Both Sides of the Table

SEPTEMBER 18, 2014

On the phone … Me: So, you raised venture capital? Revenue multiple? We raised a seed round. About $1 million. Me: At what price? Him: It wasn’t priced. We raised a convertible note. Me: With a cap? Him: Yes, $8 million. So you did raise with a price. It’s just a maximum price. Your A round? Him: On metrics.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Steve Blank

APRIL 23, 2014

buy out an entire company for its revenue and profits. In response, venture capital firms like Sequoia and Andreessen/Horowitz are hiring new partners just to work with their portfolio companies and match them to corporations. The founding team is testing for the right combination of product, market, revenue, costs, etc.

Acquisition 332

Acquisition Intellectual Property Silicon Valley Startup 332

YoungUpstarts

JULY 31, 2019

Of course, a certain amount of initial capital without financial performance is absolutely necessary to get a business off the ground, especially in regulated industries. Founders need seed capital to get their operations up and running, and to begin generating revenue. This also applies in acquisition conversations.

Cofounder 127

Cofounder Burn Rate Technical Cofounder Seed Capital 127

Both Sides of the Table

DECEMBER 27, 2011

You have to understand whether they’re likely to yield revenue growth in the near term OR whether you have access to cheap enough capital to fund your losses until your investments pay off. million in revenue three years later is, “So effing what?” Simplifying: Revenue -. ” Harsh, but reality.

Startup 418

Startup Revenue Technical Review Flash 418

Both Sides of the Table

SEPTEMBER 28, 2014

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. But those of us with longer memories remember that the revenue line can move south very quickly when the market overall turns south. Gross burn is the total amount of money you are spending per month.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Both Sides of the Table

OCTOBER 17, 2019

Just as I was getting the swing of things the world shifted beneath my feet and the stock market went into a free fall and venture capital all but shut down for nearly a year. I mentioned that we sold our position in Kyriba for > $1 billion but when we invested it had virtually no revenue. Over the past 2.5 Over the past 2.5

IP 223

IP Intellectual Property IRR Cofounder 223

YoungUpstarts

NOVEMBER 20, 2019

You may be able to generate revenue, but VCs want exponential growth. If that’s the case, and they don’t consider investing in two competitors to be a conflict of interest, ask them how they protect founder IP and other proprietary assets. Like you, they’re looking for opportunity. Be ready when it counts.

Technical Review 140

Technical Review Due Diligence Early Stage Differentiation 140

This is going to be BIG.

APRIL 27, 2010

So then, why are we teaching our students to trust fall without any revenues of their own to catch them? No revenues, no costs. You can tell me all you want about how many patents were filed at Columbia or wherever, or what they do in revenues—the future of the innovation in NYC is not in hard technology.

New York 116

New York CTO Hire Technical Review New York City 116

David Teten

JANUARY 28, 2019

My former Partner John Frankel of ff Venture Capital observes that 20 years ago, the defining movie of the generation was “Wall Street”. “CEO is the new Analyst.”. Everyone wanted to work in finance. But now, the defining movie of today’s twentysomethings is “The Social Network”. Everyone wants to work in tech startups.

Affiliate 60

Affiliate Connecticut Programming Community 60

Growthink Blog

SEPTEMBER 13, 2017

To illustrate, let’s investigate two typical company scenarios: Company Scenario #1: A company lacking great financial traction - slow revenue growth, little profit - but one that competes in an industry attractive to strategic and financial buyers. Many software and healthcare businesses fit this description.

Harvest 48

Harvest IP Software Review Forecast 48

SoCal CTO

JULY 13, 2011

This site aggregates and filters content from thought leaders who talk about topics such as Marketing , Sales , Design , Revenue , Hiring , Social Media , Business Models , Metrics , PR , Venture Capital , Angel Investors , Bootstrapping , Incubators , Agile and many others.

Intellectual Property 175

Intellectual Property Aggregator Startup IP 175

Both Sides of the Table

APRIL 25, 2011

This thinking is largely driven by the venture capital industry (and subsequently Wall Street) who are in search of high margin, highly scalable businesses. I gave them advice I don’t think they were expecting from a VC, “Don’t raise venture capital for this business. You own the IP you create.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

Both Sides of the Table

JULY 10, 2010

This episode of This Week in Venture Capital featured Michael Montgomery, president of Montgomery & Co. You have to be selected to present and it is typically reserved for companies that have already raised early-stage capital and are well into revenue growth. Should you use investment banks to raise venture capital?

