Startup Professionals Musings

DECEMBER 30, 2022

Every business owner and entrepreneur I meet in my consulting rounds dreams of finding that “ disruptive ” innovation that will supercharge their business and move it into the ranks of business unicorns (billion-dollar valuations), such as SpaceX and Apple. Define realistic metrics to keep track of progress.

Technical Review 252

Technical Review Silicon Valley Software Review Metrics 252

Both Sides of the Table

APRIL 26, 2016

There has been a lot of public debate over the past several weeks about whether it’s a good thing to be “gross margin positive” or not and commentary always reminds me that some people at startups don’t quite understand financial metrics or even how to think about which ones are healthy.

Metrics 150

Metrics Cost Acquisition Startup 150

Startup Professionals Musings

MAY 14, 2023

Cash flow is a basic survival metric for every startup. Of course, their answer is that the second intends to get to market faster, but every engine has limits regardless the fuel applied. Use social media for early marketing. Desperate entrepreneurs lose their leverage and die young. Tackling most of the support tasks yourself.

Burn Rate 258

Burn Rate Hockey Stick Management Salary 258

Startup Professionals Musings

SEPTEMBER 16, 2023

Who would not want to join the unicorns (recent startups with a current valuation of over $1 billion)? Minimum viable products (MVPs) are recommended for validating the market, with iterative enhancement to quickly meet market feedback. Incorporating a business entity early through online services.

Intellectual Property 261

Intellectual Property Entrepreneur Angel Groups Social Media 261

Startup Professionals Musings

NOVEMBER 28, 2020

Who would not want to join the unicorns (recent startups with a current valuation of over $1 billion)? Minimum viable products (MVPs) are recommended for validating the market, with iterative enhancement to quickly meet market feedback. Incorporating a business entity early through online services.

Intellectual Property 404

Intellectual Property Startup Angel Groups Social Media 404

Startup Professionals Musings

AUGUST 19, 2020

Cash flow is a basic survival metric for every startup. Of course, their answer is that the second intends to get to market faster, but every engine has limits regardless the fuel applied. Use social media for early marketing. Desperate entrepreneurs lose their leverage and die young. Tackling most of the support tasks yourself.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

YoungUpstarts

NOVEMBER 19, 2020

Approximately 46% to 80% of middle-market sell-side transactions fail to close and, according to Forbes, 8 out of 10 businesses do not sell at all. EBITDA is the most important profitability metric to consider as many valuations are based on a multiple of this metric.

Exit Strategy 246

Exit Strategy Intellectual Property Valuation Metrics 246

Austin Startup

APRIL 25, 2017

In order to achieve 20x growth, Snap needs grow both of those metrics 4–5x. Even by July 2014, Facebook’s core application had effectively saturated the US market, with more than 80% of US adults on Facebook. In summary: Snap’s current business doesn’t justify a $20B valuation. How can one justify a $20B valuation for Snap?

Valuation 48

Valuation Technical Review Forecast Social Network 48

VC Adventure

MAY 5, 2022

I’m observing that IRR is a metric that is becoming an increasing focus in venture, replacing fund return multiple as the key metric of success. I understand the draw of IRR, and – as a fund draws to a close – there’s no question it’s an important metric. A lot changes in that period of time.

IRR 116

IRR Metrics Valuation LP 116

Steve Blank

SEPTEMBER 5, 2018

Reading the NY Times article “ Jeffrey Katzenberg Raises $1 Billion for Short-Form Video Venture, ” I realized it was time for a new startup heuristic: the amount of customer discovery and product-market fit you need to find is inversely proportional to the amount and availability of risk capital. ” Fire, Ready, Aim. IPOs dried up.

Lean 335

Lean Burn Rate Startup IPO 335

View from Seed

DECEMBER 4, 2019

At the time, I spent most of my time describing the metrics themselves and how VCs and their LPs evaluate performance based on these measurements. If you aren’t familiar with these metrics, I recommend reading the original post to get a sense of the numbers that I’ll be reviewing here.

LP 256

LP IRR Distribution Portfolio 256

YoungUpstarts

OCTOBER 24, 2017

A CPA provides input on tax structure and metrics, and assists with due diligence related to your industry. Is it prudent to have a set formula for valuation before you know how the company will perform or will you require the company to pay for an expert to value the company if one side wants to sell? Lump sum at closing?

