Startup Professionals Musings

NOVEMBER 28, 2020

But for founders who do their homework, the cost of entry is lower and the opportunity is higher than ever. Who would not want to join the unicorns (recent startups with a current valuation of over $1 billion)? He nails the current key startup parameters, including the following: Crafting a lean business plan as your road map.

Intellectual Property 404

Intellectual Property Startup Angel Groups Social Media 404

Startup Professionals Musings

AUGUST 19, 2020

Cash flow is a basic survival metric for every startup. This could equate to two technical founders (with a minimal salary), funding two developers for a year. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

YoungUpstarts

NOVEMBER 19, 2020

EBITDA is the most important profitability metric to consider as many valuations are based on a multiple of this metric. That being said, it makes sense that when business is booming, your valuation will be higher. A diversified customer base can reduce cash flow risks and greatly increase your company’s value.

Exit Strategy 246

Exit Strategy Intellectual Property Valuation Metrics 246

Steve Blank

SEPTEMBER 5, 2018

Jeff Katzenberg has a great track record – head of the studio at Paramount, chairman of Disney Studios, co-founder of DreamWorks and now chairman of NewTV. Tech IPO prices exploded and subsequent trading prices rose to dizzying heights as the stock prices became disconnected from the traditional metrics of revenue and profits.

Lean 335

Lean Burn Rate Startup IPO 335

Altgate

DECEMBER 15, 2010

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← No one wants to tell you your baby is ugly More on Liquidation Preferences → Pre-Money Valuation vs Number of Founders Posted on December 15, 2010 by admin Here’s a chart of the day worth sharing.

Pre-Money Valuation 66

Pre-Money Valuation Valuation Cofounder Founder 66

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

View from Seed

DECEMBER 4, 2019

At the time, I spent most of my time describing the metrics themselves and how VCs and their LPs evaluate performance based on these measurements. If you aren’t familiar with these metrics, I recommend reading the original post to get a sense of the numbers that I’ll be reviewing here. So, is this good or bad?

LP 256

LP IRR Distribution Portfolio 256

Startup Professionals Musings

SEPTEMBER 29, 2018

Cash flow is a basic survival metric for every startup. This could equate to two technical founders (with a minimal salary), funding two developers for a year. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

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. Listen carefully and act accordingly.

Exit Strategy 248

Exit Strategy Valuation Acquisition Metrics 248

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? Minimizing losses in the year before you begin shopping around for buyers will increase profit and help you get that higher valuation. Another important metric is churn. This plan will help you with that.

Valuation 122

Valuation Technical Review Exit Strategy Metrics 122

Startup Professionals Musings

NOVEMBER 4, 2015

In a new book, “ The Leadership Capital Index ,” Dave Ulrich, a best-selling author, business consultant, and business school professor, provides some real insights and metrics on what makes up the elements of goodwill in the minds of top valuation experts. I have paraphrased his key points here as follows: Leader personal impact.

Leadership 120

Leadership Technical Review Due Diligence Valuation 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

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

Both Sides of the Table

JUNE 5, 2011

2: As expected at least one person accused me of writing this post because I want to see lower valuations. I’ve decided to take all of my private conversations and subjective points-of-view on the topic and make them public in a keynote speech at the Founder Showcase in San Francisco on June 15th. That’s stupid.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

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. Listen carefully and act accordingly.

Exit Strategy 434

Exit Strategy Valuation Acquisition Metrics 434

Startup Professionals Musings

OCTOBER 5, 2014

Cashflow is a basic survival metric for every startup. This could equate to two technical founders (with a minimal salary), funding two developers for a year. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

YoungUpstarts

NOVEMBER 20, 2019

by Lu Zhang, founder and managing partner of Fusion Fund. Competition from other startups and established incumbents, constraints on time and capital, and limited access to talent and technology resources are just a few of the hurdles nearly every first-time founder faces while trying to build a business.

