The Startup Magazine

SEPTEMBER 21, 2021

The primary goal of any corporate firm is to benefit from the business’s finances while operating at its maximum capacity. Entrepreneurs often feel like spending too much time sorting out the finances can lead to a halt in developing innovative ideas for the growth of the business. Statement of Financial Position.

Finance 157

Finance Balance Sheet Operations Framework 157

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. For your first key hires, three, five, maybe as much as ten, you will probably not be able to use any kind of formula.

Equity 64

Equity Employee CTO Hire Fractional CTO 64

The Startup Magazine

MAY 11, 2020

Whether you are new in business or an established entrepreneur, you need to be diligent with your finances. There are several reasons a bank will reject financing applications, but the most common is a low credit score. If your business credit score is low, applying for a bad credit loan can help you secure the financing you need.

Software Review 105

Software Review Small Business Management Bankruptcy 105

Tim Keane

MARCH 9, 2011

How should I finance my new venture? It’s a deceptively simple question:  what is the optimal way to finance a new startup? This seems like an easy topic – debt where there is appropriate cash flow, equity when there isn’t.  What are the reasons to choose one financing structure over another?

Finance 83

Finance Bootstrapping Startup Equity 83

Hearpreneur

JANUARY 1, 2023

Make a budget and keep a close watch on the finances , ensuring that there are no unnecessary expenses. This will keep them sustainable should revenues take a dive. Thanks to Corey Philip, Acumen Equity Advisors ! #7- The ideal amount is about 6 months' worth of expenses. 5- Focus on team wellness. Photo Credit: Corey Philip.

Entrepreneur 96

Entrepreneur Software Review Technical Review Revenue 96

Startup Professionals Musings

MAY 30, 2022

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. Very few startups are cash-rich enough to self-finance aggressive second-stage growth. Hire more help than helpers. There is no free lunch.

Mezzanine 368

Mezzanine Private Equity Bandwidth Metrics 368

YoungUpstarts

SEPTEMBER 17, 2020

If you’re able to hire a bookkeeper or accountant, they can help make it easier by handling your important documents for you. Not only is the information listed on them important for tax purposes, but it will also be needed if you’re looking to finance your business through small business lending.

Balance Sheet 200

Balance Sheet .Net Equity Revenue 200

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78

Equity Revenue Cofounder Colorado 78

Growthink Blog

DECEMBER 20, 2017

The first is that we currently have awesome economic conditions: a roaring stock market, low unemployment, and solid consumer and business confidence, all of which make right now as good a time as ever to start, grow, finance, and/or sell a business. Business equity is a measurement of financial accomplishment attained and retained.

Balance Sheet 48

Balance Sheet Malaysia Indonesia Finance 48

Up and Running

SEPTEMBER 19, 2017

They allow you to hire more people, purchase new technology, and establish new business connections, among many other benefits. When you accept outside money, particularly a private equity (PE) investment, however, that changes. When you accept outside money, particularly a private equity (PE) investment, however, that changes.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Up and Running

MARCH 14, 2018

Your revenue or business model. Impress the investors with what you and your team have accomplished to date (sales, contracts, key hires, product launches, and so on). Show what you’re projecting in revenue (per product) over the next three to five years. Will you need to raise multiple rounds of financing?

Hockey Stick 164

Hockey Stick Exit Strategy Technical Review Angel Investor 164

YoungUpstarts

NOVEMBER 27, 2018

From there, it’s time to inquire what the value of the company currently is and if their investment is going towards equity or loans. A concrete monetization strategy, or at the very least a revenue model, gives investors detailed insight into how a startup plans to generate profit once an established network is set into place.

Early Stage 160

Early Stage Cofounder Startup Security 160

The Startup Magazine

JULY 1, 2022

The three main components of a company are production or service, marketing and sales, and finance. Production or service is the business’s core activity, which generates revenue. Finance is how you manage your finances, including budgeting, accounting, and bookkeeping. Financing Your Startup.

Technology 138

Technology Venture Capital Finance Startup 138

Both Sides of the Table

JULY 16, 2010

So even within the “alternative class&# our LPs are looking at other asset investment choices such as distressed buyout funds, private equity or hedge funds. You don’t have to hire as many sales people because much can be sold online. Many firms didn’t even return LPs their original money let along a profit.

