Both Sides of the Table

JULY 23, 2014

The “big boom” in startup financing started around March 2009?—?more Early-stage VCs have realized that they need to capitalize on this trend, which is why many traditional VCs have set up “opportunity” funds that sit alongside their core funds as a means of capturing more private-market (pre IPO) value. and hasn’t abated.

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

Agile VC

NOVEMBER 6, 2013

Twitter’s IPO has garnered a ton of attention in the tech and popular press. So their revenue figures, pre IPO financing and ownership, and other info is all widely available. If this were a math class, I’d just say the proof is evident but if you want some data on Twitter’s 2013 YTD revenue here you go.

IPO 194

IPO Aggregator B2B Internet 194

YoungUpstarts

OCTOBER 23, 2017

This is a major issue and the role of data analytics will continue to expand as per a January article from Global Banking and Finance Review which cited that the world’s top investment banks were fined a total $43 billion over the last seven years for failures in customer reporting. Underwriting. Revisiting our components let’s see why.

Technical Review 131

Technical Review Artificial Inteligence Software Review IPO 131

Tim Keane

MARCH 9, 2011

How should I finance my new venture? It’s a deceptively simple question:  what is the optimal way to finance a new startup? Misaligned interests that lead to poor financing choices are often very problematic for first time entrepreneurs in young companies.  « Leaving a Trail | Main. | five years.).

Finance 83

Finance Bootstrapping Startup Equity 83

ReadWriteStart

OCTOBER 2, 2021

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. Lower tax rates allow an LLC to be more flexible with finances. However, like every founder would admit, the path of a startup’s success is never clear from the beginning.

Technical Review 78

Technical Review LLC IPO Stock 78

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Of the Inc. 5000 companies, only 6.5% raised from angels.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Both Sides of the Table

JUNE 22, 2011

Ah, but today’s Internet companies have real revenue! And this is happening in mezzanine (pre-IPO) deals as well. And post IPO deals, although these tend to correct more quickly. And as you probably guessed the data aren’t any better on IPOs with less than 20 / year average for the past 10 years. and profits!

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Steve Blank

SEPTEMBER 14, 2009

Five Quarters of Profitability During the 1980’s and through the mid 1990’s startups going public had to do something that most companies today never heard of – they had to show a track record of increasing revenue and consistent profitability. There was now a public market for companies with no revenue, no profit and big claims.

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

Version One Ventures

JULY 22, 2014

More money is flowing in from a new crop of angels, newly wealthy from a number of tech IPOs. Any entrepreneur trying to navigate the financing landscape should be aware of the over-abundance of angel money compared with subsequent rounds. If not, revenue from your customers will be your best source of financing.

Finance 167

Finance Seed Money Bootstrapping Angel Investor 167

Both Sides of the Table

JUNE 5, 2011

Early-stage investors in technology startups are only looking for growth-oriented companies that can achieve an “exit&# someday – either via selling your company to a larger company or via an IPO. That’s the deal you get when you’re raising in a good market for startup financing. That’s fine.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Startup Professionals Musings

MAY 23, 2021

If you ever felt enticed to jump into a quick money deal, like a real-estate quick-flip, or an IPO, that was your Opportunist side showing. You go all over the country, the world, and the Web searching for “best practices” in marketing, finance, planning, and funding. Specialist. Internal forces (your startup team).

Entrepreneur 335

Entrepreneur Framework Incubator IPO 335

The Equity Kicker

SEPTEMBER 27, 2013

Whilst that’s not an outrageous increase from $10.5bn from what we know of Twitter’s finances it seems pretty spicy from a multiples perspective – just north of key comps Facebook, LinkedIn and Yelp on a revenue basis at 15x the 2014 estimate of $1bn, and 65x estimated 2014 EBITDA (Facebook 36x, LinkedIn 159x).

IPO 98

IPO Valuation Stock Advertising 98

Growthink Blog

DECEMBER 27, 2017

Detail all revenue streams. Be sure to include all revenue streams. Depending on the type of business, these may include sales of products/services, referral revenues, advertising sales, licensing/royalty fees, and/or data sales. The most common exits are IPOs or acquisitions. Be consistent with your pro-forma statements.

