Both Sides of the Table

MARCH 21, 2013

I recently wrote a blog post in which I pointed out that many investors & advisors discourage enterprise startups from having a professional services (PS) business and I think this is a big mistake. I think it’s important for enterprise startups to layer in professional services into your revenue stream.

Software Review 321

Software Review Software IP Technical Review 321

YoungUpstarts

MAY 29, 2011

This week Blackbox , founded by entrepreneurs Bjoern Lasse Herrmann and Max Marmer, released its first Startup Genome Report — a 67-page in depth analysis on what makes Silicon Valley startups successful based on profiling over 650 startups. Startups that pivot once or twice times raise 2.5x better user growth.

Silicon Valley 230

Silicon Valley Cofounder Technical Cofounder Startup 230

Steve Blank

MAY 29, 2011

He set up Blackbox.vc, a seed accelerator for technology startups (and one of the tour stops for entrepreneurs from around the world.) They went to work gathering deep knowledege of what makes successful Internet startups. Max and his partners interviewed and analyzed over 650 early-stage Internet startups. better user growth.

Technical Cofounder 333

Technical Cofounder Early Stage Startup Silicon Valley 333

Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success. Term-sheets and Valuations: Thinking about Negotiations. The Valuation Question. When companies seeking their first round of serious funding are good enough to receive a term-sheet from an investor, the first issue that always arises is valuation. Let’s start at the end.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Both Sides of the Table

SEPTEMBER 25, 2010

Having re-read it, I believe his real premise instead is, “Fixed-size, multi-investor angel rounds are such a bad idea for startups that one wonders why things were ever done that way.&#. Either would be fine with startups, so long as they can easily change their valuation. When I’m in, I’m in.

Finance 286

Finance Term Sheet Technical Review Warrant 286

YoungUpstarts

DECEMBER 14, 2016

In the current economic landscape, it’s common for startups and businesses to seek a buyout or acquisition — in fact, it’s frequently the goal from the start. When using others (employees, contractors, third parties) to develop your technology, be sure that ownership of IP is assigned to the company.

Acquisition 100

Acquisition Intellectual Property Technical Review Due Diligence 100

YoungUpstarts

NOVEMBER 20, 2019

In the startup world, opportunities are fleeting, and obstacles are ubiquitous. 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 140

Technical Review Due Diligence Early Stage Differentiation 140

Hunter Walker

MAY 13, 2023

“Worst case scenario we’ll sell to a larger startup or public company for about ~$1.5m I was on both sides of these transactions – buying startups for Google/YouTube and angel investing in high quality technical founders. per engineer.” of the time my answer is no f **g way].

Early Stage 117

Early Stage Cap Table Acquisition Sales 117

David Cohen

MARCH 30, 2020

Founded in 2006, Techstars ran our first startup accelerator in 2007. Uber took the shockingly low valuation of $4m when raising it’s first $1.5m. 3m valuation. Less than a $2m valuation for their seed round. Other startups will fail, and you can acquire their talent, their IP, their customer bases for cheap.

Founder 174

Founder Valuation Startup IP 174

Hunter Walker

AUGUST 8, 2023

At the time, this is last quarter and the stock market has trended upwards nicely since then (a potential leading indicator of private tech valuations), we all agreed venture portfolios were probably still 25-40% overvalued. Valuations.

Portfolio 98

Portfolio Cap Table LP Valuation 98

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Low; a surprising number of Series A/B startups are missing basic financial reporting mechanisms. of startups raise VC. Of the Inc.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Startup Professionals Musings

OCTOBER 24, 2021

When someone says Intellectual Property (IP), most entrepreneurs think only of patents. In reality, patents are only one of at least eight items that should be in your IP portfolio. The company name becomes your intellectual property at the moment you incorporate your startup as an LLC or a Corporation. Marty Zwilling.

Intellectual Property 363

Intellectual Property Portfolio Valuation Non-disclosure Agreement 363

Austin Startup

AUGUST 20, 2017

August 20, 2017: This is another in my series of posts all leading up to a book on Startup Decision Making. One of the most common mistakes I see in startups is making decisions that lose sight of the context , including the past, present, and future. Sooner or later everybody in a startup knows what everyone else is getting paid.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

mashable.com

OCTOBER 16, 2010

During a presentation at Startup School at Stanford University earlier today, the prolific investor discussed the state of startup funding with a packed auditorium of students and entrepreneurs. These investors usually raise a smaller fund and make investments into startups that range in the hundreds of thousands of dollars.

