Steve Blank

SEPTEMBER 14, 2009

Each VC firm/partner has a different spin on what to weigh more.) 3) invest in and take equity stakes in exchange for capital. While there was an occasional bad apple, the public markets rewarded companies with revenue growth and sustainable profits. 4) help nurture and grow the companies they invest in.

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

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. In Advance vs. Arrears.

Technical Review 164

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

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

VC Cafe

JANUARY 15, 2024

M&A/ Exits – This situation is compounded by a narrowing window for mergers and acquisitions (M&A) and initial public offerings (IPOs). Discount Unicorns – Tiger Global opened its entire portfolio for individual bids in order to provide liquidity to its limited partners, often selling stakes in unicorns at steep discounts.

IPO 88

IPO Valuation Private Equity 88

Startup Professionals Musings

AUGUST 17, 2014

Here are some basic “rules of thumb” that every Angel or venture capital equity investor uses, to help you anticipate their reactions. According to a recent Dow Jones VentureSource report, the average time to liquidity of an equity investment in a startup is now about five years. Aggressive revenue projections and growth rate.

Liquidity Event 249

Liquidity Event Equity Venture Capital Merger 249

Startup Professionals Musings

MAY 6, 2016

But in my experience as a startup advisor, too many entrepreneurs get stuck there, and always find excuses for not really exploring mergers, acquisitions, partnerships, and alliance alternatives. Of course, they all prefer cash, but some may work for future revenue or startup equity. Investigate strategic alliance alternatives.

Merger 120

Merger Intellectual Property Startup Acquisition 120

Startup Professionals Musings

MAY 28, 2013

Here are some basic “rules of thumb” that every Angel or venture capital equity investor uses, to help you anticipate their reactions. According to a recent Dow Jones VentureSource report, the average time to liquidity of an equity investment in a startup is now about five years. Aggressive revenue projections and growth rate.

Liquidity Event 243

Liquidity Event Startup Equity Venture Capital 243

Startup Professionals Musings

NOVEMBER 17, 2012

Startups are usually so focused on selling more of their branded product or service to their own customer base (organic growth) that they don’t consider the more indirect methods (non-organic growth) of increasing revenue and market share. Even mergers and acquisitions (M&A) came early. Fresh customer base. Economies of scale.

Entrepreneur 249

Entrepreneur Merger Bandwidth Acquisition 249

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

Startup Professionals Musings

JULY 26, 2010

Startups are usually so focused on selling more of their branded product or service to their own customer base (organic growth) that they don’t consider the more indirect methods (non-organic growth) of increasing revenue and market share. Even mergers and acquisitions (M&A) came early. Fresh customer base. Economies of scale.

Acquisition 214

Acquisition Merger Startup Bandwidth 214

Gust

AUGUST 10, 2014

Here are some basic rules of thumb that every Angel or venture capital equity investor uses, to help you anticipate their reactions. According to a recent Dow Jones VentureSource report, the average time to liquidity of an equity investment in a startup is now about five years. Aggressive revenue projections and growth rate.

Liquidity Event 176

Liquidity Event Equity Venture Capital Merger 176

Startup Professionals Musings

SEPTEMBER 15, 2011

Startups are usually so focused on selling more of their branded product or service to their own customer base (organic growth) that they don’t consider the more indirect methods (non-organic growth) of increasing revenue and market share. Even mergers and acquisitions (M&A) came early. Fresh customer base. Economies of scale.

Startup 232

Startup Merger Bandwidth Acquisition 232

Startup Professionals Musings

MAY 29, 2015

Image via Pixabay.com Startups are usually so focused on selling more of their branded product or service to their own customer base (organic growth) that they don’t consider the more indirect methods (non-organic growth) of increasing revenue and market share. Even mergers and acquisitions (M&A) came quickly. Fresh customer base.

Merger 120

Merger Acquisition Differentiation Channel 120

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

AUGUST 27, 2012

In this section, you need to be passionate about recurring revenue, profit margin, and volume growth. Marketing, sales, and partners. Project both revenues and expense totals for next five years, and past three years. What equity is the company willing to give in return for the investment? Financial projections.

Elevator Pitch 247

Elevator Pitch Exit Strategy Burn Rate Merger 247

Startup Professionals Musings

AUGUST 13, 2012

Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Many people seem to use the social network advertising model for revenue, but forget it assumes at least 100M users and $50M investment. Exit strategy.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Startup Professionals Musings

MAY 13, 2011

Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Many people seem to use the social network advertising model for revenue, but forget it assumes at least 100M users and $50M investment. Exit strategy.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Startup Professionals Musings

FEBRUARY 13, 2016

You need to identify pricing details, sales channels, strategic partners and a customized marketing plan consistent with your industry and target segment. How big is the funding request, and how much equity will you give? Quantify founder investments, both cash and sweat-equity. What are your specific marketing and sales plans?

