Berkonomics

AUGUST 6, 2020

When we start a business, we are optimistic that we will succeed and dream of riches to follow when the company is sold or even getting all the way to an IPO. Some of us build our businesses to be lifestyle creations, destined to provide for our families but not necessarily as creators of great equity upon an eventual sale.

Liquidity Event 62

Liquidity Event Intellectual Property IPO Equity 62

Startup Professionals Musings

AUGUST 10, 2019

If you take investor money, expect a push for hockey-stick growth and a liquidity event, like going public (IPO) or sale (M&A), to get the payback. Transition to a specialist role, plan to exit, be prepared to be pushed out, or plan to fail. The control and growth dilemma.

Hockey Stick 243

Hockey Stick Cofounder Liquidity Event Startup 243

Berkonomics

AUGUST 27, 2020

The question is whether to start this exhausting process early in the life of a corporation, or rush to complete it when a deal is identified or the run to a sale is imminent. [Email readers, continue here…] But maintaining such an electronic or physical facility is time-consuming and costly. The payoff.

Software Review 62

Software Review Due Diligence Intellectual Property IPO 62

Startup Professionals Musings

JULY 27, 2018

Potential investors love to see gross margins in the fifty percent range or greater, with recurring revenue through subscriptions, follow-on sales, or services. Customized marketing strategy and realistic sales plans. “If Discussion of likely liquidity events and exit strategy.

Product 145

Product Intellectual Property Liquidity Event Exit Strategy 145

Steve Blank

JULY 15, 2010

The collapse of the IPO market and dysfunctional math in the venture capital community has stacked the odds against you. Startup lifecycle in an IPO Market. Netscape’s 1995 IPO changed the rules. Number of Venture Backed Liquidity Events 1991-2000. Number of Venture Backed Liquidity Events 2000-2010.

Venture Capital 299

Venture Capital IPO Liquidity Event Entrepreneur 299

Berkonomics

FEBRUARY 3, 2022

First, the implied promise: Taking money from professional investors such as angels or VCs usually requires that you agree to seek an exit for those investors in your plan, often targeting five to seven years as the ideal period for growth before a liquidity event. What if you later decide to just keep control?

Liquidity Event 62

Liquidity Event Preferred Stock Dividend Equity 62

Startup Professionals Musings

DECEMBER 14, 2014

If you take investor money, expect a push for hockey-stick growth and a liquidity event, like going public (IPO) or sale (M&A), to get the payback. Transition to a specialist role, plan to exit, be prepared to be pushed out, or plan to fail. The control and growth dilemma.

Hockey Stick 268

Hockey Stick Cofounder Entrepreneur Liquidity Event 268

Berkonomics

SEPTEMBER 12, 2013

When we start a business, we are optimistic that we will succeed and dream of riches to follow when the company is sold or even participating in an IPO. Some of us build our businesses to be lifestyle creations, destined to provide for our families but not necessarily as creators of great equity upon an eventual sale.

Liquidity Event 76

Liquidity Event Intellectual Property IPO Equity 76

Startup Professionals Musings

AUGUST 19, 2017

If you take investor money, expect a push for hockey-stick growth and a liquidity event, like going public (IPO) or sale (M&A), to get the payback. Transition to a specialist role, plan to exit, be prepared to be pushed out, or plan to fail. The control and growth dilemma.

Hockey Stick 144

Hockey Stick Cofounder Entrepreneur Liquidity Event 144

Startup Professionals Musings

FEBRUARY 13, 2016

What are your specific marketing and sales plans? You need to identify pricing details, sales channels, strategic partners and a customized marketing plan consistent with your industry and target segment. Technically, this is your exit strategy, usually a merger and acquisition (M&A) or initial public stock offering (IPO).

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Startup Professionals Musings

JULY 19, 2013

If you take investor money, expect a push for hockey-stick growth and a liquidity event, like going public (IPO) or sale (M&A), to get the payback. Transition to a specialist role, plan to exit, be prepared to be pushed out, or plan to fail. The control and growth dilemma.

Founder 245

Founder Hockey Stick Cofounder Liquidity Event 245

Startup Professionals Musings

AUGUST 13, 2012

Marketing, sales, and partners. Describe your market penetration strategy, sales channels, pricing, and strategic partnerships. Convince investors that you have lined up sales channels, strategic partners, and a viable marketing strategy. Going public” (IPO) is another alternative, but not common.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Startup Professionals Musings

MAY 13, 2011

Marketing, sales, and partners. Describe your market penetration strategy, sales channels, pricing, and strategic partnerships. Convince investors that you have lined up sales channels, strategic partners, and a viable marketing strategy. Going public” (IPO) is another alternative, but not common.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Berkonomics

JUNE 2, 2010

Even with fewer IPOs than a decade ago, the dream of shared wealth certainly is not dead. I know from my own experience that no matter how good you think you are at company-building, it is those who surround you with talent that make the difference and add extraordinary value to create an eventual liquidity event.

