Both Sides of the Table

MARCH 21, 2013

I think it’s important for enterprise startups to layer in professional services into your revenue stream. deliver profitable revenue that while on gross margins of 50% vs. software at 85-95% it is still profits to help you cover fixed costs. Control Size of PS Revenue Relative to Software Business. rollout support.

Software Review 321

Software Review Software IP Technical Review 321

Hunter Walker

DECEMBER 13, 2020

Basically these sayings are referring to people who talk a big game but then can’t back it up with action. If things are going great, you still may get a lower valuation or smaller round. It doesn’t matter what industry, what product, what revenue model, what stage of development. Or the Texan equivalent of “All hat, no cattle?”

Technical Cofounder 144

Technical Cofounder Cofounder Startup Matching 144

YoungUpstarts

JUNE 16, 2020

Business valuation is defined as a way to determine the overall economic value of a company , and is a necessary component of a sound business plan and strategy. Any of these situations will demand a valuation to determine current and future projected value. . Three Methods of Valuation. Also referred to as Book Value .

Valuation 142

Valuation CPA Software Review Revenue 142

YoungUpstarts

JUNE 29, 2020

estimates in their recent report that medical products will have a very high global market valuation, crossing 30 billion US dollars by 2026. Being able to offer such products, along with using remote hosted desktops , can provide enormous revenue during this pandemic crisis. Assistive Devices : Global Market Insights, Inc.

Demand 148

Demand Product Artificial Inteligence Software Review 148

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

Agile VC

APRIL 17, 2011

How They Make Money: Majority of Kayak’s revenue actually comes from advertising on their site (55%), not lead generation or referral fees to travel suppliers as you might think (more on this below). Financial Snapshot: 2010 Revenue: $170 million. Revenue growth: 51% YoY (2010), 1% YoY (2009), 131% YoY (2008).

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

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. This might work because I often feel guilty if I don’t respond to a legitimate referral.

Angel Investor 153

Angel Investor Elevator Pitch Pre-Money Valuation Technical Review 153

Gust

DECEMBER 6, 2011

Milestones are accomplishments that demonstrate the viability of the business; hence, they increase the valuation of the company. There are several important sources of capital for entrepreneurs starting their businesses, depending on the stage of development of the company. The following table shows these sources: CAPITAL SOURCES.

Angel Investor 179

Angel Investor Venture Capital Valuation Software Engineering 179

Feld Thoughts

JANUARY 2, 2023

Its revenue grew by 30%+. Another company had a revenue decline of 25%. 2004 was the beginning of what I now refer to as “the grind,” which ended for me around 2007. No one will value a company with a GM% of 10% at the same as a company with a GM% of 80% just because they are growing revenue at the same rate.

Valuation 172

Valuation Revenue Portfolio Leadership 172

Startup Professionals Musings

MARCH 22, 2020

Tie payments to your product or service revenue. Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages. These realities are part of the reason that this first tier of very early investors are often referred to as “friends, family, and fools.”

Management 308

Management Cram Down Angel Investor Equity 308

Hearpreneur

JANUARY 22, 2023

In recent years, eCommerce companies have begun to increase revenue by selling products directly via social media networks. Thanks to Aktug Dogun, Refer Mate ! #21- #9- Social commerce Photo Credit: Adam Wood I would say, that historically, brands have utilized social media to improve brand awareness and generate leads.

Artificial Inteligence 122

Artificial Inteligence Technical Review Entrepreneur Social Media 122

Gust

OCTOBER 12, 2011

During the summer of 2010, I developed a workshop, A New ACEF Valuation Workshop for Angels and Entrepreneurs. To provide some reference points, I surveyed thirteen angels groups in North American to determine their recent experience in negotiating the pre-money valuation of pre-revenue companies. Current Average.

