Steve Blank

APRIL 23, 2014

VCs like acquisitions as much as IPOs because the acquiring companies often can rationalize paying large multiples over the current valuation of the startup. However, these nosebleed valuations make it even more important in getting the acquired company integrated correctly. Lessons Learned.

Acquisition 332

Acquisition Intellectual Property Silicon Valley Startup 332

Both Sides of the Table

MARCH 21, 2013

Importantly, make sure that you retain IP rights to your custom work which needs to be part of the engagement contract. At a minimum co-ownership of the IP. If not specified in contract you might find yourself with future litigation over IP. Integrate PS Work Into Sales & Marketing Processes.

Software Review 321

Software Review Software IP Technical Review 321

NZ Entrepreneur

DECEMBER 5, 2019

The reality faced by entrepreneurs is that legal services can be expensive and IP protection may not be an initial priority. But having an IP strategy can help you get the most from your IP and help minimize common pitfalls and legal expenses. Trade marks. It’s best to select a mark and use it consistently.

IP 61

IP Non-disclosure Agreement Intellectual Property New Zealand 61

YoungUpstarts

DECEMBER 14, 2016

When using others (employees, contractors, third parties) to develop your technology, be sure that ownership of IP is assigned to the company. If questions arise as to the propriety of ownership of IP, your valuation could be negatively affected or the deal scuttled altogether.

Acquisition 100

Acquisition Intellectual Property Technical Review Due Diligence 100

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   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.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

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 IP Intellectual Property Stock Options 365

Haystack

DECEMBER 29, 2018

Also during this time, the underlying metrics in that business can change positively, potentially trapping companies to accept the initially-agreed upon valuation. companies, more sensitivity around technology IP and security. by a mile, continued to soar in volume and valuation. In the meantime, we have what we have today.

Technical Review 165

Technical Review Venture Capital Russia China 165

Berkonomics

DECEMBER 20, 2018

[Email readers, continue here…] Arthur: This is a matter between the owner of your IP (you) and the would-be user of your IP. The license to use your IP can be in the form of a one-time payment or structured as a continuing fee. If so, be aware of the issue of how you can and do verify the licensee’s report of usage.

IP 54

IP Intellectual Property Product Investment Bankers 54

Both Sides of the Table

SEPTEMBER 25, 2010

Either would be fine with startups, so long as they can easily change their valuation. When I was raising money in late 1999 I had an investment team in Germany (I was in the UK) suggest that they should get a lower valuation than others because they were ex McKinsey guys and had better access to industry. I agree on all points.

Finance 286

Finance Term Sheet Technical Review Warrant 286

SoCal CTO

JANUARY 5, 2011

Both Sides of the Table , July 22, 2010 An updated Digital Trends presentation - Jeff Hilimire , June 2, 2010 I do what I hate - Jessica Mah , January 7, 2010 Startup Equity Allocation - charliecrystle.com , January 11, 2010 When good investment decisions end up backing more women CEOs: Conversation with Cameron Lester at Azure Capital.

Startup 378

Startup Silicon Valley Term Sheet Venture Capital 378

Berkonomics

DECEMBER 20, 2018

[Email readers, continue here…] Arthur: This is a matter between the owner of your IP (you) and the would-be user of your IP. The license to use your IP can be in the form of a one-time payment or structured as a continuing fee. If so, be aware of the issue of how you can and do verify the licensee’s report of usage.

IP 48

IP Intellectual Property Product Investment Bankers 48

Steve Blank

MAY 29, 2011

However, this does not mean that investors don’t have a significant effect on valuations and M&A). Founders overestimate the value of IP before product market fit by 255%. . But the right mentors significantly influence a company’s performance and ability to raise money. Solo founders take 3.6x less likely to pivot.

Technical Cofounder 333

Technical Cofounder Early Stage Startup Silicon Valley 333

YoungUpstarts

MAY 29, 2011

However, this does not mean that investors don’t have a significant effect on valuations and M&A). Founders overestimate the value of IP before product market fit by 255%. But the right mentors significantly influence a company’s performance and ability to raise money. Solo founders take 3.6x less likely to pivot.

Silicon Valley 184

Silicon Valley Cofounder Technical Cofounder Startup 184

Both Sides of the Table

FEBRUARY 25, 2010

million at a $15 million pre-money valuation. Morgan Stanley had proposed a higher valuation to let them in. If it’s a biz deal you might care about IP protection, revenue share, investment commitments to joint marketing – whatever. million at a $15 million pre-money valuation. We ended up agreeing a term sheet for $16.5

Technical Review 301

Technical Review Term Sheet Venture Capital Due Diligence 301

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

Startup Professionals Musings

JANUARY 4, 2017

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. A large portion of your competitive advantage and your potential value to investors is the size of your intellectual property portfolio. Marty Zwilling.

Intellectual Property 174

Intellectual Property Non-disclosure Agreement IP United States 174

YoungUpstarts

NOVEMBER 20, 2019

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. Have a reasonable attitude about your early-stage valuation, and don’t get too hung up on it. Be clear about your fundraising strategy.

