Startup Professionals Musings

AUGUST 19, 2020

Cash flow is a basic survival metric for every startup. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity. Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Startup Professionals Musings

SEPTEMBER 29, 2018

Cash flow is a basic survival metric for every startup. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity. Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

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

Startup Professionals Musings

OCTOBER 18, 2023

New startup founders keep all the operating metrics they need in their head. Even if you don’t have a formal board of directors, it pays to have trusted advisors who will give you regular unbiased feedback on your team strengths and weaknesses, financial and operating ratio norms, and an external view of current company valuation issues.

Exit Strategy 248

Exit Strategy Valuation Acquisition Metrics 248

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

Startup Professionals Musings

OCTOBER 5, 2014

Cashflow is a basic survival metric for every startup. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity. Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

Startup Professionals Musings

JANUARY 9, 2021

New startup founders keep all the operating metrics they need in their head. Even if you don’t have a formal board of directors, it pays to have trusted advisors who will give you regular unbiased feedback on your team strengths and weaknesses, financial and operating ratio norms, and an external view of current company valuation issues.

Exit Strategy 434

Exit Strategy Valuation Acquisition Metrics 434

Startup Professionals Musings

SEPTEMBER 14, 2016

Cash flow is a basic survival metric for every startup. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity. Investors check your burn rate to assess your efficiency, and project your remaining runway before you run out of money and into a brick wall.

Burn Rate 120

Burn Rate Hockey Stick Startup Salary 120

Startup Professionals Musings

MARCH 24, 2023

Maturing proficiency with innovation metrics. The organization is heralded as an example for others, and stakeholders reward the growth potential with a higher valuation and increased investment funding. This requires dedicated resources of both time and money. The result is an emerging proficiency, and recognition of the potential.

Silicon Valley 277

Silicon Valley Government Early Stage Valuation 277

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. Switch your focus from product development to sales. Increase communication, both internally and externally.

Merger 379

Merger Due Diligence SEC IPO 379

Startup Professionals Musings

SEPTEMBER 22, 2021

They need to believe your valuation, based on current revenue and intellectual property, and feel the equity offered gives them a real return for the risk. These show a focus on the business elements required for success, and metrics for ensuring accountability, management control, and feedback along the way.

Intellectual Property 352

Intellectual Property Equity Bootstrapping Valuation 352

Startup Professionals Musings

MAY 4, 2016

Who would not want to joint the unicorns (recent startups with a current valuation of over $1 billion)? You don’t have to be a heavily funded later stage startup to get access to “big data,” customer analytics, and metrics dashboards. Angel groups, accelerators, and incubators are pervasive.

Intellectual Property 120

Intellectual Property Startup Angel Groups Social Media 120

Startup Professionals Musings

MAY 1, 2019

With the real data from that surge, you need to take a hard look at business model realities, cost of customer acquisition, inventory costs, and other key metrics. Even huge valuation increases will evaporate overnight when profitability is nowhere in sight, and you run out of money.

Silicon Valley 215

Silicon Valley Bankruptcy Metrics Valuation 215

Startup Professionals Musings

JULY 31, 2020

Many aspiring entrepreneurs are so focused on their technology, that they display no interest or credible understand of the financials and metrics of growing a business. Before looking for an investor, you or a partner need to demonstrate an understanding of the implications of startup valuation, revenue projections, break-even, and ROI.

Entrepreneur 312

Entrepreneur Angel Investor Valuation Leadership 312

Startup Professionals Musings

NOVEMBER 14, 2015

In the final evaluation, traction is the key driver for your business valuation, and is needed to attract investors, partners or a public stock offering. Your challenge as an entrepreneur is to generate traction and at the same time choose the right metrics to quantify and sell that traction to your team and to outsiders.

Acquisition 120

Acquisition Valuation Angel Investor Stock 120

Startup Professionals Musings

SEPTEMBER 30, 2015

New startup founders keep all the operating metrics they need in their head. Even if you don’t have a formal board of directors, it pays to have trusted advisors who will give you regular unbiased feedback on your team strengths and weaknesses, financial and operating ratio norms, and an external view of current company valuation issues.

