Startup Professionals Musings

JULY 22, 2020

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. 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).

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

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

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

Steve Blank

MARCH 17, 2020

Next, take a look at your actual revenue each month – not forecast, but real revenue coming in each month. Subtract your monthly gross burn rate from your monthly revenue to get your net burn rate. All your assumptions about customers, sales cycle and most importantly, revenue, burn rate and runway are no longer true.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

YoungUpstarts

JUNE 6, 2013

If you have a deal that is related to bringing in sales and you do want to have a perpetual compensation you can use some version of a Lehman Formula that incentives the person upfront as they are bringing in revenue for you, then caps it off on an ongoing basis. Balance the risks to your reputation. Due Diligence.

Technical Review 164

Technical Review Securities and Exchange Commission Non-disclosure Agreement Due Diligence 164

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. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Hire more help than helpers. There is no free lunch.

Mezzanine 244

Mezzanine Private Equity Startup Bandwidth 244

Startup Professionals Musings

AUGUST 19, 2018

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. 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).

Angel Investor 184

Angel Investor Intellectual Property Investment Bankers Private Equity 184

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

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . The 11 Steps of Investing in Private Companies. In the private equity universe, most Partners have primary training as deal-makers, not as managers. 1) Manage the firm .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

YoungUpstarts

FEBRUARY 11, 2020

Whenever I start a new job or join a board, I spend time understanding what is really important to the company, especially around strategy, revenue and capital allocation. Why do you think there are so few women in private equity, and what can be done to change that? I always ask: how does this company make money?

Switzerland 264

Switzerland Private Equity Stock Options Equity 264

Startup Professionals Musings

JULY 4, 2014

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. 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).

Angel Investor 232

Angel Investor Intellectual Property Investment Bankers Private Equity 232

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

YoungUpstarts

MAY 29, 2019

As Kabbage customers explain, managing seasonal impact on revenue requires preparation – and if possible, alternate ways to bring money in the door. As we tell our customers, if you’re hiring us to transform your property, then you should trust us to take care of it forever.” Launching new services for traditionally slow seasons.

Georgia 113

Georgia New Jersey Private Equity Atlanta 113

Growthink Blog

APRIL 3, 2012

For example, having a financial model that shows you are going to grow from $0 to $100 million in revenues in 3 years is generally going to be frowned upon. But you should also avoid other grand claims and bolster your credibility wherever possible. Since achieving such a feat is extremely rare.

Private Equity 97

Private Equity Venture Capital Equity Forecast 97

Startup Professionals Musings

AUGUST 13, 2016

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. 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).

Matching 120

Matching Angel Investor Intellectual Property Investment Bankers 120

Startup Professionals Musings

SEPTEMBER 13, 2017

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. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Hire more help than helpers. There is no free lunch.

Mezzanine 141

Mezzanine Private Equity Startup Bandwidth 141

Up and Running

SEPTEMBER 10, 2020

Over the past 20+ years, as an angel investor, former venture capitalist and private equity investor, and serial entrepreneur, I have seen and written, a wide variety of pitch decks and business plans. Knowing how you determined revenue and costs over a 5-year projection period let me know if you really understand your business or not.

Business Plan 124

Business Plan Elevator Pitch Equity Private Equity 124

Startup Professionals Musings

NOVEMBER 3, 2013

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. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Hire more help than helpers. There is no free lunch.

Mezzanine 240

Mezzanine Private Equity Bandwidth Metrics 240

Both Sides of the Table

SEPTEMBER 12, 2010

Many of the growth equity firms have had outbound dialing programs for years. Growth equity firms typically target profitable businesses that are often not technical in nature. Perhaps outbound dialing / emailing programs worked well for growth equity firms in their core business. These kind of companies were seldom startups.

Programming 294

Programming Entrepreneur Private Equity Equity 294

Both Sides of the Table

OCTOBER 14, 2015

The truth is that the brutal reality of public markets is that they self correct much more quickly than our shitty little private equity illiquid corner of the universe. And the truth is that I think this is just a harbinger of what we will see in the private markets very, very soon. What is your cash balance?

Burn Rate 150

Burn Rate San Francisco Private Equity LP 150

Startup Professionals Musings

FEBRUARY 4, 2015

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. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Hire more help than helpers. There is no free lunch.

Mezzanine 120

Mezzanine Private Equity Startup Bandwidth 120

Growthink Blog

AUGUST 18, 2012

One key reason for this is that most sources of money, like banks and institutional equity investors (defined as institutions like venture capital firms, private equity firms and corporations that invest), are essentially professional risk managers. But unfortunately, that's not how raising capital works.

Private Equity 116

Private Equity Equity Revenue Security 116

Growthink Blog

MARCH 8, 2013

Most sources of money, like banks and institutional equity investors (defined as institutions like venture capital firms, private equity firms and corporations that invest), are essentially professional risk managers. Let me explain. You merely raise enough money to achieve your initial milestones.