Venture Capital 129

Venture Capital Business Plan Technical Review Private Placement 129

Rob Go

DECEMBER 28, 2011

And that’s true pretty much across the board – from exits, late stage financings, scaling companies, and seed activity. IPO’s/Exits. Kayak: Registered for an IPO but on hold. 61M in Q3 revenue, up 28% YoY. Raised $174M in its IPO in April, current market cap ~$550M. market cap. Seed Activity.

Technical Review 54

Technical Review Boston Software Review IPO 54

thebarefootvc

JANUARY 27, 2014

A couple of days later, the Journal reported that Snapdeal, an Indian e-commerce site, was in talks to raise a round of financing (led by Credit Suisse) that would potentially value the company at $1 billion. Further, while the public markets are opening up to IPOs once again, companies take much longer to IPO than in previous cycles.

Technical Review 63

Technical Review Valuation Venture Capital Investment Bankers 63

Up and Running

AUGUST 18, 2014

Startups have some unique struggles, especially in regard to financing. Accelerators provides structured curriculum in a short period to help rapidly grow the size and value of a company to get ready for a specific goal, typically to raise financing.”. Key difference #2 – the relationship with funding.

Small Business 154

Small Business Exit Strategy Cofounder Angel Investor 154

Startup Professionals Musings

OCTOBER 5, 2015

I challenge any entrepreneur, for example, to define the difference between "seed-stage" and "early-stage" financing. Asking for early-stage money before you have customers and revenue will likely kill your credibility with real investors. Yet, knowing this distinction is important.

Seed Stage 120

Seed Stage Finance Early Stage Startup 120

Agile VC

FEBRUARY 2, 2012

Facebook S-1: The Most Anticipated IPO in a Decade. Here’s my first look at Facebook viewed through the lens of their IPO filing. How They Make Money : Facebook’s primary revenue stream is of course selling advertising on Facebook.com, which in total accounts for 85% of revenue. 2011 YoY Revenue Growth: 88%.

IPO 100

IPO South Korea Venezuela Revenue 100

Both Sides of the Table

JULY 16, 2010

You invest low amounts of capital and the company gets to IPO (96-99) or trade sale (05-08) without raising too much capital and certainly not on punishing terms. So angel and seed stage investors’ returns will be dependent on good times continuing or on the ability of their portfolio companies to get financed.

LP 311

LP Technical Review Early Stage Silicon Valley 311

Both Sides of the Table

SEPTEMBER 16, 2010

As I’ve highlighted I believe we’re in a unique period similar to 2005-08 where the biggest tech firms of Silicon Valley (and some media companies) are scooping up small software companies as “talent acquisitions&# versus accretive revenue / profit generators. This is actually the norm.

Cap Table 283

Cap Table Angel Investor Liquidation Preference Deal Flow 283

Gust

JANUARY 31, 2013

Modern theories of economics and finance teach us that in a world of perfect information, the market will decide what a fair price is for any company’s stock at any point in time based on its current financial condition, results of past operations, analysts’ forecasts of future performance, industry conditions and so on.

SEC 158

SEC Prospectus United States Technical Review 158

A Smart Bear: Startups and Marketing for Geeks

JULY 23, 2013

Marketo filed for IPO with impressive 80% year-over-year growth in 2012, with almost $60m in revenue. of revenue, force-feeding sales pipelines with an unprofitable product. SaaS companies earn their revenue over time. time to earn back the revenue to cover all your customer acquisition expenses) 75% annual retention.

Business Model 335

Business Model .Net Revenue IPO 335

David Teten

MARCH 14, 2018

Another example is Correlation Ventures ($300M+ AUM), a VC firm which co-invests in financings with at least one other new outside VC. We particularly help companies in winning revenue from our LP network and raising capital for subsequent rounds from top-tier late-stage investors.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

Both Sides of the Table

NOVEMBER 13, 2014

Helped merge company with Seedling – on track to do $20 million combined revenue in 2015 – will now become Chairman). billion IPO), Envestnet (Chicago, $1.25 billion IPO), HealthDataInsights (Las Vegas, $400 million) as well as LA (Maker Studios $1 billion, TrueCar $1.3

Partner 408

Partner Las Vegas Los Angeles Baltimore 408

Both Sides of the Table

JULY 27, 2014

Most of those industries are fee-based and are competing on revenue growth. Scott pointed to B-round SaaS valuations in excess of $100 million in $15m+ financing rounds with companies with very limited proof of customer traction or revenue. I don’t totally agree with that view.