Angel Groups 125

Angel Groups Valuation Pre-Money Valuation St. Louis 125

Startup Professionals Musings

JULY 31, 2020

Even if you don’t have previous businesses to reference, relate examples of your problem solving ability and determination in other contexts. 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

The Equity Kicker

FEBRUARY 8, 2012

Starting with ‘customer’, unsurprisingly, the more customers and revenues a company has the more a VC will look to what they are doing to tell him or her whether the product is good. Valuation for Pre-revenue, pre-traction startup (jackyyapp.com). Related articles. askthevc.com).

Technical Review 123

Technical Review Product Venture Capital Valuation 123

Austin Startup

OCTOBER 15, 2017

What seems to be the best way to create customers and revenue may result in a business model that is out of vogue with the investment world and shortchanges you on enterprise valuation. A good example is the marketing technology sector. You don’t normally get to dictate the decision as to how your customers want to buy.

Technical Review 48

Technical Review Software Review Nevada Silicon Valley 48

K9 Ventures

JUNE 5, 2015

Almost two years ago, in a private/closed meeting with K9 Ventures’ LPs only, I claimed that: What was being referred to in the press as the “Series A Crunch” was not because fewer Series A deals were being done, but because there were too many Seed deals being done. The risk here is what I refer to as the curse of over-capitalization.

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

Lightspeed Venture Partners

OCTOBER 7, 2012

They won a design award at a trade show, but have no revenue and no orders. This includes calling current and prospective customers, understanding technology and manufacturing, doing reference calls on the founders and key executives, verifying financial and legal information and often other items specific to the company.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

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 117

Founder Valuation Dividend Startup 117

Gust

OCTOBER 20, 2011

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Scorecard Valuation Methodology. Such comparisons can only be made for companies at the same stage of development, in this case, for pre-revenue startup ventures. The range of the data is from a low pre-money valuation of $0.8

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

The Next Web

SEPTEMBER 13, 2013

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. Finally, don’t over-optimize on valuation. This is even true for the Asian arms of Silicon Valley VCs.

Asia 132

Asia Silicon Valley India Term Sheet 132

View from Seed

NOVEMBER 18, 2020

You can read various articles out there which will give you the cursory facts about Airbnb like their overall revenue or profitability or how their business has faired here in 2020 in the COVID environment. But ops & customer support is another 17-20% of revenue and arguably you couldn’t run the business if you took that away.

North America 401

North America IPO Prospectus Europe 401

ConversionXL

JULY 16, 2021

By collating key information in a framework, you’ll reduce internal feedback loops, improve collaboration, and empower consistency—which can increase revenue by 33%. . Everybody on your team should have access to this key information, and refer back often. Make sure to update and re-distribute them as needed.

Audience 127

Audience Framework Differentiation Software Review 127

Both Sides of the Table

JUNE 19, 2017

Gross burn is your cost base and net burn is the difference between your revenue and costs. Usually when an investor is asking you your burn rate he or she is referring to net burn — what cash are you consuming. If your revenue grows you can afford to increase your cost base. You start from the basics, which is if you raise $2.5

Burn Rate 212

Burn Rate Startup .Net Venture Capital 212

Startup Professionals Musings

MARCH 9, 2018

Tie payments to your product or service revenue. Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages. These realities are part of the reason that this first tier of very early investors are often referred to as “friends, family, and fools.”

Cram Down 148

Cram Down Angel Investor Equity Dividend 148

Startup Professionals Musings

OCTOBER 10, 2014

Tie payments to your product or service revenue. Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages. These realities are part of the reason that this first tier of very early investors are often referred to as “friends, family, and fools.”

Founder 254

Founder Cram Down Angel Investor Equity 254

ConversionXL

AUGUST 11, 2021

A sponsorship strategy should cover five areas: Assets Audience data Asset valuation Activations Market identification. Asset valuation. Each correspondence after your first should aim to: Add context: Reference your previous email to jog your prospect’s memory (e.g., Your most obvious asset is the product itself. Source ).