LP 311

LP Technical Review Early Stage Silicon Valley 311

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 21, 2011

It’s among the most-asked questions on startup forums, and an issue we’re dealing with right now at WPEngine as we bring on new employees: How do you decide how much equity (shares) to give a new employee or partner? The question is further complicated when the new hire is getting a salary. What about $Y/mo?&#

Equity 276

Equity Salary Hiring Institutional Investors 276

Up and Running

JULY 25, 2017

Most interesting is that first financings—or the number of startups that raised money for the first time from investors—is up about 25 percent, which bodes well for fledgling businesses seeking funding. Startups Going for Loans Rather Than Venture Capital. Small Business Borrowing Drops.

Technical Review 92

Technical Review Due Diligence America Small Business 92

YoungUpstarts

JULY 20, 2016

In order to make a splash in their industries, startups need a healthy flow of working capital and, when you’re just trying to get established, it’s often impossible to access a sustainable flow of working capital through revenue alone. Safeguarding Personal Assets.

Startup 100

Startup Technical Review Small Business Administration Revenue 100

Both Sides of the Table

JUNE 22, 2011

Ah, but today’s Internet companies have real revenue! But this mania to not miss out on the next big thing is driving some investors to pay growth-equity prices for traditional market risk (as in, they’re paying up before it is clear there is product / market fit). Or worse yet they may never get financed.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Up and Running

DECEMBER 4, 2017

Sticking your neck out to secure the startup capital, hiring the right employees, and establishing cash flow are just a few of the risks that send would-be entrepreneurs running away from the idea of starting their own business. Is the business profitable with healthy revenues and cash flow? Are you ready to be in charge?

Due Diligence 97

Due Diligence Acquisition Demand Small Business 97

Steve Blank

MARCH 31, 2014

Companies horde cash and squeeze the most revenue and margin from the money they use. In spite of this, private equity funds have used the rallying cry of efficiency to hijack corporate strategy and loot the profits that historically would have been reinvested into research and development and new products.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

View from Seed

SEPTEMBER 23, 2019

To provide relevant perspective, listing past convertible note(s) and/or equity financing(s) including total round size and valuation (caps) is helpful. The former can include expected burn and runway, guideposts on hiring, and resource allocation. First, it’s helpful to enumerate the startup’s funding history to date.

Cap Table 211

Cap Table Seed Stage Valuation Dilution 211

Up and Running

DECEMBER 23, 2019

One of the most important decisions a new business owner can make is how they’re going to finance their venture. . Sweat Equity. “I Hire somebody on Upwork or a prototyping agency to create a super simple, stripped-down version ( minimal viable product ) that demonstrates your product. Using Revenues to Fund Growth.

Finance 92

Finance Sweat Equity Bootstrapping Entrepreneur 92

Startup Professionals Musings

SEPTEMBER 1, 2019

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. Very few startups are cash-rich enough to self-finance aggressive second-stage growth. Hire more help than helpers. There is no free lunch.

Mezzanine 244

Mezzanine Private Equity Startup Bandwidth 244

A Smart Bear: Startups and Marketing for Geeks

JANUARY 7, 2014

It’s not a ruse devised by greedy vulture capitalists vying for extra points of equity. Costs arise ahead of associated revenue, especially for SaaS companies, so you need a cash investment to fund that growth. But what if, nine months from now, revenue isn’t growing quite as quickly as you planned?

Revenue 270

Revenue Finance Equity Engineer 270

ReadWriteStart

OCTOBER 7, 2010

Bottom line, early stage equity is very, very expensive. As a thumb rule, try to get enough validation so that you can get to at least a $2 million pre-money valuation before raising equity capital. That is debt financing that converts into equity at the Series A valuation once the price for that is set. (I HirePlug.com.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

Up and Running

JANUARY 2, 2013

Impress the investors with what you and your team have accomplished to date (sales, contracts, key hires, product launches, etc.). Your Revenue Model : Investors tend to care about this slide the most. Your Financial Projections : Show what you’re projecting in revenue (per product) over the next three to five years.

