Both Sides of the Table

DECEMBER 11, 2022

We had nascent revenues, ridiculous cost structures and unrealistic valuations. I was in it for the love of working with entrepreneurs on business problems and marveling at technology they had built. In stead of growing revenue and holding down costs and building great company cultures the market chased valuation validation.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

Startup Professionals Musings

AUGUST 19, 2020

Don’t wait until you are almost out of cash before managing every dollar spent, or looking for the next refueling from investors. Desperate entrepreneurs lose their leverage and die young. The best entrepreneurs manage cash flow ruthlessly and never delegate decisions about spending money. You will make mistakes.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

ReadWriteStart

JUNE 1, 2020

I have often been asked about Startup Funding by entrepreneurs. Here is Startup Funding, a Comprehensive Guide for Entrepreneurs. The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. Pre-Requisites of Funding.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

OCTOBER 5, 2014

Don’t wait until you are almost out of cash before managing every dollar spent, or looking for the next refueling from investors. Desperate entrepreneurs lose their leverage and die young. The best entrepreneurs manage cashflow ruthlessly and never delegate decisions about spending money. You will make mistakes.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

Startup Professionals Musings

APRIL 22, 2023

Many entrepreneurs are convinced that banks are not worth the effort for startups, especially early-stage ones that still don’t have a revenue stream, or collateral to back up their financing needs. Management with a strong track record. Bankers do not contribute equity. Money from other sources. A realistic cash plan.

Equity 303

Equity Silicon Valley Finance Early Stage 303

Startup Professionals Musings

JUNE 30, 2019

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Leave the world of new computer chips and new drugs to the big companies, and people with deep pockets.

Intellectual Property 219

Intellectual Property Technical Review Startup Incubator 219

ReadWriteStart

DECEMBER 15, 2022

But I recommend entrepreneurs and prospective business builders consider the Agency Builder model. So an entrepreneur forming a startup studio benefits from having experience in the industry sector they hope to serve. Client work serves as an additional source of revenue to form new startups.

Incubator 188

Incubator Startup Software Developers Software Development 188

David Teten

AUGUST 19, 2019

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. Rational burn profile, up to 50% of revenue at close, scaling down.

Revenue 60

Revenue Technical Review Software Review Equity 60

Startup Professionals Musings

JANUARY 18, 2020

In addition to being the startup entrepreneur, there are other key roles where Boomers can be a force in driving successful startups, in concert with leaders from Gen-X and Gen-Y: Early-stage angel investors. Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold.

Advisory Board 312

Advisory Board Startup Dividend Angel Investor 312

Startup Professionals Musings

NOVEMBER 1, 2014

In addition to being the startup entrepreneur, there are other key roles where Boomers can be a force in driving successful startups, in concert with leaders from Gen-X and Gen-Y: Early-stage Angel investors. Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold.

Entrepreneur 266

Entrepreneur Advisory Board Dividend Angel Investor 266

Startup Professionals Musings

SEPTEMBER 29, 2018

Don’t wait until you are almost out of cash before managing every dollar spent, or looking for the next refueling from investors. Desperate entrepreneurs lose their leverage and die young. The best entrepreneurs manage cash flow ruthlessly and never delegate decisions about spending money. You will make mistakes.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

YoungUpstarts

JANUARY 10, 2020

by Zain Jaffer, serial entrepreneur and the Founder and CEO of Zain Ventures. When it occurs, the consequences can be swift and devastating, wreaking potential havoc on a once steady stream of revenue. When it occurs, the consequences can be swift and devastating, wreaking potential havoc on a once steady stream of revenue.

Customer 347

Customer Development Team Review Advisory Board Private Equity 347

Startup Professionals Musings

JULY 8, 2015

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Set expectations accordingly.

