Startup Professionals Musings

JULY 16, 2012

Seed-stage means promising companies that don’t yet have a revenue stream, and may not yet have a proof of concept. Since the economic downturn started, neither angels nor VCs have given much attention to startups without a product and a revenue stream. For VCs, early-stage means customer revenue is less than $10M. Super Angels.

Early Stage 253

Early Stage Finance Seed Stage Entrepreneur 253

Version One Ventures

OCTOBER 15, 2020

Let’s now explore the major developments and ultimate use cases for the Lightning Network in two categories: A) payments/finance and B) Web3. . Use Case I: Payments and Finance . And >40% of that revenue is coming from in-game purchases. The app could then take a small % of all revenue from “paid” messages.

Networking 168

Networking Global OTC Security 168

Gust

JULY 8, 2012

Seed-stage means promising companies that don’t yet have a revenue stream, and may not yet have a proof of concept. Since the economic downturn started, neither angels nor VCs have given much attention to startups without a product and a revenue stream. For VCs, early-stage means customer revenue is less than $10M. Super Angels.

Early Stage 177

Early Stage Finance Seed Stage Entrepreneur 177

Both Sides of the Table

JULY 16, 2010

You don’t need to buy expensive software – there are free open source solutions for nearly everything. 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. Nobody understands this better than First Round Capital.

LP 311

LP Technical Review Early Stage Silicon Valley 311

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78

Equity Revenue Cofounder Colorado 78

Scalable Startup

AUGUST 26, 2014

is the for-profit company founded by Dries Buytaert, the inventor of Drupal, to support his open source project. When Open Source software projects are launched, the progenitors often start a for-profit sister company to garner some income from training, support and consulting. Because they are open source.

Founder 42

Founder Los Angeles PHP Open Source 42

This is going to be BIG.

APRIL 27, 2010

So then, why are we teaching our students to trust fall without any revenues of their own to catch them? No revenues, no costs. Teach ‘em Finance and Chase or Accenture will come and pick ‘em up 30 at a time. 3) Open source your real estate. It’s a recipe for failure. It was easy peasy.

New York 116

New York CTO Hire Technical Review New York City 116

Steve Blank

MARCH 31, 2014

Companies horde cash and squeeze the most revenue and margin from the money they use. Other smart companies are learning how to use Open Innovation pioneered by Henry Chesbrough who teaches here at EDADE. Instead of measuring success in dollars of profit, …firms focus on measuring capital efficiency.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

Austin Startup

NOVEMBER 29, 2017

Tim O’Reilly, Founder at O’Reilly Media and promoter of open source and Web 2.0 Namely, windfall revenue from oil means that the Texas taxman does not collect personal or corporate income taxes (on the state level). Having said that, access to finance is getting better due to the influx of techies and the local scene maturing.

Early Stage 48

Early Stage Austin Silicon Valley Texas 48

Gust

JUNE 19, 2012

And if you’re a startup CFO, finance lead, bean counter, or presentation slide deck preparer, then you should read this book. Now, with open source software components, and low-cost development tools, the same job can be done by one good hacker for a few thousand dollars. Painting with Numbers , by Randall Bolten.

Startup 180

Startup Forecast Angel Investor Software 180

Hearpreneur

FEBRUARY 13, 2022

Contractors should also be prepared with customer-friendly financing options. Now, open source and low code tools make it easier for developers and product teams to start experimenting and executing AI/ML into their own products and processes. Kitchen and bath upgrades will be particularly popular. Photo Credit: Amanda Doherty.

Artificial Inteligence 110

Artificial Inteligence Software Review Technical Review Entrepreneur 110

David Teten

NOVEMBER 14, 2019

I wrote recently about Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? Since then, I’ve talked with a number of other firms, and greatly expanded my database: Who are the major Revenue-Based (RBI) Investing VCs? The first step is to decide the right capital structure for your financing.

SBIC 60

SBIC SBA Cap Table Database 60

Steve Blank

JANUARY 25, 2010

How do we finance the company, etc. A Lean Startup is Eric Ries’s description of the intersection of Customer Development , Agile Development and if available, open platforms and open source. When revenue, users, traffic, etc., What’s the distribution channel. How do we price and position the product?

