David Teten

DECEMBER 3, 2019

However, in private markets, there is more room to optimize across all 11 steps of the investing process: firm management , marketing, fundraising , origination , manage relationships, due diligence, negotiation, monitoring, portfolio acceleration , reporting, and. 1) Manage the firm . This is harder than it sounds.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

This is going to be BIG.

SEPTEMBER 30, 2012

How else can you explain this headline matching a story about a professional social network still trying to explore revenues raising $17mm on an $80mm valuation? venture capitalists are now asking tougher questions about start-ups' revenue and profits.". Perhaps I need to rethink that. What follows in this story is pretty laughable: ".venture

Venture Capital 130

Venture Capital Marketing Term Sheet Software Review 130

thebarefootvc

JANUARY 27, 2014

I think that later stage valuations are frothy (for reasons I explain below) while earlier stage valuations are starting to stabilize from previous highs (with the exception of the superstar serial entrepreneur) - turns out scaling in a sea of competition (both startup and entrenched) is not so easy. The answer is yes and yes.

Technical Review 63

Technical Review Valuation Venture Capital Investment Bankers 63

Steve Blank

MAY 9, 2017

A 20 th century VC was likely to have an MBA or finance background. Fourth, in the last decade, corporate investors and hedge funds have jumped into later stage investing with a passion. Their need to get into high-profile deals has driven late-stage valuations into unicorn territory.

Restful 243

Restful Silicon Valley Puerto Rico San Jose 243

View from Seed

FEBRUARY 27, 2019

Analytics vs. Finance?—?what’s In reality, these two domains require quite different skill sets (more on this later). Finance is about reporting on historical performance and future planning through the lens of financial metrics. This is a bit of an oversimplification as there are many sub-disciplines within finance?—?accounting/controller,

Analytics 149

Analytics Hiring SQL Forecast 149

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

VC Adventure

MAY 5, 2022

BUT (and you knew there was a but here given the post title…) it’s a poor way to compare the relative performance of funds early, and even into the mid/later, stages of a fund’s life. management fee). Both were valued at greater than 50x revenue (one was, I think, 70x revenue). This is a mistake.

IRR 116

IRR Metrics Valuation LP 116

Reid Hoffman

JUNE 11, 2020

One of Jeff’s superpowers is creating a culture of compassionate management AND performance. If you’d like to learn more about how Jeff practices compassionate management and sets a cultural drumbeat, you can tune into his episode on my podcast Masters of Scale.). Another key lesson is that superstars are not all the same.

Cofounder 36

Cofounder Leadership Metrics Later Stage 36

Reid Hoffman

MARCH 9, 2021

Another of Bezos’ trademark strengths is his willingness to embrace management innovation. For example, one of the management innovations that distinguishes Amazon from all the other major tech companies is its writing culture. Many default to sales (because that’s what drives revenue) or product (because that’s what customers buy).

Leadership 45

Leadership Technical Review Cofounder Later Stage 45

Both Sides of the Table

JUNE 19, 2017

That is, how much should your company be willing to lose in cash every month as you make investments in staff and equipment that funds technology, sales, marketing and management. Gross burn is your cost base and net burn is the difference between your revenue and costs. If your revenue grows you can afford to increase your cost base.

Burn Rate 212

Burn Rate Startup .Net Venture Capital 212

Both Sides of the Table

JUNE 29, 2011

Some have moved into later stage investments in an effort to “put logos on their websites.&# It’s as though we forgot the management mantra of the 90′s about “core competencies&# or the most common VC advice to entrepreneurs: Focus. Surprisinly, this strategy works well with many entrepreneurs.

Venture Capital 296

Venture Capital Software LP Early Stage 296

Ben's Blog

MAY 24, 2021

Editor’s Note: This testimony was delivered by a16z managing partner Scott Kupor to the U.S. By way of background, I am the Managing Partner for Andreessen Horowitz, a $16.5 billion multi-stage venture capital firm focused on IT-related investments… I also serve on various investment committees, including for the St.

SEC 36

SEC Accredited Investor IPO Technical Review 36

Small Business Force

FEBRUARY 21, 2014

In early stage companies (and even some later stage or mature ones), there is no one area where most entrepreneurs and small business owners are lacking in just basic fundamentals, than in dealing with their company's finances and financial management. If don't generate it, you have nothing to manage.

Finance 37

Finance Management Forecast Entrepreneur 37

The Startup Magazine

FEBRUARY 6, 2020

trillion, it is by far the largest of its sort in the world and financed projects that in other settings may not have passed investment criteria screens. [3]. Additionally, investment managers are attracted to matching long-dated pension liabilities with the extended duration nature of leased asset. municipal bond market.

Private Equity 130

Private Equity New York City Chicago Investment Bankers 130

Steve Blank

JUNE 15, 2010

Certain VC’s like the new class of Super-Angels and small VC funds specialize in the early stage of a startup where you are searching for a business model. And some larger funds that specialize in later stage deals may have a partner or two who likes to invest at this stage. Is it for your technology?

Founder 232

Founder Vesting Later Stage Early Stage 232

K9 Ventures

JUNE 5, 2015

Together this means that Seed stage companies need to run longer and at a higher expense structure, meaning they need to raise a lot more capital. A re-jiggering of deal stages and sizes had begun in 2013. The management fee structure provides a perverse incentive to GPs to increase the size of their funds.