Entrepreneur 120

Entrepreneur Intellectual Property Technical Review Incubator 120

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Our categorization is not a technical one. Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

A Smart Bear: Startups and Marketing for Geeks

JANUARY 4, 2018

Late last year we passed $100M in annual recurring revenue. That revenue is in on 75,000 customers, earned through the hard work of 500 employees across six offices on three continents. This week we closed $250M in financing from Silver Lake , the premier technology private equity firm. We just announced a few more things.

Engineer 152

Engineer Revenue San Francisco Security 152

David Teten

MARCH 14, 2018

Managers of VC funds typically want to grow their business aggressively, just like the founders we back. – Build out low-cost force multipliers such as scouts , Advisors, Entrepreneurs in Residence, Venture Partners, and so on. First Round Capital’s forum for portfolio executives is a powerful example of a scaleable resource.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

Startup Professionals Musings

JULY 1, 2017

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Leave the world of new computer chips and new drugs to the big companies, and people with deep pockets.

Product Development 177

Product Development Cost Developer Product 177

David Teten

AUGUST 19, 2019

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. So what is Revenue Based Investing?

Revenue 60

Revenue Term Sheet Founder Technical Review 60

Hearpreneur

JANUARY 1, 2023

We asked entrepreneurs to share how they will prepare for the bad economy and here is what they have to say. #1- 3- Manage debts proactively. Debts can be deadly to manage when costs and expenditures are already high. Protect your business from going under by managing debts proactively to stay mobile during the recession.

Entrepreneur 95

Entrepreneur Software Review Technical Review Revenue 95

Startup Professionals Musings

FEBRUARY 19, 2013

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Leave the world of new computer chips and new drugs to the big companies, and people with deep pockets.

Intellectual Property 309

Intellectual Property Technical Review Venture Capital Startup 309

The Startup Magazine

MAY 11, 2020

However, if not well managed, debts can ruin your venture. Whether you are new in business or an established entrepreneur, you need to be diligent with your finances. Entrepreneurs often opt for personal loans when banks reject loan applications. Boost Sales and Revenue. Photo by Tyler Franta on Unsplash.

Software Review 106

Software Review Small Business Management Bankruptcy 106

Hearpreneur

MARCH 4, 2022

Being in love with your business, when you’re an entrepreneur, is even better. Although there are days when tossing in your hat seems like a viable option, remembering how much you love your “job” can quickly snap an entrepreneur out of that mentality. When you're an entrepreneur, you have to make a lot of compromises.

Entrepreneur 127

Entrepreneur Technical Review Restful Colorado 127

The Startup Magazine

AUGUST 11, 2023

This could be a proportion of the company’s equity or investment; in other instances, it could be a portion of its later-stage profits. Seed venture capital firms can make more significant follow-on investments to keep or increase their equity stake in the company. How does the funding for the seed stage work?

Seed Stage 138

Seed Stage Technical Review Early Stage Due Diligence 138

Startup Professionals Musings

JANUARY 12, 2018

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Set expectations accordingly.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

YoungUpstarts

AUGUST 17, 2020

Majeed says that while most entrepreneurs launch companies with great ideas, lots of ambition and the most sincere of intentions, it’s equally important to have a strong handle on their finances. . an entrepreneur should have about 6 months worth of fixed costs on hand at the beginning. office space, legal fees, payroll, etc.)

Finance 217

Finance Forecast Balance Sheet Angel Investor 217

VC Cafe

MARCH 1, 2024

That’s why lists like Ycombinator’s Requests for Startups (RFS) help entrepreneurs thinking about starting a company (or picking a problem) and can be a good barometer for founders on what’s interesting to investors right now. AI – tax planning or wealth management augmented and in some cases replaced with AI.

Artificial Inteligence 176

Artificial Inteligence Technical Review Software Review Generative AI 176

Hearpreneur

JULY 24, 2020

Some entrepreneurs will say the future is definitely bright and the number of entrepreneurs will increase but others argue these changes are meant to work against budding or would-be entrepreneurs. But the big question, will there be or less entrepreneurs in the future? It’s never been easier to be an entrepreneur.

