Both Sides of the Table

NOVEMBER 14, 2017

As a startup in this phase you often raise capital, get press, hire staff and everything feels possible. I always push companies to hire “an operationally focused CFO” during this phase because in order to systematize you need somebody who brings economic rigor to decision making. As an early-stage VC I love this phase.

Operations 286

Operations New York City Technical Review Startup 286

Both Sides of the Table

SEPTEMBER 22, 2012

After all, growth equals high valuations and loads of venture capital! Instant growth = huge valuation from follow-on investors = big VC mark-up on our quarterly reports = LP interest. In revenue terms our first two years of sales were $2.1 Startups will continue to be aggressive in spamming us in our Facebook timeline.

Silicon Valley 390

Silicon Valley Venture Capital Startup Technical Review 390

Startup Professionals Musings

SEPTEMBER 14, 2016

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. Waiting until you have something to sell before bringing on a sales and operations staff. Use social media for early marketing.

Burn Rate 120

Burn Rate Hockey Stick Startup Salary 120

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. As the risks below get eliminated the higher the valuation investors are prepared to pay. So rounds tend to be “range bound&# where the top end of the valuation spectrum often being done in boom markets (i.e.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Both Sides of the Table

APRIL 26, 2016

profitable and companies like Amazon who chose to focus on growth > profitability were not losing money on each book sale (ie they were gross margin positive). But often this doesn’t tell the whole story because often companies are also spending money on PR and other marketing activities in order to support the sales process.

Metrics 150

Metrics Cost Acquisition Startup 150

Steve Blank

MARCH 17, 2020

Next, take a look at your actual revenue each month – not forecast, but real revenue coming in each month. Subtract your monthly gross burn rate from your monthly revenue to get your net burn rate. All your assumptions about customers, sales cycle and most importantly, revenue, burn rate and runway are no longer true.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

Both Sides of the Table

JUNE 22, 2011

Ah, but today’s Internet companies have real revenue! In addition to FOMO it is partly driven by massive increase in valuations for earlier-stage companies who raised money at bit seed prices but who still have product risk. And for some that means that despite waiting they may see worse valuations in the future than now.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

YoungUpstarts

OCTOBER 28, 2020

It’s not just about revenue. While revenue is taken into consideration, there are more components involved in valuing a business. . The only way to get an accurate value estimation is to hire a business broker to perform a business valuation. This detailed information will be important to potential buyers.

eCommerce 264

eCommerce Database Social Media Valuation 264

Up and Running

SEPTEMBER 19, 2017

They allow you to hire more people, purchase new technology, and establish new business connections, among many other benefits. That’s because obtaining a pre-money valuation for a concept level technology company in excess of $1 million is difficult, particularly for a startup founder without a proven track record.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Up and Running

OCTOBER 16, 2019

As your business grows, some of the best problems you’ll have are figuring out when to hire new employees, when to expand to a new location, or whether you can afford a major purchase. . Your business plan is a great place to map how your sales and revenue goals fit with your expense budget. SMART goals are: Specific.

Business Plan 108

Business Plan Small Business Forecast Balance Sheet 108

Up and Running

OCTOBER 16, 2019

As your business grows, some of the best problems you’ll have are figuring out when to hire new employees, when to expand to a new location, or whether you can afford a major purchase. . Your business plan is a great place to map how your sales and revenue goals fit with your expense budget. SMART goals are: Specific.

Business Plan 108

Business Plan Small Business Forecast Balance Sheet 108

Duct Tape Marketing

FEBRUARY 3, 2022

16:06] Does hiring an advisor also come with a team of legal and financial advisors? John Jantsch (00:00): This episode of the duct tape marketing podcast is brought to you by the sales podcast, hosted by will Barron brought to you by the HubSpot podcast network. What does your sales and marketing team look like?

Entrepreneur 79

Entrepreneur Technical Review Cofounder Valuation 79

The Startup Magazine

JUNE 1, 2023

We’re hitting record revenue months, weeks, and margins. There are currently tons of “zombie” startups that have runway, but growth has slowed and they have valuations that they won’t be able to grow into. Be honest with yourself VCs are now going to be looking closer at margins, cost structures and true sales, and product market fit.

