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.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

David Teten

AUGUST 19, 2019

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. Bigfoot Capital. Capital need of up to $1.5M

Revenue 60

Revenue Technical Review Software Review Equity 60

The Startup Magazine

AUGUST 11, 2023

Seed venture capital firms can make more significant follow-on investments to keep or increase their equity stake in the company. 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.

Seed Stage 131

Seed Stage Technical Review Early Stage Due Diligence 131

Startup Professionals Musings

JUNE 2, 2013

I like the work just published by Bob Rice in “ The Alternative Answer ,” which does a great job of summarizing the investment universe, starting with the “conventional” stocks, bonds, and real estate, but moving on through more esoteric alternatives, including hedge funds, private equity, real assets, managed futures, and finally venture funding.

Cram Down 269

Cram Down Angel Investor Intellectual Property Venture Capital 269

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.” This part of a series to help you raise venture capital ?—?the

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

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

SEPTEMBER 12, 2014

According to recent National Venture Capital Association statistics , only 20% of venture-backed startups now use this alternative, due to high liability concerns, demanding shareholders, and high costs. Find a private equity firm or friendly individual. IPO – public company initial public stock offering.

Exit Strategy 289

Exit Strategy Entrepreneur IPO Startup 289

Steve Blank

APRIL 26, 2022

Except, that is, for the bottom feeders of the Venture Capital business – investors who “ cram down ” their companies. 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. Why do VCs Do This?

Cram Down 404

Cram Down Founder Venture Capital Recapitalization 404

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

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.

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Venture Capital 120

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. Hanaco Venture Capital is a fund located in New York and Tel Aviv that invests in developing and late-stage startups from across the world.

Private Equity 148

Private Equity Developer Venture Capital Merger 148

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

The Next Web

JULY 24, 2015

Venture capital investors are looking for different things than private equity investors. Venture capital firms are typically growth-oriented, early-stage investors looking for these proof-of-concept points before cutting a check.

Private Equity 60

Private Equity Equity Venture Capital Early Stage 60

Startup Professionals Musings

APRIL 27, 2016

According to recent National Venture Capital Association statistics , only 16% of venture-backed startups now use this alternative, due to high liability concerns, demanding shareholders, and high costs. Find a private equity firm or friendly individual. IPO – public company initial public stock offering.

Equity 120

Equity Exit Strategy Private Equity Startup 120

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

David Teten

AUGUST 20, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching Revenue-Based Investing and other new approaches to VC. The question I’m asking myself: should a new VC fund use Revenue-Based Investing, traditional equity VC, or possibly both (likely from two separate pools of capital)? Underaddressed market.

Revenue 60

Revenue SBIC Cofounder Venture Capital 60

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. The third source of funding is from equity investors. Government programs.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

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+. billion in market capital. Transformation of Mobile Handset business.

Founder 133

Founder B2B Private Equity India 133

Steve Blank

MARCH 31, 2014

As the venture capital business has come roaring back in the last 5 years, startups are awash in available capital. Companies horde cash and squeeze the most revenue and margin from the money they use. Instead of measuring success in dollars of profit, …firms focus on measuring capital efficiency.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

Feld Thoughts

NOVEMBER 2, 2016

This quarter they interviewed me as part of it on Quarterly VC Update: Brad Feld on the State of Venture Capital Investing. For growth companies (usually Series D or later), there are pretty clear market comparables based on growth rate, revenue, gross margin %, and type of company. Each quarter Cooley does a VC market update.

Venture Capital 70

Venture Capital Private Equity Early Stage Valuation 70

Berkonomics

AUGUST 3, 2023

This class of investor, once quite disorganized, has become much like the venture capital community, creating a process including due diligence (careful examination of a business before investment), terms of investment that match those of venture capitalists, and a process that sometimes takes months from introduction to investment.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

VC Cafe

JANUARY 10, 2011

V iola Private Equity , an Israeli PE fund with $164 million under management for technology buyouts, has announced a $7 million investment in Zend , the leading provider of open-source and commercial solutions based on PHP web applications.

