Startup Professionals Musings

FEBRUARY 19, 2012

Entrepreneurs love the art of the start. 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. So here are the most common exit strategies and considerations these days for planning purposes: Merger & Acquisition (M&A).

Exit Strategy 241

Exit Strategy Initial Public Offering IPO Startup 241

Startup Professionals Musings

JUNE 2, 2013

How do you as an entrepreneur with a new idea get to be one of those choices? That means there are far more entrepreneurs looking for money than there are investors, and entrepreneur entitlement is not a realistic expectation. This requires a visible focus on the company’s revenue model, the costs to get there, and cash on hand.

Cram Down 269

Cram Down Angel Investor Intellectual Property Venture Capital 269

Up and Running

AUGUST 18, 2014

Difference #3 – planning for the ‘end’ or the exit strategy. “Startups looking for angel investors or venture capital (VC) absolutely need an exit strategy because investors require it. The exit is what gives them a return.” Ever heard of the serial entrepreneur? ” – Tim Berry.

Small Business 154

Small Business Exit Strategy Cofounder Angel Investor 154

Startup Professionals Musings

OCTOBER 14, 2016

What every entrepreneur is asking me these days, is “How do I get to be a unicorn?” Yet there are a common set of driving factors that every entrepreneur should know, including the following: Extraordinary marketplace traction. Credible yet flexible exit strategy. These are popularly called “unicorns.”

Intellectual Property 120

Intellectual Property Valuation Merger Exit Strategy 120

YoungUpstarts

JANUARY 10, 2018

by Ryan Gould, Vice President of Strategy and Marketing Services at Elevation Marketing. As an entrepreneur, when you started your business, you most likely had dreams of rocket-speed growth and a multi-million dollar exit to a huge conglomerate, like Google or Facebook or Amazon. Profile Your Customer Base. Wrapping Up.

Valuation 145

Valuation Technical Review Exit Strategy Metrics 145

Steve Blank

SEPTEMBER 14, 2009

One of the biggest mistakes entrepreneurs make is misunderstanding the role of venture capital investors. There’s lots of lore, emotion, and misconceptions of what VC’s do or don’t do for entrepreneurs. On top of all this it was considered very bad form not to have at least four additional consecutive quarters of profits after an IPO.)

Silicon Valley 225

Silicon Valley IPO Technical Review Venture Capital 225

Startup Professionals Musings

MARCH 13, 2020

For example, every investor I know can tell you about meeting a passionate entrepreneur who is pitching a great technology innovation, but has not done the financial homework on making it a good business. Thus the investor can’t visualize any return on investment (ROI), so the entrepreneur gets no money, and a good opportunity is lost to all.

Liquidity Event 308

Liquidity Event Forecast Exit Strategy Bootstrapping 308

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. Usually a small company can sell about 20 percent of its stock in an IPO. In 1999, there were 486 IPOs nationwide; just 10 years later, in 2009, there were only 63.

IPO 223

IPO Social Media Media Exit Strategy 223

YoungUpstarts

MAY 6, 2019

These people exist and they are called ‘Serial entrepreneurs.’. Serial entrepreneurs are those who understand the complete concept of a startup lifecycle and benefit from that. How much revenue are you generating on an annual basis? Is there an exit strategy? These partnerships need to bring in more revenue.

Startup 113

Startup Technical Cofounder Merger Early Stage 113

Startup Professionals Musings

JANUARY 5, 2011

Entrepreneurs love the art of the start. 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. So here are the most common exit strategies and considerations these days for planning purposes: Merger & Acquisition (M&A).

Exit Strategy 231

Exit Strategy Initial Public Offering Startup IPO 231

Startup Professionals Musings

JULY 27, 2018

I’m still amazed at how many technical entrepreneurs don’t have a business pitch, and offer me their product pitch or product spec instead. Potential investors love to see gross margins in the fifty percent range or greater, with recurring revenue through subscriptions, follow-on sales, or services. But it’s critical to have one.

Product 145

Product Intellectual Property Liquidity Event Exit Strategy 145

Startup Professionals Musings

AUGUST 17, 2014

Most entrepreneurs struggle with financial projections, not wanting to commit to numbers they can’t deliver, and having no clue what investors might consider reasonable. Aggressive revenue projections and growth rate. Revenue in the fifth year should be at least $20 million, with a growth rate average of 100% per year.

