View from Seed

MARCH 24, 2021

What Are Your Valuation Expectations? But mainly we did it because these corporate VCs were among the only groups willing to invest at PayPal’s somewhat inflated post-money valuation, during the middle of the dot-com crash when traditional VCs pulled back sharply and other sources of funding were constrained.” ” (Rob Go).

Seed Stage 177

Seed Stage Hiring IPO Analytics 177

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). Better yet, the valuation of your enterprise is often higher than if the same investment were taken from a professional investor.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

SoCal CTO

JUNE 9, 2010

If you can just be friendly enough and get your users to party with you, the rest is really easy. Through advertising or direct sales, these sites harvest intent. Instead of making a few dollars per sale and hoping for thousands of sales, you sell to only a few customers, and charge much higher rates. It is to out friend.

Fractional CTO 248

Fractional CTO Startup Venture Capital Cofounder 248

Steve Blank

MAY 29, 2011

But he left to work on what he told me he came to do - crack the innovation code of Silicon Valley and share it with the rest of the world. However, this does not mean that investors don’t have a significant effect on valuations and M&A). Max dropped out of Stanford after his first quarter. Solo founders take 3.6x

Technical Cofounder 333

Technical Cofounder Early Stage Startup Silicon Valley 333

Berkonomics

FEBRUARY 9, 2023

The rest of the purchase price was concocted from a brew of zero-coupon bonds (where the face value is many times the invested amount until the reduced cost bonds mature thirty years later), and borrowing using the target company’s accounts receivable and other assets as collateral for a loan to purchase the company.

Naming 62

Naming Warrant Private Equity Valuation 62

Gust

NOVEMBER 4, 2011

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. Valuation caps can come into play in settings other than seed-stage convertible note financing rounds. Read on for a fuller explanation. by February 2006).

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Both Sides of the Table

JULY 25, 2010

You should seek to get people who are respected by others in your field and who will therefore make it easier to raise the rest of your angel round. Because I built two SaaS companies and sold my second one to Salesforce.com (where I then took on the role of VP Products) I am often asked to look at SaaS and/or sales-oriented deals for others.

Silicon Valley 293

Silicon Valley Technical Review Southern California Angel Investor 293

Austin Startup

AUGUST 20, 2017

Of all your hires, if you have commissioned sales people, those will give you the most problems if they’re not all given an equal chance to make their quotas and achieve their personal earnings goals. Keep the valuations consistent with company progress. Does the rest of your team measure progress the way you are? Not really.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Austin Startup

DECEMBER 15, 2020

We’ve helped winners connect with customers, mentors, and secure capital from Google, Revolution’s Rise of the Rest Fund, Backstage Capital, and many other VC investors. Winners include thriving Texas startups like Dallas-based ShearShare , Houston-based GroupRaise , and Austin-based Journey Foods.

Founder 98

Founder Dallas Houston Term Sheet 98

View from Seed

SEPTEMBER 25, 2019

You can read the rest of the posts in the series by clicking here *. Something standard like a SaaS company where the exits scenarios and valuations are well-understood may not need a slide here, but the more non-traditional or unique the venture is, the more information which a Founder can fill in the blanks of “what could be” are helpful.

Seed Stage 166

Seed Stage Retention Restful Valuation 166

Both Sides of the Table

MAY 6, 2018

“I know that our repeat purchase rate is lower than the industry average now, but …” “I know that our margins are lower than VCs like to see, but …” “I know our revenue decelerated in the last 2 quarters of 2017, but …” Remember that fund raising is a sales process. How to talk about valuation 13. Remind me why I love you?

Revenue 236

Revenue Valuation Portfolio Restful 236

YoungUpstarts

APRIL 9, 2015

No two businesses are exactly alike, and there are numerous variables that can affect the overall company valuation. At Digital Exits, we make it our business to know what investors are looking for when purchasing an ecommerce company, and how those variables affect the sale price. What drives new sales? -

eCommerce 100

eCommerce Valuation Acquisition Channel 100

Austin Startup

JULY 22, 2021

We’ve helped winners connect with customers, mentors, and secure millions of dollars in capital from partners like Google Black Founders Fund, Revolution’s Rise of the Rest Fund, Backstage Capital, and many other VC investors. Apply now to be one of five teams selected to pitch. million Series A round. million in funding.