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Agile Startup Silicon Valley Business Model 335

Startup Professionals Musings

MAY 1, 2011

Seed-stage means promising companies that don’t yet have a revenue stream, and may not yet have a proof of concept. Since the economic downturn started, neither angels nor VCs have given much attention to startups without a product and a revenue stream. For VCs, early-stage means customer revenue is less than $10M. Super Angels.

Early Stage 231

Early Stage Seed Stage Angel Investor Silicon Valley 231

mashable.com

NOVEMBER 30, 2010

TokyoYuki Question: What about giving an added incentive to potential developers, in exchange for part of up-front fees, a percentage of the revenue generated from the app/program? View More » Business The 12 Days of Holiday Revenue Maximi. That's my old keyboard (in the post image)! Saitek Executive.

Software Developers 79

Software Developers Software Development Software Review Software 79

mashable.com

OCTOBER 27, 2010

Topics are divided into IT, marketing, sales, finance, customer service, operations and human resources sections, which makes it easy to search for the latest discussions on your interest area. The site is run by Mercy Corps , which intends to help “small businesses grow faster, generate more revenue, and employ more people.&#

Entrepreneur 94

Entrepreneur Social Media Technical Review Social Network 94

Both Sides of the Table

MAY 23, 2012

Cloud computing and the open source movements have brought down the costs of starting a company by more than 90%. Yes, it’s true that FOMO (fear of missing out) is driving some irrational behavior and valuations amongst uber competitive deals and well-financed VCs. The Exit Problem. This never existed a decade ago.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

Haystack

NOVEMBER 25, 2018

venture capital deals, a spike in mega-financings where it’s common to see not only $100M private rounds, but companies that raise two or three types of financings like this in the same calendar year! 5/ The Enduring Allure Of Platform Potential: Revenue is important. Revenue acceleration is, too.

Technical Review 127

Technical Review Open Source Software Review Venture Capital 127

Genuine VC

JANUARY 3, 2013

Look back to the reasons why there was a Cambrian explosion of seed funding in the first place – a dramatic reduction in the initial capital requirements to launch a new company because of cloud hosting infrastructure, social graph distribution platforms, open source and low-cost development tools/methods, etc.

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Seed Stage Venture Capital Audience New York 166

Altgate

SEPTEMBER 16, 2010

But did you know that founder Markus Frind has just 3 employees for his $10MM+ revenue business? Unfortunately they will be very expensive (30-50% or more of gross revenue). Cloud computing, open source and a global talent pool make outsourcing easier than ever before (even a few years ago). PR/Marketing.

Software Review 65

Software Review Offshore Startup Boston 65

Both Sides of the Table

SEPTEMBER 27, 2010

You have an open source stack, cloud services for storage, processing & management and APIs for just about anything you want. I understand why he wants to differentiate himself but I wonder if a scorched Earth strategy against the main funding source for your company pays in the long run. We all know that.

Liquidity Event 308

Liquidity Event Silicon Valley Seed Stage Finance 308

Growthink Blog

MAY 27, 2015

This is evidenced by both the huge sums of money companies are investing in BI ( forecast by IDC to grow to over $52B in 2016) and by the research that show "BI Best in Class" companies enjoy double the revenue growth and triple the profit growth relative to their “BI Average” competitors ( Gartner Group ). buying marketplace to navigate.

Open Source 48

Open Source Analytics Forecast Technology 48

The Next Web

DECEMBER 31, 2013

To be clear, blogs, posts, and tweets have value, but content marketing will get harder in 2014 as brands struggle for scale, reach, and penetration. - Augie Ray , Former Forrester Analyst, Finance Social Media Executive. Mobile will continue to expand. there’s probably little of “big data” that applies towards you.

Media 154

Media Social Media Cofounder Caching 154

www.forentrepreneurs.com

FEBRUARY 2, 2010

The company has just missed its quarterly revenue forecast. Lets take an example, and look at how they might do this: They will be able to tell you that revenue is composed of deals. To compute revenue, you multiply average deal size by number of deals. Bookings is the pre-cursor to Revenue. Obvious, isn’t it?

Metrics 55

Metrics Design Entrepreneur Startup 55

www.readwriteweb.com

OCTOBER 7, 2007

Or the founders have taken on a small amount of seed financing, just enough to get them into the market. If our aim was to raise financing and employ these people directly, we’d have burnt through $5-7 million before launch. You dont /have/ to build vendor lists and out-source. Either way, bootstrapping is a viable model.

