The Equity Kicker

JUNE 20, 2014

When companies attract high valuations their investors are predicting the future too – either that the business will trade in M&A at a ‘strategic multiple’ or that they will generate big cash flows. For larger valuations it is the latter. That’s true, but in the startup industry we have to do it every day.

Valuation 123

Valuation Metrics Software Review Technical Review 123

Startup Professionals Musings

JUNE 24, 2020

As a frequent advisor to new entrepreneurs and startups, I often hear your frustration with being treated differently from other startups by investors, on expectations for valuation , traction, and market size. Valuations here are always low, and funding generally depends on friends and family, or a few forward-thinking angels.

Artificial Inteligence 436

Artificial Inteligence Marketing Valuation Startup 436

Gust

OCTOBER 18, 2011

This is the first of a six part series on different methods used by angel investors to arrive at pre-money startup valuations. It is one of the most useful methods for establishing the pre-money valuation of pre-revenue startup ventures. Return on Investment (ROI) = Terminal (or Harvest) Value ÷ Post-money Valuation. (in

Valuation 174

Valuation Pre-Money Valuation Southern California Post-Money Valuation 174

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?

Partner 208

Partner Technical Review Intellectual Property Due Diligence 208

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. I’m guessing much of this was 101 to many readers.

Metrics 150

Metrics Cost Acquisition Startup 150

Haystack

DECEMBER 29, 2018

It’s that time of year, time to look back and reflect on the most significant storylines in the tech, startup, and VC world. Technology is, like water, flowing and seeping into nearly every sector and eventually into most of the global economy. companies, more sensitivity around technology IP and security.

Technical Review 165

Technical Review Venture Capital Russia China 165

Startup Professionals Musings

NOVEMBER 4, 2015

In a new book, “ The Leadership Capital Index ,” Dave Ulrich, a best-selling author, business consultant, and business school professor, provides some real insights and metrics on what makes up the elements of goodwill in the minds of top valuation experts. I have paraphrased his key points here as follows: Leader personal impact.

Leadership 120

Leadership Technical Review Due Diligence Valuation 120

NZ Entrepreneur

MAY 31, 2021

Movac also offered some key metrics that can be monitored to evaluate whether your portfolio is sufficiently diversified: Number: an important metric but it doesn’t tell the whole story by itself. Negotiating reasonable terms and valuations that look to the long-term.

Portfolio 81

Portfolio New Zealand Management Technical Review 81

Austin Startup

APRIL 25, 2017

In order to achieve 20x growth, Snap needs grow both of those metrics 4–5x. In summary: Snap’s current business doesn’t justify a $20B valuation. How can one justify a $20B valuation for Snap? The product that could most likely justify Snap’s $20B valuation is Spectacles. Let’s look at each figure. That’s it.

Valuation 48

Valuation Technical Review Forecast Social Network 48

Steve Blank

SEPTEMBER 5, 2018

A version of this article first appeared in the Harvard Business Review. Tech IPO prices exploded and subsequent trading prices rose to dizzying heights as the stock prices became disconnected from the traditional metrics of revenue and profits. Then the cycle repeats with a new set of technologies.

Lean 335

Lean Burn Rate Startup IPO 335

YoungUpstarts

NOVEMBER 20, 2019

Competition from other startups and established incumbents, constraints on time and capital, and limited access to talent and technology resources are just a few of the hurdles nearly every first-time founder faces while trying to build a business. Have a reasonable attitude about your early-stage valuation, and don’t get too hung up on it.

Technical Review 140

Technical Review Due Diligence Early Stage Differentiation 140

Both Sides of the Table

NOVEMBER 14, 2017

Nearly every successful tech startup I’ve observed over the past 20 years has gone through a similar growth pattern: Innovate, systematize then scale operations. So it makes me laugh to this day when I talk with a journalist or potential investor in the company and they ask flippantly, “How is MakeSpace a technology company?”

