Berkonomics

FEBRUARY 9, 2023

In the investment world, if we are unable to come to terms over the valuation of a company, we sometimes add penny warrants to sweeten the deal, allowing the investors to own a larger stake in the company at any time merely by exercising the warrants. You name the price; I’ll name the terms. It’s an easy rule to remember.

Naming 62

Naming Warrant Private Equity Valuation 62

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

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. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

Both Sides of the Table

SEPTEMBER 22, 2012

After all, growth equals high valuations and loads of venture capital! Instant growth = huge valuation from follow-on investors = big VC mark-up on our quarterly reports = LP interest. In revenue terms our first two years of sales were $2.1 Startups will continue to be aggressive in spamming us in our Facebook timeline.

Silicon Valley 390

Silicon Valley Venture Capital Startup Technical Review 390

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?” This time I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points. Assign real value to intellectual property.

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

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.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

Startup Professionals Musings

FEBRUARY 21, 2012

Pay people with equity or future revenue. Another one to avoid cash burn for software development is a contract for percent of future revenue. Do you really need that full-time assistant, regular bookkeeper, and big-name attorney? That will position the startup to raise a venture round at a favorable valuation.

Burn Rate 232

Burn Rate Startup Salary Equity 232

Both Sides of the Table

JUNE 5, 2011

2: As expected at least one person accused me of writing this post because I want to see lower valuations. As the risks below get eliminated the higher the valuation investors are prepared to pay. So rounds tend to be “range bound&# where the top end of the valuation spectrum often being done in boom markets (i.e.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Startup Professionals Musings

SEPTEMBER 30, 2013

Don’t expect them to believe your $100M revenue projection, if you are still waiting for the first revenue dollar. Get a real customer and real revenue. Funding for pre-revenue startups used to be the domain of angel investors, but they have moved up-stage. Only real results count. Attract a well-rounded team.

Intellectual Property 281

Intellectual Property Entrepreneur Sweat Equity CTO Hire 281

The Startup Magazine

AUGUST 29, 2019

Bank provides two types of finances, namely, working capital and funding. The working capital loan is required to run a complete cycle of revenue-generating operations. The time limit of the loan is decided on the basis of the instrument of hypothecation.

Startup 122

Startup Government Valuation Technical Review 122

A Smart Bear: Startups and Marketing for Geeks

JUNE 20, 2011

They’ve heard rules of thumb like “A growing software company is worth 5 times their trailing 12-months revenue.&# Even narrowing the field as much as feasible, revenue multiples varied between 1.2x The “Multiples&# argument does work well in industries where company’s growth and revenue is highly predictable.

Sales 260

Sales Channel Cofounder Valuation 260

Start Up Blog

OCTOBER 12, 2022

When a top 10 company by valuation like Facebook, changes its name and focus to the MetaVerse – it is going to generate a lot of attention. Both in terms of revenue and profit. 97% of FB / Meta’s revenue comes from advertising. billion users across its platforms which include Facebook, Instagram and WhatsApp.

Social Network 48

Social Network Government Valuation Advertising 48

Startup Professionals Musings

JANUARY 28, 2011

Pay people with equity or future revenue. Another one to avoid cash burn for software development is a contract for percent of future revenue. Do you really need that full-time assistant, regular bookkeeper, and big-name attorney? That will position the startup to raise a venture round at a favorable valuation.

Burn Rate 231

Burn Rate Startup Salary Equity 231

Startup Professionals Musings

JULY 22, 2020

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. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

Startup Professionals Musings

AUGUST 31, 2012

Don’t expect them to believe your $100M revenue projection, if you are still waiting for the first revenue dollar. Get a real customer and real revenue. Funding for pre-revenue startups used to be the domain of angel investors, but they have moved up-stage. Only real results count. Attract a well-rounded team.

Intellectual Property 260

Intellectual Property Sweat Equity CTO Hire Fractional CTO 260

Startup Professionals Musings

NOVEMBER 13, 2021

Until I read the classic book “ The Business of Sharing, ” by Alex Stephany, who founded JustPark (current valuation estimated at £80M), I too had no idea of the scope of opportunities, and the 300 or more players already out there. Usually these are revenue-generating e-commerce sites, or have the potential to be revenue-generating.

Cuba 316

Cuba Venture Capital Community Valuation 316

Startup Professionals Musings

SEPTEMBER 6, 2010

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?” This time I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points. Assign real value to intellectual property.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Gust

NOVEMBER 18, 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?” This time I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points. Assign real value to intellectual property.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Both Sides of the Table

MARCH 1, 2016

In just over a decade, new firms like USV, Foundry, Spark, True Ventures, First Round, Greycroft (I might add Upfront) have made names for themselves from a non-traditional Silicon Valley stance. LPs See The Over-Valuations and Don’t Like It. All isn’t completely rosy in the LP views of the venture industry.

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

Startup Professionals Musings

JUNE 17, 2011

Don’t expect them to believe your $100M revenue projection, if you are still waiting for the first revenue dollar. Get a real customer and real revenue. Funding for pre-revenue startups used to be the domain of angel investors, but they have moved up-stage. Only real results count. Attract a well-rounded team.