San Antonio 107

San Antonio Dallas Houston Founder 107

Startup Professionals Musings

MARCH 23, 2014

While most employees would see their vesting rest when the “Series A” round closes, a Founder might retain some percent of their shares. Valuation has very little meaning until an outsider invests. These have less to do with the type of stock and more to do with who the person is and how strategic they are to the organization.

Stock 256

Stock Vesting Common Stock Founder Vesting 256

David Teten

AUGUST 6, 2015

One common option is a dedicated assumptions tab that flows into the rest of the model, and then outputs key pieces of data right at the bottom of the assumptions tab, so that the key inputs and outputs are in one place. financial statement summaries, valuation analysis, ratio analysis, etc.) 11) Separate out your model output.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). Better yet, the valuation of your enterprise is often higher than if the same investment were taken from a professional investor.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Up and Running

JUNE 14, 2017

What happened to the rest? Although Recycler Spotter was perceived as a great model for increasing awareness and sales, most partners decided to wait for the product launch. I built out the premium version, launched it, and emailed those who said they were interested in that version. Guess what? What I learned from those meetings.

Technical Review 96

Technical Review Distribution Redemption Demand 96

Gust

JULY 10, 2012

Go back into your plan and find the core components that drive the rest. Lower your valuation. Nothing validates a new business like actual sales. If you don’t have the product to sell yet, cook up a deal for pre-sales. Prove it to yourself and the rest of the world by starting a subset and making it work. .

Bootstrapping 165

Bootstrapping Valuation Restful Sales 165

Startup Professionals Musings

JANUARY 22, 2013

While most employees would see their vesting rest when the “Series A” round closes, a founder might retain some percent of their shares. Valuation has very little meaning until an outsider invests. These have less to do with the type of stock and more to do with who the person is and how strategic they are to the organization.

Vesting 245

Vesting Common Stock Stock Founder Vesting 245

Lightspeed Venture Partners

OCTOBER 1, 2012

The company did $1M in sales last year, 90% from wholesale, and had a 10% profit margin. They wanted to get to $10M in sales and then get bought by a big food company. pre money valuation). Cuban has interest in a gluten free diet, and claimed that he liked the company, but his only concern was valuation.

Pre-Money Valuation 153

Pre-Money Valuation Valuation Participating Preferred Preferred Stock 153

Startup Professionals Musings

AUGUST 13, 2012

Marketing, sales, and partners. Describe your market penetration strategy, sales channels, pricing, and strategic partnerships. Convince investors that you have lined up sales channels, strategic partners, and a viable marketing strategy. Rest assured that potential investors will ask for names, and place some calls.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Software By Rob

JULY 1, 2010

Repeatable In a traditional business a repeatable product/service is something that does not require a high level of expertise and customization every time you make a sale. The sales process might be customized, but the product or service should be as cookie-cutter as you can make it. Follow me Startups for the Rest of Us.

Software Review 54

Software Review RSS Startup Vertical 54

Up and Running

SEPTEMBER 5, 2017

Her background includes senior roles in both the banking and tech sectors, and she has launched four data businesses—including her current firm, New Frontier Data , which boasts a $20 million valuation and has received $5 million in funding. Giadha Aguirre de Carcer via Her Agenda. Stitch Fix CEO Katrina Lake, via the Los Angeles Times.

Venture Capital 82

Venture Capital Lean Cofounder Technical Review 82

Startup Professionals Musings

MAY 13, 2011

Marketing, sales, and partners. Describe your market penetration strategy, sales channels, pricing, and strategic partnerships. Convince investors that you have lined up sales channels, strategic partners, and a viable marketing strategy. Rest assured that potential investors will ask for names, and place some calls.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Steve Blank

SEPTEMBER 14, 2009

billion for a company with less than $50 million in sales. Underwriters realized that as long as the public was happy snapping up shares, they could make huge profits on the inflated valuations (regardless of whether or not the company should have ever been public.) billion.) So what’s left?

