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. Nevertheless, it’s an option that doesn’t cost you equity. Use crowd funding.

Product Development 177

Product Development Cost Developer Product 177

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. We have a special program if you are pre-seed and need product development.

Revenue 60

Revenue Technical Review Software Review Equity 60

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. Nevertheless, it’s an option that doesn’t cost you equity. Use crowd funding.

Intellectual Property 219

Intellectual Property Technical Review Startup Incubator 219

VC Cafe

MARCH 1, 2024

Alow users to generate, refine, and stitch different content types in one workspace Enabling in-platform refinement – AI products can help users identify what can be improved, and then automatically make these changes. Iterating with intelligent editors – products that enable users to take an existing output and refine it (ex.

Artificial Inteligence 177

Artificial Inteligence Technical Review Software Review Generative AI 177

The Startup Magazine

AUGUST 11, 2023

The following is a condensed explanation of seed funding: Seed money is a form of early-stage financing that new businesses receive from investors in exchange for a share of ownership in the company. It is necessary to cover the early stages of product development, thorough market research, and other processes during the initial step.

Seed Stage 148

Seed Stage Technical Review Early Stage Due Diligence 148

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. That revenue is in on 75,000 customers, earned through the hard work of 500 employees across six offices on three continents.

Engineer 152

Engineer Revenue San Francisco Security 152

David Teten

AUGUST 20, 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.

Revenue 60

Revenue Cofounder Founder Venture Capital 60

The Startup Magazine

FEBRUARY 21, 2024

TEC is one of Canada’s largest and most experienced private credit firms, specializing in providing asset-based capital solutions to companies that are underserved or overlooked by traditional sources of financing, primarily banks. Are there new revenue streams you can tap into? The firm has made more than $4.5

Technical Review 158

Technical Review Due Diligence Bankruptcy Intellectual Property 158

Startup Professionals Musings

JULY 14, 2014

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. Use crowd funding.

Entrepreneur 283

Entrepreneur Intellectual Property Technical Review Incubator 283

Feld Thoughts

OCTOBER 28, 2011

While Jane was building SayAhh’s revenue projections , Dick focused his attention on building the expense side of the projections. It is simple in that it forecasts how much cash will be coming in the door (revenues + equity financing + debt financing) and then subtracts from that amount how much cash is expected to be going out the door.

Revenue 127

Revenue Balance Sheet Forecast Software Review 127

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. Nevertheless, it’s an option that doesn’t cost you equity. Use crowd funding.

Intellectual Property 309

Intellectual Property Technical Review Venture Capital Startup 309

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. Join a startup incubator.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

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. Flexible VC 102: Variations. The State of Flexible VC.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

View from Seed

SEPTEMBER 18, 2019

As a seed-stage company, it is understandable to have a nascent (or non-existent) product and a barebone team relative to the great ambition of the company. The “product roadmap”. The “product roadmap”. Zooming out of the first 18 months, you want to articulate how you see the product evolving to achieve its long-term vision.

Part-Time VPE 195

Part-Time VPE Seed Stage CTO Hire Forecast 195

The Startup Magazine

MARCH 30, 2022

This is where growth financing options come into play. So what is it exactly, and to what extent can you finance the growth of your startup using it? A quick overview of growth financing. Tip: carefully review your financing options. The scope of growth financing products. The advantages. Final thoughts.

Finance 166

Finance Dilution Green Revenue 166

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.

Finance 199

Finance Balance Sheet Operations Framework 199

ReadWriteStart

JUNE 1, 2020

You must have a prototype or a minimum viable product (MVP). 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. To fund the sudden spike in production, funds will be required for additional inventory and wages.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

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. Join a startup incubator.

Entrepreneur 120

Entrepreneur Intellectual Property Technical Review Incubator 120

Startup Professionals Musings

JULY 27, 2020

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. A winning product or service. Provide a simple yet complete description of your product or service and its competitive marketplace.

Silicon Valley 406

Silicon Valley Equity Startup Finance 406

The Startup Magazine

MAY 11, 2020

Whether you are new in business or an established entrepreneur, you need to be diligent with your finances. By doing so, you can focus on improving productivity and sales. There are several reasons a bank will reject financing applications, but the most common is a low credit score. Boost Sales and Revenue.

Software Review 123

Software Review Small Business Management Bankruptcy 123

YoungUpstarts

JULY 16, 2019

New product or service development. When you carefully analyze the financial pros and cons, you will come to realize that taking on a debt (in the forms of loans) might be the ultimate way to finish your new ideas and develop your new products and services. Let’s now take a look at some of these situations and facts. Stay in charge.

