Gust

NOVEMBER 2, 2011

We recently started a series of posts on establishing the pre-money valuation of pre-revenue startup companies for purposes of investment by seed and startup investors. For example, some investors would not fund a company without at least a minimum of customer feedback or intellectual property.

Valuation 79

Valuation Pre-Money Valuation Intellectual Property Southern California 79

Gust

NOVEMBER 3, 2013

Even a non-profit has to generate revenue (or donations) to offset operating costs. No intellectual property. Intellectual property is also often the largest element of early-stage company valuations for professional investors. Don’t quit your day job until new revenue is flowing.

Intellectual Property 183

Intellectual Property Startup Viral Early Stage 183

Gust

DECEMBER 16, 2012

Define some intellectual property. File a patent and trademarks to show real intellectual property. In most cases, a Microsoft Excel spreadsheet is adequate, with projection formulas for revenue, costs, and cash flow over the next five years. Reserve the company name on social networks to protect it.

Angel Investor 179

Angel Investor Intellectual Property Elevator Pitch Angel Groups 179

Gust

AUGUST 5, 2012

Do describe your intellectual property and “secret sauce”. Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Skip the technical jargon and hyperbole. Focus is the keyword here. Exit strategy.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Gust

DECEMBER 23, 2011

Many other kinds of defenses also allow you to join the venture version of the “slow food” movement: robust intellectual property rights (say, obtained from a university partnership program), exclusive contracts with key suppliers or distributors, a prime physical location. — can indeed thrive without VCs ruining the party.

Intellectual Property 127

Intellectual Property Balance Sheet Dilution Bootstrapping 127

Gust

OCTOBER 18, 2011

You and your partner, with no startup experience, no revenues, no defensible intellectual property, and no prototypes are simply not going anywhere asking for half a million dollars at a five million dollar valuation. But, you can’t look investors straight in the eye with an absolutely preposterous opening offer on valuation.

Intellectual Property 124

Intellectual Property Valuation Partner Revenue 124

Gust

DECEMBER 8, 2011

Readers can anticipate my next point in continuing the analogy: It makes no more sense for a non-lawyer to prepare fundamental legal, governance, equity and intellectual property documents than it would for a patient to self-diagnose and begin taking prescription-strength antibiotics or other medications. Office and equipment leases.

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139