YoungUpstarts

JANUARY 10, 2018

How do you find the balance between not too small to prove itself but not too big to have an off-putting valuation? Few buyers will get excited about a company currently operating at a loss. Minimizing losses in the year before you begin shopping around for buyers will increase profit and help you get that higher valuation.

Valuation 145

Valuation Technical Review Exit Strategy Metrics 145

Startup Professionals Musings

OCTOBER 18, 2023

Most startup founders don’t relish the thought of managing repeatable processes, greedy stockholders, and endless regulation reports. New startup founders keep all the operating metrics they need in their head. Your valuation and salability depends on the credibility of this effort.

Exit Strategy 248

Exit Strategy Valuation Acquisition Metrics 248

Startup Professionals Musings

OCTOBER 5, 2014

Cashflow is a basic survival metric for every startup. Waiting until you have something to sell before bringing on a sales and operations staff. For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month. Social media is not rocket science.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

View from Seed

MARCH 24, 2021

In this comprehensive template and guide we break down each of the nine core sections in the deck: intro , team , what do you do , is it working , why does it matter (market) , can you be the best in the world (product, growth, financial metrics) , where are you going , what do you want (the ask) , and appendix. ” (Rob Go).

Seed Stage 177

Seed Stage Hiring IPO Analytics 177

Startup Professionals Musings

JANUARY 9, 2021

Most startup founders don’t relish the thought of managing repeatable processes, greedy stockholders, and endless regulation reports. New startup founders keep all the operating metrics they need in their head. Your valuation and salability depends on the credibility of this effort.

Exit Strategy 434

Exit Strategy Valuation Acquisition Metrics 434

YoungUpstarts

MAY 29, 2011

Founders that learn are more successful. Startups that have helpful mentors, track metrics effectively, and learn from startup thought leaders raise 7x more money and have 3.5x Investors who provide hands-on help have little or no effect on the company’s operational performance. Solo founders take 3.6x

Silicon Valley 230

Silicon Valley Cofounder Technical Cofounder Startup 230

Startup Professionals Musings

SEPTEMBER 14, 2016

Cash flow is a basic survival metric for every startup. Waiting until you have something to sell before bringing on a sales and operations staff. For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month. Social media is not rocket science.

Burn Rate 120

Burn Rate Hockey Stick Startup Salary 120

Both Sides of the Table

SEPTEMBER 10, 2021

I’m over-paying for every check I write into the VC ecosystem and valuations are being pushed up to absurd levels and many of these valuations and companies won’t hold in the long term. On the one hand, you’re over paying for every investment and valuations aren’t rational. two founders in a garage?—?(HP dot-com bonanza.

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

David Teten

JANUARY 19, 2021

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Every Flexible VC structure allows founders to access immediate risk capital while preserving exit, growth trajectory, and ownership optionality. . Payments are commonly delayed for a grace period of 12-36 months.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Steve Blank

MARCH 31, 2014

In fact, it was only 7 years ago that Apple shipped its first iPhone and Google introduced its Android operating system. Metrics like Return on Net Assets, Return on Capital and Internal Rate of Return are the guiding stars of the board and CEO. Look at the valuations of companies like Tesla, Illumina, and Twitter.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

YoungUpstarts

JUNE 16, 2020

Business valuation is defined as a way to determine the overall economic value of a company , and is a necessary component of a sound business plan and strategy. Any of these situations will demand a valuation to determine current and future projected value. . Three Methods of Valuation. Life happens to all of us.

Valuation 162

Valuation CPA Software Review Revenue 162

Startup Professionals Musings

SEPTEMBER 22, 2021

Many of his original investors still remember when Facebook founder Mark Zuckerberg first related his personal challenge to only eat meat that he killed himself, in an effort to learn sustainable farming and consume resources responsibly. Offer an attractive and viable investment equation. Display real commitment to a plan, with milestones.

Intellectual Property 352

Intellectual Property Equity Bootstrapping Valuation 352

Both Sides of the Table

FEBRUARY 15, 2016

There is much talk these days that startup valuations have decreased and may continue to do so and that the amount of time it takes to fund raise may take longer. The earlier the round, the less capital you need and the more reasonable your valuation the less time that is needed generally to raise capital.

