YoungUpstarts

OCTOBER 28, 2015

This article highlights their advice on issues ranging from financing to patent trolls: While startups may believe lawyers are too costly, working with one early on avoids potentially serious problems later. “And if you have a valuation cap; a higher cap is always better than a lower cap.” ” The Cost of Financing.

Convertible Security 100

Convertible Security IP Technical Review Software Review 100

Tim Keane

MARCH 9, 2011

How to prepare a sales forecast for a business plan » March 09, 2011. How should I finance my new venture? It’s a deceptively simple question:  what is the optimal way to finance a new startup?   Sometimes, the bonus in bootstrapping is that the venture finds it doesn’t need acceleration financing. 

Finance 83

Finance Bootstrapping Startup Equity 83

Both Sides of the Table

JUNE 5, 2011

2: As expected at least one person accused me of writing this post because I want to see lower valuations. As the risks below get eliminated the higher the valuation investors are prepared to pay. So rounds tend to be “range bound&# where the top end of the valuation spectrum often being done in boom markets (i.e.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Mucker Lab

MAY 28, 2020

These lost startups land higher valuations, have larger teams, outsource more product development and spend more money on customer acquisition than their peers. Before you indulge in marketing, sales and blinged-out offices, find product-market fit. Test your sales and marketing a few feet from the ground, first – not from an airplane.

Startup 78

Startup Cofounder Burn Rate Technical Review 78

The Startup Magazine

AUGUST 15, 2022

If all else fails, your advisor may be able to salvage the sale by reengaging other interested parties. The first step in creating a business plan to sell your startup to an acquirer is to create a valuation of your company. Preparing for the sale. This is when revisiting past interested buyers can be helpful. Finding a buyer.

Merger 130

Merger Acquisition Due Diligence Valuation 130

Start Up Blog

MAY 28, 2020

Perception also informs finance. I work in consumer electronics sales. Uber has lost $38 billion since 2013 and yet still has a market valuation of around $60 billion. – Tesla $ valuation per car sold = $302k. – GM $ valuation per car = $5k. – Ford $ valuation per car sold = $17k.

Valuation 48

Valuation Technical Review Singapore India 48

Both Sides of the Table

JANUARY 22, 2014

Of course it is super helpful if a VC can drop you in to important people for business development, recruiting, PR, sales and eventually M&A. To be clear – I’m not saying huge successes make a VC less likely to be helpful to you – I’m just saying it’s not a guaranteed predictor. Connections?

Portfolio 364

Portfolio Chicago Sales Incubator 364

Feld Thoughts

NOVEMBER 18, 2013

Here’s the punchline: if you run your company as if you have closed a VC equity financing round even though you actually closed a convertible debt round, you’ll be in much better shape when it comes time to raise your Series A financing. They close on the $750k, hire a buddy or two, buy some Macs, and get to work.

Burn Rate 152

Burn Rate Equity Software Review Early Stage 152

Duct Tape Marketing

FEBRUARY 3, 2022

16:06] Does hiring an advisor also come with a team of legal and financial advisors? John Jantsch (00:00): This episode of the duct tape marketing podcast is brought to you by the sales podcast, hosted by will Barron brought to you by the HubSpot podcast network. What does your sales and marketing team look like?

Entrepreneur 79

Entrepreneur Technical Review Cofounder Valuation 79

Up and Running

SEPTEMBER 19, 2017

They allow you to hire more people, purchase new technology, and establish new business connections, among many other benefits. That’s because obtaining a pre-money valuation for a concept level technology company in excess of $1 million is difficult, particularly for a startup founder without a proven track record.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Both Sides of the Table

AUGUST 14, 2009

I recently wrote a post on angel financing covering the topic of convertible notes but I realized I was thinking about the issue more from investor perspective and a very narrow topic of how to price the round. So if you’re casually reading and don’t really care about angel financing – abort now! It creeps people out.

Silicon Valley 291

Silicon Valley Ireland Technical Review Valuation 291

YoungUpstarts

MAY 17, 2019

They make all the sales. Review the org chart for an ops manager and sales person who have been in the business a long time. Sales, engineering, and operations are typically critical areas. Use the cash forecast in the report to secure better terms on your business loan or lock the owner into seller financing.