Technical Review 104

Technical Review Due Diligence Early Stage Differentiation 104

YoungUpstarts

MARCH 6, 2014

The festival will feature pre-conference workshops, conducted by local and international thought leaders in the areas of mentoring, marketing of technologies, IP valuation, leveraging upon IP to boost productivity and medical device development. Urbanization and Future Cities.

Singapore 165

Singapore IP Valuation Technology 165

Startup Professionals Musings

SEPTEMBER 14, 2013

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. A large portion of your competitive advantage and your potential value to investors is the size of your intellectual property portfolio. Marty Zwilling.

Intellectual Property 259

Intellectual Property Non-disclosure Agreement IP Startup 259

David Cohen

MARCH 30, 2020

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. All eventual unicorns. All in one year! They all did just fine. You have a window.

Founder 174

Founder Valuation Startup IP 174

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

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

David Teten

JANUARY 19, 2021

Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Flexible VC offers you this. Additionally, Flexible VC can accommodate all types of companies, not just asset-lite, tech-enabled companies.”. Flexible VC: Compensation-based. 2-5x return cap + path to uncapped equity returns.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

This is going to be BIG.

SEPTEMBER 6, 2019

I don’t know where its valuation will wind up, but I believe that there is a going concern there that is worth billions of dollars. These late stage funds are often the ones that get crunched in market downturns—because they find themselves over their skis quickly on valuation—whereas early stage funds have longer time horizons anyway.

Early Stage 110

Early Stage Ratchet Valuation IPO 110

Hunter Walker

MAY 13, 2023

And when they’re giving stock to existing shareholders instead of cash it’s at high 2021 valuations, buried below a preference stack. None of this means we’ve backed off helping founders in these situations, but we do try to set expectations with them and collaborate with the other investors.

Early Stage 117

Early Stage Cap Table Acquisition Sales 117

Scott Edward Walker

MARCH 21, 2016

The fundamental purpose of due diligence is to validate assumptions with respect to valuation and to identify risks. A comprehensive due-diligence investigation is critical to the success of any acquisition. Accordingly, there are typically three separate investigations: operational/strategic, financial and legal.

Technical Review 40

Technical Review Software Review Due Diligence New York City 40

Both Sides of the Table

JUNE 5, 2015

In the old days VCs funded off of a “pre-money” valuation. If you add the pre-money valuation (let’s say $8 million) to the amount of money you’re raising (let’s say $2 million) you get the post-money valuation. I can boil it down to how this tension plays out. Those are the big three.

Pre-Money Valuation 150

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

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

Startup Professionals Musings

MAY 3, 2011

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. A large portion of your competitive advantage and your potential value to investors is the size of your intellectual property portfolio. Marty Zwilling.

Intellectual Property 237

Intellectual Property Social Media Non-disclosure Agreement Media 237

ConversionXL

APRIL 12, 2017

The CEO doesn’t care about his website, he cares about his valuation (i.e. Sell CRO by calculating the valuation increase. Valuation increase? Score B2B marketing campaigns in minutes by joining IP detection and company scoring. They ended up with 70/30 in favor of positive results. Image Credit. 1: More clients. #2:

San Antonio 86

San Antonio Metrics B2B Analytics 86

Startup Professionals Musings

MAY 23, 2012

Longer-term, enhanced product value begets superior company valuation through your organization’s intellectual property (IP) portfolio. Successful innovation turns ideas into money, to enhance customer value, and thus shareholder value. Accountability. Team members need to feel responsibility for on-time delivery.

Intellectual Property 247

Intellectual Property IP .Net Valuation 247

This is going to be BIG.

JANUARY 19, 2010

If I were thinking about a startup or participating in any kind of startup activity, like classes or an incubator, and I worked at Yelp fulltime, I’d go take a look at the assignment of IP rights in my employment contract. Yelp missed its chance to exit at a nice valuation after six years of hard work.

Technical Review 68

Technical Review Venture Capital IP API 68

Austin Startup

AUGUST 20, 2017

Keep the valuations consistent with company progress. The bottom line is that the pedigree of your investors will have much to do with your ultimate valuation and with your enjoyment of the startup experience. 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

Both Sides of the Table

APRIL 25, 2011

You own the IP you create. If you build a true “technology services for services sake&# business at some point you’ll likely build technology products as part of your projects where you either own the IP or you own in jointly with your customer or business partner. In a down market IP can become a huge differentiator.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

Startup Professionals Musings

MARCH 9, 2011

Longer-term, enhanced product value begets superior company valuation through your organization’s intellectual property (IP) portfolio. Successful innovation turns ideas into money, to enhance customer value, and thus shareholder value. Accountability. Team members need to feel responsibility for on-time delivery.

Intellectual Property 234

Intellectual Property IP Valuation .Net 234

Gust

SEPTEMBER 17, 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.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

www.currentlyobsessed.com

MAY 28, 2010

Valuation is an important aspect of VC deal terms, and a major determinant of your ultimate outcome. I unexpectedly found that it was more helpful to think about the company valuation as an output variable in the fund-raising equation. The net effect was more money raised, higher valuation and the same percentage of equity sold.

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42