IPO 242

IPO Venture Capital Private Placement Cofounder 242

Austin Startup

DECEMBER 17, 2017

Hurricane Irma had a major negative revenue impact on one whose fall book of business was mostly in Florida. The youngest of the litter has been busy tuning a very attractive general idea into a very specific and more IP-based product offering.

Silicon Valley 48

Silicon Valley Atlanta Software Review Early Stage 48

YoungUpstarts

NOVEMBER 17, 2014

Your Unique Advantages – This is where you discuss those unique characteristics of your venture that give you an unfair advantage. It may be some unique IP, a change in the applicable laws, the prowess of your founding team, or recent changes in the market. Or, this can be high-level projections about revenue and expenses.

Elevator Pitch 154

Elevator Pitch Early Stage Venture Capital IP 154

This is going to be BIG.

JUNE 19, 2012

I don’t know exactly when the agency to product transfer happened at Buddy, or at what point you can start calling yourself a software company (when service revenues dip below subscription/license revs?), They try to move more of their revenues to be recurring streams than to be hourly charges to a client.

Software 105

Software Media Social Media Advertising 105

Up and Running

SEPTEMBER 26, 2016

Venture debt provides a very cost-effective way to receive capital from a big financial institution if you have liquidity or existing financial backing from a well-known investor. The downsides of venture debt? The cost of venture debt capital is very, very low. See Also: What Do Venture Capital Firms Want?

Covenant 60

Covenant Institutional Investors Balance Sheet Warrant 60

VC Cafe

APRIL 24, 2024

Gaming IP is crossing to TV and movies Another catalyst for investment is the growing appetite from TV/movie studios to adapt popular gaming IP into shows and films. As this transmission plays out, it unlocks new revenue streams and increases the strategic value of gaming IP. Can Big Exits Reopen the Floodgates?

IP 135

IP Artificial Inteligence Early Stage IPO 135

infochachkie.com

SEPTEMBER 24, 2011

For instance, if a consultant proposes to help you with public relations, pay them a commission equivalent to the greater of a flat fee per story placed or a percentage of revenue generated from the PR coverage. IP) is an ugly thing at a startup. Performance-based deals are healthy for all parties. John is a CPA and holds an M.B.A.

Equity 40

Equity Silicon Valley Cofounder Technical Review 40

K9 Ventures

APRIL 28, 2010

Either protectable IP or at least hard IP. Direct Revenue : The company must have a direct revenue model. K9 Ventures sits in between individual angels and institutional venture capital funds. Technical Product : The product must have some technical depth. Twilio (Seed and Series A).

Seed Stage 61

Seed Stage San Francisco IP Portfolio 61

Steve Blank

DECEMBER 7, 2010

Channel incentives – does your product or proposition extend or replace existing revenue for the channel? ——————– Class 6 Feb 8 th Testing Revenue Model. Class Lecture/Out of the Building Assignment: What’s a revenue model? What types of revenue streams are there?

Wiki 311

Wiki Lean Management Business Model 311

Tim Keane

JANUARY 12, 2010

  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.]   Pre-bubble Siliicon Valley deals were popularly valued at multiples of revenue.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Both Sides of the Table

APRIL 27, 2010

My company had raised venture capital in April 2001 but we were told that there may never be any more coming. and we ultimately sold when we hit $14 million and had more than $30 million in backlog revenue. I learned about revenue recognition. So how did I come to work in the world of venture capital?

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

Both Sides of the Table

MAY 5, 2011

When you think about the success that is Silicon Valley, the unfair advantage is not just the huge amounts of available venture capital. A key deal not only helps you raise venture capital but it can help attract employees, garner press attention, help with product focus & importantly drive customer adoption and/or revenue.

Seattle 317

Seattle Silicon Valley Technical Review Los Angeles 317

Gust

SEPTEMBER 17, 2014

Me: So, you raised venture capital? Revenue multiple? How about you close your first capital (say $500,000) and put in the docs that you have up to [90] days to raise an additional $1 million at the same price at your discretion. On the phone …. We raised a seed round. About $1 million. Me: At what price? Me: With a cap?