Bootstrapping 41

Bootstrapping Offshore Startup EC2 41

www.virtuosimedia.com

MARCH 8, 2012

If the idea was reliant on ad revenue for profit, it quickly becomes apparent that there will be no incoming money at all. Your projections should provide a range of best-case/worst-case revenue scenarios over a number of years. The situation becomes even worse if there is no marketing plan or budget. At this point, everyone loses.

Technical Cofounder 41

Technical Cofounder Cofounder Technical Review NDA 41

Startup Lessons Learned

JULY 15, 2020

That's why the Corona Initiative is a Public Benefit Corporation--a for-profit company dedicated to the public good that aims to fund its research with its revenues. I did study computer science, and I love software, especially open source software, but I just like the challenge of hardware. I liked having something physical.

Technical Review 68

Technical Review Software Review Finance Technology 68

The Startup Lawyer

MARCH 11, 2010

Each time a new set of docs get released, I don’t cringe because it means I then have to remove the hockey stick from my revenue projections. I welcome these and future standardized seed funding docs because they provide entrepreneurs with the chance to take a look at financing terms. Myth #3: Standardized Docs = Open Source Law.

Delaware 49

Delaware Hockey Stick Preferred Stock Open Source 49

The Startup Lawyer

MARCH 11, 2010

Each time a new set of docs get released, I don’t cringe because it means I then have to remove the hockey stick from my revenue projections. I welcome these and future standardized seed funding docs because they provide entrepreneurs with the chance to take a look financing terms. Myth #3: Standardized Docs = Open Source Law.

Delaware 45

Delaware Hockey Stick Preferred Stock Open Source 45

Start Up Blog

DECEMBER 21, 2014

This means that in a data driven economy, areas that previously did not affect insurance and finance industries are starting to. Their biggest competitors in 5 years is more likely to come from outside their industry, as is of course any new revenue opportunities.

Finance 98

Finance Open Source Internet Social Media 98

Ben's Blog

MARCH 24, 2011

Similarly, in recent high profile private financing rounds for private technology companies with valuations over $1B, the valuation multiples were at or below corresponding multiples for publicly traded companies such as Google. The open source movement dramatically reduced the cost and improved the quality of systems software.

Technical Review 78

Technical Review Venture Capital Valuation Database 78

BeyondVC

JUNE 11, 2007

We all know the story – it is incredibly cheaper to start a web-based business versus 5 years ago with the rise of open source software and commodity servers. The trick for entrepreneurs is to look at bringing on debt concurrent or soon after your close of equity financing. Why can raising venture debt be great?

Intellectual Property 60

Intellectual Property Covenant Warrant Equity 60

news.ycombinator.com

SEPTEMBER 16, 2011

His quote on the subject, "no amount of finance will cure mismanagement". For three years I worked at Bug Labs (open source hardware company). We not only told everyone what we did, we posted the source code and the blueprints online. Ran if for two years before we shut it down with almost no revenue achieved.

Stealth 41

Stealth Technical Review Startup Software Review 41

David Teten

DECEMBER 3, 2019

Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores. Lighter Capital, a Revenue Based Investing VC, offers a Cost of Capital Calculator.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

mashable.com

SEPTEMBER 14, 2011

and China, and recently recorded their 1,000,000th download of Bonita Open Solution. If you’re working with an open source project, for example, it’s important that you have a definitive business model to drive revenue — though not at the cost of alienating your community of core contributors.

France 77

France Marketing Social Media Startup 77

VC Cafe

FEBRUARY 15, 2017

Voyager’s cognitive-computing, deep-insights platform assesses billions of publicly available, unstructured data points to provide insights for its clients in finance, retail and consulting. is an AI-powered log analysis platform that offers the open source ELK Stack as an enterprise-grade cloud service with machine learning technology.

Artificial Inteligence 122

Artificial Inteligence Technical Review Startup 122

Both Sides of the Table

JUNE 29, 2011

If you don’t want to read that post, the summary is: Open source computing drove computing costs down 90%, which spurred innovation in technology. Open cloud led by Amazon with their AWS services drove total operating costs down by 90%. But obviously I’m biased. They should start “lean.&#

Venture Capital 296

Venture Capital Software LP Early Stage 296