Angel Investor 84

Angel Investor Venture Capital Social Media Technical Review 84

mashable.com

OCTOBER 16, 2010

During a presentation at Startup School at Stanford University earlier today, the prolific investor discussed the state of startup funding with a packed auditorium of students and entrepreneurs. These investors usually raise a smaller fund and make investments into startups that range in the hundreds of thousands of dollars.

Angel Investor 83

Angel Investor Venture Capital Social Media Technical Review 83

VC Cafe

SEPTEMBER 26, 2010

A fter years of talking with many of you in the Israeli startup industry, investors and entrepreneurs alike, I was invited to present some tips for entrepreneurs at the Launch48 conference in London this weekend. The talk was titled “Tips to make your startup attractive for investors&#. Sell your team, not your advisors.

Elevator Pitch 102

Elevator Pitch Incubator Technical Review Startup 102

Both Sides of the Table

SEPTEMBER 18, 2014

Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. If you’re wildly successful early on or if they help you achieve a great valuation they actually pay a significant price for their eventual stock even though they took much more risk than a future investor and backed you early.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

YoungUpstarts

APRIL 18, 2019

In the uber-competitive startup world, surviving is success in itself. Conventional wisdom says that 90% of startups will fail. As a founder, you have to come to terms with not having complete control — of your team, the market, or your valuation. The same is true for tech startups. We’re not worth a billion dollars.

Cofounder 127

Cofounder Startup Private Equity Equity 127

ithacaVC

APRIL 25, 2012

If you want to scare off VCs, start your pitch with “we are looking to raise $X at a pre-money valuation of $Y” Stating how much you want to raise is fine and recommended. However, stating a desired pre-money valuation early in the process is not a good idea. Here is why.

Valuation 49

Valuation Pre-Money Valuation Liquidation Preference Preferred Stock 49

Scott Edward Walker

NOVEMBER 2, 2011

I’ve been a corporate lawyer for 17+ years, and there are certain fundamental legal mistakes that I’ve seen startups repeatedly make. Accordingly, I thought it would be helpful to provide a simple checklist for startups , which includes links to prior posts for a more detailed discussion.

Accredited Investor 111

Accredited Investor Stock Options Delaware Silicon Valley 111

YoungUpstarts

SEPTEMBER 4, 2017

Investing in startups is a lot more than just buying “stock” in a company. For investors who have come to the table with a history investing in publicly listed companies or the property market, it’s easy to think that backing startups is largely a “set and forget” strategy. Ask yourself, where is your startup currently struggling?

Pre-Money Valuation 187

Pre-Money Valuation Seed Stage IP Deal Flow 187

Startup Professionals Musings

MAY 23, 2012

Continuous innovation is required to survive in all businesses, beginning with a startup, and increasing in importance as your business matures. In a startup, that needs to be the founder or CEO, and that person has to be regularly and personally involved. This is an imperative. No risk, no innovation. Accountability.

Intellectual Property 247

Intellectual Property IP Valuation .Net 247

Version One Ventures

OCTOBER 15, 2020

Given these key advantages, I believe that Lightning (or something like it) will ultimately eat all of the USD payment networks and create the foundation for MoIP (Money over IP). . One major player pushing forward this vision is Jack Mallers’ Strike , a simple app that allows anyone to use the Lightning Network with a USD bank account.

Networking 168

Networking Global OTC Security 168

Both Sides of the Table

JUNE 5, 2015

Over the years I’ve written extensively about the downsides of convertible notes for startups such as here , here and here. In the old days VCs funded off of a “pre-money” valuation. About 4 years ago I started pricing all of my deals as a function of “post money valuation.” Those are the big three.

Pre-Money Valuation 150

Pre-Money Valuation Option Pool Post-Money Valuation Dilution 150

Startup Professionals Musings

MARCH 9, 2011

Continuous innovation is required to survive in all businesses, beginning with your startup, and increasing in importance as your business matures. In a startup, that needs to be the founder or CEO, and that person has to be regularly and personally involved. Make sure your startup can spell it. This is an imperative.

