A Smart Bear: Startups and Marketing for Geeks

AUGUST 16, 2010

And then, for the few companies that really do need VC-sized investments to take them from product/market fit to explosive growth, by the time they start touring Sand Hill Road their valuations are sky-high; they've already got all the trappings of a successful company, the major risks having been removed during the angel round.

Exit Strategy 246

Exit Strategy Angel Investor Finance Incubator 246

A Smart Bear: Startups and Marketing for Geeks

APRIL 24, 2012

Should I invest my $95k at a $1m valuation to bring my total stock allocation into the double-digits? So here’s the answer to your question: If you believe this company has a good shot, you must invest your $95k , because it’s the only logical way to make the finances work! I have $95,000 saved from a previous exit.

Salary 229

Salary Stock Startup Valuation 229

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

Revenue multiples, profit multiples, premium over the previous financing — these are metrics used by sellers to help determine a minimum acceptable price. Remember this is revenue , not valuation. Large companies don’t acquire small companies for their financials. Zoom out to see the strategic decision.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 23, 2012

So it IPO’ed at a $13b valuation but has dropped month-over-month to one-fourth that value and appears to be in “constant pivot mode” while they try to figure out a new, massive market for which their existing infrastructure is an asset. It’s my goal to join the ranks of those excellent companies at WP Engine.

IPO 240

IPO Flash Bootstrapping Private Equity 240

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 21, 2011

Of course the numbers don’t match because, again, I pulled those potential valuations out of nowhere. To make $250,000 out of $5m the investor would need 5%; to make $840,000 from $25m the investor needs 3%. That’s a much tighter range than you had before you started reading this article!

Equity 276

Equity Salary Hiring Institutional Investors 276

A Smart Bear: Startups and Marketing for Geeks

JUNE 27, 2011

They know there’s a minimum valuation, under which you’re not interested. That means you have to be that sure that that’s the number, regardless of deal structure. Here’s why: The acquirer knows that you, the founder, are looking for financial freedom.

Sales 235

Sales Term Sheet Stock Deal Structure 235

A Smart Bear: Startups and Marketing for Geeks

JUNE 20, 2011

Or a company like Zappos (who was famous, growing, and profitable) still got only a 1x sales valuation when bought by Amazon because of thin margins. There’s many possibilities, each of which will cause a different valuation of your company. As another example, there are standards for valuing professional services firms (e.g.

Sales 260

Sales Channel Cofounder Valuation 260