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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

Term-sheets and Valuations: Thinking about Negotiations. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react.

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Going Concern Rules And Your Company

YoungUpstarts

Many of these companies are pre-revenue and in the cash burn stage as they try to establish their technology and market. When investors believe in the founders, products, or ideas they will provide companies with funding. Company growth and future forecasts are a critical component of going concern analysis.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Flexible VC 101: Equity Meets Revenue Share. Where else can fast-growing companies get funding?

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LinkedIn: The Series A Fundraising Story ? AGILEVC

Agile VC

This also appears as a guest post at Fortune’s Term Sheet. Many assume it was a cakewalk, based on the success LinkedIn has enjoyed over time and the current stature of our founder/CEO Reid Hoffman (now Chairman). Yes… he was a very successful PayPal exec and previously co-founder & VP Product of SocialNet.

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Looking for investors? Here’s how to value your startup

The Next Web

As an example, a new restaurant may get valued at 3-4x EBITDA (earnings before interest, taxes, depreciation, and amortization) and a hot dot com business with meteoric traffic growth could get valued at 5-10x revenues. revenue, cash flow or net income multiples from recent M&A transactions in your industry. Rule of thumb.

Valuation 167
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An Inside Scoop on the Funding Environment and What it Might Mean for You

Both Sides of the Table

Investors sat with the founder & CEO, Jason Spievak, and asked him what he wanted to do about the future. Six firms had expressed strong interest, two had strong champions already trying to test price and round size and one had made it clear they were planning to submit a term sheet the following week. FOMO was NOMO.

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10 Steps to Success With Angel Investors

Business Plan Blog

Raising funds from business angels may be difficult, time consuming and even frustrating but for the right founder with the right project it may be the preferred option. This process may include the provision of various scenarios on revenues and costs as the investors validate forecasts initially presented. Pre-money valuation.