article thumbnail

Rules of Thumb Business Valuation Methods Explained

Up and Running

Metrics such as discretionary cash flow or business revenue are used. A company’s goodwill might be worth 2x more than the discretionary cash flow, or the accounting practice’s value might be worth 1 to 1.35x the annual revenue + work-in-progress (inventory). Software (system and application) 0.7 Oil and Gas 0.7

article thumbnail

Venture Capital Q&A Session

Both Sides of the Table

People buy companies for 3 primary reasons: 1) they want the management team / talent 2) they want the technology or 3) they want the market traction (revenue, customer base, profits, etc). Mark Jeffrey - Q: “Is it more traditional to do your ESOP (employee stock option plan) before or after your angel or Series A funding?&#

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Start-ups are all Naked in the Mirror

Both Sides of the Table

We went through the euphoria of massive exposure at the time of our launch due to an article that ran in the Financial Times. Our software wasn’t fully baked. We had one of the largest US software companies talk about buying us. I know that we haven’t brought in revenue as quickly as we had hoped.

PR 331
article thumbnail

Twitter Link Roundup #238 – Small Business, Startups, Innovation, Social Media, Design, Marketing and More

crowdSPRING Blog

Stock option questions startup employees should ask | Business Insider – crowdspring.co/1n8lUje. 5 Things I Learned Analyzing Buffer’s Revenue Dashboard | Ivan Kreimer – crowdspring.co/1xfTwMG. Legal Contracts for Software Developers Who Hate Contracts (w/free contract template to use today) – [link].

article thumbnail

Your need for a board grows with complexity.

Berkonomics

Good audit committees also review the corporation’s insurance portfolio, risk protection policies such as email and computer use, disaster response and recovery policies and any other area where the corporation’s very life could be at risk from inattention. I engineered the extraction of the outside investors, even at a near total loss.

article thumbnail

The Long-Term Value of Loyalty

Both Sides of the Table

But in these years I learned how to sell software – necessity is the mother of all invention. I learned how to retain employees when stock options were no longer a real currency. But in our first year of sales (and those were really shitty years to be selling software) we sold $2.1 million, then $5.9m, $7.7m

article thumbnail

How to Fund a Startup

www.paulgraham.com

I wassurprised recently when I realized that all the worst problems wefaced in our startup were due not to competitors, but investors.Dealing with competitors was easy by comparison. There never has to be atime when you have no revenues. Your natural tendency when an investor says yes willbe to relax and go back to writing code.