Operations 286

Operations New York City Technical Review Startup 286

The Startup Magazine

JANUARY 14, 2020

With advances in technology, green buildings can also be built at fairly competitive prices. Higher asset valuation – growing awareness about the environment; the social impact of buildings and the need to meet sustainability credentials is increasingly making real estate investors and occupiers turn to green buildings.

Green 138

Green California Government Valuation 138

YoungUpstarts

JANUARY 10, 2018

How do you find the balance between not too small to prove itself but not too big to have an off-putting valuation? You’ll find exceptions to this rule, like Snapchat, which was operating at a loss at its IPO, when it experienced high initial trading prices due to its huge popularity and untapped monetization capabilities.

Valuation 145

Valuation Technical Review Exit Strategy Metrics 145

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. So, is this good or bad?

LP 256

LP IRR Distribution Portfolio 256

David Teten

SEPTEMBER 23, 2017

VCs tout themselves as frontier technology investors, but most are using the same infrastructure tools they have used for the past 20+ years: Excel and recent college grads searching Google. According to Knowledge.VC , under 5% of US VCs have a full-time team member focused on technology. . But we’re doing it slowly.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

David Teten

JANUARY 19, 2021

Our categorization is not a technical one. Additionally, Flexible VC can accommodate all types of companies, not just asset-lite, tech-enabled companies.”. This structure allows for alignment on the front end, and real-time flexibility for performance metrics,” says Samira Salman , a family office investor and advisor. .

Cofounder 78

Cofounder Technical Review Equity Dividend 78

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. As the risks below get eliminated the higher the valuation investors are prepared to pay.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

The Startup Magazine

JULY 27, 2018

Hrank is a service which reviews shared hosting providers and allows you to compare the performances to see which one suits you better. They are also kind enough to give users a chance to check the response time history of a hosting provider, and not just the current metrics, which is good. Source: Pixabay.

Hosting 61

Hosting Technical Review Metrics Internet 61

crowdSPRING Blog

FEBRUARY 7, 2013

Why Innovators Love Constraints | Harvard Business Review – [link]. Valuations in the Series A and Series B Market are Booming – [link]. How Monoprice Is Eating The Tech World From The Inside Out – [link]. Avoiding Undue Diligence: My Strange Approach To Angel Investing – [link].

Social Media 106

Social Media Small Business Technical Review Design 106

YoungUpstarts

SEPTEMBER 16, 2015

What’s critical for entrepreneurs to understand is that valuations for startups do not increase at a linear rate; they increase geometrically based on achieving the right milestones. The best entrepreneurs raise enough money to achieve a set of interim milestones and then raise capital again at a significantly increased valuation.

Valuation 100

Valuation Dilution Chicago Technical Review 100

David Teten

DECEMBER 3, 2019

When I met my now-wife, I realized that any technology that can find me a spouse is a killer app. I’d argue that the same type of technologies that have revolutionized dating can revolutionize our industry. . I walk through below how progressive investors are using technology and analytics throughout all of their operations.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Up and Running

JULY 14, 2015

The primary issue is a technical one. Any investor will put their valuation on your business based on a number of factors, including looking at important metrics for your business, patents, or assets. But raising too much money will cause the valuation to increase. Should you ever raise more than you need?

Technical Review 60

Technical Review Valuation Due Diligence Finder 60

Genuine VC

JULY 19, 2010

Of course CapEx has been transformed into OpEx via changes in the tech infrastructure layer (open source, virtualization & cloud computing, offshoring, etc.). All of these above changes aren’t just due to market inefficiencies (like the supply side), but are truly marked changed that are intensifying. That’s no secret.

Seed Stage 175

Seed Stage Technical Review Dilution Offshore 175

Cracking the Code

AUGUST 3, 2011

In search of Europes next tech stars. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. In search of Europe's next tech stars. Churchill Club 2008 Top 10 Tech Trends. SaaS business metrics: why are they different? Best Venture and Technology Podcasts for 2007.