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Both Sides of the Table

FEBRUARY 25, 2010

It quickly became impossible to raise venture capital. It isn’t even a story about raising venture capital or M&A. Don’t over shop – If the deal you’re involved with involves raising venture capital or selling your company you naturally want some competition. Anybody who didn’t close was dead.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Both Sides of the Table

OCTOBER 6, 2010

Everyone has their own definition of momentum (user numbers, revenue, channel partners, biz dev deals, whatever). What about Product / IP? Tags: Raising Venture Capital Startup Advice. But if you identify investors with whom you’d like to work here’s my advice: 1. That’s not an M? It’s a P.

Early Stage 360

Early Stage Startup Venture Capital Seed Stage 360

The Next Web

OCTOBER 2, 2013

Jenny Lee, a partner at venture capital firm GGV Capital which has a presence in both the US and China, also observes that in the US, the willingness to pay for an app is pretty high — especially for a utility tool, which is what CooTek’s TouchPal X Keyboard essentially is. But on the other hand they have more time.

China 122

China Developer Intellectual Property Mobile 122

VC Cafe

APRIL 29, 2020

The Israeli Innovation Authority (IIA) announced last week an immediate infusion of NIS 500 million (approximately $141 million) to qualifying startups (significant IP, previous funding) and less than 12 months of runway. Several European countries started announcing ‘Exit Plans’ from the current lockdowns.

SBA 124

SBA Technical Review Startup 124

Austin Startup

MARCH 26, 2019

Have you thought about how potential IP theft would impact your business? Many of the venture capital firms that have historically invested in consumer tech have now branched into direct-to-consumer brands. Related to the previous question, we live in an age where global politics and economics can impact anyone’s business.

Technical Review 49

Technical Review Software Review China Acquisition 49

blog.simeonov.com

FEBRUARY 22, 2010

It outlines key points of agreement between founders around IP ownership, equity ownership, vesting, etc. For example, without a clear vehicle (a company) to contribute intellectual property into, a founder who walks away may mean that the future company won’t own its own IP. An email would do. The FastIgnite one is two pages.

Founder 44

Founder Vesting Agile Startup 44

VC Cafe

FEBRUARY 15, 2017

Don’t take my word for it – in the roundup of venture capital predictions for 2017 , I found it to be the top recurring theme. Venture Capital investments in AI, Europe 2016 (Source: Dealroom ). Artificial Intelligence and Machine Learning will be eating the world. Some examples: AI will be the new mobile.

Artificial Inteligence 122

Artificial Inteligence Technical Review Startup 122

www.paulgraham.com

OCTOBER 23, 2010

But its hard to raise money with an IP cloud over your head, becauseinvestors cant judge how serious it is. Before you consummate a startup, ask everyone about their previous IP history. The next round of funding is the one in which you might deal with actual venture capital firms. This money isnt revenue.

Startup 105

Startup Cofounder Software Stock 105

Steve Blank

MAY 26, 2009

You don’t need to worry about any Intellectual Property (IP) issues. The next week another team, working on a new type of solid oxide fuel cell, remarked, “Professor Blank, in our industry there’s a ton of patents and stuff and people tell us we shouldn’t be out there unless we start patent protecting all our IP.” Yeah, I said.

Vertical 149

Vertical Silicon Valley Intellectual Property RSS 149

Up and Running

MARCH 11, 2015

Another assumption is that you’ve actually conducted due diligence on your own business, and these are the areas of your team, financials, your competition, your IP, market trends, because the best pitches I’ve ever delivered were when investors were raising their hands and asking me questions about, “How is your IP protected?”

Technical Review 60

Technical Review Software Review Due Diligence Exit Strategy 60

Steve Blank

MAY 4, 2009

But without sales there is no revenue, and without revenue there is no company. All the strategic thinking in the world won’t make up for a missed revenue plan. If sales revenue and profits are high enough, we could take the company public or sell it, and the stock would be worth more than the paper it was printed on.

Silicon Valley 126

Silicon Valley RSS Non-Compete California 126

www.currentlyobsessed.com

MAY 28, 2010

Snapvine was my first experience being in the driver’s seat of the fund-raising process, and in the 3 years prior to our acquisition we raised over $10mm in venture capital. Valuation is an important aspect of VC deal terms, and a major determinant of your ultimate outcome. Or is it?

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42