Startup Professionals Musings

OCTOBER 16, 2022

Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold. On the other hand, there are some roles in a startup where Boomers are probably not the best candidates: Constantly-on-the-road sales territory management roles. Marketing and sales to Gen-Y customers.

Advisory Board 368

Advisory Board Dividend Angel Investor Cofounder 368

Startup Professionals Musings

AUGUST 19, 2020

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. Waiting until you have something to sell before bringing on a sales and operations staff.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

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. Rational burn profile, up to 50% of revenue at close, scaling down.

Revenue 60

Revenue Technical Review Software Review Equity 60

Startup Professionals Musings

FEBRUARY 25, 2023

Yet one of the first things a potential equity investor asks about is your exit strategy. Equity investments are not loans, so there is no loan payback period or interest payments. Equity investments are not loans, so there is no loan payback period or interest payments. Find a private equity firm or friendly individual.

Exit Strategy 264

Exit Strategy Private Equity Equity Technical Review 264

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

Startup Professionals Musings

MAY 25, 2020

Yet one of the first things a potential equity investor asks about is your exit strategy. Equity investments are not loans, so there is no loan payback period or interest payments. Equity investments are not loans, so there is no loan payback period or interest payments. Find a private equity firm or friendly individual.

Exit Strategy 376

Exit Strategy Startup Private Equity Equity 376

Berkonomics

DECEMBER 17, 2020

Let’s take a few minutes to examine the kind of equity financing available to small or early stage businesses. In most cases, these applicants for equity funding must be rooted in technology to apply to this limited discussion. The post When should you go for equity financing? Friends and family investors. Venture farms.

Equity 62

Equity Finance Liquidity Event Angel Groups 62

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. This week we closed $250M in financing from Silver Lake , the premier technology private equity firm. The next sale isn’t quite as sweet.).

Engineer 152

Engineer Revenue San Francisco Security 152

A Smart Bear: Startups and Marketing for Geeks

JUNE 20, 2011

I recently helped a friend broker the sale of his small, bootstrapped company. This is a smart guy with experience and a logical approach to such things, but the way he was initially trying to value his company was not only wrong, but the wrong way to think about the entire sale. To stoke an existing sales channel.

Sales 260

Sales Channel Cofounder Valuation 260

Startup Professionals Musings

JUNE 2, 2021

Customers today quickly get beyond these, and put a competitive priority on the experience of others, reflected in reviews and social media, and their own total experience with your sales process, delivery, returns, and support on their schedule. Short-term earnings per share may be low, even as revenues and cash burned are high.

Software Review 355

Software Review Algorithm Global IPO 355

Startup Professionals Musings

APRIL 27, 2016

Yet one of the first things a potential equity investor asks about is your exit strategy. Equity investments are not loans, so there is no loan payback period or interest payments. Equity investments are not loans, so there is no loan payback period or interest payments. Find a private equity firm or friendly individual.

Equity 120

Equity Exit Strategy Private Equity Startup 120

YoungUpstarts

JANUARY 10, 2020

When it occurs, the consequences can be swift and devastating, wreaking potential havoc on a once steady stream of revenue. sales to product development), the problems will continue to exist. For instance, in their efforts to close a deal, sales representatives may not want to address roadblocks or faults in the process.

Customer 347

Customer Development Team Review Advisory Board Private Equity 347

The Startup Magazine

MARCH 8, 2024

Utilize Debt for Strategic Investments Use debt to invest in revenue-generating assets that generate a positive return on investment for your business. Effective marketing and sales initiatives are essential to succeed. Effective marketing and sales initiatives are essential to succeed.

Finance 121

Finance Technical Review Metrics .Net 121

Startup Professionals Musings

SEPTEMBER 29, 2018

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. Waiting until you have something to sell before bringing on a sales and operations staff.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

Startup Professionals Musings

JANUARY 18, 2020

Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold. On the other hand, there are some roles in a startup where Boomers are probably not the best candidates: Constantly-on-the-road sales territory management roles. Marketing and sales to Gen-Y customers.

Advisory Board 312

Advisory Board Startup Dividend Angel Investor 312

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

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

The Startup Magazine

AUGUST 11, 2023

This could be a proportion of the company’s equity or investment; in other instances, it could be a portion of its later-stage profits. Seed venture capital firms can make more significant follow-on investments to keep or increase their equity stake in the company. How does the funding for the seed stage work?

Seed Stage 124

Seed Stage Technical Review Early Stage Due Diligence 124

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. Solicit funds from friends and family.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

ConversionXL

JANUARY 18, 2022

It partners with sales to close more revenue, informs product teams to deliver better products, and in some cases, co-owns demand generation activities with marketing teams. of their time), marketing teams (84.2%), and sales teams (75.9%). They rely on each other for success. Product marketing: Drive brand alignment.