Private Equity 87

Private Equity Equity PHP 87

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. It is your job to overcome this pessimism.

Private Equity 97

Private Equity Venture Capital Equity Forecast 97

David Teten

AUGUST 7, 2019

LTV / CAC, revenue growth, etc.) Today, some Momentum-centric venture capital investors have high paper returns. Simple reason: most of them have known only a rising market in their careers, and in such a market the companies that are already hot can usually raise more capital and force growth.

Venture Capital 60

Venture Capital Valuation Stock NDA 60

This is going to be BIG.

JULY 8, 2013

I probably get around a dozen e-mails a week asking me how to get into venture capital. On top of that, anytime I talk to anyone who wants to get involved in startups but isn''t sure what they want to do, inevitably, I hear, "And then I was thinking maybe I should look into venture capital, too.". Know thy self.

Venture Capital 167

Venture Capital Early Stage Portfolio Private Equity 167

VC Cafe

MAY 18, 2022

And in the private markets (i.e. venture capital and private equity) the VC index (by Refinitiv) shows a nearly 40% decline. After the crazy year that was 2021 in venture capital, the tone has rapidly changed in May 2022. Advice for startup founders (consolidated). Fundraising will get tougher.

Term Sheet 190

Term Sheet Startup Valuation Ukraine 190

Both Sides of the Table

JULY 16, 2010

One is the “denominator problem&# which says that if an LP invests X% (the denominator) into “alternative investments&# such as venture capital and if their total amount available to invest (the numerator) goes down by 30% then the amount they allocate to VC will by definition need to go down by 30% to stay the same percentage.

LP 311

LP Technical Review Early Stage Silicon Valley 311

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

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

Austin Startup

NOVEMBER 6, 2017

The main drivers, from our viewpoint, are: Many tech entrepreneurs no longer view venture capital as an inevitability in their growth path, and have grown skeptical of the traditional “growth at all costs” mindset found in many startup circles; and An increasing number of VCs are growing comfortable with LLCs.

Delaware 48

Delaware LLC Startup Silicon Valley 48

www.inc.com

SEPTEMBER 24, 2011

Will Work for Equity. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. Venture Capital Firms. Theres a huge opportunity cost in not taking equity," he says. In the 1990s, Graham was one of those entrepreneurs giving away equity in exchange for crucial services.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Steve Blank

MAY 17, 2022

The opportunity is so large that there are hundreds of AI accelerator startups designing their own chips, funded by 10’s of billions of venture capital and private equity. Helpful for predicting numerical values based on different data points, such as sales revenue projections for a given business.

Artificial Inteligence 417

Artificial Inteligence Software Review Algorithm Technical Review 417

VC Cafe

JANUARY 15, 2024

The M&A market has become increasingly selective, with potential buyers wary of high valuations that don’t align with company fundamentals Private equity – In 2023 PE firms were seen deploying their capital in more cautious and strategic ways, reflecting the shift in market dynamics.

IPO 88

IPO Valuation Private Equity 88

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

ReadWriteStart

APRIL 1, 2020

Such businesses will likely emerge as leaders that will help prepare for the “next big issue” due to their flash-in-the-pan revenues and quick notoriety. Speed to market and speed to revenue are critical for startup sustainability. Startups tend to run out of runway.

Startup 120

Startup SEO Private Equity Venture Capital 120

This is going to be BIG.

OCTOBER 23, 2013

Given the time I spent a decade ago doing not only venture capital, but investing in private equity funds that buy retail companies, I find this data collection fascinating. No one really needs tracking data--unless that data helps you bring in revenues. Venture Capital & Technology'

Leveraged Buyout 137

Leveraged Buyout Venture Capital Private Equity Channel 137

Startup Professionals Musings

AUGUST 13, 2016

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).

Matching 120

Matching Angel Investor Intellectual Property Investment Bankers 120