Audience 139

Audience Social Media Email Ruby 139

Duct Tape Marketing

FEBRUARY 3, 2022

I mean, how do you end up putting some, something that is intangible that is more than like, you know, a, a multiplier of revenue, because there are some people that have created a methodology that have created a framework that have created something exactly a way to actually get, you know, leads. Do you have a leadership team?

Entrepreneur 79

Entrepreneur Technical Review Cofounder Valuation 79

View from Seed

SEPTEMBER 25, 2019

Having a slide on key questions to refer back to demonstrates and signals that you as the Founder have critically thought about all aspects of your business, not just haphazardly created a top-level pitch deck. Appendix portion of the deck is unconstrained by length, as it’s a reference meant to be cherry picked in its usefulness.

Seed Stage 166

Seed Stage Retention Restful Valuation 166

Tim Keane

MARCH 9, 2011

If, on the other hand, there is some near term prospect of cash flow (say within six months or a year) but no ability to repay in the meantime, then the entrepreneur may try and find a way to finance his “pre-revenue period” using friends and family money that accepts a somewhat lower payment in recognition of a relationship beyond just investing.

Finance 83

Finance Bootstrapping Startup Equity 83

Ben's Blog

AUGUST 17, 2020

OH in South Park, San Francisco (or on Zoom from Big Sky, Montana): “OMG, crazy – that firm just paid 100x revenue to invest in [insert hot startup here] – what could they be thinking?” How valuation multiples work Why did multiples become a shortcut-heuristic for estimating valuations in the first place?

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

Startup Professionals Musings

NOVEMBER 11, 2015

Tie payments to your product or service revenue. Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages. These realities are part of the reason that this first tier of very early investors are often referred to as “friends, family, and fools.”

Cram Down 120

Cram Down Angel Investor Equity Dividend 120

YoungUpstarts

MAY 7, 2015

In reality, many businesses are a perfect fit for ESOPs, but the business owners will never know because they think selling to a private equity or other third-party buyer are their only legitimate alternatives: Discussed below are some of the most common myths associated with ESOPs (sometimes referred to as “ESOP Fables”): 1.

Stock 100

Stock Employee Private Equity Valuation 100

Startup Professionals Musings

FEBRUARY 5, 2012

It wouldn’t work anyway, since your valuation at that stage would be less than the funding, meaning you would have to give away all ownership for the money. This is the realm of venture capital professional investors, with funding amounts of $1-10 million, often referred to as the “A-round,” or first institutional funding. Exit stage.

Investment Bankers 241

Investment Bankers Venture Capital Startup Initial Public Offering 241

ReadWriteStart

JANUARY 28, 2022

This article will assist you in gaining a fundamental understanding of equity valuation, kinds of equity, and other related topics. The market regards equity as an ownership “share” in a corporation’s income revenue stream. Importance of equity valuation. Select an appropriate valuation method.

Valuation 108

Valuation Equity Warrant Common Stock 108

Gust

NOVEMBER 22, 2011

It wouldn’t work anyway, since your valuation at that stage would be less than the funding, meaning you would have to give away all ownership for the money. This is the realm of venture capital professional investors, with funding amounts of $1-10 million, often referred to as the “A-round,” or first institutional funding. Exit stage.

Venture Capital 171

Venture Capital Investment Bankers Angel Investor Initial Public Offering 171

Hippoland

NOVEMBER 13, 2016

But as we’ve seen, these valuations can be hocus-pocus — even at later stage rounds, we’ve seen lots of companies of late fall from grace and become massively devalued overnight when they cannot raise their next round at a higher valuation. But what if a company is growing revenues but hasn’t raised a round in a while?

IRR 48

IRR Valuation Portfolio Due Diligence 48

Startup Professionals Musings

OCTOBER 13, 2010

It wouldn’t work anyway, since your valuation at that stage would be less than the funding, meaning you would have to give away all ownership for the money. This is the realm of venture capital professional investors, with funding amounts of $1-10 million, often referred to as the “A-round,” or first institutional funding. Exit stage.

Investment Bankers 231

Investment Bankers Venture Capital Startup Initial Public Offering 231