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

Steve Blank

MAY 29, 2011

The email continued, &# The problem I’m working on is that many founders are either making uninformed decisions or inefficiently learning the new skills they need. The solution I’m exploring is a just in time learning methodology that accelerates founders’ learning curve by aggregating relevant content, peers and mentors.&#.

Technical Cofounder 333

Technical Cofounder Early Stage Startup Silicon Valley 333

Haystack

DECEMBER 29, 2018

Also during this time, the underlying metrics in that business can change positively, potentially trapping companies to accept the initially-agreed upon valuation. Governments blocking acquisitions, the curtailment of company expansion, more scrutiny on overseas operations of U.S. That will take a long time to settle.

Technical Review 165

Technical Review Venture Capital Russia China 165

SoCal CTO

JUNE 9, 2010

But founders need to know how to ask for their advice and when to ignore it. Startup Insights From Paul English, Co-Founder of Kayak - OnStartups , May 10, 2010 I’m just wrapping up several weeks of attending conferences across both coasts. Why Entrepreneurs Hate Lawyers. was having coffee with a friend who teaches at the U.C.

Fractional CTO 248

Fractional CTO Startup Venture Capital Cofounder 248

Steve Blank

MARCH 17, 2020

Here are a few thoughts about operating in uncertainty in a pandemic. What are the new financial metrics? Revise your sales revenue goals, product timelines and create a new business model and operating plan – and communicate them clearly to your investors and then to your employees. And what’s in my lifeboat?”.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

YoungUpstarts

APRIL 5, 2019

by Dan Abatte, co-founder of 81-c. Are you fresh out of Y Combinator with $1 million in funding at a $10 million valuation? But flattering media attention too easily shifts focus away from the metrics that matter. Call me old school, but I believe in metrics like growth, revenue, and profit. Making it” is relative.

Valuation 162

Valuation Cofounder Metrics SEC 162

Version One Ventures

JULY 20, 2015

I often get asked about how to determine the valuation for a marketplace startup that is starting to scale. Our assumptions for this valuation: Scale: > $1b GMV. Bessemer offers a good overview of current valuations for different business models: SaaS, marketplaces, consumer, and ecommerce. YoY growth of at least 30%.

Valuation 60

Valuation Early Stage IPO eCommerce 60

Genuine VC

JULY 19, 2010

Initial investment in a company is among the first non-founder capital raised. The difference now is that given the structural changes in the market, seed-stage investors are more likely to be rewarded in valuation given the value which is created during this segment of the company’s life cycle.

Seed Stage 175

Seed Stage Technical Review Dilution Offshore 175

View from Seed

JUNE 10, 2020

of teams’ online pitch decks and recorded videos, as well as loved the dozens of second-round video conversations which we had with Founders working on quite compelling startups. Many of these Founders we wouldn’t have had an opportunity to connect with if we hadn’t launched this program.

Cofounder 177

Cofounder Syndicate Syndication Alabama 177

K9 Ventures

JUNE 5, 2015

Low supply of companies with traction drove the valuations and deal sizes up. So while the infrastructure cost and startup costs may have declined, the operating costs have increased. Valuations are rising to match. So if the Micro-VCs are looking for Series A-like metrics, what does a company do when it’s just getting started?

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

Steve Blank

OCTOBER 24, 2017

Why do these founders get to stay around? Because the balance of power has dramatically shifted from investors to founders. VCs competing for unicorn investments have given founders control of the board. A pre-IPO board usually had two founders, two VCs and one “independent” member. Technology Cycles Measured in Years.

Founder 245

Founder Technical Review CTO Hire IPO 245

Feld Thoughts

NOVEMBER 18, 2013

Convertible debt financings have become an increasingly attractive approach for seed rounds because it delays the valuation discussion, costs less from a legal standpoint, and is an easier financial instrument to “keep raising more small amounts of money” on. The investors, founders, and “community” are all super excited about ASC.

