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

Up and Running

DECEMBER 8, 2021

A wiser strategy—especially for key revenue-potential products—includes a portfolio of patents protecting the product’s various unique functionalities and component parts. Proper alignment between the patent portfolio and revenue is financially savvy. Securing the essential European hubs, (i.e.,

Technical Review 88

Technical Review Portfolio Startup Intellectual Property 88

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Of the Inc. 5000 companies, only 6.5% raised from angels.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Both Sides of the Table

SEPTEMBER 18, 2014

Revenue multiple? If you want to give them a 50% discount offer them $1 of common-stock warrants (no liquidation preference) for every $1 of stock they buy. If you want to give them a 33% discount you offer them half of a $1 common-stock warrant for every $1 share they purchase. How will you price the next round? Your A round?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Up and Running

SEPTEMBER 26, 2016

Banks will loan to startups that have access to the pockets of institutional investors, like a well-known VC firm, or that are generating a certain amount of revenue that will foolproof their investment. If you’re generating a lot of revenue, you can get incredibly low-interest rates. The downsides of venture debt? No, it’s not.

Covenant 60

Covenant Institutional Investors Balance Sheet Warrant 60

Austin Startup

AUGUST 20, 2017

Startups often hand out shares, options, and warrants for employees and for contractors rendering needed services. I am very surprised when that cool thing actually meets a customer need or drives revenue. If you’ve got patent or other IP needs, you may want to engage specialists in those areas.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Gust

SEPTEMBER 17, 2014

Revenue multiple? If you want to give them a 50% discount offer them $1 of common-stock warrants (no liquidation preference) for every $1 of stock they buy. If you want to give them a 33% discount you offer them half of a $1 common-stock warrant for every $1 share they purchase. How will you price the next round? Your A round?

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153