David Teten

JUNE 25, 2012

I’m looking for an entrepreneur to start a company to provide this product, or a development shop which wants to bid on this project. The big vision: one of the reason for the high valuation of Box and Dropbox is that they render the underlying hardware irrelevant; you trust them with their data. I have a great idea for a product.

Developer 144

Developer Venture Capital Startup Valuation 144

This is going to be BIG.

SEPTEMBER 30, 2012

How else can you explain this headline matching a story about a professional social network still trying to explore revenues raising $17mm on an $80mm valuation? The other entrepreneur quoted in the story is from a guy pitching a Pinterest clone. Perhaps I need to rethink that. Needless to say, he's having some trouble raising.

Venture Capital 114

Venture Capital Marketing Term Sheet Software Review 114

Steve Blank

SEPTEMBER 14, 2009

Over the same 30 years, Venture Capital firms have honed their skills and strategies to match Wall Streets needs to achieve liquidity for their portfolio companies. One of the biggest mistakes entrepreneurs make is misunderstanding the role of venture capital investors. What Do VC’s Do?

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

David Teten

JUNE 25, 2012

I’m looking for an entrepreneur to start a company to provide this product, or a development shop which wants to bid on this project. The big vision: one of the reason for the high valuation of Box and Dropbox is that they render the underlying hardware irrelevant; you trust them with their data. I have a great idea for a product.

Developer 114

Developer Venture Capital Startup Valuation 114

Berkonomics

AUGUST 3, 2023

However, most often, these funds are solicited by a well-meaning entrepreneur from investors who are not qualified as accredited investors under the law (currently requiring a proved income of $200,000 a year or $1 million in net worth for an individual investor). Professional angels: This is the arena where I work and play.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

YoungUpstarts

JUNE 26, 2020

To do that you have to show how your market is big enough (a multi-billion dollar market) to support that kind of valuation. The real issue here is that if an entrepreneur comes in to a pitch and goes on and on about how they’re going to build a billion dollar company in just a few years, most investors eyes tend to glaze over.

Finance 205

Finance Silicon Valley Valuation Startup 205

Startup Professionals Musings

JANUARY 22, 2020

As a long-time advisor to entrepreneurs, and a former angel myself, I still find startups confused about the definition of an angel investor, and how and when to attract one. You need to know why and how they invest, and then focus on the ones who are the best match for your startup. Thus they don’t live or fly above the clouds.

Angel Investor 322

Angel Investor Valuation Syndicate Syndication 322

Startup Professionals Musings

DECEMBER 27, 2014

Based on the best evidence I can find, the genesis of this trend and the advantages come from several evolutionary changes in the startup investment industry, and some innovations driven by the recent recession: Venture capital funds are still recovering from the recession. Super Angels sometimes drive up valuations.

Angel Investor 260

Angel Investor Silicon Valley Startup Portfolio 260

Startup Professionals Musings

AUGUST 13, 2016

On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue). Different types of investors tend to specialize in capitalizing on businesses at different stages.

Matching 120

Matching Angel Investor Intellectual Property Investment Bankers 120

Steve Blank

MARCH 31, 2014

I like the guy because he’s credited with coining the word entrepreneur. According to Schumpter, capitalism is an evolutionary process where new industries and new companies continually emerge to knock out the old. As the venture capital business has come roaring back in the last 5 years, startups are awash in available capital.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

K9 Ventures

JUNE 5, 2015

Low supply of companies with traction drove the valuations and deal sizes up. The risk here is what I refer to as the curse of over-capitalization. The Venture Capital industry as a whole does a terrible job of giving things the right name and so we end up keeping the same name, but changing the meaning out from under it.

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

Steve Blank

JULY 15, 2010

If you take funding from a venture capital firm or angel investor and want to build a large, enduring company (rather than sell it to the highest bidder), this isn’t the decade to do it. The collapse of the IPO market and dysfunctional math in the venture capital community has stacked the odds against you. Here’s why.

Venture Capital 297

Venture Capital IPO Liquidity Event Entrepreneur 297

Gust

SEPTEMBER 27, 2014

To begin with, it is important to understand some basic facts about the world of entrepreneurial finance: There are many more entrepreneurs than there are investors, with the result that only one company out of every 400 that seeks venture funding actually receives it.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

Startup Professionals Musings

FEBRUARY 5, 2018

As an active angel investor, I’m accustomed to hearing entrepreneurs pitch their expectation to quickly create a new dominant brand, based on their disruptive technology. These are companies that not only have a familiar brand, but carry from five to 35 billion dollar valuations.

