Startup Professionals Musings

MAY 25, 2020

Equity is stock, but private company stock has no market value until the company goes public or is sold or merged with another company. IPO – public company initial public stock offering. Here are three important reasons for the question: Good investment paybacks normally require an exit event.

Exit Strategy 376

Exit Strategy Startup Private Equity Equity 376

Steve Blank

SEPTEMBER 5, 2018

Almost overnight the floodgates opened, and risk capital was available at scale from venture capital investors who rushed their startups toward public offerings. The unprecedented size and scale of VC returns transformed venture capital from a financial asset backwater into full-fledged player in the financial markets.

Lean 335

Lean Burn Rate Startup IPO 335

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Of the Inc. 5000 companies, only 6.5% raised from angels.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

VC Cafe

MAY 29, 2022

Building on my post on ‘ Advice for startups in a downturn (May 2022 edition) ‘, this week I continued to follow with interest the impact of the current correction on startups and venture capital, particularly in early stage. How much of the slowdown in venture capital is real vs. ‘doom and gloom’ headlines.

Venture Capital 183

Venture Capital Early Stage Valuation Startup 183

Steve Blank

OCTOBER 24, 2017

— Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed: IPOs/M&A without a profit (or at times revenue) have become the norm. Typically, this caliber of bankers wouldn’t talk to you unless your company had five profitable quarters of increasing revenue.

Founder 245

Founder Technical Review CTO Hire IPO 245

David Teten

AUGUST 19, 2019

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. So what is Revenue Based Investing?

Revenue 60

Revenue Term Sheet Founder Technical Review 60

Both Sides of the Table

SEPTEMBER 18, 2014

On the phone … Me: So, you raised venture capital? Revenue multiple? If you’re wildly successful early on or if they help you achieve a great valuation they actually pay a significant price for their eventual stock even though they took much more risk than a future investor and backed you early. Your A round?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

abovethecrowd.com

NOVEMBER 28, 2022

Super-voting (Dual-class) Stock. These days, many technology companies have deployed a dual class stock structure as part of going public. The post Venture Capital Red Flag Checklist appeared first on Above the Crowd. If it is the latter, you have a problem. No investor wants to lose a deal over an audit requirement.

Venture Capital 113

Venture Capital Non-Compete Government Delaware 113

online.wsj.com

SEPTEMBER 23, 2012

Virtual Stock Exchange. SIGNIFICANCE PROMINENT. --> The Venture Capital Secret: 3 Out of 4 Start-Ups Fail. Stock Quotes. An entrepreneur with a hot technology and venture-capital funding becomes a billionaire in his 20s. AllThingsDigital. AllThingsDigital. Financial News. Professor Journal. SmartMoney.

Venture Capital 107

Venture Capital Software Review Rhode Island North Dakota 107

ReadWriteStart

OCTOBER 2, 2021

In addition, they can neither issue stocks nor bonds. And even though an LLC is legally required to report its revenues, profits, and losses, it does not have to pay corporate income taxes on profits. While LLCs cannot issue stocks, they can sell bonds to investors. For one, they have no liability protection.

Technical Review 158

Technical Review LLC IPO Stock 158

Steve Blank

APRIL 26, 2022

Except, that is, for the bottom feeders of the Venture Capital business – investors who “ cram down ” their companies. They offered desperate founders more cash but insisted on new terms, rewriting all the old stock agreements that previous investors and employees had. Why do VCs Do This? ” On one hand they’re right. .”

Cram Down 404

Cram Down Founder Venture Capital Recapitalization 404

Both Sides of the Table

DECEMBER 27, 2011

You have to understand whether they’re likely to yield revenue growth in the near term OR whether you have access to cheap enough capital to fund your losses until your investments pay off. million in revenue three years later is, “So effing what?” Simplifying: Revenue -. ” Harsh, but reality.

Startup 418

Startup Revenue Technical Review Flash 418

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

Startup Professionals Musings

SEPTEMBER 12, 2014

Equity is stock, but private company stock has no market value until the company goes public or is sold or merged with another company. IPO – public company initial public stock offering. Here are three important reasons for the question: Good investment paybacks normally require an exit event.