Burn Rate 152

Burn Rate Equity Software Review Early Stage 152

David Teten

SEPTEMBER 23, 2017

An investor had few hard metrics other than the actual financials, and little technology to make the process scaleable. Over the past few decades, better metrics became available, and investors could take a more analytical, data-driven approach. ” Historically, investing was a manual, artisan process. Pitchbot.vc

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

500hats.com

AUGUST 2, 2012

Other angel investors and smaller funds also copied this innovation, and many of these new Micro-VC fund managers (like me) came from operational backgrounds at companies like PayPal/eBay, Yahoo, Amazon, or Google, rather than finance backgrounds from investment banking or Wall Street.

Silicon Valley 74

Silicon Valley Early Stage Venture Capital Valuation 74

Gust

NOVEMBER 4, 2011

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. Valuation caps can come into play in settings other than seed-stage convertible note financing rounds. Read on for a fuller explanation.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Startup Professionals Musings

SEPTEMBER 30, 2015

Most startup founders don’t relish the thought of managing repeatable processes, greedy stockholders, and endless regulation reports. New startup founders keep all the operating metrics they need in their head. Your valuation and salability depends on the credibility of this effort.

Exit Strategy 120

Exit Strategy Startup Valuation Acquisition 120

Agile VC

FEBRUARY 20, 2014

There are so many remarkable aspects of this event… from the sheer size, to founder Jan Koum’s personal story, to the way it caught most people by surprise, to Sequoia’s stunning return (more on that below). As a thought exercise though I thought I’d try to put the valuation in perspective. billion for it.

Valuation 159

Valuation Acquisition Mobile Revenue 159

The Next Web

FEBRUARY 27, 2014

One of the questions I get, more often than not, is what is the appropriate valuation of my business. multiple interested investors competing for the deal, and driving up your valuation in the process). Never have an investor think they are the only investor pursuing your business, as that will hurt your valuation.

Valuation 167

Valuation Forecast Seed Stage .Net 167

The Equity Kicker

FEBRUARY 12, 2016

Startup founders should expect that it will take seven or more years to exit their company. To quote Foundry Group partner Seth Levine, when the markets turn: the growth imperative shifts to a profit focus, [and] companies with high burn and weak operating metrics can get stuck in the lurch.

Startup 60

Startup Metrics Valuation Operations 60

Agile VC

FEBRUARY 20, 2014

There are so many remarkable aspects of this event… from the sheer size, to founder Jan Koum’s personal story, to the way it caught most people by surprise, to Sequoia’s stunning return (more on that below). As a thought exercise though I thought I’d try to put the valuation in perspective. billion for it.

Valuation 127

Valuation Acquisition Mobile Revenue 127

A Crowded Space

SEPTEMBER 15, 2017

JSV is focused on leading deals in SaaS and marketplace companies in the 5-30M valuation range. We love founders that are down to earth, quietly confident, and focused on execution. We love businesses that are off the beaten path, tackling large markets, and focused on exceptional operations and making customers very happy.

Hiring 60

Hiring San Francisco Angel Investor Early Stage 60

David Teten

NOVEMBER 10, 2011

I gave it to Rodi Blokh , founder of New Prospect Ventures , who dramatically improved and formalized my model to be suitable for publication. The model outputs standard financial statements and key operating metrics based on a wide range of user inputs, and is highly customizable and entirely transparent.

Balance Sheet 154

Balance Sheet Startup Equity Valuation 154

Startup Professionals Musings

OCTOBER 12, 2010

It’s human nature to prioritize the metrics that get measured, so the simple act of keeping track is often enough to have a significant positive impact. Items that paint a big picture include revenue by major product area, cost of goods, and operating expenses by category. Detail isn’t important; tracking your progress is.

Intellectual Property 223

Intellectual Property .Net Valuation Distribution 223

David Teten

AUGUST 7, 2019

Likely signs of a Value investment: the company has challenges in filling out the round; the investors have more negotiating leverage than the founders during the closing process; the company has significantly better metrics (e.g. than comparable companies in the same sector that raised at a higher valuation. Why, yes, they are.

Venture Capital 60

Venture Capital Valuation Stock NDA 60

The Equity Kicker

JANUARY 10, 2020

Maybe they’ll pivot to something great eventually, but in the interim period, the valuation goes sideways – and that’s not a good place for a VC to be. Sometimes you get great founders with an average idea; but because they’re so good, they make it work to a degree. And what are the metrics for customer love?

Partner 68

Partner Early Stage Portfolio Metrics 68