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Don’t Let Investors Conclude Your Startup Is A Hobby

Gust

Even if you are doing the work yourself, you need to document requirements, features, metrics, and milestones. Billing and revenue collection. Whether you provide an online subscription service, or sell products in a store, you need to consistently and economically sell your product and collect revenue to survive.

Startup 187
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Measure Your Business with Data Analytics

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From your vantage point as the company’s leader—and perhaps its only employee—you can readily track the arrival and departure of customers, the growth or decline of revenues, and changes in profitability as costs rise or fall. It is important to develop a well-thought-out set of metrics, or measurement tools, and apply them consistently.

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Valuation Methods 101

Gust

It is one of the most useful methods for establishing the pre-money valuation of pre-revenue startup ventures. The valuation is based on 5 metrics whereby investors add up to $0.5 Return on Investment (ROI) = Terminal (or Harvest) Value ÷ Post-money Valuation. (in million for each of the 5 categories. The Cayenne Valuation Calculator.

Valuation 174
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How does someone get a meeting with angel investor David S. Rose?

Gust

, answer all the standard questions (carefully, completely, thoughtfully and in good written English), provide all the financial figures (past investment, current burn, projected revenues, cash needed, etc.), Now comes the really tricky part: getting me to review all that stuff you just neatly uploaded.

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How Reed Hastings’ Facebook Status Update Landed Netflix in SEC’s Crosshairs

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The first question is a fact-based analysis that involves reviewing Netflix’ public disclosures up until that time, determining the effects on revenue and earnings of the growth in hours streamed, etc.

SEC 158
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These 10 Key Elements Make a Business Plan Fundable

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In fact, a business plan is needed more by you than investors, as the blueprint for your company, team communication, and progress metrics. 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.

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Bad Notes on VC

Gust

There were no metrics. Him: On metrics. Revenue multiple? If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. Him: But when I raised my first round we didn’t know how to price the company. So a convertible note was easier. How will you price the next round?