Software Review 67

Software Review Europe Technical Review Search 67

Gust

JULY 23, 2014

So even if my own mother asked me to meet with you, and you were pitching me a biotech opportunity for a $10 million investment at a $90 million valuation, I might take the meeting, but it wouldn’t be particularly useful for either of us. Now comes the really tricky part: getting me to review all that stuff you just neatly uploaded.

Angel Investor 153

Angel Investor Elevator Pitch Pre-Money Valuation Technical Review 153

The Equity Kicker

FEBRUARY 8, 2012

With earlier stage companies investors generally don’t have the luxury of being able to rely on hard metrics and instead have to rely on gut feel – i.e. ‘direct’ evaluation. This is most common when the product is deeply technical and there isn’t much to be learnt from direct observation. Sometimes they use third party consultants.

Technical Review 123

Technical Review Product Venture Capital Valuation 123

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

The Startup Magazine

OCTOBER 22, 2020

Here we discuss how you need to handle data efficiently to enhance the organizational functions and boost business growth: Enhance Customer Experience: Reviewing the data produced by your sales department regarding the customers can give you great insights. You can better understand what drives your customers and their repeat purchases.

Analytics 132

Analytics Portfolio Advertising Technical Review 132

Cracking the Code

FEBRUARY 23, 2011

In comparison, the overall technology sector growth was projected at 9-10% in early 2010 and this forecast did not change significantly today. To justify a 60pts difference, we have to believe that the current growth rates of 10% for technology and 20% for SaaS will continue to hold for the next 9 years before converging. anecdotes.

Software Review 101

Software Review Technical Review Valuation Europe 101

Agile VC

MAY 26, 2011

AGILEVC My idle thoughts on tech startups. Silicon Valley is still emerging from the tech bubble and massive downturn of late 2000-2002. The terms and valuation for both offers were comparable and when the team debated which path to choose, we all agreed both firms would have made good partners. How To Think About The Future.

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

The Next Web

SEPTEMBER 13, 2013

Thomas Clayton has started and run numerous high-tech startups in Silicon Valley. Many Asian entrepreneurs tell me that they want to raise funds from Silicon Valley firms because they perceive the valuations to be higher. Valuations are based more on typical later-stage type of metrics.

Asia 132

Asia Silicon Valley India Term Sheet 132

Steve Blank

SEPTEMBER 14, 2009

Posted on September 14, 2009 by steveblank Over the last 30 years Wall Street’s appetite for technology stocks have changed radically – swinging between unbridled enthusiasm to believing they’re all toxic. Tech acquisitions went crazy at the same time the IPO market did. 3) invest in and take equity stakes in exchange for capital.

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

Cracking the Code

JANUARY 16, 2012

Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. In search of Europe's next tech stars. Churchill Club 2008 Top 10 Tech Trends. SaaS business metrics: why are they different? Best Venture and Technology Podcasts for 2007. My Yelp reviews. My Investments.

Software Review 95

Software Review Europe Technical Review Spain 95

ConversionXL

AUGUST 11, 2021

A sponsorship strategy should cover five areas: Assets Audience data Asset valuation Activations Market identification. Asset valuation. If you have testimonials or reviews, add them to give weight to your offer. It ensures you’re targeting the right companies with an offer that makes sense for both parties. Fulfilment.

Audience 139

Audience Social Media Email Ruby 139

K9 Ventures

JUNE 5, 2015

Low supply of companies with traction drove the valuations and deal sizes up. Valuations are rising to match. A typical seed round valuation may be $6M pre, raising $2M for an $8M post, or even as high as an $8M pre, raising $2M for a $10M post. There is too much capital coming into tech investing. The Epilogue.

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

Cracking the Code

NOVEMBER 7, 2010

Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. In search of Europe's next tech stars. Churchill Club 2008 Top 10 Tech Trends. SaaS business metrics: why are they different? Best Venture and Technology Podcasts for 2007. My Yelp reviews. My Investments.

Software Review 59

Software Review Technical Review Cloud Europe 59