Software Review 113

Software Review Startup Equity Bootstrapping 113

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? five years.).

Finance 83

Finance Bootstrapping Startup Equity 83

Up and Running

JUNE 23, 2022

On the other hand, some of these are not easily fixable so you’ll have to look for alternative solutions to your financing problems. Where you borrow money from angel investors or venture capitalists willing to lend money to startups for more interest and usually an equity kicker as well. Explore other financing options.

SBA 163

SBA Finance Balance Sheet Technical Review 163

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. And the amount of equity you need to grant to accomplish these hires is also an art and most certainly not a science.

Equity 64

Equity Employee CTO Hire Fractional CTO 64

Up and Running

DECEMBER 16, 2021

Metrics such as discretionary cash flow or business revenue are used. A company’s goodwill might be worth 2x more than the discretionary cash flow, or the accounting practice’s value might be worth 1 to 1.35x the annual revenue + work-in-progress (inventory). Household products 0.6 their net commission revenue.

Valuation 86

Valuation .Net Metrics Balance Sheet 86

Both Sides of the Table

MAY 27, 2013

In his tenure as CEO of DataSift we have never missed a monthly revenue figure. He has grown our US operations from 1 employee (him) to a global organization of 75 employees that will finish the year with 8-digit revenues (90+% recurring) and more than 350% year-over-year growth. In his spare time he raised nearly $30 million.

Advisory Board 365

Advisory Board CTO Hire Fractional CTO Los Angeles 365

The Startup Magazine

SEPTEMBER 10, 2020

Established in 1986, most of its production comes from the U.S., Main Street Capital is a publicly traded private equity firm that offers equity and debt financing to lower middle-market companies with a revenue between $10 million and $150 million. though it has international properties, too. Main Street Capital.

Dividend 99

Dividend Stock Finance Private Equity 99

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. 7- Minimize experimentation.

Entrepreneur 96

Entrepreneur Software Review Technical Review Revenue 96

YoungUpstarts

MARCH 30, 2020

Are you having trouble getting financing for your business through your bank or credit union? If you can’t get a traditional loan through your financial institution, you should consider alternative financing. To see what alternative financing options you have, keep reading below. Short-Term Loans.

Finance 147

Finance SBA Small Business Administration Startup 147

YoungUpstarts

OCTOBER 12, 2017

Many of these companies are pre-revenue and in the cash burn stage as they try to establish their technology and market. When investors believe in the founders, products, or ideas they will provide companies with funding. However, as a condition of financing they may require annual audited financial statements.

San Francisco 133

San Francisco Forecast Early Stage Term Sheet 133

Startup Professionals Musings

MAY 30, 2022

Early-stage entrepreneurs rightly keep their focus on creating an innovative product or service. 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.

Mezzanine 368

Mezzanine Private Equity Bandwidth Metrics 368

YoungUpstarts

APRIL 22, 2014

Shark Question #2: What were your total revenues for the last quarter and last 12 months, including profit margins? To get these “numbers,” do a review of total revenue and expenses, review by product or service line, and a profit-margin analysis – all of which can all be obtained from your company’s income statement.

CPA 160

CPA Technical Review Later Stage Equity 160

www.inc.com

SEPTEMBER 24, 2011

Finance | Tuesdays. Financing a Small Business. Financing A Small Business. Personal Finance. Will Work for Equity. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. Theres a huge opportunity cost in not taking equity," he says. Start-up | Mondays. Technology | Thursdays.

Arizona 40

Arizona Equity Iowa Venture Capital 40

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

Up and Running

SEPTEMBER 19, 2017

When you accept outside money, particularly a private equity (PE) investment, however, that changes. In this article, I’ll provide some personal stories of how investors have navigated the balance between raising private equity capital and not losing control of their startup. Rule 1: Bootstrap until you have a viable product.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

YoungUpstarts

MAY 14, 2018

Marks, founder and managing partner of High Rock Partners and author of “ Middle Market M & A: Handbook for Investment Banking and Business Consulting “ Conventional wisdom says that a company grows by reaching new customers, increasing its workforce, expanding marketing or launching new products or services.

Acquisition 124

Acquisition Finance Raleigh Mezzanine 124

YoungUpstarts

NOVEMBER 27, 2018

It’s simple; know how to spot potential and use your area of expertise to identify whether or not this startup’s product or service will become a lucrative asset to its audience. Here’s how to spot potential in a growing company when looking to invest: Assess the company’s product or service.

Early Stage 160

Early Stage Cofounder Startup Security 160