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Startup Professionals Musings

JUNE 10, 2011

In this section, you need to be passionate about recurring revenue, profit margin, and volume growth. Marketing, sales, and partners. Project both revenues and expense totals for next five years, and past three years. What equity is the company willing to give in return for the investment? Financial projections.

Elevator Pitch 234

Elevator Pitch Exit Strategy Burn Rate Merger 234

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

VC Cafe

NOVEMBER 3, 2010

owing to projected weakness in the economies of Israel’s main trading partners, the United States and Europe. Shamir Optical reported revenues of $142 million in 2009, generated mainly in Europe and the United States, and has about 1,400 employees. In 2009 it boasted revenue of $4.49 billion, of which $2.5

Bandwidth 79

Bandwidth Framework Forecast 79

Startup Professionals Musings

MAY 19, 2010

In this section, you need to be passionate about recurring revenue, profit margin, and volume growth. Marketing, sales, and partners. Project both revenues and expense totals for next five years, and past three years. What equity is the company willing to give in return for the investment? Financial projections.

Elevator Pitch 235

Elevator Pitch Exit Strategy Burn Rate Merger 235

Gust

AUGUST 5, 2012

Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Many people seem to use the social network advertising model for revenue, but forget it assumes at least 100M users and $50M investment. Exit strategy.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Gust

AUGUST 19, 2012

In this section, you need to be passionate about recurring revenue, profit margin, and volume growth. Marketing, sales, and partners. Project both revenues and expense totals for next five years, and past three years. What equity is the company willing to give in return for the investment? Financial projections.

Elevator Pitch 146

Elevator Pitch Exit Strategy Burn Rate Merger 146

Startup Professionals Musings

APRIL 22, 2010

Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Many people seem to use the social network advertising model for revenue, but forget it requires at least 100M users and $50M investment. Exit strategy.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

Gust

NOVEMBER 4, 2011

In brief, a cap acts to place a limit on the conversion price of a convertible note such that investors are guaranteed a minimum number of shares for their bridge loans if the startup does a priced equity round at a high pre-money valuation – “high” meaning above the cap, which is often a heavily negotiated term. (The

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

The Equity Kicker

MARCH 19, 2012

As a reminder, LPs, or limited partners, are the investors in venture capital funds. There are strong parallels between the way we present our portfolio and the way our portfolio companies present their revenue projections and pipeline at board meetings. These meetings are the equivalent of board meetings for our portfolio companies.

LP 97

LP Europe Portfolio Private Equity 97

Ben's Blog

MAY 24, 2021

Editor’s Note: This testimony was delivered by a16z managing partner Scott Kupor to the U.S. By way of background, I am the Managing Partner for Andreessen Horowitz, a $16.5 As a result, they are much more mature at the time of IPO (median revenue is about 10x what is what in the Dot Com bubble) and thus much higher valued.

SEC 36

SEC Accredited Investor IPO Technical Review 36

VC Cafe

NOVEMBER 9, 2011

If you don’t have over 100-150 million in revenue, then stay private, it is quite hard in the public market with that little revenue.” Josh: A lot of companies have IPO’d with less than 40 million in revenue, now you need a minimum of 70-100 million to IPO. The host was William Bowmer, a Managing Director at Barclays Capital.

IPO 92

IPO Cofounder Europe 92

Entrepreneurs-Journey.com by Yaro Starak

JANUARY 21, 2011

Right out of Graduate School, I started my career with one of the big four accounting firms in their M&A (Mergers and Acquisitions) practice. Paid off properties also have equity that you can tap into when in need. No matter where I am or what I am doing, my heart still bleeds Maize and Blue on Fall Football Saturdays (GO BLUE!).

Internet 80

Internet Technical Review Stock Due Diligence 80

techcrunch.com

OCTOBER 23, 2010

In Meebo’s case, for example, I was lucky enough to partner up with Elaine and Sandy. No looking for partnerships (who’s going to partner with you anyway?). Trust me, once you’ve launched and achieved traction, you’ll have your pick of mentors, VCs, partners and all the legal expenses you need. Partner up? No legal muck.

Technical Review 84

Technical Review Cofounder Technical Cofounder Software Review 84

Small Business Force

AUGUST 22, 2009

Your business is typically the single largest element of your asset base and estate, often with both real capital tied up and huge amounts of sweat equity invested. You've built relationships with partners, employees, and customers that are nearly family-like. Have you been approached by a prospective buyer or merger partner?

Valuation 20

Valuation Sweat Equity Merger Sales 20

Small Business Force

AUGUST 22, 2009

Your business is typically the single largest element of your asset base and estate, often with both real capital tied up and huge amounts of sweat equity invested. And it's probably been the center of your life, with relationships that have been built with partners, employees and customers that are nearly family-like.

Entrepreneur 20

Entrepreneur Valuation Sweat Equity Merger 20