Intellectual Property 234

Intellectual Property IP Valuation .Net 234

Both Sides of the Table

APRIL 25, 2011

So pervasive has this thinking become that on several occasions startup companies with profitable & fast growing services businesses have come to me wanting to show me the product businesses they created internally to see whether they would be financeable or whether they might be able to create “spin outs&# that could be financed.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

Software By Rob

FEBRUARY 28, 2012

If you can go over the valuation methods each side used, that would be very helpful to know, even if you don’t share the cash figures involved. I hired a lawyer with experience in IP website acquisitions to draft up a custom agreement. This effort is still very much in progress; more to come in future posts.

Acquisition 53

Acquisition Software Review Technical Review NDA 53

Scott Edward Walker

OCTOBER 27, 2015

I get calls and questions all the time about our Startup Package and, accordingly, I put together a brief clip from the podcast “ This Week in Startups ” which should be helpful. Indeed, we have done more than 300 Startup Packages and the appeal is obvious: no billable hours. Legal Checklist for Startups. v=N1A44ShZfWo.

Intellectual Property 40

Intellectual Property Accredited Investor Vesting Delaware 40

Startup Professionals Musings

JANUARY 11, 2019

When someone says Intellectual Property (IP), most entrepreneurs think only of patents. In reality, patents are only one of at least eight items that should be in your IP portfolio. The company name becomes your intellectual property at the moment you incorporate your startup as an LLC or a Corporation. Marty Zwilling.

IP 234

IP Portfolio Intellectual Property Non-disclosure Agreement 234

View from Seed

JANUARY 11, 2017

These corporate VC activities go hand in hand with other strategies of large companies including internal R&D, IP licensing, M&A, etc. . A startup can benefit in various ways from having a strategic investor involved in their company, but there are plenty of drawbacks too, both commonly known and more subtle.

Strategic Investors 120

Strategic Investors Post-Money Valuation Seed Stage Cofounder 120

Business Plan Blog

NOVEMBER 22, 2013

How To Allocate Friends & Family Startup Capital. The most important principle of startup fundraising that every entrepreneur needs to know is: raise enough capital to achieve a set of milestones that will allow the company to attract the next round of investment. Startup Funding' Founding Team, Key Hires, Advisory Board.

Intellectual Property 55

Intellectual Property Advisory Board Startup Seed Capital 55

Startup Professionals Musings

FEBRUARY 28, 2010

I am looking for funding of $50K in startup funds, and would like to partner with the right investor to provide this and other future funding as needed. I would like my sweat equity and existing IP to be the risk that I incur without also risking an asset that could easily represent the majority of my total assets.

Sweat Equity 188

Sweat Equity Entrepreneur Equity CPA 188

Startup Professionals Musings

MARCH 15, 2010

Continuous innovation is required to survive in business, beginning with your startup, and increasing in importance as your business matures. In a startup, that needs to be the founder or CEO, and that person has to be regularly and personally involved. Tags: entrepreneur startup innovation business. This is an imperative.

Intellectual Property 122

Intellectual Property IP Valuation .Net 122

www.seriesseed.com

DECEMBER 9, 2012

Good idea, I think this will benefit lots of startups and some angels. Sets the valuation at the time of the investment. It would be helpful to get a California standard employee manual, employee contract/agreements, IP ownership release to company, and confidentiality. Ted: Great service to the startup community!

Finance 40

Finance Term Sheet Vesting LLC 40

Both Sides of the Table

AUGUST 17, 2009

To the best of my knowledge US law allows you to work on your own resources and in your own hours and let you personally own your IP. In some countries outside the US (the UK for example) employers can specify in an employment contract that ANY IP you develop while you’re employed by that company is owned by them.

Founder Vesting 365

Founder Vesting Intellectual Property Stock Options IP 365

www.paulgraham.com

OCTOBER 23, 2010

Want to start a startup? You need three things to create a successful startup: to start withgood people, to make something customers actually want, and to spendas little money as possible. Most startups that fail do it becausethey fail at one of these. Most startups that fail do it becausethey fail at one of these.

Startup 105

Startup Cofounder Software Stock 105

Up and Running

JANUARY 5, 2018

Driven by Lore, Walmart acquired e-commerce platform Shoebuy in January 2017, followed by outdoor apparel retailer Moosejaw in February, womenswear site Modcloth in March, direct-to-consumer premium menswear brand Bonobos in June, and last-mile delivery startup Parcel in September. Scroll down to see the list. New Frontiers in Retail Tech.

Acquisition 94

Acquisition Hawaii Partner Non-Compete 94