Intellectual Property 253

Intellectual Property Sweat Equity CTO Hire Fractional CTO 253

VC Cafe

JANUARY 27, 2021

Now synonymous with video-conferencing, the company-name-turned-verb stock peaked in October 2020, a market interpretation of how the Zoom Boom has defined the daily lives of many millions throughout the COVID-19 outbreak. 2020 was a good year for Zoom. Their latest round of 138 millions dollars, led by Viola Growth ?-Next47

Vertical 148

Vertical Video Technical Review Europe 148

ConversionXL

AUGUST 11, 2021

But it’s not as simple as reaching out to a company you want to collaborate with and putting their name on your website in exchange for cash. If your audience isn’t interested in a sponsor’s product or service, then putting their name to your offer won’t deliver the ROI they’re looking for, ruining any chance of a long-term partnership.

Audience 139

Audience Social Media Email Ruby 139

Both Sides of the Table

JULY 29, 2010

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. The best thing to get is a “right sized&# valuation. A: It’s not best.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

YoungUpstarts

MARCH 14, 2016

Before a quiet acquisition by PCH Innovations for just $15 million, Fab had raised 11 rounds of VC funding at a $900 million valuation. Sure, VC cash can boost your business to new heights, but it also reduces your equity in the company, forces you to focus on company valuation, and provides a false sense of financial security.

Venture Capital 100

Venture Capital Securities and Exchange Commission New York City Cofounder 100

Both Sides of the Table

NOVEMBER 14, 2017

MakeSpace (as he named it) would help you get your excess goods into low-cost warehouses. Throughout the first year we made many fixes and saw our revenue base in these markets accelerate so we felt we were ready to attack Los Angeles, amongst the most important storage markets in the country.

Operations 286

Operations New York City Technical Review Startup 286

Both Sides of the Table

MAY 23, 2012

Yes, it’s true that FOMO (fear of missing out) is driving some irrational behavior and valuations amongst uber competitive deals and well-financed VCs. The opportunity to transact at the point of purchase increases the sheer number of revenue opportunities. Web businesses can now grow revenue before they can even afford sales people.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

Startup Professionals Musings

NOVEMBER 4, 2011

Get your Internet domain name and website. Reserve the company name on social networks to protect it. It should answer every question an investor or associate might ask, including current valuation, funding needed, and exit strategy. Finalize your financial model.

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

Startup Professionals Musings

MAY 22, 2010

Don’t expect them to believe your $100M revenue projection, if you are still waiting for the first revenue dollar. Get a real customer and real revenue. Funding for pre-revenue startups used to be the domain of angel investors, but they have moved up-stage. Only real results count. Attract a well-rounded team.

Intellectual Property 222

Intellectual Property Sweat Equity CTO Hire Fractional CTO 222

The Startup Magazine

SEPTEMBER 10, 2019

Asset valuation. The concept of asset valuation may seem counterintuitive, but it is an important idea. Most financial valuation formulas value an asset by discounting the asset using the cost of capital (interest rate) to the present day. It has never paid out dividends, and clocks around $200 billion in revenue.

Founder 148

Founder Valuation Dividend Startup 148

David Teten

MARCH 18, 2021

Thirty-four VC firms in OpenVC call themselves “early-stage” Yet, 30% of those don’t actually invest in pre-revenue startups. However, we’d argue that for most smaller managers who are not brand names, it’s better to be highly identified in your niche than being a generalist. Valuation: $1M – $3M.

Technical Review 78

Technical Review Cofounder Venture Capital Deal Flow 78

Startup Professionals Musings

FEBRUARY 5, 2010

Pay people with equity or future revenue. Another one to avoid cash burn for software development is a contract for percent of future revenue. Do you really need that full-time assistant, regular bookkeeper, and big-name attorney? That will position the startup to raise a venture round at a favorable valuation.

Burn Rate 120

Burn Rate Startup Salary Equity 120

Both Sides of the Table

FEBRUARY 16, 2017

It was a “disappearing text app” where the founders told me that they named the company because the idea came from how Tiger Woods got caught cheating on his wife because all of his mistresses had evidence that he cheated because they saved text messages from him. I didn’t do that.

IPO 214

IPO Los Angeles Technical Review Silicon Valley 214

VC Cafe

APRIL 28, 2021

And elsewhere creator monetisation tools and revenue streams continue to expand: Ads and bran deals – Youtube reported $6 billion in revenue for Q1 2021 , a 50% growth rate from the equivalent period last year. The sum is equivalent to the combined annual revenue of Snap and Twitter for 2020. — ??????

Audio 168

Audio Valuation Stealth B2C 168

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

Startup Professionals Musings

SEPTEMBER 23, 2010

Get your Internet domain name and website. Reserve the company name on social networks to protect it. It should answer every question an investor or associate might ask, including current valuation, funding needed, and exit strategy. Finalize your financial model.

Angel Investor 224

Angel Investor Intellectual Property Technical Review Elevator Pitch 224

David Teten

DECEMBER 3, 2019

Pro Publica has a Nonprofit Explorer database searchable by principal name on all nonprofit filings, so you can see a person’s nonprofit activities. . Lighter Capital, a Revenue Based Investing VC, offers a Cost of Capital Calculator. Pacer is useful to search prior litigation, bankruptcies, etc. If you have one, please contact me.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Berkonomics

JANUARY 26, 2017

In the investment world, if we are unable to come to terms over the valuation of a company, we sometimes add penny warrants to sweeten the deal, allowing the investors to own a larger stake in the company at any time merely by exercising the warrants. You name the price; I’ll name the terms. It’s an easy rule to remember.

Naming 48

Naming Warrant Private Equity Valuation 48