Partner 208

Partner Technical Review Intellectual Property Due Diligence 208

Startup Professionals Musings

SEPTEMBER 29, 2018

Cash flow is a basic survival metric for every startup. Of course, their answer is that the second intends to get to market faster, but every engine has limits regardless the fuel applied. Use social media for early marketing. Desperate entrepreneurs lose their leverage and die young. Tackling most of the support tasks yourself.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

YoungUpstarts

JANUARY 10, 2018

by Ryan Gould, Vice President of Strategy and Marketing Services at Elevation Marketing. How do you find the balance between not too small to prove itself but not too big to have an off-putting valuation? First up is the size of the customer base itself, especially in relation to the size of the market.

Valuation 145

Valuation Technical Review Exit Strategy Metrics 145

View from Seed

MARCH 24, 2021

In this comprehensive template and guide we break down each of the nine core sections in the deck: intro , team , what do you do , is it working , why does it matter (market) , can you be the best in the world (product, growth, financial metrics) , where are you going , what do you want (the ask) , and appendix. ” (Lee Hower).

Seed Stage 177

Seed Stage Hiring IPO Analytics 177

Steve Blank

MARCH 31, 2014

Think about this; 7 years ago Nokia owned 50% of the handset market. Fast-forward to today—Apple is the most profitable Smartphone company in the world and in Spain Android commands a market share of more than 90%. Its worldwide market share of Smartphones has dwindled to 5%. Apple owned 0%.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

Both Sides of the Table

JUNE 5, 2011

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. I can’t control the market. Private markets for stocks are the opposite.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Startup Professionals Musings

NOVEMBER 4, 2015

The key elements of leadership in a company, both individual and organizational, are less tangible, but very critical in setting a market value for investment, acquisition, or going public. Every business and brand has unique requirements to fit into their market environment. Leadership brand development.

Leadership 120

Leadership Technical Review Due Diligence Valuation 120

YoungUpstarts

JUNE 16, 2020

Business valuation is defined as a way to determine the overall economic value of a company , and is a necessary component of a sound business plan and strategy. Any of these situations will demand a valuation to determine current and future projected value. . Three Methods of Valuation. Life happens to all of us.

Valuation 162

Valuation CPA Software Review Revenue 162

VC Adventure

AUGUST 31, 2017

If you read my blog regularly you know I love (LOVE) metrics. So no surprise that when River Cities Capital released an overview of SaaS operating and valuation benchmarks, I hung on every juicy detail. They took the 92 public SaaS companies and analyzed their key operating metrics. The valuation metrics show this clearly.

IPO 113

IPO Vertical Balance Sheet Valuation 113

Both Sides of the Table

SEPTEMBER 10, 2021

With the enormous changes to our economies and financial markets?—?how how on Earth could the venture capital market stand still? One of the most common questions I’m asked by people intrigued by but also scared by venture capital and technology markets is some variant of, “Aren’t technology markets way overvalued?

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

Startup Professionals Musings

OCTOBER 5, 2014

Cashflow is a basic survival metric for every startup. Of course, their answer is that the second intends to get to market faster, but every engine has limits regardless the fuel applied. Use social media for early marketing. Desperate entrepreneurs lose their leverage and die young. Tackling most of the support tasks yourself.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

Startup Professionals Musings

JUNE 22, 2016

That should make you wonder - how do you measure traction in a metric? While thinking about the parameters of traction, and how to measure it, I was impressed with a new book, “ Scaling Lean: Mastering the Key Metrics for Startup Growth ” by Ash Maurya, a serial entrepreneur, and creator of the one-page business modelling tool Lean Canvas.

Metrics 143

Metrics Advisory Board Startup Lean 143

crowdSPRING Blog

NOVEMBER 1, 2013

These posts and videos are about logo design , web design , startups, entrepreneurship, small business, leadership, social media, marketing, and more! Is Small Business Marketing On Facebook A Complete Failure? 7 Ways to Make Your Business Card Your Best Marketing Tool – entm.ag/12oQZzW. But a nearly $4 billion valuation?