Marketing 110

Marketing Product Audience Equity 110

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. Equity Ownership. Yes, typically preferred equity. Example VC.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

David Teten

SEPTEMBER 23, 2017

Private equity and venture capital investors are copying our sisters in the hedge fund and mutual fund world: we’re trying to automate more of our job. High-frequency trading, algorithmic by its nature, is estimated to account for at least 50% of US equity markets trading volume. . But we’re doing it slowly. Pitchbot.vc

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

Revenue multiples, profit multiples, premium over the previous financing — these are metrics used by sellers to help determine a minimum acceptable price. In terms of acquisition, they ask more specifically: “How can we trade balance sheet assets (cash, equity) in exchange for executing our strategy better?”.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

Startup Professionals Musings

OCTOBER 5, 2014

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. Waiting until you have something to sell before bringing on a sales and operations staff.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

VC Cafe

MARCH 1, 2024

Technological Convergence – The global equity market value associated with disruptive innovation could increase to 60% by 2030. Digital Wallets – Digital wallets could grow select vertical software platforms’ revenues to $27-$50bn in 2030. trillion by 2030.

Artificial Inteligence 176

Artificial Inteligence Technical Review Software Review Generative AI 176

Feld Thoughts

JULY 9, 2019

We ended up talking about using Gross Profit, instead of Revenue, to do valuation analysis. Since we invest across a number of different themes, we’ve had to deal with very different revenue and gross margin profiles since the beginning, whether we realized it or not. We’ve been doing this for a long time at Foundry Group.

Revenue 179

Revenue Valuation .Net IPO 179

ReadWriteStart

JUNE 1, 2020

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. Forms of funding. ? Equity investment. Equity investment is the most popular and most talked-about avenue for startup funding. Equity investors.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Up and Running

JULY 22, 2014

Sales forecast. It’s a table that lists all of your revenue streams and all of your expenses—typically for a three-month period—and lists at the very bottom the total amount of net profit or loss. A typical profit and loss statement should include: your revenue (also called sales), followed by. Cash flow statement.

Balance Sheet 148

Balance Sheet Forecast Equity .Net 148

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. Solicit funds from friends and family.

Entrepreneur 120

Entrepreneur Intellectual Property Technical Review Incubator 120

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). Where Gross Profit = Net Sales – Cost of Goods Sold.

Valuation 86

Valuation .Net Metrics Balance Sheet 86

Startup Professionals Musings

OCTOBER 16, 2023

Yet every business requires revenue and volumes, as certainly as it requires a product to sell. There is no black magic involved in predicting the future, if you use these four simple steps, with my basic rules of thumb to keep you on the right track: Determine your margin on sales. Forecast sales-volume expectations.

Forecast 290

Forecast Burn Rate Widget Business Plan 290

Gust

MAY 24, 2012

As a quick review, most startups begin life as corporations with a single class of equity securities, referred to as Common Stock , issued to founders, employees, and outside service providers. Options and warrants, when issued, are also typically exercisable for shares of Common Stock.

IPO 159

IPO Equity Common Stock Stock 159

YoungUpstarts

AUGUST 17, 2020

For starters, rising debt-to-equity ratio. Michael Majeed: When projecting profits and losses, an entrepreneur needs to start with expenses, not revenues. Michael Majeed is a longtime financial services executive and consultant based in Toronto. Michael Majeed: Entrepreneurs should follow the old adage, “numbers don’t lie.”

Finance 217

Finance Forecast Balance Sheet Angel Investor 217

ConversionXL

OCTOBER 7, 2021

Depending on its complexity, new product development can last for years, accruing research, prototyping, and production costs without bringing in revenue. But in many cases, the introduction stage is marked by slow-to-moderate sales and little profit. The long-term goal is to maximize sales or profits. Rapid skimming.

Product 142

Product Marketing Software Review Social Media 142

Hearpreneur

DECEMBER 10, 2023

It could be more revenue, hiring clients, or launching a new product or service, but every new year is an exciting time because it’s ripe with opportunity. 12- To diversify revenue streams Photo Credit: Mangla Sachdev In 2024 , my top priority is crafting an income engine that generates multiple streams of revenue.

Technical Review 134

Technical Review Entrepreneur Artificial Inteligence Affiliate 134

Both Sides of the Table

SEPTEMBER 28, 2014

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. But those of us with longer memories remember that the revenue line can move south very quickly when the market overall turns south. Gross burn is the total amount of money you are spending per month.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383