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. As a personal story, I sat on the board of one company with a very unhealthy burn rate relative to revenue or expected growth. VC’s fund their salaries and operations through management fees, which typically equal 2% per year.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

Both Sides of the Table

JULY 13, 2013

By the way, the salary, which was a good salary, was $27,000 entry salary, and engineers were paid $31,000 to $35,000. [00:10:30] You have been at five startups, you had an exit at your last company where you were the Chief Revenue Officer. They paid engineers $4,000 more entry-point. Engineering vs. non-engineering. [00:10:32]

Cofounder 337

Cofounder Technical Cofounder San Diego Startup 337

Both Sides of the Table

SEPTEMBER 2, 2009

Founders however are asked to take low salaries and never really get back the time they worked for free. We should end the year with a few million in fully recurring revenue and we’re projected to double next year. But more spend = more viral opps = more revenue down the road. >50% of our revenue in now viral.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

Both Sides of the Table

SEPTEMBER 28, 2013

You scraped together enough for an angel round but not enough to pay yourself a real salary. Sure, our revenue is growing, but is that enough to raise an internal round? There are merger discussions, board debates, product miscues, revenue misses and a litany of delicate topics. ” “Buy a house? Are you kidding me?

Startup 417

Startup Dilution San Diego Stock Options 417

Both Sides of the Table

FEBRUARY 12, 2010

Most people are visual thinkers and being able to see things like revenue, total sales pipeline, conversion rates, error rates or whatever the measure, putting it in a time series graph helps people to quickly digest business performance. But make sure that you do as much of your performance measurements in a graphical format.

Startup 331

Startup Balance Sheet Forecast Early Stage 331

Both Sides of the Table

APRIL 27, 2010

I was paid less in salary in 2004 than I was paid at the job I quit in 1999 (a job I had held 8+ years). and we ultimately sold when we hit $14 million and had more than $30 million in backlog revenue. I learned about revenue recognition. No employees wanted to join startups – they were all looking for stable jobs.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

Both Sides of the Table

MAY 17, 2017

He arrived in Philadelphia and offered to pay the salaries of the employees if they would join Ring. Zonoff had been a supplier to Ring and Ring founder & CEO, Jamie Siminoff , decided to hop on plane immediately when he heard that 70+ employees were about to lose their jobs. And it seems that ADT has just confirmed that status.

Los Angeles 254

Los Angeles Philadelphia Security Video 254

Both Sides of the Table

FEBRUARY 23, 2010

I’ve seen way too many startups spend all their energy getting channel deals done only to find out that they don’t produce ANY revenue. Full Stop for you Brits.) Yet startups continue to pour tons of energy into a relationship that with the current structure will never work.

Channel 293

Channel Startup Sales Partner 293

Both Sides of the Table

FEBRUARY 14, 2016

When funding levels lower, many would-be entrepreneurs prefer the nice salary and stability of McKinsey or Google and thus the market has more hard-core entrepreneurs. forward revenue for SaaS businesses when in the years before it had been less than 5x. Smart investors and smart entrepreneurs prefer this phase of the market.

Valuation 150

Valuation Down Round Startup Later Stage 150

Both Sides of the Table

DECEMBER 9, 2010

That is excluding a single line of code or paying any salaries. Google bought Gil’s company in 2003 (pre IPO) for $100+ million and this business now represents about 30% of all of Googles revenue. No wonder people had to raise $5 million just to get started back then. We raised $16.5 million in our A round.

Cloud 343

Cloud Technical Review Database Semantic 343