Social Media 94

Social Media Small Business Design Media 94

Both Sides of the Table

FEBRUARY 15, 2016

There is much talk these days that startup valuations have decreased and may continue to do so and that the amount of time it takes to fund raise may take longer. The earlier the round, the less capital you need and the more reasonable your valuation the less time that is needed generally to raise capital.

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

crowdSPRING Blog

FEBRUARY 7, 2013

These posts and videos are about logo design , web design , startups, entrepreneurship, small business, leadership, social media, marketing, and more! The Small Business Content Marketing Paradox – [link]. 2013 Super Bowl Marketing and Small Business: More in Common Than You Think! That’s an understatement.

Social Media 106

Social Media Small Business Technical Review Design 106

NZ Entrepreneur

MAY 31, 2021

Marcel spoke about five Cs that help him select the right investment opportunities: Connections: can your networks offer access to markets or relevant expertise? Negotiating reasonable terms and valuations that look to the long-term. Capability: do you have the right skills to help the company in their current context?

Portfolio 81

Portfolio New Zealand Management Technical Review 81

Tim Keane

JANUARY 12, 2010

Bottom Up Market Sizing » January 12, 2010. 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.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

YoungUpstarts

NOVEMBER 20, 2019

They also want to see that you’ve assembled a collaborative team, capable of delivering your solution to the market. If you can check these boxes and convince venture capitalists that you’ve achieved product fit in a market with plenty of room for growth, you have a real shot at securing funding. Be ready when it counts.

Technical Review 140

Technical Review Due Diligence Early Stage Differentiation 140

View from Seed

SEPTEMBER 14, 2021

Warning – this assumes some basic knowledge of VC performance metrics. Will Quist did a great job of explaining this market rhetoric in this thread. The three-question framework goes as such: Q: How much tech-related market cap will be created in the next 10-20 years? Ok, let’s jump in. State of VC: are we in a bubble?

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

Startup Professionals Musings

SEPTEMBER 14, 2016

Cash flow is a basic survival metric for every startup. Of course, their answer is that the second intends to get to market faster, but every engine has limits regardless the fuel applied. Use social media for early marketing. Desperate entrepreneurs lose their leverage and die young. Tackling most of the support tasks yourself.

Burn Rate 120

Burn Rate Hockey Stick Startup Salary 120

YoungUpstarts

MAY 29, 2011

Startups that have helpful mentors, track metrics effectively, and learn from startup thought leaders raise 7x more money and have 3.5x 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%.

Silicon Valley 230

Silicon Valley Cofounder Technical Cofounder Startup 230

Startup Professionals Musings

MARCH 24, 2023

The focus at this level, primarily in companies that have a long history of success, usually in very stable markets, is to continue sustaining and exploiting existing advantages. I see this often in highly regulated markets, and ones driven by bureaucrats. Maturing proficiency with innovation metrics.

Silicon Valley 277

Silicon Valley Government Early Stage Valuation 277

Both Sides of the Table

NOVEMBER 14, 2017

What sized team can I afford in order to sell, market & provide service to these customers? But expanding beyond our core customers was going to take more effort than simply launching in new markets. We realized that operating a business in distributed markets presented multi-city coordination efforts that we weren’t prepared for.

Operations 286

Operations New York City Technical Review Startup 286

View from Seed

SEPTEMBER 14, 2021

Warning – this assumes some basic knowledge of VC performance metrics. Will Quist did a great job of explaining this market rhetoric in this thread. The three-question framework goes as such: Q: How much tech-related market cap will be created in the next 10-20 years? Ok, let’s jump in. State of VC: are we in a bubble?

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

Haystack

DECEMBER 29, 2018

Hundreds of new micro funds somehow keep getting into the market. If every sector is to be transformed by technology, and if private markets keep growing, it makes today’s conditions understandable. More and more angels will be minted as the 2019 IPO class emerges. 5/ Early Effects Of The Softbank Effect.

Technical Review 165

Technical Review Venture Capital Russia China 165

Startup Professionals Musings

AUGUST 21, 2021

When you see startups like SpaceX and Pinterest grow from a low valuation to a billion dollars in just a few years, it’s easy to assume that if you just keep doing what you are doing, you can get there as well. Of course, customer relationships, and penetration into new market segments are also critical elements.

Merger 379

Merger Due Diligence SEC IPO 379