Startup Professionals Musings

MAY 28, 2013

Aggressive revenue projections and growth rate. Revenue in the fifth year should be at least $20 million, with a growth rate average of 100% per year. In other words, revenue projections are not the place to be too conservative or wildly optimistic. That’s why investors want to hear about your exit strategy.

Liquidity Event 243

Liquidity Event Startup Equity Venture Capital 243

Startup Professionals Musings

JUNE 10, 2011

In this section, you need to be passionate about recurring revenue, profit margin, and volume growth. Implicit in this is the go-to-market strategy. Marketing, sales, and partners. Describe marketing strategy, sales plan, licensing, and partnership plans. Exit strategy. What is the timeframe for the exit?

Elevator Pitch 234

Elevator Pitch Exit Strategy Burn Rate Merger 234

Startup Professionals Musings

MAY 19, 2010

In this section, you need to be passionate about recurring revenue, profit margin, and volume growth. Implicit in this is the go-to-market strategy. Marketing, sales, and partners. Describe marketing strategy, sales plan, licensing, and partnership plans. Exit strategy. What is the timeframe for the exit?

Elevator Pitch 235

Elevator Pitch Exit Strategy Burn Rate Merger 235

Gust

AUGUST 10, 2014

Aggressive revenue projections and growth rate. Revenue in the fifth year should be at least $20 million, with a growth rate average of 100% per year. In other words, revenue projections are not the place to be too conservative or wildly optimistic. Thats why investors want to hear about your exit strategy.

Liquidity Event 176

Liquidity Event Equity Venture Capital Merger 176

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. Implicit in this is the go-to-market strategy. Marketing, sales, and partners. Describe marketing strategy, sales plan, licensing, and partnership plans. Exit strategy. What is the timeframe for the exit?

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

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. What are your forecasts for revenue, expenses and cash flow? What are your specific marketing and sales plans? Highlight elements of traction you already have.

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Up and Running

MAY 1, 2014

Does each business partner own an equal portion of the business? This partnership may help provide access to a target market segment for your company while allowing your partner to offer a new product or service to their customers. A typical P&L will be a spreadsheet that includes the following: Sales (or Income or Revenue).

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

discuss.joelonsoftware.com

NOVEMBER 1, 2010

Im confident that this business will be able to compensate these two additional principles along the way, after initial risk of investing their time, and will later reward their vesting with an exit strategy. Make sure you treat people as partners, not as paid help. Equity partners need to have a hand in guiding the enterprise.

Sweat Equity 40

Sweat Equity Equity Angel Investor Affiliate 40

www.paulgraham.com

APRIL 28, 2010

In an IPO, it might not merely addexpense, but change the outcome. Those remedial actions can delay, stall or even kill the IPO. Of course the odds of any given startup doing an IPO are small.But not as small as they might seem. There never has to be atime when you have no revenues. This is not as selfish as it sounds.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Up and Running

APRIL 28, 2015

Slide 5: Revenue model. Exit strategy. You do this in the form of an “exit strategy” slide that outlines who your potential acquirers might be if you manage to grow your company and be successful. Try and keep your pitch deck focused with this format and you’ll tell a better story. Demo and screenshots.

Forecast 60

Forecast Hockey Stick Exit Strategy Intellectual Property 60

Gust

NOVEMBER 4, 2011

VantagePoint Venture Partners came to the rescue in late 2003 with an infusion of $15 million in capital, adding Andrew Sheehan (now at Sutter Hill Ventures ) and David Carlick (now at Rho Ventures ) to the Board. Intermix was in a turnaround situation when I arrived in mid-2004, having been delisted from Nasdaq and nearly bankrupt.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

BeyondVC

DECEMBER 23, 2003

As with any smart executive who cares about the value of equity, the question I am often asked is, “What is your exit strategy.” In other words, these good exits usually happen when your company is approached by a potential buyer-i.e., What does this all mean? Remember, companies are bought and not sold.

Exit Strategy 68

Exit Strategy Balance Sheet IPO Valuation 68