Reid Hoffman

JULY 23, 2020

Recently, my fellow Greylock investor Saam Motamedi and I examined the question of how the Covid-19 pandemic has affected venture investing, and what entrepreneurs should do in response. This week, I’d like to turn to the question of how current market conditions affect the approach entrepreneurs should take towards their exit strategy.

IPO 36

IPO Exit Strategy Acquisition Technical Review 36

Up and Running

AUGUST 28, 2018

Financial summary: Explain your business model, startup costs, revenues, and liabilities to the company. Milestones and metrics that you’ll need to hit to be viable. Your funding ask and exit strategy, if applicable. Milestones and metrics. Exit strategy : You only need this if you’re seeking outside investment.

Business Plan 72

Business Plan Technical Review Exit Strategy Oregon 72

Startup Professionals Musings

AUGUST 8, 2016

As a startup advisor and investor, I find that more and more entrepreneurs avoid using the term “profit” in pitching their new venture. Thus I was pleased and a bit surprised to see a new book, “ The Purpose Is Profit ,” by Ed “Skip” McLaughlin, an entrepreneur who has both succeeded and failed in starting multiple businesses.

Intellectual Property 120

Intellectual Property Entrepreneur Elevator Pitch Exit Strategy 120

SoCal CTO

FEBRUARY 17, 2007

They are quite happy with a business that will turn into a profitable $20M company and dont necessarily need an obvious exit strategy. Product Manager Entrepreneur Mark Geller SEO for Startups Startup Version 1.0 This is something Ive always wondered about. What can they do for funding, where can they go for help?

Incubator 150

Incubator Technical Cofounder Southern California Los Angeles 150

Startup Professionals Musings

AUGUST 13, 2012

In fact, a business plan is needed more by you than investors, as the blueprint for your company, team communication, and progress metrics. Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” Financial forecast and metrics. Industry & market sizing.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

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. While there was an occasional bad apple, the public markets rewarded companies with revenue growth and sustainable profits.

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

Startup Professionals Musings

SEPTEMBER 30, 2015

Once an entrepreneur, always an entrepreneur. Although many won’t admit it, true entrepreneurs can’t wait to exit their current startup, and build a new and better one with their next great idea. For these reasons, I always look for an overt exit strategy in every startup I might consider for an angel investment.

Exit Strategy 120

Exit Strategy Startup Valuation Acquisition 120

Startup Professionals Musings

MAY 13, 2011

In fact, a business plan is needed more by you than investors, as the blueprint for your company, team communication, and progress metrics. Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” Financial forecast and metrics. Industry & market sizing.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Startup Professionals Musings

MAY 28, 2016

I recognize that entrepreneurs tend to substitute vision and passion for formal processes, but no discipline or process in building something new is a sure way to spend money, rather than see any return and build a self-sustaining business. Solo entrepreneurs, with a team of helpers, will be assumed to be a hobby rather than a business.

Exit Strategy 155

Exit Strategy Metrics Operations Cost 155

Gust

AUGUST 5, 2012

In fact, a business plan is needed more by you than investors, as the blueprint for your company, team communication, and progress metrics. Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” Financial forecast and metrics. Industry & market sizing.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Startup Professionals Musings

APRIL 22, 2010

In fact, a business plan is needed more by you than investors, as the blueprint for your company, team communication, and progress metrics. Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” Financial forecast and metrics. Industry & market sizing.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

Startup Professionals Musings

AUGUST 7, 2015

When pitching to investors, entrepreneurs always seem to start with a customer pitch, then add a slide or two about the business. Investors are business experts, while the entrepreneur is more likely the product expert. If we build it they will come” is not a marketing and sales strategy.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

Startup Professionals Musings

MAY 24, 2015

I recognize that entrepreneurs tend to substitute vision and passion for formal processes, but no discipline or process in building something new is a sure way to spend money, rather than see any return and build a self-sustaining business. Solo entrepreneurs, with a team of helpers, will be assumed to be a hobby rather than a business.