Technical Review 118

Technical Review Due Diligence Early Stage Differentiation 118

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. . Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Steve Blank

MARCH 31, 2014

Metrics like Return on Net Assets, Return on Capital and Internal Rate of Return are the guiding stars of the board and CEO. As Harvard professor Clayton Christensen noted, these efficiency metrics provided wise guidance for times when capital was scarce and raising money was hard. This never ends well.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

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 However, this does not mean that investors don’t have a significant effect on valuations and M&A). Solo founders take 3.6x

Silicon Valley 207

Silicon Valley Cofounder Technical Cofounder Startup 207

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 142

Valuation CPA Software Review Revenue 142

YoungUpstarts

SEPTEMBER 16, 2015

What’s critical for entrepreneurs to understand is that valuations for startups do not increase at a linear rate; they increase geometrically based on achieving the right milestones. The best entrepreneurs raise enough money to achieve a set of interim milestones and then raise capital again at a significantly increased valuation.

Valuation 100

Valuation Dilution Chicago Technical Review 100

Both Sides of the Table

NOVEMBER 14, 2017

As the idea went from innovating on software & systems to launching a company to rolling it out in the field brought on Rahul Gandhi as his co-founder to physically launch the company. Sam & Rahul have worked closely together on “innovate & operate” since the earliest days of MakeSpace. Seriously, this happens.

Operations 286

Operations New York City Technical Review Startup 286

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

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

Startup Professionals Musings

MAY 4, 2016

But for founders who do their homework, the cost of entry is lower and the opportunity is higher than ever. Who would not want to joint the unicorns (recent startups with a current valuation of over $1 billion)? He nails the current key startup parameters, including the following: Crafting a lean business plan as your road map.

Intellectual Property 120

Intellectual Property Startup Angel Groups Social Media 120

Startup Professionals Musings

SEPTEMBER 14, 2016

Cash flow is a basic survival metric for every startup. This could equate to two technical founders (with a minimal salary), funding two developers for a year. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity.

Burn Rate 120

Burn Rate Hockey Stick Startup Salary 120

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

Startup Professionals Musings

AUGUST 21, 2021

When you see startups like SpaceX and Pinterest grow from a low valuation to a billion dollars in just a few years, it’s easy to assume that if you just keep doing what you are doing, you can get there as well. In fact, it’s highly unlikely that you as the Founder will survive. Switch your focus from product development to sales.

Merger 379

Merger Due Diligence SEC IPO 379

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. Only you know.

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

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

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. by a mile, continued to soar in volume and valuation. the firm may have a right to raise up to $100B but may not call all of it).

Technical Review 165

Technical Review Venture Capital Russia China 165

Startup Professionals Musings

JULY 31, 2020

Founders like Gates and Zuckerberg always had projects going, and even dropped out of school to start their big business. For example, Patagonia founder Yvon Chouinard made it clear from the beginning that his company mission was to save the environment, not just be another outdoor clothing seller.

Entrepreneur 312

Entrepreneur Angel Investor Valuation Leadership 312

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

Gust

JULY 23, 2014

So even if my own mother asked me to meet with you, and you were pitching me a biotech opportunity for a $10 million investment at a $90 million valuation, I might take the meeting, but it wouldn’t be particularly useful for either of us. It’s generally proven amazingly useful to everyone involved.).

Angel Investor 153

Angel Investor Elevator Pitch Pre-Money Valuation Technical Review 153

Steve Blank

MARCH 17, 2020

What are the new financial metrics? They triage their deals – first worrying about liquidity of their late stage deals which have the highest valuations. In every major downturn inflated valuations disappear and the few VC’s still writing new checks find it’s a buyer’s market. How do you know? Days of cash left?

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

Both Sides of the Table

SEPTEMBER 18, 2014

There were no metrics. Him: On metrics. Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. People seem concerned about valuation. Your A round?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

YoungUpstarts

AUGUST 30, 2017

by Les Trachtman, author of “ Don’t F**k It Up: How Founders and Their Successors Can Avoid the Clichés That Inhibit Growth “ Money. Valuations are always astronomical for other companies (i.e., Just because you are a founder, does not mean you deserve to run an organization (unless you are the only employee).

Warrant 179

Warrant Valuation Metrics Startup 179