The Startup Magazine

FEBRUARY 21, 2024

The increasing importance of private credit in today’s market cannot be overstated. The challenges I faced building companies were multifaceted, ranging from securing adequate funding to navigating the labyrinth of market dynamics and building a team that shares a common vision and drive.

Technical Review 133

Technical Review Due Diligence Bankruptcy Intellectual Property 133

Startup Professionals Musings

JUNE 21, 2020

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $1 trillion. Long-term stability requires revenue growth and profit. Both have worked.

Revenue 434

Revenue Valuation Viral Retention 434

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

AUGUST 19, 2020

Of course, their answer is that the second intends to get to market faster, but every engine has limits regardless the fuel applied. Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues.

Burn Rate 310

Burn Rate Hockey Stick Salary Social Media 310

The Startup Magazine

AUGUST 11, 2023

It is necessary to cover the early stages of product development, thorough market research, and other processes during the initial step. pexels A war chest is virtually always a competitive edge in all aspects that count, including employing key staff, public relations, marketing, and sales. Hence they will miss the finish line.

Seed Stage 125

Seed Stage Technical Review Early Stage Due Diligence 125

Both Sides of the Table

SEPTEMBER 28, 2014

by Michael Woolf that is worth any startup founder reading to get a sense of perspective on the reality warp that is startup world during a frothy market such as 1997-1999, 2005-2007 or 2012-2014. So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Both Sides of the Table

JUNE 28, 2018

My friend Michael Broukhim, founder & co-CEO of FabFitFun and I recently had a catch-up meeting for 3-miles on the Santa Monica “Bird Trail” No company has ever elicited so many questions by friends, colleagues, entrepreneurs, fellow VCs and journalists as has Bird, the company that pioneered the electronic scooter as a service market.

San Francisco 256

San Francisco Valuation Technical Review Los Angeles 256

YoungUpstarts

NOVEMBER 2, 2020

Let’s say your organization is already using digital for marketing and e-commerce, but you are not truly “digitally driven.” But market research shows that consumers today have massive cynicism today about what brands “say” about themselves. REASON 4: Digitally Driven Companies Have Greater Revenue Growth.

Valuation 264

Valuation Technical Review Revenue Operations 264

Austin Startup

APRIL 25, 2017

Revenue needs to grow 20x, and margins must expand dramatically. I won’t dive into cost structure in this blog post, but let’s think through how Snap could grow revenue 20x. I won’t dive into cost structure in this blog post, but let’s think through how Snap could grow revenue 20x. How can one justify a $20B valuation for Snap?

Valuation 48

Valuation Technical Review Forecast Social Network 48

Gust

NOVEMBER 15, 2011

The Risk Factor Summation Method the fifth methodology for estimating the pre-money valuation of pre-revenue companies we have described in recent posts. Readers may have noted that both the Scorecard Method and the Dave Berkus Method considered a narrow set of important criteria for investment in arriving at a pre-money valuation.

Valuation 102

Valuation Pre-Money Valuation Ohio Early Stage 102

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

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. This is why you should AIM: Always Innovate and Market.

Exit Strategy 246

Exit Strategy Intellectual Property Valuation Metrics 246

David Teten

AUGUST 20, 2019

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. Realistic projections.

Revenue 60

Revenue Cofounder Founder Technical Review 60

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

Both Sides of the Table

MAY 28, 2018

There are many things a VC is looking for in reviewing your business plan but beyond things the like the quality of revenue, margins, OPEX and CAPEX there’s a really simple rule I call, “Cash In, Cash Out, Milestones Achieved.” Every VC knows that the amount you raise is often a proxy for your valuation.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

Steve Blank

JUNE 27, 2017

Initially, a startup has no business model and no market share to defend. Its employees and investors don’t depend on an existing revenue stream. But often the legal obstacles confronting startups have been put in place by companies that look to the government and regulators as their first line of defense against new market entrants.

Startup 275

Startup New York City Valuation Distribution 275

Startup Professionals Musings

SEPTEMBER 29, 2018

Of course, their answer is that the second intends to get to market faster, but every engine has limits regardless the fuel applied. Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

Startup Professionals Musings

MARCH 25, 2023

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $1 trillion. Long-term stability requires revenue growth and profit. Both have worked.

Valuation 235

Valuation Revenue Viral Retention 235

Both Sides of the Table

MARCH 1, 2016

At the Upfront Summit in early February, we had a chance to have many off-the-record conversations with Limited Partners (LPs) who fund Venture Capital (VC) funds about their views of the market. LPs See The Over-Valuations and Don’t Like It. That’s money that fuels our startup ecosystems.

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

ReadWriteStart

JUNE 1, 2020

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. The next reason is to establish a competitive advantage over your competition and quickly acquire a substantial market share. Both of which are expensive and time-consuming.