Hockey Stick 164

Hockey Stick Exit Strategy Technical Review Due Diligence 164

YoungUpstarts

SEPTEMBER 12, 2011

of small businesses say they will hire in the next six months as compared to 38.1% who say they do not plan to hire. Access To Capital Key Reason Why Small Businesses Not Able To Hire. of companies planning to hire indicate they’d need to train those they hire. were successful. Positions In Demand. Also, 83.0%

Small Business 145

Small Business Hiring Private Equity Angel Financing 145

OnlyOnce

JULY 9, 2013

Chapter 2: Defining and Testing the Story…Start Out By Admitting You’re Wrong, A Lean Business Plan Template, Problem, Solution, Key Metrics, Unique Value Proposition and Unfair Advantages, Channels, Customer Segments, Cost Structure and Revenue Streams. Chapter 3: Telling the Story to Your Investors…The Business Plan is Dead.

Startup 95

Startup Advisory Board Elevator Pitch Forecast 95

YoungUpstarts

MAY 17, 2019

But every year thousands of entrepreneurs become millionaires by buying and growing businesses without the startup headaches of venture capitalists, zero revenue, and no business processes. For the good ones, challenge them to help grow the company and incentivize them to stay through promotions, profit sharing, or equity.

Due Diligence 185

Due Diligence Forecast Deal Structure Valuation 185

K9 Ventures

JUNE 12, 2012

You get a situation whether investors are incentivized to put in more money into a company, not only to buy more equity, but also to fund the quick growth. Founders typically get their equity in a company once — at the time of founding and then get diluted with each subsequent round of financing.

Venture Capital 117

Venture Capital Silicon Valley Founder Seed Stage 117

K9 Ventures

MAY 28, 2015

At K9 we invest in companies which have a clear/direct revenue model and typically don’t invest in companies that follow the Ubiquity first Revenue Later (URL) revenue model made famous by Eric Schmidt in 2007. I call this Revenue Development and have written about it before. >$0/month.

Revenue 48

Revenue Startup Burn Rate Cofounder 48

Transformify

MARCH 4, 2018

Most companies are shifting to in-house hiring, but sometimes using the services of a staffing agency saves time and cost. Temporary, temporary-to-hire and permanent placement services are provided each week to over 100,000 people. They provide temp-to-hire , temp, direct hire, and contract work solutions. Insight Global.

Hiring 61

Hiring Finder Canada Australia 61

K9 Ventures

JUNE 12, 2012

You get a situation whether investors are incentivized to put in more money into a company, not only to buy more equity, but also to fund the quick growth. Founders typically get their equity in a company once — at the time of founding and then get diluted with each subsequent round of financing.

Venture Capital 105

Venture Capital Silicon Valley Founder Seed Stage 105

Austin Startup

FEBRUARY 13, 2019

Consider convertible debt Before diving into a seed round, you may want to consider convertible debt over equity financing. Investor location matters About a year and a half after closing our convertible debt round, we pursued our first equity round. We got back on our feet and successfully pivoted the business.

Strategic Investors 49

Strategic Investors Austin Angel Investor Bootstrapping 49

The Next Web

AUGUST 12, 2013

Starting a global tech business with international, well-educated and highly-skilled people, generating millions of revenue per month, is incredibly hard. I started my company with 5 friends – one developer, one user interface designer, one visual designer, one marketing person, and a finance person. A business/finance person.

Cofounder 119

Cofounder CTO Hire Startup Europe 119

YoungUpstarts

OCTOBER 8, 2019

This is where getting a loan becomes beneficial since you need funds to finance the equipment. You can utilize the proceeds of your loan to keep your business afloat when revenues are low. By hiring and paying people to perform specific jobs for you, you can keep your company efficient and innovative.

Finance 133

Finance Operations Equity Stock 133

Hunter Walker

MAY 7, 2014

Whether it’s adding capacity to an existing function (#MawrEngineers) or bringing new talents onboard (“we intend to make our first marketing hire”), glossing over these bullet points towards the back of the pitch deck would be a mistake. I’m interested in not just what these people will be doing but how and when they’ll be hired.

Hiring 108

Hiring Option Pool Early Stage Term Sheet 108