Private Equity 101

Private Equity Equity Revenue Security 101

The Startup Lawyer

AUGUST 22, 2011

. “Control&# of a startup can manifest itself in various forms such as equal (or investor-favorable) representation on the board of directors or a requirement of obtaining seed investor approval for new hires and/or budget matters. You need to figure out why your potential angel investor wants to control your startup. Non-Dilution.

Angel Investor 99

Angel Investor Dividend Dilution Cofounder 99

Growthink Blog

MARCH 1, 2017

Rising public markets, with big companies flush with fresh equity and thus able to more assertively pursue growth-by-acquisition strategies, creates a virtuous trickle-down effect on valuations and business sale probabilities for even the smallest of firms. Make that new hire. Sell Your Company. Ask Yourself What is Wrong.

Marketing 48

Marketing Private Equity Acquisition Equity 48

Hearpreneur

JANUARY 7, 2022

They hired me to assist them to increase income and help them move forward. After working 10+ years in sustainable private equity and impact investing, I realized there is a significant lack of awareness regarding how to invest and where to invest your money sustainably which is what gave me the idea for my business.

Entrepreneur 112

Entrepreneur Technical Review Software Review Non-Compete 112

Startup Lessons Learned

MAY 25, 2020

And then from there, I was running a fitness company on the west coast by the name of 24 Hour Fitness, which was private equity backed and quite a bit of debt. I think about this in customers and protecting your employees and customers, always protect your P&L, your revenue. So, how are you investing in being even better?

Technical Review 148

Technical Review Balance Sheet Texas Austin 148

Startup Lessons Learned

JULY 15, 2020

That's why the Corona Initiative is a Public Benefit Corporation--a for-profit company dedicated to the public good that aims to fund its research with its revenues. Before venture, equity financing was seen as a pretty unfriendly business. These corporate raiders, and these leverage buyouts and this private equity hatchet bin.

Technical Review 68

Technical Review Software Review Finance Technology 68

YoungUpstarts

SEPTEMBER 23, 2019

In the accounting business, your revenue chart basically looks like a hockey stick,” says Ernie Mayhorn, owner of Capital Tax Solutions in Carson City, Nev., To even out the “hockey stick” revenue cycles, Ernie finds money-making opportunities for slow periods. Add new services to stay busy all year. “In Account for payment delays.

Hockey Stick 113

Hockey Stick Small Business Private Equity Denver 113

Hearpreneur

MARCH 14, 2018

While I wasn’t selected by one of the five TV sharks, I was able to create a partnership with a private equity group that saw my segment. If every small business successfully generated more leads and revenue, and thus had to hire more staff to manage their growing businesses, there would be more jobs and less unemployment.

Entrepreneur 90

Entrepreneur PR Technical Review Non-Compete 90

A Smart Bear: Startups and Marketing for Geeks

MARCH 11, 2014

So hiring more people and being around more people and getting more things done is not actually one of the reasons. After that, I did it for a private equity firm then we became a part of a larger corporation. How do you split equity? How do you split revenue? Jason: A lot of things are solved with revenue.

Technical Cofounder 220

Technical Cofounder Cofounder Software Review Management 220

Duct Tape Marketing

SEPTEMBER 10, 2019

And I’m guessing one of them certainly is a lot of, “What’s the revenue? So what’s your top-line revenue? The more revenue you have, the more valuable your company is going to be, generally. The more revenue you have, the more valuable your company is going to be, generally. Here’s why.

Entrepreneur 49

Entrepreneur Switzerland Revenue Differentiation 49

Women Entrepreneurs Can

MAY 9, 2019

During the early days, these are your key contributors and they must be willing to put as much sweat equity into the organization as you are. Scaling will increase the cost it takes to do business and it often does it before you’re able to generate additional revenue in the traditional way your company acquires sales.

Programming 40

Programming Sweat Equity Startup Private Equity 40

This is going to be BIG.

JULY 25, 2012

this week with the hiring of Marissa Mayer. These are the grey haired white dudes that show up as Operating Partners on Private Equity fund pitch books. Hiring in general is a problem in a turnaround situation. There's been a lot of talk about turning around Yahoo! Maybe its because the environment changes too quickly.

Web 94

Web Acquisition Private Equity Bandwidth 94

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. Robert Half.

Hiring 61

Hiring Finder Canada Australia 61

A Smart Bear: Startups and Marketing for Geeks

JUNE 20, 2011

They’ve heard rules of thumb like “A growing software company is worth 5 times their trailing 12-months revenue.&# Even narrowing the field as much as feasible, revenue multiples varied between 1.2x The “Multiples&# argument does work well in industries where company’s growth and revenue is highly predictable.

Sales 260

Sales Channel Cofounder Valuation 260

Up and Running

DECEMBER 9, 2014

By freeing up your time it really helps you focus on more important tasks and this can be things ranging from improving the product quality to hiring a great team to rewarding your people to thinking more holistically about customer experience or understanding your competition. Two, revenue. I can hire a development team.

Small Business 95

Small Business Finance Forecast Metrics 95