Startup 150

Startup Elevator Pitch Entrepreneur Seed Stage 150

Berkonomics

JANUARY 3, 2013

Most every business can take advantage of continuing, recurring revenues from its customer base. Sometimes, products are designed to make all of their profit upon the recurring revenues from supplies or support. Usually that amount exceeds 50% of total revenues, and is often much more.

Revenue 79

Revenue Software Review Vertical Valuation 79

VC Cafe

AUGUST 2, 2022

billion valuation) to invest in the Metaverse and build the future of digital entertainment Epic owns Fortnite, one of the most popular multiplayer games, enabling users to interact with each other online in an immersive way to play, socialise, attend to virtual concerts. billion revenue in 2021 for Epic Games and was played by 83.3

IP 206

IP Cofounder Valuation Acquisition 206

Startup Professionals Musings

OCTOBER 14, 2016

The fact is that valuations are largely set by top venture capital investors and financial firms, and they all have their own proprietary formulas for assigning value. If your new venture is still in the idea or development stages, don’t even think about a high valuation. But, of course, that doesn’t mean you shouldn’t try.

Intellectual Property 120

Intellectual Property Valuation Merger Exit Strategy 120

Both Sides of the Table

JULY 23, 2014

We are in a bubble (with so many private $1bn+ valuations). 15 years ago we were at the peak of Internet hype with the launch of many over-capitalized businesses with a market size & opportunity was limited. The VC market has right-sized (returned back to mid 90′s levels & less competition). Where are we today?

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

SoCal CTO

FEBRUARY 2, 2011

Because of this, I've always tried to stay up-to-speed on how early-stage investors look at valuation of companies. Bill Payne is an expert on how early-stage investors should look at valuation. He just post: Establishing the Pre-money Valuation of Pre-revenue Startups. Size of target market $100M is okay.

Valuation 198

Valuation Revenue Pre-Money Valuation Early Stage 198

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

VC Cafe

JANUARY 24, 2021

billion gamers worldwide will help the global games market generate revenues of $189.3 billion in revenue last year. According to Ark Invest’s research , revenue from virtual worlds will compound 17% annually from roughly $180 billion today to $390 billion by 2025. Fortnite alone made $1.8 Twitch stats in 2020.

Technical Review 207

Technical Review Audio Forecast Social Media 207

Startup Professionals Musings

AUGUST 10, 2014

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Both have worked.Google reached $1 billion in revenue within five years of incorporation, and now has a market capitalization of over $400 billion. Long-term stability requires revenue growth and profit.

Revenue 246

Revenue Entrepreneur Valuation Viral 246

Startup Professionals Musings

APRIL 17, 2023

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. Investors call this the seed stage , where money is required to build a market and a real product. The final product works great, and all the early users love it.”

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

Startup Professionals Musings

NOVEMBER 26, 2012

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” The founders now need a $1M Angel investment to do the marketing for a national NewCo rollout, build a team to manage the rollout, and maybe even pay themselves a salary.

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

Startup Professionals Musings

NOVEMBER 21, 2016

Target market sizing higher than $10 billion. It’s true that investors like large markets, preferably in the billion dollar range and growing, but sizing a startup market greater than the GNP of many countries is just not credible. Sales projections are less than one percent market penetration. Skip the hype.

Intellectual Property 120

Intellectual Property Valuation Technical Review Equity 120

Steve Blank

APRIL 23, 2014

buy out an entire company for its revenue and profits. 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.

Acquisition 332

Acquisition Intellectual Property Silicon Valley Startup 332

ReadWriteStart

OCTOBER 7, 2010

As a thumb rule, try to get enough validation so that you can get to at least a $2 million pre-money valuation before raising equity capital. That is debt financing that converts into equity at the Series A valuation once the price for that is set. (I Sub-$2 million pre-money, it is better to bootstrap. Photo by lco.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

Startup Professionals Musings

AUGUST 25, 2018

On the other hand, everyone is doing it, so that means more competition, and the market and technology are changing faster than ever before. Those that do it right also have the unprecedented opportunity to join the elite ranks of 250 unicorns (relatively new companies with a current valuation of over $1 billion).

Technical Cofounder 184

Technical Cofounder Intellectual Property Silicon Valley LLC 184

ReadWriteStart

JULY 15, 2020

New talk of capital efficiency is gratifying, but there was another lesson from pre-COVID-19 valuation struggles. Venture capitalists and early-stage investors have told all of us, founders are critical to a startup’s valuation. The action includes training in the full range of customer service skills that bring in revenue.

Valuation 91

Valuation South Carolina San Jose Balance Sheet 91

Startup Professionals Musings

JUNE 26, 2016

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $400B. Long-term stability requires revenue growth and profit. Both have worked. Traditionally, it was simple.

Revenue 145

Revenue Valuation Startup Viral 145

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 142

Valuation CPA Software Review Revenue 142