Early Stage 112

Early Stage Los Angeles Silicon Valley Cofounder 112

Both Sides of the Table

NOVEMBER 9, 2009

I was looking for a person to head up my UK sales team. I hired an executive recruiter and had 7 finalist candidates that I interviewed. And in the end I hired him. But as a sales person you have to be able to build rapport. But they didn’t have any revenue or enough traction to show for it.

Venture Capital 264

Venture Capital Due Diligence Flash Strategic Investors 264

Up and Running

MAY 17, 2017

An ROCG study of 502 business owners with revenues between $1 million and $100 million found that only 40 percent successfully transitioned their business and only 9 percent had a formal, written succession plan. The same approach holds true if you want to make your business more desirable for sale. million in sales revenue.

Acquisition 92

Acquisition Technical Review Revenue Exit Strategy 92

Version One Ventures

FEBRUARY 7, 2023

Over the last few years, the start-up market has focused almost exclusively on hyper-growth, quick valuation increases, raising large amounts of capital, and trying to take companies public in a premature way (SPACs). in revenue in 2022 for Jobber’s customers. These jobs resulted in over $13 billion USD (!!!)

Cofounder 95

Cofounder Portfolio Valuation Revenue 95

YoungUpstarts

MAY 17, 2019

But every year thousands of entrepreneurs become millionaires by buying and growing businesses without the startup headaches of venture capitalists, zero revenue, and no business processes. They make all the sales. Review the org chart for an ops manager and sales person who have been in the business a long time.

Due Diligence 185

Due Diligence Forecast Deal Structure Valuation 185

Austin Startup

AUGUST 20, 2017

Hiring is a chapter unto itself, but it deserves to lead off any discussion of context. Compensation decisions obviously affect hiring and retention. You can’t be too careful in determining comp packages for your new hires. Keep the valuations consistent with company progress. Let’s look at some specifics: 1.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Steve Blank

JUNE 15, 2011

A tech bubble is the rapid inflation in the valuation of public and private technology companies that exceeds their fundamental value by a large margin. Today, the signs of the new bubble are the Linked-In initial public offering (IPO), Facebook’s stratospheric valuation and the rapid rise of early-stage startup valuation.

Silicon Valley 328

Silicon Valley Stealth Valuation Mississippi 328

Up and Running

AUGUST 29, 2014

Are sales growing or shrinking? Do I need to hire a Certified Public Accountant (CPA) for my small business? A Certified Public Accountant (CPA) is a state licensed professional who offers various accounting, auditing, tax, financial analysis, business valuation and consulting services.

Small Business 87

Small Business CPA Government North America 87

ReadWriteStart

MARCH 24, 2011

Jobseekers, therefore, need help cleaning up their social media profiles so that objectionable material does not find its way to these background check scenarios, disrupting their chances of getting hired. Campus sales reps is a good strategy that Chris is experimenting with, as well as marketing to camp directors.

Illinois 114

Illinois Entrepreneur Silicon Valley Chicago 114

Tim Keane

MARCH 9, 2011

How to prepare a sales forecast for a business plan » March 09, 2011.   His entire income is based on his personal output and he’d like to hire several woodworkers, expand his sales to existing customers, and generate a profit in addition to his contributed labor.  Startups and angels: Along the way to success.

Finance 83

Finance Bootstrapping Startup Equity 83

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. by February 2006).

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

A Smart Bear: Startups and Marketing for Geeks

DECEMBER 16, 2014

Still… Now Slack has been valued at over a billion dollars, less than a year after launch, every month adding more than a million dollars of annual recurring revenue. “It’s not fair,” we all said to ourselves. Well, at least they had to toil for four years instead of two. They’re next!

Metrics 246

Metrics Early Stage Retention Revenue 246

ConversionXL

MAY 1, 2017

Reporting in the Harvard Business Review on a major study of growth stalls they conducted, Olson and his colleagues cite the case of the iconic brand Levi Strauss, which hit a historic high mark of sales in 1995, reaching revenue of $7 billion, but then, starting in 1996, saw a decline in sales so precipitous that by 2000, revenue was down to $4.6

Technical Review 127

Technical Review Algorithm Channel Analytics 127

www.avc.com

SEPTEMBER 22, 2011

The most common comment in this long and complicated MBA Mondays series on Employee Equity is the question of how much equity should you grant when you make a hire. For your first key hires, three, five, maybe as much as ten, you will probably not be able to use any kind of formula. First, a caveat.