IRR 143

IRR Marketing Startup Angel Investor 143

Gust

DECEMBER 21, 2011

The Valley produces world-class entrepreneurs, angel investors, venture capitalists and successful high-tech companies – all growing and creating jobs on one relatively small peninsula. Many other communities are entrepreneur-friendly and, by any measure, have the tools in place to spawn new high growth companies.

Silicon Valley 107

Silicon Valley Southern California Tucson Seattle 107

Startup Professionals Musings

MAY 13, 2016

One of the biggest myths I have found in the entrepreneur community is that every startup needs one or more outside investors for credibility and success, and perhaps is even entitled to at least one. Searching LinkedIn, for example, is a must for contemporary entrepreneurs. But don’t wait for them to contact you. Marty Zwilling.

Stealth 120

Stealth Startup Angel Investor Bootstrapping 120

Berkonomics

JUNE 8, 2017

However, most often, these funds are solicited by a well-meaning entrepreneur from investors who are not qualified as accredited investors under the law (currently requiring a proved income of $200,000 a year or $1 million in net worth for an individual investor). Dave’s book and ebook on raising money available on Amazon.com.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Cracking the Code

NOVEMBER 10, 2009

Cloud accounting is all about matching revenue and costs to consumption…well, except for professional services! In regards to calculatimg the "Magic Number" - should the amount included as sales and marketing costs match the length of the sales cycle? Detailed SaaS Spreadsheet (Valuation and CAC benchmark).

Software Review 48

Software Review Cloud Technical Review Sales Cycle 48

genylabs.typepad.com

SEPTEMBER 24, 2011

The Changing Face of Entrepreneurs. The Connected World of Entrepreneurs. Entrepreneur Magazine Blog. Even the best venture capital firms have a lot of failures and few successes. The letters and numbers you entered did not match the image. Business Week: Twitter for Entrepreneurs: 20 to Follow: Steve King.

Equity 40

Equity Technical Review San Jose Stock 40

Both Sides of the Table

NOVEMBER 4, 2009

I often have career discussions with entrepreneurs – both young and more mature – whether they should join company “X&# or not. Let’s assume that the company raised it at a normal VC valuation, which means it gave up 33% of the company and thus $5 million / 33% = $15 million post-money valuation.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

The Equity Kicker

AUGUST 19, 2015

Note that these returns are from the value of YC’s stake in the company, not the total valuation. Because Sam Altman & co have enjoyed a lot of success good entrepreneurs and investors alike are rushing towards YC in the hope that the magic will rub off on them. Hence they back companies with more ambition.

Later Stage 60

Later Stage Private Equity Venture Capital Valuation 60

The Equity Kicker

JULY 8, 2019

When I started in venture capital in the late 1990s VCs were regularly lambasted for taking long summer holidays and spending too much time on the golf course. Over the last twenty years both of these features of the startup financing world have changed dramatically flipping the balance of power from investor to entrepreneur. .

Portfolio 84

Portfolio LP Venture Capital Partner 84

ReadWriteStart

SEPTEMBER 8, 2010

One of the big debates in the venture capital industry lately has been the growing argument between so-called "super angels" and traditional VCs - the former being prone to mention how they feel the latter "sucks." Reducing risk and demonstrating potential upside will always translate into higher valuations.".

Startup 118

Startup Early Stage Venture Capital Valuation 118

Cracking the Code

DECEMBER 2, 2006

The time they spend with customers is usually limited to transactional core products sales, generating lower margins – The resource allocation is not always matching the opportunity (geography, customer segment, vertical.) – The rules of engagement for technical resources (solution or product specialists) are not clear.

Software Review 48

Software Review Technical Review Europe Software 48

This is going to be BIG.

APRIL 19, 2011

Yesterday, an entrepreneur asked me whether or not First Round does convertible notes. I wasn’t trying to be evasive, but after saying that we have done them on occasion, I pushed the entrepreneur to think deeper about his fundraising goals. Are you optimizing for price? Does that mean they should accept less than a fair deal?