Valuation 309

Valuation Pre-Money Valuation Later Stage Non-Compete 309

VC Cafe

OCTOBER 19, 2010

P eerTV , a veteran Israeli startup company which enables Content Providers, ISPs and Operators to deliver OTT (Over-the-Top) TV services, has filed for IPO in the London AIM market today. The IPO is underwritten by Libertas Capital Corporate Finance. PeerTV hopes to raise £6 million in this move (or $9.64

IPO 68

IPO Internet Channel Operations 68

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 23, 2012

.” Here’s the summary of his track record (excerpted from the Fast Company article): Forefront — IPO’ed in 1995 by CBT — CBT stock fell 85% in 1998 and prompted class-action lawsuits. invested, IPO’ed in 2000 for $32/share — stock price now $2. from an IPO under a year ago of $10.

IPO 240

IPO Flash Bootstrapping Private Equity 240

Gust

SEPTEMBER 5, 2012

How to finance a new seed-stage startup? ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. .” I won’t rehash all of the customary convertible note financing deal terms and points of negotiation here. (For

Finance 134

Finance Convertible Security Equity Seed Stage 134

Steve Blank

JULY 15, 2010

The collapse of the IPO market and dysfunctional math in the venture capital community has stacked the odds against you. Startup lifecycle in an IPO Market. Until 1995 startups going public typically had a track record of revenue and profits. Netscape’s 1995 IPO changed the rules. Here’s why. Free At Last.

Venture Capital 297

Venture Capital IPO Liquidity Event Entrepreneur 297

The Startup Magazine

SEPTEMBER 10, 2019

Compared to Accounting, Finance is ruthlessly forward looking. The basic lesson that founders can learn about asset valuation is that Accounting is past and Finance is future. Compounding is the ability of an asset to generate earnings that are reinvested in order to generate exponential revenue growth. Asset valuation.

Founder 118

Founder Valuation Dividend Startup 118

Version One Ventures

DECEMBER 14, 2016

forward revenue in February 2016 (the low), they appreciated by 6% each month for the following six months. We expect that the financing scene in 2017 will look very similar to 2016. Of course, upcoming IPOs like Snapchat will bring some added excitement to the industry. Yet while they were trading at 3.3x Looking ahead to 2017.

Technical Review 60

Technical Review Early Stage Portfolio Valuation 60

Both Sides of the Table

SEPTEMBER 29, 2009

Three reasons: There is a relative valuation between the price a VC pays and their expectations of what it will exit for in an IPO or trade sale. Huge downturns have a real impact on the revenue line of start-ups and therefore the pressure on valuations. I argued for literally a year to slash burn.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

Austin Startup

NOVEMBER 6, 2017

C-Corp largely because (i) VCs have historically favored C-Corps for nuanced tax and other reasons, and (ii) virtually all of the standardized legal infrastructure around startup finance and equity compensation assumes a C-Corp. Everyone is trying to be a billion-dollar company that will eventually get acquired or go IPO.

Delaware 48

Delaware LLC Startup Silicon Valley 48

Both Sides of the Table

SEPTEMBER 18, 2014

It’s like we need a finance 101 course for entrepreneurs. Revenue multiple? In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round. Maybe an IPO – who knows? There were no metrics. So a convertible note was easier. Employment.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Feld Thoughts

SEPTEMBER 20, 2013

We’ve confidentially submitted an S-1 to the SEC for a planned IPO. After four days of chatter about this, Dan Primack wrote the first definitive article I saw that made sense of all of this titled Twitter’s IPO will not be done in secret. Or worse – for some reason the IPO window closes and you don’t go public.

SEC 142

SEC IPO Investment Bankers Valuation 142

YoungUpstarts

MARCH 11, 2015

This compensation can come in the form of a stock option , a stock appreciation right, or a similar financial instrument, which can potentially be quite lucrative for employees at the time of a merger, acquisition or initial public offering (IPO). A company can have value, even if there is no current income or revenue.

Valuation 100

Valuation Stock Options CPA Merger 100

Babbling VC

AUGUST 10, 2011

OK, hands up, who's truly surprised by the drop in the stock markets or the postponed tech IPO's or even the upcoming slowdown in venture financing? Make your customers happy, especially the ones generating the majority of your revenues. No matter what, stay focussed on generating revenues. . No really, who is surprised?

Germany 76

Germany Stock IPO Valuation 76