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

Austin Startup

JUNE 26, 2019

You might notice what’s not on that list above: revenue, investors. No revenue isn’t always a problem for venture-style businesses; no investors + no revenue = challenges for most founders without tremendous self-funding. If you’re a founder/product manager/business owner, I encourage you to find that out!

Silicon Valley 54

Silicon Valley Startup B2C Sweat Equity 54

www.mint.com

MARCH 9, 2010

Mint is the best way to manage your money. If the answer to the question centers around “We will achieve revenue soon so our net will improve and give us more runway,” it means the company is in trouble because no product ever ships on time nor achieves the company’s “conservative forecast.” 2 comments Mint Life Know your money.

Software Review 68

Software Review Startup Post-Money Valuation Technical Review 68

Growthink Blog

MAY 10, 2012

Early Stage Investment (Series A & B) 4. Later Stage Investment (Series C, D, and so on) 5. Mezzanine Financing Most companies that raise equity capital and are eventually acquired or go public receive multiple rounds of financing first. Series B is the round that follows series A in early stage financing.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue. These mutual funds “mark-to-market” every day, and fund managers are compensated periodically on this performance.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). composed of these investors and management. For you who fit that description, nice work. It’s an option, even though an expensive one.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

techcrunch.com

FEBRUARY 19, 2010

Tweet View Comments Sarah Lacy Feb 19, 2010 Pepperdine has a new study out that attempts to shed some light on the clubby, shadowy world of private finance. Paglia, Pepperdiine’s Denney Academic Chair and Associate Professor of Finance. Think Again. Not a big shock, but things don’t look pretty, especially in the venture capital world.

Venture Capital 62

Venture Capital Technical Review Sweat Equity Valuation 62

Both Sides of the Table

MAY 13, 2018

The most important advice I could give you before you set out in fund raising mode is to understand that fund-raising a sales & marketing process and needs to be managed. You need to figure out how much time to spend with each prospect and you need to rigorously manage your time and the calendar. an investment in your company.

Term Sheet 332

Term Sheet Due Diligence Campaign Sales 332

Both Sides of the Table

FEBRUARY 14, 2016

The billions of dollars managed by mutual funds, hedge funds, insurance companies, university endowments, pensions, foundations, sovereign wealth funds and the like need to find returns for their money. forward revenue for SaaS businesses when in the years before it had been less than 5x. This corrected only to go back up to 13.4x

Valuation 150

Valuation Down Round Startup Later Stage 150

The Entrepreneurial Mind

JUNE 14, 2010

They do play a role, but only a limited one with later stage businesses that have good cash flow. But, they still want high growth and they will be VERY active in the management of the business. The new reality of financing does not mean we are entering an age when no exciting new start-ups will be emerging.

Kentucky 56

Kentucky Washington Nashville Bootstrapping 56

Ben's Blog

AUGUST 17, 2020

OH in South Park, San Francisco (or on Zoom from Big Sky, Montana): “OMG, crazy – that firm just paid 100x revenue to invest in [insert hot startup here] – what could they be thinking?” Multiples are not only used to value companies today but also to value companies several years down the line.

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

pandodaily.com

NOVEMBER 29, 2012

But at a macro level, widespread failure this early is far less painful than if it came at later stages. As a result, Pandora is nowhere near profitable at more than $103 million in quarterly revenue, paying more than half of this sum to labels for content licenses. ” On a micro level, failure is always painful.

Technical Review 93

Technical Review Silicon Valley Incubator Syria 93

Steve Blank

OCTOBER 1, 2009

Sloan Foundation , the Sloan School of Management at MIT , the Sloan program at Stanford , and the Sloan/Kettering Memorial Cancer Center in New York. Sloan realized that the traditional centralized management structures (like General Motors had in 1920) were poor fits for the management of GM’s already diverse product lines.

Silicon Valley 179

Silicon Valley United States RSS Customer Development 179

Seeing Both Sides

JANUARY 13, 2015

My boss and mentor from Open Market, Gary Eichhorn , made the entire management team read it in the 1990s to hammer home its important lessons as we stumbled through the chasm on our way to scaling from zero to nearly $100 million in revenue in a few years. At each stage, there are different problems. It is a classic.

Mezzanine 20

Mezzanine IPO Finance Business Model 20

Berkonomics

JANUARY 20, 2010

This post will be perhaps a bit longer than usual, but certainly of great interest for those with interest in or have need for more capital… This stage is critical to many businesses and a passing option to others, depending upon the capital efficiency of the enterprise. For you who fit that description, nice work.

Private Equity 69

Private Equity Valuation Cap Table Accredited Investor 69

Steve Blank

SEPTEMBER 2, 2015

Of the cohort that just graduated I think eight are completely self-sufficient and actually revenue positive and another 10 are in Series A round financing. . Kathryn Minshew , a former management consultant at McKinsey , is CEO and co-founder of TheMuse.com , a career platform helping 40+ million people build amazing careers.

Entrepreneur 120

Entrepreneur New York Cofounder Equity 120

K9 Ventures

NOVEMBER 30, 2008

The birth of modern-day venture capital (not considering the European monarchs financing explorations and projects as venture capital) can be traced back to American Research and Development, which was started by Georges Doriot. In return for the operational role the GPs play, their firm receives a Management Fee.

IRR 48

IRR Venture Capital LP Early Stage 48