Startup Professionals Musings

AUGUST 13, 2012

Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Exit strategy.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Startup Professionals Musings

AUGUST 7, 2015

In every case, the relevant pitch needs to start by highlighting a real customer problem, then outlining a new solution, with all the features and disruptive technology. Every customer understands that your solution has to generate more revenue than cost, but you should not put that data in a customer pitch.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

Startup Professionals Musings

MAY 13, 2011

Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Exit strategy.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Steve Blank

JUNE 23, 2016

Intel under their last two CEOs delivered more revenue and profit than any ever before. Capital is returned to these investors through liquidity events (originally public offerings, but today mostly acquisitions). Second, the leaders of these companies tended to be those who excelled at finance, supply chain or production.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

Steve Blank

JULY 19, 2010

Where’s My Liquidity Event. Some VC’s feel that if a startup has grown past the founder’s ability to manage and scale (and hasn’t had a liquidity event,) they should be able to remove the founding CEO and (at best) walk them out the door with only the stock they vested to that day.

Vesting 260

Vesting Liquidity Event Venture Capital Founder Vesting 260

Steve Blank

APRIL 10, 2019

We slept under the tables, and pulled all-nighters to get to first customer ship, man the booths at trade shows or ship products to make quarterly revenue – all because it was “our” company. But 21st century companies face compressed technology cycles, which create the need for continuous innovation over a longer period of time.

Stock Options 334

Stock Options Stock Vesting Common Stock 334

Steve Blank

MARCH 18, 2011

VC’s worked with entrepreneurs to build profitable and scalable businesses, with increasing revenue and consistent profitability – quarter after quarter. The reward for doing so was a liquidity event via an Initial Public Offering. For VC’s and entrepreneurs the gold rush to liquidity was on. The New Exits.

Internet 334

Internet IPO Silicon Valley Agile 334

Startup Professionals Musings

FEBRUARY 13, 2016

Just because your technology is exciting and potentially disruptive doesn’t mean you are ready to build a business. What are your forecasts for revenue, expenses and cash flow? If you don’t plan a liquidity event, you won’t find many investors interested. What is the business problem you are solving?

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Gust

AUGUST 5, 2012

Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Exit strategy.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Startup Professionals Musings

APRIL 22, 2010

Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Exit strategy.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

Berkonomics

DECEMBER 17, 2020

In most cases, these applicants for equity funding must be rooted in technology to apply to this limited discussion. VCs often invest no less than $2 million in a single deal, finding it difficult to put less money to work and still spend time on boards and coaching entrepreneurs to a successful liquidity event.

Equity 62

Equity Finance Liquidity Event Angel Groups 62

Growthink Blog

MAY 13, 2012

And they'll want to invest if they believe your company has great potential to achieve a liquidity event, and one that enables them to earn a significant return on their investment. Criteria #1: Scalability This is the potential for your company to achieve significant annual revenues. Here they are below.

Angel Investor 93

Angel Investor Exit Strategy Liquidity Event Angel Groups 93

Berkonomics

MAY 26, 2010

They include an expense account, company car, profit sharing, 401k contributions, medical coverage for dependents, free life insurance, educational payments, extra vacation, relocation expenses, paid trips to industry association meetings, or a small override on revenue from new products developed under the candidate’s watch. .

Employee 54

Employee Liquidity Event Stock Options Salary 54

Startup Professionals Musings

MARCH 13, 2020

For example, every investor I know can tell you about meeting a passionate entrepreneur who is pitching a great technology innovation, but has not done the financial homework on making it a good business. > Market penetration and revenue targets related to opportunity size. Back up your projections with a simple financial model.

Liquidity Event 308

Liquidity Event Forecast Exit Strategy Bootstrapping 308

Berkonomics

AUGUST 27, 2015

They financed their companies, to the extent possible, in a manner minimizing the cost of capital, planning for organic growth in the number of customers served and in associated revenues. As the business owners had a longer-term perspective, decisions were made with greater deliberation and with a more conservative recognition of risk.

Intellectual Property 48

Intellectual Property Balance Sheet Stock Options Valuation 48

Both Sides of the Table

MARCH 3, 2013

He talked about how for centuries education had “no technological core” (meaning it was bound by physical locations) and thus disruption was very difficult. Internationalization of Technology. We spoke about what succeeds early in technology market evolutions. ” No royalty paid until there is revenue.

Bankruptcy 403

Bankruptcy Offshore Liquidation Preference Balance Sheet 403

Steve Blank

JULY 2, 2009

As Peter began to speak extemporaneously our mouths slowly fell open as he described the video game market, its size, its demographics, the state of the technology, and the state of games. Of course, they could be useful in creating liquidity events, but absent bubbly environment and disrupting marketplace what is the point?

Silicon Valley 120

Silicon Valley Technical Review RSS Software Review 120

Berkonomics

SEPTEMBER 13, 2018

You may represent the only obvious way to protect against obsolescence from a buyer’s declining marketplace, or failure to compete against others with better, newer technologies. The buyer may be a public company attempting to defend decreasing market share and being overly punished by Wall Street. Negotiating with an emotional buyer.

Intellectual Property 240

Intellectual Property Investment Bankers Acquisition Forecast 240

dondodge.typepad.com

JANUARY 15, 2011

Don Dodge on The Next Big Thing Thoughts on business and technology Home Archives Profile Subscribe About Me « Boston VCs gets first look at Y Combinator Demo Day | Main | Digg-nation is HUGE! Community is more powerful than money or technology » August 11, 2007 How much equity for investors and employees? 5% Managers -.25%

Equity 40

Equity Employee Dilution Valuation 40

abovethecrowd.com

APRIL 20, 2016

In late 2015, many public technology companies saw a significant retrenchment in their share prices primarily as a result of a reduction in valuation multiples. A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

www.quora.com

JANUARY 16, 2011

How many things on this list require technology? What did you take from idea on the back of a napkin to liquidity event? Shawn Jackson , President, WaveTech Digital Technolog. A MVP's purpose is to prove the idea, not the technology. You can be great at almost all of these things without a technical degree.

Developer 42

Developer Technical Review Cofounder Technical Cofounder 42

Seeing Both Sides

SEPTEMBER 15, 2015

Decades ago, the thesis of Yossi Vardi , a prolific technology entrepreneur who has invested in 75 Israeli startups, was that Israeli entrepreneurs should seek quick exit opportunities through global corporations interested in buying a window into Israeli talent and technology. We think so. Today, this thesis is less relevant.

Cofounder 20

Cofounder Technical Review United States 20

Berkonomics

SEPTEMBER 2, 2011

You may represent the only obvious way to protect against obsolescence from a buyer’s declining marketplace, or failure to compete against others with better, newer technologies. The buyer may be a public company attempting to defend decreasing market share and being overly punished by Wall Street.

Intellectual Property 88

Intellectual Property Investment Bankers Acquisition Forecast 88

VC Cafe

NOVEMBER 9, 2011

If you don’t have over 100-150 million in revenue, then stay private, it is quite hard in the public market with that little revenue.” An ipo is not really an exit, it is a liquidity event. Josh: A lot of companies have IPO’d with less than 40 million in revenue, now you need a minimum of 70-100 million to IPO.

IPO 92

IPO Cofounder Europe 92