Paraguay 110

Paraguay Dilution Valuation Seed Stage 110

Babbling VC

APRIL 3, 2011

It's kind of funny that the majority of people coming to me are obviously looking to raise venture capital and don't have this discussion with me. I have no idea whether any other VC would so openly say this but if you can avoid taking venture capital, do so at all costs. Venture capital screws everything up.

Venture Capital 81

Venture Capital Bootstrapping Global Valuation 81

Both Sides of the Table

AUGUST 1, 2010

Many firms do it in a way that can be more detrimental to entrepreneurs. It’s just that he’s a “super seed&# investor in a firm, Founder Collective , that I really respect (and with whom I’ve done two deals and hope to do a third) and I’m a partner in a venture capital firm, GRP Partners.

Post-Money Valuation 298

Post-Money Valuation Term Sheet Warrant Partner 298

This is going to be BIG.

NOVEMBER 7, 2011

Just as an additional disclosure, these are my thoughts, not that of First Round Capital, my employer. The other day, Adeo Ressi wrote in TechCrunch about how we need more venture funds, because. Every investor and entrepreneur knows there is something scary about the current startup economy. Valuations.

Angel Investor 104

Angel Investor Valuation Startup Revenue 104

The Equity Kicker

JULY 16, 2012

The rest of startups should size their fundraisings to allow their investors to make a decent return at an exit valuation commensurate with the opportunity size which can be credibly defended at the time of investment. This advice isn’t always terribly popular. I think this is a really important point and one that is not widely understood.

LP 105

LP Early Stage Valuation Differentiation 105

Berkonomics

JANUARY 20, 2010

However, most often, these funds are solicited by a well-meaning entrepreneur from investors who are not qualified as accredited investors under the law (currently requiring a proved income of $200,000 a year or $1 million in net worth for an individual investor). Professional angels: This is the arena where I work and play.

Private Equity 69

Private Equity Valuation Cap Table Accredited Investor 69

reidhoffman.org

NOVEMBER 12, 2013

. × At Greylock , my partners and I are driven by one guiding mission: always help entrepreneurs. It doesn’t matter whether an entrepreneur is in our portfolio, whether we’re considering an investment, or whether we’re casually meeting for the first time. Entrepreneurs often ask me for help with their pitch decks.

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111

Seeing Both Sides

JULY 21, 2014

million in one year, the year we went public at a billion dollar valuation (ok, it was 1996; everyone went public in 1996 with a billion dollar valuation), and then $61 million the following year. When I discuss business models with entrepreneurs and investors, there is a varying appreciation for why recurring revenue is so special.

Revenue 54

Revenue Valuation Churn Rate Portfolio 54

Up and Running

AUGUST 19, 2014

An angel investor is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. Many angels are entrepreneurs themselves, or executives and business or community leaders. And what have been the pros and cons of taking venture capital? Tweet This Tip.

Angel Investor 161

Angel Investor Technical Review Due Diligence Startup 161

Steve Blank

NOVEMBER 5, 2009

This post describes how companies using the Customer Development model can increase their credibility, valuation and probability of getting a first round of funding by presenting their results in a “Lesson Learned&# venture pitch. The goal of their startup in this stage becomes “getting funded.” How many are there?

Customer Development 262

Customer Development Developer Customer Silicon Valley 262

dondodge.typepad.com

JANUARY 15, 2011

Entrepreneurs face some pretty tough questions at a very early stage. Both the entrepreneur and the investor have much higher expectations than just "even money" on their bet. The entrepreneur expects the company to be worth many times this valuation and so does the investor. Should I take Angel or VC money?

Equity 40

Equity Employee Dilution Valuation 40

Startup Professionals Musings

AUGUST 13, 2018

According to the entrepreneurs I advise, the biggest challenge they typically face in starting a new business is funding. Yet according to recent data compiled by Fundable , 57 percent of successful entrepreneurs end up funding their startup, and that’s a good thing. The ideal professional investor also changes as your startup matures.

Due Diligence 140

Due Diligence Equity Angel Investor Matching 140

Steve Blank

FEBRUARY 26, 2020

At the end of this post, we’ll discuss the valuation at each step (how much the investors value your company and therefore how much of it you need to give up to get this money) and how much revenue you should generate at each step.). On the other hand, in a SaaS business $1 in recurring annual revenue equals ~10x in valuation.).

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429