Due Diligence 185

Due Diligence Forecast Deal Structure Valuation 185

www.entrepreneur.com

SEPTEMBER 22, 2011

Entrepreneur Homepage Startups Starting a Business Home How-To Guides Startup Basics Business Ideas Business Planning Startup Financing Success Stories Home-Based Business Starting a Business Play Video How to Take a New Product from Just an Idea to a Business (Video). Financing Some Jobs Act Proposals Make Headway.

Sweat Equity 55

Sweat Equity Equity Fractional CTO CTO 55

The Startup Magazine

JUNE 22, 2020

From plot to sale: The path of property entrepreneurship. If credit is inexpensive, more investors will enter the market, but if rates are high, it will have the effect of depressing sales. Another area that investors should look into is the valuation of the property. Securing Financing.

Management 93

Management Valuation Finance Demand 93

Gust

NOVEMBER 4, 2011

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. Valuation caps can come into play in settings other than seed-stage convertible note financing rounds. Read on for a fuller explanation.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

The Startup Magazine

JUNE 1, 2023

There are currently tons of “zombie” startups that have runway, but growth has slowed and they have valuations that they won’t be able to grow into. Be honest with yourself VCs are now going to be looking closer at margins, cost structures and true sales, and product market fit.

Early Stage 112

Early Stage Los Angeles Silicon Valley Cofounder 112

Austin Startup

AUGUST 20, 2017

Hiring is a chapter unto itself, but it deserves to lead off any discussion of context. Compensation decisions obviously affect hiring and retention. You can’t be too careful in determining comp packages for your new hires. Keep the valuations consistent with company progress. Let’s look at some specifics: 1.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Up and Running

AUGUST 29, 2014

Many people who want to start a business believe they will be able to get grants or loans to help them finance the venture. Are sales growing or shrinking? Do I need to hire a Certified Public Accountant (CPA) for my small business? Ask what the firm’s specialties are (tax, audit, business valuation, etc.).

Small Business 87

Small Business CPA Government North America 87

ReadWriteStart

MARCH 24, 2011

Jobseekers, therefore, need help cleaning up their social media profiles so that objectionable material does not find its way to these background check scenarios, disrupting their chances of getting hired. The discussion today was around Social Media financing and go-to-market strategy. I like these two strategies.

Illinois 114

Illinois Entrepreneur Silicon Valley Chicago 114

www.avc.com

SEPTEMBER 22, 2011

The most common comment in this long and complicated MBA Mondays series on Employee Equity is the question of how much equity should you grant when you make a hire. For your first key hires, three, five, maybe as much as ten, you will probably not be able to use any kind of formula. First, a caveat. Let's say the number is $25mm.

Equity 64

Equity Employee CTO Hire Fractional CTO 64

Up and Running

NOVEMBER 12, 2014

The SEC’s proposed rules (mandated by the JOBS Act of 2012) amend the Securities Act of 1933 and the Securities Exchange Act of 1934 to allow the offer and sale of securities through an internet crowdfunding campaign, similar in some respects to donation crowdfunding campaigns conducted on Kickstarter and Indiegogo. Set a Fundraising Goal.

Equity 125

Equity SEC Technical Review Security 125

Both Sides of the Table

SEPTEMBER 1, 2016

Scott Kupor of A16Z responded with a comprehensive overview of valuation methodology in a post that while accurate feels more targeted at sophisticated Limited Partners (LPs) who invest in funds. to “Jeez — they sure are hiring a ton of staff. to “How can we hire more staff to keep up with the services they offer?”

LP 264

LP Jordan Cofounder Limited Partner 264

www.inc.com

SEPTEMBER 24, 2011

Finance | Tuesdays. Sales & Marketing | Wednesdays. Financing a Small Business. Financing A Small Business. Personal Finance. SALES & MARKETING. Before Roving Software could receive its first round of financing from professional investors, in early 1999, he had to put all the stock arrangements in writing.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Both Sides of the Table

APRIL 25, 2011

It’s nearly impossible to get a services company financed by VCs. They have created two internal technology “products&# and wanted to figure out how they could turn their services business into a product business that could be financed. You’re a small fish. This team is talented. They wanted advice.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

Cracking the Code

NOVEMBER 13, 2008

The fact that SaaS valuations are being more affected by the downturn than the Nasdaq can be surprising given the supposed resiliency of the SaaS model (recurring revenues) but it translates the public investors belief that SMB software spend is going to be hit very hard by this recession. How long will the downturn last?