Equity 64

Equity Employee CTO Hire Fractional CTO 64

Both Sides of the Table

SEPTEMBER 1, 2016

Scott Kupor of A16Z responded with a comprehensive overview of valuation methodology in a post that while accurate feels more targeted at sophisticated Limited Partners (LPs) who invest in funds. to “Jeez — they sure are hiring a ton of staff. to “How can we hire more staff to keep up with the services they offer?”

LP 264

LP Jordan Cofounder Limited Partner 264

David Teten

SEPTEMBER 23, 2017

I previously posted a detailed presentation with sales technology tools useful for B2B sales. is an AI bot which helps companies refine their sales pitch to VCs. Numerous VC funds rely on more general CRM and sales funnel solutions like Pipedrive and Streak. Pitchbot.vc 3) Originate investments. 5) Due diligence.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

View from Seed

APRIL 30, 2015

In many instances, you raise an institutional round to either fulfill a product strategy or go-to-market strategy or you’re increasing sales and marketing hires, so you have better visibility into what needs to happen in the next six, 12, 18 months. Traction and revenue? NVV: Let’s talk about the seed stage specifically.

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

Steve Blank

FEBRUARY 10, 2016

Hire around you to fill those weak spots. …. Keen Home appeared on the TV show, Shark Tank , in 2012, landing one of the highest valuations in the show’s history. But it’s sales that really drive your progress with those three groups of people. Steve : Did you personally know about any of this?

Silicon Valley 120

Silicon Valley Ohio Columbus Entrepreneur 120

Cracking the Code

NOVEMBER 13, 2008

The fact that SaaS valuations are being more affected by the downturn than the Nasdaq can be surprising given the supposed resiliency of the SaaS model (recurring revenues) but it translates the public investors belief that SMB software spend is going to be hit very hard by this recession. How long will the downturn last?

Software Review 48

Software Review Technical Review Valuation Portfolio 48

Both Sides of the Table

JULY 1, 2015

Startup companies continue to grow at unprecedented rates, raise enormous amounts of venture capital and achieve valuations that imply that they will continue to grow rapidly for the foreseeable future. I’m not saying don’t hire sales staff or market your products aggressively. We live in heady times.

Balance Sheet 150

Balance Sheet eCommerce Venture Capital Acquisition 150

ReadWriteStart

AUGUST 26, 2022

The startup didn’t work out, but I found ways to be around it, whether it was on the sales side in Goldman for a few years. Good CEOs will look inside and say: “Hey, maybe we’ve been hiring a little bit too much during the sugar rush phase of the pandemic, and what does that mean for performance management? Sounds great.

Partner 132

Partner Cofounder Retention Acquisition 132

Up and Running

FEBRUARY 8, 2016

Here’s what they discovered: They found firms that quickly institute formal mechanisms such as operation budgets, cash budgets, and financial monitoring systems (tools that measure profitability, customer acquisition costs, variance from actual budget, and so forth) had higher growth rates in terms of revenues and headcount. There are 1.7

Entrepreneur 60

Entrepreneur Software Review Balance Sheet Partner 60

Steve Blank

OCTOBER 24, 2017

— Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed: IPOs/M&A without a profit (or at times revenue) have become the norm. Typically, this caliber of bankers wouldn’t talk to you unless your company had five profitable quarters of increasing revenue.

Founder 252

Founder Technical Review CTO Hire IPO 252

abovethecrowd.com

JULY 10, 2014

Financial models, especially valuation models, are interesting in that they can be particularly precise. While it may seem like a tough question to answer, I would argue that most practitioners of valuation analysis would state “not very high.” It is not my aim to specifically convince anyone that Uber is worth any specific valuation.

San Francisco 111

San Francisco San Jose Marketing Technical Review 111

The Equity Kicker

JANUARY 22, 2014

Investors pay a high valuation to get into a good deal, betting on continued fast growth. To meet growth and revenue targets, you hire and spend like never before. You rush a few key hires, overbuild the team, ramp marketing spend. It’s counter-intuitive, but too much money can kill a company.

Venture Capital 102

Venture Capital Down Round Valuation Lean 102