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

Berkonomics

JANUARY 26, 2017

The rest of the purchase price was concocted from a brew of zero coupon bonds (where the face value is many times the invested amount until the reduced cost bonds mature thirty years later), and borrowing using the target company’s accounts receivable and other assets as collateral for a loan to purchase the company.

Naming 48

Naming Warrant Private Equity Valuation 48

Jeff Hilimire

JANUARY 15, 2023

And for someone like Dan, who has clearly made more money than the rest of the room will ever make put together, to express both in words and actions how important it was to give back, that surely he changed a few hearts and minds for the better on that night. We simply don’t think the valuation is enough for us to do the deal.

Atlanta 36

Atlanta Valuation Restful Partner 36

Gust

MARCH 16, 2014

While most employees would see their vesting rest when the “Series A” round closes, a Founder might retain some percent of their shares. Valuation has very little meaning until an outsider invests. These have less to do with the type of stock and more to do with who the person is and how strategic they are to the organization.

Stock 175

Stock Vesting Common Stock Founder Vesting 175

The Equity Kicker

MAY 14, 2012

There are certain types of events that investors look to as evidence that a company has overcome certain challenges and has therefore reduced risk in the business and become deserving of a higher valuation. demonstrating a repeatable sales model (typically telephone sales, direct sales, or channel sales).

Finance 118

Finance Valuation Venture Capital Dilution 118

Austin Startup

MARCH 16, 2021

We’ve helped winners connect with customers, mentors, and secure millions of dollars in capital from Google, Revolution’s Rise of the Rest Fund, Backstage Capital, and many other VC investors. Houston-based Syzygy Plasmonics is developing a green power source from hydrogen fuel cell technology and raised a $5.8 million Series A round.

Houston 80

Houston San Antonio Dallas Texas 80

abovethecrowd.com

JULY 10, 2014

Financial models, especially valuation models, are interesting in that they can be particularly precise. While it may seem like a tough question to answer, I would argue that most practitioners of valuation analysis would state “not very high.” It is not my aim to specifically convince anyone that Uber is worth any specific valuation.

San Francisco 111

San Francisco San Jose Marketing Technical Review 111

Startup Professionals Musings

OCTOBER 7, 2010

While most employees would see their vesting rest when the “Series A” round closes, a founder might retain some percent of their shares. Valuation has very little meaning until an outsider invests. These have less to do with the type of stock and more to do with who the person is and how strategic they are to the organization.

Stock 214

Stock Vesting Common Stock Founder Vesting 214

Up and Running

JULY 24, 2017

For example, with an existing company, that information might be as simple as adding recent annual sales or number of employees to the basic company information in the first bullet here. For a startup, it might be a brief description of aspirations, such as a sales goal for the next year or three years from now. How to get started.

Software Review 151

Software Review SBA Due Diligence Business Plan 151

Gust

AUGUST 5, 2012

Marketing, sales, and partners. Describe your market penetration strategy, sales channels, pricing, and strategic partnerships. Convince investors that you have lined up sales channels, strategic partners, and a viable marketing strategy. Rest assured that potential investors will ask for names, and place some calls.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Berkonomics

FEBRUARY 7, 2019

I was selected because I did not have an emotional stake in the outcome as did the entrepreneur, or the continuing relationship with a buyer as would others in management who might remain after the sale.

Due Diligence 48

Due Diligence Valuation Sales Restful 48

Berkonomics

FEBRUARY 7, 2019

I was selected because I did not have an emotional stake in the outcome as did the entrepreneur, or the continuing relationship with a buyer as would others in management who might remain after the sale.

Due Diligence 48

Due Diligence Valuation Sales Restful 48

VC Cafe

SEPTEMBER 26, 2022

Sustainable growth: Prioritise sales efficiency over growth at all costs. ValuatIon should be a function of value, not ego. Kawasaki’s Law of Pre-Money Valuation: for every full-time engineer, add $500,000; for every full-time M.B.A., A good way to think about valuation in seed/pre-seed is to reverse engineer the next round.

Founder 187

Founder Startup Valuation Pre-Money Valuation 187