Liquidity Event 249

Liquidity Event Equity Venture Capital Merger 249

Startup Professionals Musings

AUGUST 13, 2012

Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Exit strategy.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Startup Professionals Musings

MAY 28, 2013

Most entrepreneurs struggle with financial projections, not wanting to commit to numbers they can’t deliver, and having no clue what investors might consider reasonable. Aggressive revenue projections and growth rate. Revenue in the fifth year should be at least $20 million, with a growth rate average of 100% per year.

Liquidity Event 243

Liquidity Event Startup Equity Venture Capital 243

Startup Professionals Musings

AUGUST 27, 2012

In this section, you need to be passionate about recurring revenue, profit margin, and volume growth. Implicit in this is the go-to-market strategy. Project both revenues and expense totals for next five years, and past three years. Exit strategy. What is the timeframe for the exit? Business model.

Elevator Pitch 247

Elevator Pitch Exit Strategy Burn Rate Merger 247

Startup Professionals Musings

MAY 13, 2011

Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Exit strategy.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Gust

AUGUST 10, 2014

Most entrepreneurs struggle with financial projections, not wanting to commit to numbers they cant deliver, and having no clue what investors might consider reasonable. Aggressive revenue projections and growth rate. Revenue in the fifth year should be at least $20 million, with a growth rate average of 100% per year.

Liquidity Event 176

Liquidity Event Equity Venture Capital Merger 176

Startup Professionals Musings

MAY 19, 2010

In this section, you need to be passionate about recurring revenue, profit margin, and volume growth. Implicit in this is the go-to-market strategy. Project both revenues and expense totals for next five years, and past three years. Exit strategy. What is the timeframe for the exit? Business model.

Elevator Pitch 235

Elevator Pitch Exit Strategy Burn Rate Merger 235

Startup Professionals Musings

JUNE 10, 2011

In this section, you need to be passionate about recurring revenue, profit margin, and volume growth. Implicit in this is the go-to-market strategy. Project both revenues and expense totals for next five years, and past three years. Exit strategy. What is the timeframe for the exit? Business model.

Elevator Pitch 234

Elevator Pitch Exit Strategy Burn Rate Merger 234

The Next Web

FEBRUARY 19, 2014

It was the biggest IPO the Australian market had seen all year , and sparked a flurry of subsequent listings – but ‘going public’ was not the only option we considered, and until we had progressed our exit strategy to near completion, it also seemed the most unlikely. Engage good IPO advisers. Pay attention to NDAs.

Prospectus 121

Prospectus IPO Exit Strategy Private Equity 121

Gust

AUGUST 5, 2012

Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Exit strategy.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Startup Professionals Musings

APRIL 22, 2010

Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Exit strategy.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

Startup Professionals Musings

FEBRUARY 13, 2016

Entrepreneurs who are looking to attract investors need to develop and pitch a plan -- preferably written -- that answers every potential investor question about your startup before it is asked. What are your forecasts for revenue, expenses and cash flow? Quantify founder investments, both cash and sweat-equity.

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Gust

AUGUST 19, 2012

In this section, you need to be passionate about recurring revenue, profit margin, and volume growth. Implicit in this is the go-to-market strategy. Project both revenues and expense totals for next five years, and past three years. Exit strategy. What is the timeframe for the exit? Business model.

Elevator Pitch 146

Elevator Pitch Exit Strategy Burn Rate Merger 146

Up and Running

MAY 1, 2014

The vast majority of business owners and entrepreneurs aren’t business experts. One of the biggest mistakes entrepreneurs make in their business plans is stating that they don’t have any competition. This is often what entrepreneurs find most daunting, but it doesn’t have to be as intimidating as it seems. Financial Plan.

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

Up and Running

APRIL 28, 2015

Most entrepreneurs are very focused on their product when instead they need to be focused on their customers and the problems those customers face. Slide 5: Revenue model. Exit strategy. Ask for the money: Yes, it’s a slide in the presentation deck above, but entrepreneurs sometimes forget to ask for the money.

Forecast 60

Forecast Hockey Stick Exit Strategy Intellectual Property 60

Gust

NOVEMBER 4, 2011

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. Depending on the circumstances, they can shape the fundamentals of an exit, redistribute value among stakeholders, or even kill a deal altogether.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

BeyondVC

DECEMBER 23, 2003

As with any smart executive who cares about the value of equity, the question I am often asked is, “What is your exit strategy.” In other words, these good exits usually happen when your company is approached by a potential buyer-i.e., What does this all mean?

Exit Strategy 68

Exit Strategy Balance Sheet IPO Valuation 68