Startup Professionals Musings

APRIL 27, 2016

The last thing a new entrepreneur wants to think about for a new startup is how it will end. Yet one of the first things a potential equity investor asks about is your exit strategy. Here are three important reasons for the question: Good investment paybacks normally require an exit event.

Equity 120

Equity Exit Strategy Private Equity Startup 120

ReadWriteStart

JUNE 1, 2020

I have often been asked about Startup Funding by entrepreneurs. Many myths surround the subject of startup funding. Here is Startup Funding, a Comprehensive Guide for Entrepreneurs. You must have seen a lot of startups giving out promotions, discounts, and incentives at the early phase of their business.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

FEBRUARY 19, 2012

If you startup is your dream, why would you want to think about an exit? There are two very real and practical reasons why you need to plan an exit: Outside investors want to collect their return. If your startup was less than a success, you’ll definitely want to erase it from memory. Initial Public Offering (IPO).

Exit Strategy 241

Exit Strategy Initial Public Offering IPO Startup 241

Up and Running

AUGUST 18, 2014

In comparison to traditional business ventures, startups are expected to grow rapidly, at a rate of between 5% and 7% per week in their initial stage – Paul Graham, co-founder of Y Combinator. The term startup is also associated with a business that is typically technology oriented and has high growth potential.

Small Business 154

Small Business Exit Strategy Cofounder Angel Investor 154

Startup Professionals Musings

OCTOBER 18, 2023

Although many won’t admit it, true entrepreneurs can’t wait to exit their current startup, and build a new and better one with their next great idea. For these reasons, I always look for an overt exit strategy in every startup I might consider for an angel investment. Set your startup health gauges and use them.

Exit Strategy 248

Exit Strategy Valuation Acquisition Metrics 248

Startup Professionals Musings

JANUARY 7, 2013

Based on the final report for 2012 from Thomson Reuters and the National Venture Capital Association (NVCA), it may appear that IPOs are back as a viable startup exit strategy. Angels are also moving up-stage, leaving a bigger and bigger black hole for new startups. Identify the right people in the right venture firms.

Venture Capital 252

Venture Capital IPO Elevator Pitch Initial Public Offering 252

Startup Professionals Musings

JANUARY 9, 2021

Although many won’t admit it, true entrepreneurs can’t wait to exit their current startup, and build a new and better one with their next great idea. For these reasons, I always look for an overt exit strategy in every startup I might consider for an angel investment. Set your startup health gauges and use them.

Exit Strategy 434

Exit Strategy Valuation Acquisition Metrics 434

Startup Professionals Musings

OCTOBER 12, 2020

Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). It’s helpful to think of startups as proceeding through several stages, which I have defined a long time ago from a funding perspective. Don’t waste your resources on the wrong ones.

Incubator 429

Incubator Startup Exit Strategy Institutional Investors 429

Up and Running

MARCH 14, 2018

I’ve raised close to $1 million from angel investors for my previous technology startups. Below is a format I’ve successfully used for my own ventures, and to help many other first-time startup CEOs raise investment capital. Your revenue or business model. Your exit strategy. Image via WOCinTechChat.

Hockey Stick 164

Hockey Stick Exit Strategy Technical Review Angel Investor 164

ReadWriteStart

OCTOBER 2, 2021

If you’re thinking about starting a tech startup you already know — there are a lot of things to consider. But what if a tech startup uses the LLC structure? And even though an LLC is legally required to report its revenues, profits, and losses, it does not have to pay corporate income taxes on profits. Long-Term Strategy.

Technical Review 158

Technical Review LLC IPO Stock 158

Startup Professionals Musings

JANUARY 4, 2020

They know from forums such as Shark Tank on TV that asking for either too much or too little will derail credibility in the eyes of the investor, and leave the entrepreneur with no money and a struggling startup. This is all about setting a credible current value on your startup -- not future value.

Startup 337

Startup Preferred Stock Exit Strategy Equity 337

Startup Professionals Musings

OCTOBER 8, 2023

contributes more than $25 billion to fund 70,000 startups every year. In fact, there are a few key sites to help you find angels, including AngelList and Gust , but these don’t tell you very much about how angels work, and how to find the right ones for your startup. Their realm fits between crowdfunding and venture capital sources.

