Up and Running

SEPTEMBER 19, 2017

When you accept outside money, particularly a private equity (PE) investment, however, that changes. In this article, I’ll provide some personal stories of how investors have navigated the balance between raising private equity capital and not losing control of their startup.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

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

Startup Professionals Musings

AUGUST 18, 2023

Some argue the only way to start is to drop everything and jump in with both feet, while others recommend an overlapped approach to the lifestyle, including not quitting your day job until you have revenue and a proven business model. McGinnis, a well-known venture capitalist and private equity investor.

Private Equity 255

Private Equity Salary Cofounder Equity 255

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.” Usually that’s the point in the meeting where a VC realizes that this meeting isn’t going to go very well.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

The Next Web

JULY 24, 2015

Venture capital investors are looking for different things than private equity investors. So, as an early-stage startup, why on earth should you consider reaching out to private equity investors, if you are not making progress with venture capital investors?

Private Equity 60

Private Equity Equity Venture Capital Early Stage 60

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

MAY 30, 2022

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Of course, not every entrepreneur wants to tackle this challenge.

Mezzanine 368

Mezzanine Private Equity Bandwidth Metrics 368

David Teten

DECEMBER 8, 2010

I’ve given a number of presentations to senior executive groups on expert networks; below are two slide decks: How to Earn More Consulting Revenue from Gerson Lehrman and Other Expert Networks. How Executives Can Work with Private Equity and Venture Capital Portfolio Companies.and Buy a Company with Private Equity Backing.

Networking 122

Networking Private Equity SEC Software Review 122

The Startup Magazine

FEBRUARY 21, 2024

Are there new revenue streams you can tap into? The strategic pivot to new market segments opened up additional revenue streams, and the operational overhaul significantly improved profit margins. Can you address the impression that private credit firms lend only to “bad” or “risky” businesses?

Technical Review 132

Technical Review Due Diligence Bankruptcy Intellectual Property 132

Steve Blank

MARCH 16, 2016

Founders can now access the largest pool of risk capital that ever existed –in the form of Private Equity (Angel Investors, family offices , Venture Capitalists (VC’s) and Hedge Funds.). At its core Venture Capital is nothing more than a small portion of the Private Equity financial asset class. FDA approvals?

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Venture Capital 120

Startup Professionals Musings

NOVEMBER 30, 2020

Some argue the only way to start is to drop everything and jump in with both feet, while others recommend an overlapped approach to the lifestyle, including not quitting your day job until you have revenue and a proven business model. McGinnis, a well-known venture capitalist and private equity investor.

Entrepreneur 321

Entrepreneur Private Equity Startup Salary 321

The Startup Magazine

SEPTEMBER 23, 2021

The $130 million Series D investment round was co-led by New York-based global private equity and venture capital firm Insight Partners and Hanaco Venture Capital. The new Series D round includes $100 million in primary and $30 million in secondary funding, elevating Lightricks’s total funding to $335 million.

Private Equity 142

Private Equity Developer Venture Capital Merger 142

The Startup Magazine

NOVEMBER 28, 2022

They provide a hands-on transformation and revenue growth partner for B2B technology companies. Prior to working with Citius, he helped global businesses generate up to $200M in annual recurring revenue and realise valuations of $1Bn+. Inside Sales), Channel, Pre-Sales, SDRs, Marketing, Customer Success, and Professional Services.

Founder 126

Founder B2B Private Equity India 126

Steve Blank

MARCH 31, 2014

Companies horde cash and squeeze the most revenue and margin from the money they use. In spite of this, private equity funds have used the rallying cry of efficiency to hijack corporate strategy and loot the profits that historically would have been reinvested into research and development and new products.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

The Startup Magazine

AUGUST 11, 2023

This suggests the firm should have a list of paying customers, consistent sales cycles, a clear value proposition, and a developing revenue pipeline in the ideal situation. The criteria change after a company reaches the growth stage when it is deemed to have attained product market fit.

Seed Stage 124

Seed Stage Technical Review Early Stage Due Diligence 124

Lightspeed Venture Partners

AUGUST 17, 2014

CEO and co-founder Vincent Yang, a mathematician by training, had built a system while he was at Summit Partners, a private equity firm, to comb the Web looking for investment opportunities. Enterprises that use EverString gain a fundamental edge over their competition in building revenue and market share.

B2B 96

B2B Revenue Private Equity Artificial Inteligence 96

Steve Blank

MARCH 17, 2020

Next, take a look at your actual revenue each month – not forecast, but real revenue coming in each month. Subtract your monthly gross burn rate from your monthly revenue to get your net burn rate. All your assumptions about customers, sales cycle and most importantly, revenue, burn rate and runway are no longer true.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

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. These usually play a role in the very early stage of your business, primarily pre-revenue. For mature businesses, there are Private Equity or PE firms. ?

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Steve Blank

APRIL 26, 2022

Startups that can’t find product/market fit and/or generate sufficient revenue and/or lacked patient capital are scrambling for dollars – and the bottom feeders are happy to help. Venture capital, like most private equity, is an unregulated financial asset class – anything goes. Why do VCs Do This?