Exit Strategy 120

Exit Strategy Metrics Operations Cost 120

David Teten

SEPTEMBER 23, 2017

An investor had few hard metrics other than the actual financials, and little technology to make the process scaleable. Over the past few decades, better metrics became available, and investors could take a more analytical, data-driven approach. ” Historically, investing was a manual, artisan process. 3) Originate investments.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Up and Running

FEBRUARY 12, 2022

Just don’t invest the time in creating a lengthy version of your business plan with overly detailed metrics and milestones for the next five-plus years. Entrepreneurs are always thinking about the future. Successful entrepreneurs are also often wrong. Sorry if that offends some people, but it’s true.

Business Plan 83

Business Plan Lean Forecast Exit Strategy 83

Startup Professionals Musings

SEPTEMBER 28, 2015

Too many entrepreneurs look for that one magic bullet -- an exciting new technology, perhaps, or their own determination to make the world a better place -- to override any shortcomings in their startup model. Validated pricing and a sufficient revenue stream. This will lead to investor-return calculations and exit strategies.

Exit Strategy 120

Exit Strategy Technical Review Distribution Viral 120

Up and Running

MAY 1, 2014

The vast majority of business owners and entrepreneurs aren’t business experts. Milestones and Metrics. One of the biggest mistakes entrepreneurs make in their business plans is stating that they don’t have any competition. Milestones and Metrics. > Don’t be intimidated. Read more ». Marketing and Sales Plan.

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

Up and Running

AUGUST 19, 2015

In my business, I always tell my clients that they are going to get increased revenue and profitability opportunities, enhanced prestige in their markets, and the chance to significantly reduce their sales cycles. See Also How to Develop Your Business Strategy. See Also Planning for the Future: Your Exit Strategy.

Small Business 60

Small Business Audience Exit Strategy Sales Cycle 60

David Teten

DECEMBER 3, 2019

Small investment firms often have interns and entrepreneurs in residence passing through, each of which is a security risk. Chris Dixon, Partner, A16Z, observes , “Success in VC is probably 10% about picking, and 90% about sourcing the right deals and having entrepreneurs choose your firm as a partner”. 2) Market .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

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

The Next Web

MAY 26, 2013

I recently asked a panel of nine successful young entrepreneurs the following question: What’s one CRITICAL, must-include item or data point for a software startup pitching an investor for the first time? There’s no magic metric in software startups (so don’t let anyone convince you there is). Answer “Why now?

Software 151

Software Forecast Startup Exit Strategy 151

Up and Running

MARCH 11, 2015

I actually use LivePlan and I mentor entrepreneurs all over the world. I have some entrepreneurs who are in Gaza, who are in Cairo, who are in New Jersey, and I’m in Oregon. As an entrepreneur I would say 50/50. Now you’re going to move into your revenue model. Okay, so now your revenue model, so this is—.

Technical Review 60

Technical Review Software Review Due Diligence Exit Strategy 60

Up and Running

MAY 22, 2018

The show has been around for a while; entrepreneur contestants pitch their business ideas in front of a panel of investors—the “sharks”—in hopes that one of them will want to invest in their idea. However, for those entrepreneurs, a whole new struggle begins after the show ends. Expenses that were surpassed by revenue.

Exit Strategy 90

Exit Strategy Angel Investor Search Elevator Pitch 90

Entrepreneurs-Journey.com by Yaro Starak

JUNE 19, 2010

Adding Ad Revenue. Either as an exit strategy or as a profit strategy, buying and selling websites is an option for everyone in this room, especially if you want to maybe leave a marketplace and you’ve got a website that’s making money. We increased the revenue. I had someone running the forum.

Technical Review 76

Technical Review Software Review Prospectus Audience 76

Up and Running

JUNE 11, 2014

We asked 12 founders from the Young Entrepreneur Council: How should startup founders calculate their own salaries versus those of staff members once the company starts to grow? Consider Your Exit Strategy. This depends on your exit strategy. Young Entrepreneur Council' But, without getting too comfy.

CPA 123

CPA Salary Exit Strategy Cofounder 123