Software Review 48

Software Review Technical Review Valuation Portfolio 48

abovethecrowd.com

JULY 10, 2014

On June 18, Aswath Damodaran , a finance professor at NYU’s Stern School of Business, published an article on FiveThirtyEight titled “ Uber Isn’t Worth $17 Billion. Financial models, especially valuation models, are interesting in that they can be particularly precise. billion, far short of the value recently determined by the market.

San Francisco 111

San Francisco San Jose Marketing Technical Review 111

The Equity Kicker

JANUARY 22, 2014

Investors pay a high valuation to get into a good deal, betting on continued fast growth. To meet growth and revenue targets, you hire and spend like never before. You rush a few key hires, overbuild the team, ramp marketing spend. Investors who paid up for your financing are not happy.

Venture Capital 102

Venture Capital Down Round Valuation Lean 102

help.bplans.com

SEPTEMBER 24, 2011

Financing a Business. Sales and Marketing Software. I am hiring a consultant for assistance in piecing my business plan together. of the common shares outstanding immediately prior to first round of equity financing. Shares would be issued simultaneously with first round financing. Small business financing.

Software Review 41

Software Review Equity RSS Business Plan 41

Up and Running

APRIL 11, 2016

When asked how he figured out who his target market was, he responded, “I looked at the volume of sales in my city, from the property valuation administrator, and then looked for the ‘sweet spot.’ Step 5: Getting financed. Real estate agent Jamal Asskoumi, took the finances for his business from personal savings. “If

Reputation 60

Reputation Cofounder Naming Business Plan 60

YoungUpstarts

SEPTEMBER 4, 2017

For startup founders and CEO’s it’s also just as common to see them place too much focus on the amount of money raised, and the pre-money valuation, rather than the value that each investor can bring to the table. Perhaps you know a Marketer, a Developer or Sales Manager that could fill a gap in one of the startups you back.

Pre-Money Valuation 187

Pre-Money Valuation Seed Stage IP Deal Flow 187

www.mint.com

MARCH 9, 2010

What is the post-money valuation of your last round? Post-money valuation” is the value of the company after the last round of money was put in (again, lines of credit and promises don’t count). I worry about everything: money, sales, engineering, support, and recruiting. Check out the personal finance topic by clicking here.

Software Review 68

Software Review Startup Post-Money Valuation Technical Review 68

Feld Thoughts

FEBRUARY 9, 2016

” Many companies have hired ahead of their growth rate because they had the cash to do so. I watched, participated, and suffered through every type of creative financing as companies were struggling to raise capital in this time frame. But, as you raise more money at higher valuations, this will normalize.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

Berkonomics

DECEMBER 20, 2018

Why are you so strongly sold on royalty licensing as the most effective way to finance a tech-based early stage company? Would I hire a broker? These are your candidates, because they are companies already absorbing much or all the marketing expense necessary to make sales of your invention. Investment banker? Do it myself?

IP 54

IP Intellectual Property Investment Bankers Product 54

Steve Blank

OCTOBER 24, 2017

This required a repeatable and scalable sales process, which required a professional sales staff and a product stable enough that customers wouldn’t return it. Hire a CEO to Go Public. The VCs would hire a CEO with a track record who looked and acted like the type of CEO Wall Street bankers expected to see in large companies.

Founder 252

Founder Technical Review CTO Hire IPO 252

The Next Web

MARCH 2, 2014

Instead, honestly analyze the company’s business plan and finances to determine whether the business needs to secure outside funding in order to achieve its objectives, and if so, how much. Should we finance with debt or equity? Here are four main questions to keep in mind during the vetting process: 1. Take your time.

Liquidity Event 139

Liquidity Event Equity Finance Stock Options 139

Berkonomics

DECEMBER 20, 2018

Why are you so strongly sold on royalty licensing as the most effective way to finance a tech-based early stage company? Would I hire a broker? These are your candidates, because they are companies already absorbing much or all the marketing expense necessary to make sales of your invention. Investment banker? Do it myself?

IP 48

IP Intellectual Property Investment Bankers Product 48

Up and Running

DECEMBER 18, 2018

For one thing, when you purchase an existing company, someone else has probably already done a lot of the startup legwork, like verifying that there’s a market for your product or service, establishing a customer base, hiring employees, and negotiating a lease. Do due diligence on the business’s history and finances.

Due Diligence 71

Due Diligence Intellectual Property Balance Sheet Forecast 71