Liquidity Event 86

Liquidity Event Stock Options IPO Stock 86

Gust

AUGUST 5, 2012

Marketing, sales, and partners. Describe your market penetration strategy, sales channels, pricing, and strategic partnerships. Convince investors that you have lined up sales channels, strategic partners, and a viable marketing strategy. Going public” (IPO) is another alternative, but not common.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Berkonomics

AUGUST 29, 2013

Sometimes the end game or sale of the company is not a happy event. Especially when outside investors, venture capitalists, or angels, have put in substantial money and the sales price is less than the value of their investment. There are a number of questions a distressed sale brings to mind.

Delaware 66

Delaware Liquidation Preference Liquidity Event Preferred Stock 66

Gust

NOVEMBER 4, 2011

Redpoint was understandably disappointed that it didn’t get the chance to see its MySpace investment through to an IPO or later liquidity event at a higher multiple. News also funded the $69 million Intermix needed to buy out the 47% minority interest immediately so that it owned 100% of MySpace, Inc. of MySpace, Inc.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Berkonomics

JULY 23, 2020

Sometimes the end game or sale of the company is not a happy event. Especially when outside investors, venture capitalists, or angels, have put in substantial money and the sales price is less than the value of their investment. There are some questions a distressed sale brings to mind. How about outside investors?

Delaware 62

Delaware Liquidation Preference Preferred Stock Early Stage 62

Berkonomics

DECEMBER 17, 2020

There is a rather new term for those large, individual investors who are usually former entrepreneurs made rich through sale of their previous ventures. For early stage investors, the usual expectation is seven years from investment to expected liquidity. Individual super angel investors. And the one thing in common?

Equity 62

Equity Finance Liquidity Event Angel Groups 62

Startup Professionals Musings

APRIL 22, 2010

Marketing, sales, and partners. Describe your market penetration strategy, sales channels, pricing, and strategic partnerships. Convince investors that you have lined up sales channels, strategic partners, and a viable marketing strategy. IPO as an exit strategy is not recommended these days.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

Seeing Both Sides

SEPTEMBER 15, 2015

In 2014, for example, 18 IPOs raised a record-breaking $9.8 We selected this benchmark because it reflects the phase in which companies have proven product viability, achieved initial product/market fit, and are now expanding sales and growing more complex operations. billion, compared to just $1.2 billion in 2013.

Cofounder 20

Cofounder Technical Review United States 20

ithacaVC

DECEMBER 14, 2011

Yes, it is possible to issue preferred stock without liquidation preference, but that is rarely done. Rather, preferred stock has the right upon a liquidation event to get its money back (a 1X LP) or, sometimes, a multiple of its money back (for example a 2X LP). million balance. ($3 3 million) to Series A LP. ($10

Liquidation Preference 49

Liquidation Preference LP Preferred Stock Liquidity Event 49

Gust

SEPTEMBER 5, 2012

Angel investors don’t expect to get repaid, nor do they really want to get repaid; the return on their investment, if the startup proves a success, will come in conversion to equity followed by an eventual liquidity event (sale or IPO of the company), with a return of at least 5x or 10x the initial investment if all goes well.

Finance 134

Finance Convertible Security Equity Seed Stage 134

Hunter Walker

SEPTEMBER 29, 2022

So for the most part a venture investor holds their equity until the company exits via an acquisition, IPO, or some sort of other liquidity event (management buyout, whatever). Conversely, if you’re not a good picker, it’s difficult to overcome that, even if you had perfect timing on secondary sales.

Venture Capital 122

Venture Capital Cap Table LP Equity 122

www.vccafe.com

MARCH 11, 2013

turn customer feedback into sales and relationships. SaaS Sales Team Compensation â?? Startups For Sale. SnapEngage â?? live chat integrates with your apps. Zendesk â?? web help software. UserVoice â?? turn customer feedback into action. Kampyle â?? Ideaffect â?? customer feedback, vote, comment, manage. live customer chat.

Software Review 53

Software Review Technical Review Startup 53

abovethecrowd.com

APRIL 20, 2016

The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate. If 1999 was a wet (read liquid) bubble, 2015 was a particularly dry one.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40