Exit Strategy 120

Exit Strategy Startup Valuation Acquisition 120

Startup Professionals Musings

MAY 23, 2012

Longer-term, enhanced product value begets superior company valuation through your organization’s intellectual property (IP) portfolio. Once a new product is launched, a key metric is the ratio of new product sales to overall sales. Value creation. Accountability. Tracking results are essential to optimal ROI. Net result and reward.

Intellectual Property 247

Intellectual Property IP Valuation .Net 247

Startup Professionals Musings

OCTOBER 12, 2010

It’s human nature to prioritize the metrics that get measured, so the simple act of keeping track is often enough to have a significant positive impact. I suggest you try to figure out the 3-5 key metrics that are used to judge the health of companies in your industry, and keep track of these somewhere in your scorecard.

Intellectual Property 223

Intellectual Property .Net Valuation Distribution 223

Startup Professionals Musings

AUGUST 13, 2012

In fact, a business plan is needed more by you than investors, as the blueprint for your company, team communication, and progress metrics. Include a current valuation estimate. Financial forecast and metrics. People ask me if they really need ANY business plan, unless they are looking for an outside investor.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Startup Professionals Musings

MARCH 9, 2011

Longer-term, enhanced product value begets superior company valuation through your organization’s intellectual property (IP) portfolio. Once a new product is launched, a key metric is the ratio of new product sales to overall sales. Value creation. Accountability. Tracking results are essential to optimal ROI. Net result and reward.

Intellectual Property 234

Intellectual Property IP Valuation .Net 234

Startup Professionals Musings

MAY 13, 2011

In fact, a business plan is needed more by you than investors, as the blueprint for your company, team communication, and progress metrics. Include a current valuation estimate. Financial forecast and metrics. People ask me if they really need ANY business plan, unless they are looking for an outside investor.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Startup Professionals Musings

AUGUST 8, 2016

The smart ones identify and budget innovative approaches, and use metrics to tools to monitor effectiveness. Pundits may argue that recent business successes through user growth, including Twitter and WhatsApp achieving unicorn status (billion dollar valuations), show revenue and profit are no longer needed.

Intellectual Property 120

Intellectual Property Entrepreneur Elevator Pitch Exit Strategy 120

Startup Professionals Musings

MAY 9, 2016

You need to nurture non-organic growth partnerships and acquisitions to maximize your valuation. The smart ones in this category know when it’s time to bring in an outside more experienced CEO, or step aside voluntarily when investors start demanding new management disciplines and metrics.

Social Network 120

Social Network Demand Valuation Acquisition 120

Startup Professionals Musings

AUGUST 7, 2015

Of course, these should never be in a customer pitch, but investors expect an overall strategy with specific budgets, milestones and metrics. This allows them to calculate burn rates, break-even points and forecast the company valuation over time. Specific elements of your marketing and sales plans.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

Startup Professionals Musings

APRIL 22, 2010

In fact, a business plan is needed more by you than investors, as the blueprint for your company, team communication, and progress metrics. Include a current valuation estimate. Financial forecast and metrics. People ask me if they really need ANY business plan, unless they are looking for an outside investor.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

Startup Professionals Musings

MARCH 15, 2010

Longer-term, enhanced product value begets superior company valuation through your organization’s intellectual property (IP) portfolio. Once a new product is launched, a key metric is the ratio of new product sales to overall sales. Value creation. Accountability. Tracking results are essential to optimal ROI. Net result and reward.

Intellectual Property 122

Intellectual Property IP Valuation .Net 122

Startup Professionals Musings

NOVEMBER 2, 2018

You need some innovative new approaches, including digital marketing, as well as metrics to measure effectiveness. A huge user base may also be a source of profitability, if it results in a multi-billion dollar valuation. Ends with a winning legacy for customers and investors.

Intellectual Property 48

Intellectual Property Initial Public Offering Merger Acquisition 48