Venture Capital 265

Venture Capital Accredited Investor Syndicate Syndication 265

YoungUpstarts

MAY 6, 2019

by Arsalan Sajid, startup community manager at Cloudways. Life is not a box of chocolates and startups are not always easy to start. There is a complete process that governs the startup lifecycle including inception to exit. This startup stage starts from the day you decide to work on a startup idea.

Startup 113

Startup Technical Cofounder Merger Early Stage 113

Startup Professionals Musings

MARCH 10, 2023

As a startup investor, I often see business proposals looking for funding that really look like expensive hobbies looking for donations. This is the first business process that every startup needs, that I wouldn’t expect to find for a hobby. It’s a myth in the startup world that not having processes makes you more competitive.

Exit Strategy 288

Exit Strategy Metrics Operations Cost 288

Up and Running

MAY 15, 2018

Innovative products and business models are the foundations of a promising startup. Funding is crucial for improving technology, hiring the right people, and launching a comprehensive marketing strategy to get a foothold in the market. As mentioned in the beginning, many new startup funding options are available today.

SBA 84

SBA Angel Investor Technical Review Startup 84

Startup Professionals Musings

OCTOBER 7, 2022

They know from forums such as Shark Tank on TV that asking for either too much or too little will derail credibility in the eyes of the investor, and leave the entrepreneur with no money and a struggling startup. This is all about setting a credible current value on your startup -- not future value.

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

Startup Professionals Musings

SEPTEMBER 28, 2015

Too many entrepreneurs look for that one magic bullet -- an exciting new technology, perhaps, or their own determination to make the world a better place -- to override any shortcomings in their startup model. Such failures ignore the essential business elements investors look for before committing to a startup.

Exit Strategy 120

Exit Strategy Technical Review Distribution Viral 120

Startup Professionals Musings

OCTOBER 14, 2016

Based on some good estimates of how many new ventures have been started in the last five years, the statistical odds of any individual startup making it to this level are less than one in a million. Premium ventures need real traction, such as 100 million users, 10 million in revenue, or brand recognition around the world.

Intellectual Property 120

Intellectual Property Valuation Merger Exit Strategy 120

YoungUpstarts

SEPTEMBER 19, 2018

A self-professed digital nomad and the founder of a software startup that provides order, purchase and inventory management, Benjamin has found an enviable match for his wanderlust with a business that allows him to work online, anywhere and anytime. We speak to Benjamin about entrepreneurship and building a startup.

South America 113

South America Software Review Thailand Vietnam 113

ReadWriteStart

OCTOBER 2, 2021

If you’re thinking about starting a tech startup you already know — there are a lot of things to consider. But what if a tech startup uses the LLC structure? And even though an LLC is legally required to report its revenues, profits, and losses, it does not have to pay corporate income taxes on profits. Long-Term Strategy.

Technical Review 78

Technical Review LLC IPO Stock 78

Steve Blank

NOVEMBER 18, 2016

What’s become apparent in the last few technology hype cycles is that for startups and their investors there is a short multi-year window of opportunity (at the Peak of Inflated Expectations) to sell a startup at an inflated price. Exit Strategy. Exit Strategy was building the penultimate planning tool.

Artificial Inteligence 318

Artificial Inteligence Lean Exit Strategy Startup 318

Up and Running

SEPTEMBER 19, 2018

Financial Summary: Explain your business model, startup costs, revenues, and liabilities to the company. Your funding ask and exit strategy, if applicable. A brief history of the startup if it’s an existing company: This provides background for potential new employees. Target market: Who is your ideal buyer?

Business Plan 154

Business Plan Technical Review Forecast Software Review 154

Startup Professionals Musings

MARCH 13, 2020

If you need to attract investors to your startup, your financial projections have to be as attractive as the idea. In that context, I offer the following financial projection strategies, from my own experience: Forecast a business that has plenty of room to grow quickly. Project growth equal to or better than current premium startups.

Liquidity Event 308

Liquidity Event Forecast Exit Strategy Bootstrapping 308

Startup Professionals Musings

JUNE 7, 2020

As a startup investor, I often see business proposals looking for funding that really look like expensive hobbies looking for donations. This is the first business process that every startup needs, that I wouldn’t expect to find for a hobby. It’s a myth in the startup world that not having processes makes you more competitive.

