The Leadership Capital Index ,” Dave Ulrich, a best-selling author, business consultant, and business school professor, provides some real insights and metrics on what makes up the elements of goodwill in the minds of top valuation experts. I have paraphrased his key points here as follows: Leader personal impact.

Leadership 120

Leadership Technical Review Due Diligence Valuation 120

Steve Blank

APRIL 1, 2020

Others are cutting their valuations. Nothing is more important than assuring the company can continue to pay its employees. Award equity to employees equal to the value of their reduced salaries. Try to protect the most vulnerable employees. This is critical if your employees are working remotely.

South Korea 333

South Korea Salary Business Model China 333

Steve Blank

APRIL 26, 2022

At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. They offered desperate founders more cash but insisted on new terms, rewriting all the old stock agreements that previous investors and employees had. They’re Back. You’re not.

Cram Down 404

Cram Down Founder Venture Capital Recapitalization 404

VC Cafe

FEBRUARY 26, 2023

They should be able to identify a gap in the market that their product can fill, and be able to communicate this to investors and employees. The company has grown rapidly and achieved a valuation of over $7 billion by delivering a product that is both intuitive and powerful.

Founder 88

Founder Cofounder Seed Stage Valuation 88

Berkonomics

JANUARY 28, 2021

I can’t tell you how many times I’ve walked away from deals where the entrepreneur insists on a start-up pre-money valuation that is so high, no angel could expect to make a return upon the investment, even with a reasonable sales price for the company down the road. Why fight about valuation, or disappoint the founder at the outset?

Early Stage 62

Early Stage Valuation Pre-Money Valuation Cofounder 62

Up and Running

APRIL 8, 2019

Perhaps you’re preparing for retirement or for a transition to a new owner —whether it involves a single private owner or a sale to employees. This will require an accurate valuation. While these ideas may seem foreign at first, it’s possible to become as well-versed in small business valuation as your intermediary might be.

Valuation 92

Valuation Small Business CPA Balance Sheet 92

Steve Blank

SEPTEMBER 5, 2018

With fewer than 10 employees but almost $2-billion dollars in the bank, they plan on jumping right in. What matters to investors now is to drive startup valuations into unicorn territory (valued at $1 billion or more) via rapid growth – usually users, revenue, engagements but almost never profits. And it may work.

Lean 335

Lean Burn Rate Startup IPO 335

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

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Professionals Musings

SEPTEMBER 29, 2018

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

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

Startup Professionals Musings

MARCH 25, 2023

Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation. Startup productivity is embodied in key ratios, including low cost of customer acquisition, high retention, and high revenue per employee. Most are still confused about the right priority.

Valuation 235

Valuation Revenue Viral Retention 235

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

Both Sides of the Table

FEBRUARY 8, 2016

The startup industry may be “resetting,” which doesn’t mean a “crash” but rather just a resetting of valuations, timescales, winners/losers, capital sources and the relative emphasis of growth rates vs. burn rates. Employees hate them because it’s hard to reset expectations that their stock is worth less.

Burn Rate 150

Burn Rate Cap Table Balance Sheet Dilution 150

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?” 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 187

Valuation Pre-Money Valuation NPV Intellectual Property 187