Entrepreneur 135

Entrepreneur Technical Review Security Demand 135

Startup Professionals Musings

MARCH 22, 2020

In their passion to succeed, too many entrepreneurs treat friends and family investments as “low-hanging” fruit, only to find out later, after a stumble, that the pain of lost relationships is greater than the loss of their beloved startup. Tie payments to your product or service revenue. Loans are a safer option than equity.

Management 308

Management Cram Down Angel Investor Equity 308

David Teten

SEPTEMBER 23, 2017

Private equity and venture capital investors are copying our sisters in the hedge fund and mutual fund world: we’re trying to automate more of our job. High-frequency trading, algorithmic by its nature, is estimated to account for at least 50% of US equity markets trading volume. . But we’re doing it slowly. Pitchbot.vc

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Startup Professionals Musings

JUNE 13, 2016

It’s very fashionable these days to declare yourself a social entrepreneur, working for the good of society, the environment and a better life. Most social entrepreneurs don’t like to talk about making money, but often they still ask for help finding investors. federal income tax (Section 501(c) of the Internal Revenue Code).

Limited Liability Company 120

Limited Liability Company Entrepreneur Software Review LLC 120

The Startup Magazine

FEBRUARY 21, 2024

As the CEO of one of Canada’s largest private credit firms, can you describe the basics of private credit and its increasing importance to budding entrepreneurs? For entrepreneurs, this means not just securing capital, but also gaining a collaborator committed to their growth journey. Are there new revenue streams you can tap into?

Technical Review 146

Technical Review Due Diligence Bankruptcy Intellectual Property 146

Startup Professionals Musings

SEPTEMBER 14, 2016

Don’t wait until you are almost out of cash before managing every dollar spent, or looking for the next refueling from investors. Desperate entrepreneurs lose their leverage and die young. The best entrepreneurs manage cash flow ruthlessly and never delegate decisions about spending money. You will make mistakes.

Burn Rate 120

Burn Rate Hockey Stick Startup Salary 120

Startup Professionals Musings

FEBRUARY 21, 2012

Here are some recommendations on how to keep the rate low, and help your startup to prosper at the same time: Measure it and manage it. As a rule, you need to review your burn rate every month, and manage it every day. Pay people with equity or future revenue. The components are simple - expenses and income.

Burn Rate 232

Burn Rate Startup Salary Equity 232

The Startup Magazine

JULY 13, 2021

But finding startup capital or a startup investor continues to challenge most entrepreneurs. Using that home equity for a startup certainly looks enticing right now, doesn’t it? It’s typical for an entrepreneur to overextend a little to pursue this passion. The Amount of Equity. Amount in Savings.

Equity 158

Equity Startup Stock Business Plan 158

Startup Professionals Musings

NOVEMBER 21, 2016

Others, like Guy Kawasaki , have irreverently called some of these “entrepreneur lies,” but I prefer to think of them as innocent enhancements or omissions that can kill your deal. Even non-profits need money to scale, but their pitch should be to philanthropists, not equity investors. None of these cases are credible.

Intellectual Property 120

Intellectual Property Valuation Technical Review Equity 120

Startup Professionals Musings

JANUARY 28, 2011

Here are some principles on how to do that, and help your startup to prosper and live another day: Measure it and manage it. As a rule, you need to review your burn rate every month, and manage it every day. The cost of giving up more equity early is often more than offset by the increased flexibility to recover from mistakes.

Burn Rate 231

Burn Rate Startup Salary Equity 231

YoungUpstarts

JULY 16, 2019

There are few words that strike as much fear – into the minds of entrepreneurs and business owners – as the idea of debt. Many business people, including Millennial entrepreneurs, are scared of the idea of getting into debts, and their worries are not unfounded. by Uday Tank. Let’s now take a look at some of these situations and facts.

Software Review 113

Software Review Startup Equity Bootstrapping 113