Entrepreneur 328

Entrepreneur Exit Strategy Metrics Operations 328

Startup Professionals Musings

JANUARY 27, 2021

contributes more than $25 billion to fund 70,000 startups every year. In fact, there are a few key sites to help you find angels, including AngelList and Gust , but these don’t tell you very much about how angels work, and how to find the right ones for your startup. Their realm fits between crowdfunding and venture capital sources.

Search 317

Search Accredited Investor Angel Investor Venture Capital 317

Startup Professionals Musings

JANUARY 5, 2011

If you startup is your dream, why would you want to think about an exit? There are two very real and practical reasons why you need to plan an exit: Outside investors want to collect their return. If your startup was less than a success, you’ll definitely want to erase it from memory. Initial Public Offering (IPO).

Exit Strategy 231

Exit Strategy Initial Public Offering Startup IPO 231

Up and Running

JANUARY 2, 2013

Your Revenue Model : Investors tend to care about this slide the most. Your Financial Projections : Show what you’re projecting in revenue (per product) over the next three to five years. Ideally, you have check marks across the top for every category, and your competitors lack in key areas to show your competitive advantage.

Hockey Stick 164

Hockey Stick Exit Strategy Technical Review Due Diligence 164

Startup Professionals Musings

NOVEMBER 4, 2011

Every new startup I know dreams of being funded by an angel investor. Over the past 10 years, I have had the opportunity to see how the process works, several times from the startup side, and more recently from the angel perspective (as a member of an angel group selection committee). Finalize your financial model.

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

Up and Running

AUGUST 19, 2014

An angel investor is a high net worth individual who invests their own money into startup companies in the hopes of gaining a return on their money. I was the CEO of both startups, so it was my job to pitch to the angels. Entrepreneurs impress me when they demonstrate a proven revenue stream before asking for capital.

Angel Investor 161

Angel Investor Technical Review Due Diligence Startup 161

Up and Running

AUGUST 28, 2018

Financial summary: Explain your business model, startup costs, revenues, and liabilities to the company. Your funding ask and exit strategy, if applicable. Exit strategy : You only need this if you’re seeking outside investment. When writing your financial plan, make sure to consider startup costs.

Business Plan 72

Business Plan Technical Review Exit Strategy Oregon 72

Startup Professionals Musings

SEPTEMBER 23, 2010

Every new startup I know dreams of being funded by an angel investor. Over the past 10 years, I have had the opportunity to see how the process works, several times from the startup side, and more recently from the angel perspective (as a member of an angel group selection committee). Finalize your financial model. Marty Zwilling.

Angel Investor 224

Angel Investor Intellectual Property Technical Review Elevator Pitch 224

Startup Professionals Musings

SEPTEMBER 30, 2015

Although many won’t admit it, true entrepreneurs can’t wait to exit their current startup, and build a new and better one with their next great idea. For these reasons, I always look for an overt exit strategy in every startup I might consider for an angel investment. Set your startup health gauges and use them.

Exit Strategy 120

Exit Strategy Startup Valuation Acquisition 120

Startup Professionals Musings

MAY 28, 2013

However, making no projections, or non-credible projections will get your startup marked as unfundable. The rules are obviously not absolute, but you must be prepared to explain to potential investors why your startup is the exception to these guidelines: Five-year financial projections are the norm. Gross margins greater than 50%.

Liquidity Event 243

Liquidity Event Startup Equity Venture Capital 243

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

Startup Professionals Musings

DECEMBER 28, 2018

Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). It’s helpful to think of startups as proceeding through several stages, which I have defined some time ago from a funding perspective. Don’t waste your resources on the wrong ones.

Incubator 236

Incubator Exit Strategy Institutional Investors Angel Investor 236

Reid Hoffman

JULY 23, 2020

This week, I’d like to turn to the question of how current market conditions affect the approach entrepreneurs should take towards their exit strategy. prioritize speed over efficiency) when you believe you can build strategic value, even if there are many unknowns and uncertainties around the revenue model.

IPO 36

IPO Exit Strategy Acquisition Technical Review 36

Up and Running

MAY 17, 2017

Plus, you’ll always be prepared in case an opportunity or desire to sell arises in the future—it’s a smart idea to have an exit strategy. While you’re at it, check out Bplans business startup checklist download for a complete list of steps to keep in mind while you start your business. million in sales revenue.

Acquisition 92

Acquisition Technical Review Revenue Exit Strategy 92