Cram Down 404

Cram Down Founder Venture Capital Recapitalization 404

Berkonomics

AUGUST 3, 2023

Venture, private equity and more: Here we lump a large number of investor classes into one. Private equity investments are available from firms created for this later stage opportunity, but typically are available only for businesses that have achieved revenues well above $50 million.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

The Startup Magazine

FEBRUARY 6, 2020

The buyers (or lessees) in these transactions are pension funds, insurance companies, or private equity representing other institutions. Private Equity sees infrastructure investing as uncorrelated diversification and has the additional upside of correcting any operational inefficiencies.

Private Equity 129

Private Equity New York City Chicago Investment Bankers 129

YoungUpstarts

JUNE 6, 2013

If you have a deal that is related to bringing in sales and you do want to have a perpetual compensation you can use some version of a Lehman Formula that incentives the person upfront as they are bringing in revenue for you, then caps it off on an ongoing basis. Balance the risks to your reputation.

Technical Review 164

Technical Review Securities and Exchange Commission Non-disclosure Agreement Due Diligence 164

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78

Equity Revenue Cofounder Colorado 78

The Startup Magazine

SEPTEMBER 10, 2020

Main Street Capital is a publicly traded private equity firm that offers equity and debt financing to lower middle-market companies with a revenue between $10 million and $150 million. Keep in mind that as a Canadian company, U.S. Main Street Capital. billion.

Dividend 89

Dividend Stock Finance Private Equity 89

Startup Professionals Musings

AUGUST 19, 2018

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 184

Angel Investor Intellectual Property Investment Bankers Private Equity 184

Startup Professionals Musings

SEPTEMBER 1, 2019

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Of course, not every entrepreneur wants to tackle this challenge.

Mezzanine 244

Mezzanine Private Equity Startup Bandwidth 244

YoungUpstarts

MARCH 7, 2017

Unfortunately, a number of them had an early exit from the business scene due to ineffective business plans and/or unsustained revenue for their investment. Over time, as you scale your operations, you may need to source additional funding from venture capitalists to mitigate high production costs or limited revenue.

Private Equity 159

Private Equity Startup Incubator Social Network 159

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . The 11 Steps of Investing in Private Companies. In the private equity universe, most Partners have primary training as deal-makers, not as managers. 1) Manage the firm .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Jeff Hilimire

MARCH 16, 2016

How can a full-service digital agency possible claim to do that, when – and I’m just guessing but I know the space as well as anyone – maybe 10% of their revenue is coming from mobile? If 60% of your revenue is coming from social media, then your best people HAVE to be working on social! More likely it’s sub 5%.

Mobile 28

Mobile Private Equity Social Media Web Development 28

Version One Ventures

JANUARY 12, 2021

Combining the investment capital of a private equity firm and the deep operational experience of a startup accelerator, Cap Hill can lead brands to new levels o f growth online. .

Private Equity 87

Private Equity Seattle Equity Acquisition 87

Both Sides of the Table

SEPTEMBER 29, 2009

Huge downturns have a real impact on the revenue line of start-ups and therefore the pressure on valuations. This came in part due to the huge influx of money into VC but also because hedge funds and private equity shops with no VC experience wanted part of the action. I argued for literally a year to slash burn.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

YoungUpstarts

MAY 29, 2019

As Kabbage customers explain, managing seasonal impact on revenue requires preparation – and if possible, alternate ways to bring money in the door. To bring in more revenue year-round, Jason recently launched three new delivery-only businesses, selling meat dishes, burgers and grain bowls.

Georgia 113

Georgia New Jersey Private Equity Atlanta 113

Growthink Blog

APRIL 3, 2012

For example, having a financial model that shows you are going to grow from $0 to $100 million in revenues in 3 years is generally going to be frowned upon. But you should also avoid other grand claims and bolster your credibility wherever possible. Since achieving such a feat is extremely rare.

Private Equity 97

Private Equity Venture Capital Equity Forecast 97

Berkonomics

FEBRUARY 9, 2023

The most striking example was the one hundred million–dollar purchase of one of my companies by a New York private equity investor using only five million of its cash. But I learned it again and again in my various business lives. Here’s a striking example. Ask for extended terms well beyond sixty or ninety days.

Naming 62

Naming Warrant Private Equity Valuation 62

YoungUpstarts

FEBRUARY 11, 2020

Whenever I start a new job or join a board, I spend time understanding what is really important to the company, especially around strategy, revenue and capital allocation. Why do you think there are so few women in private equity, and what can be done to change that? I always ask: how does this company make money?

Switzerland 264

Switzerland Private Equity Stock Options Equity 264

Startup Professionals Musings

JULY 4, 2014

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 232

Angel Investor Intellectual Property Investment Bankers Private Equity 232

YoungUpstarts

AUGUST 13, 2019

This allowed him to keep seeing patients while he worked to reopen as soon as possible and lessen the loss of patients and revenue. Prior to that, Aditya was a Leader in Bain’s Digital Practice where he focused on digital transformations, innovation and automation, serving clients in CPG, Financial Services, Real Estate and Private Equity.

Los Angeles 138

Los Angeles Private Equity Small Business Equity 138