Exit Strategy 289

Exit Strategy Entrepreneur IPO Startup 289

Steve Blank

SEPTEMBER 14, 2009

Posted on September 14, 2009 by steveblank Over the last 30 years Wall Street’s appetite for technology stocks have changed radically – swinging between unbridled enthusiasm to believing they’re all toxic. One of the biggest mistakes entrepreneurs make is misunderstanding the role of venture capital investors. What Do VC’s Do?

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

Haystack

NOVEMBER 25, 2018

venture capital deals, a spike in mega-financings where it’s common to see not only $100M private rounds, but companies that raise two or three types of financings like this in the same calendar year! 5/ The Enduring Allure Of Platform Potential: Revenue is important. Revenue acceleration is, too.

Technical Review 127

Technical Review Open Source Software Review Venture Capital 127

Steve Blank

MARCH 16, 2016

Luckily in the last quarter of the 20 th century a new source of money called risk capital emerged. Risk capital takes equity (stock ownership) in your company instead of debt (loans) in exchange for cash. 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

ReadWriteStart

OCTOBER 2, 2021

In addition, they can neither issue stocks nor bonds. And even though an LLC is legally required to report its revenues, profits, and losses, it does not have to pay corporate income taxes on profits. While LLCs cannot issue stocks, they can sell bonds to investors. For one, they have no liability protection.

Technical Review 78

Technical Review LLC IPO Stock 78

VC Cafe

JANUARY 24, 2021

billion gamers worldwide will help the global games market generate revenues of $189.3 billion in revenue last year. Gamestop stock becomes more valuable than Google :-) Just kidding. We’re excited about the Metaverse at Remagine Ventures and the potential it has to bring people together. Fortnite alone made $1.8

Technical Review 207

Technical Review Audio Forecast Social Media 207

Both Sides of the Table

OCTOBER 1, 2009

Consumer spending is 70% of the economy and will continue to be stretched – We can look all we want at tech innovation, VC funding cycles and hot M&A deals, but ultimately growth and therefore investment must be underpinned by revenue. Unemployment coupled with a stock market drop will stop this spending cold IMHO.

Technical Review 269

Technical Review Stock Hawaii Early Stage 269

Startup Professionals Musings

APRIL 27, 2016

Equity is stock, but private company stock has no market value until the company goes public or is sold or merged with another company. IPO – public company initial public stock offering. Here are three important reasons for the question: Good investment paybacks normally require an exit event.

Equity 120

Equity Exit Strategy Private Equity Startup 120

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. The shares given out can either be common stocks or preferred stocks. ? Debt investment. These investments are made instead of shares or equity in your startup.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Up and Running

JULY 23, 2014

Startups looking for angel investors or venture capital (VC) absolutely need an exit strategy because investors require it. So startups looking for angel investors or venture capital (VC) absolutely need an exit strategy because investors require it. The exit is what gives them a return. last December.

Exit Strategy 131

Exit Strategy Software Review Angel Investor Startup 131

Startup Professionals Musings

OCTOBER 7, 2022

On the other hand, venture capital organizations typically look for needs that exceed $2 million. Angel investors will perk up if you have a prototype or a few real customers, while venture capitalists will likely choose to wait until you have achieved several million in revenue or customer count.

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

Both Sides of the Table

APRIL 14, 2010

If you want to raise venture capital more easily the advice could be quite practical and counter-intuitive. Many companies that are raising B or C venture capital rounds right now raised their initial money in 2005-2008. Liquidation preference is the amount of money that an investor gets paid before the common stock (e.g.

Venture Capital 289

Venture Capital Liquidation Preference Common Stock Dividend 289

Startup Professionals Musings

JUNE 5, 2021

The focus should always be on execution, revenue, and profits. Angels are becoming more aggressive as their stock market and real estate assets recover, and institutions again have earnings to risk in venture capital funds. Every startup wants to be the one to start the next bubble, but these are impossible to predict.

Demand 362

Demand Government Venture Capital Valuation 362

Both Sides of the Table

APRIL 6, 2020

The US government believes that keeping more workers employed, even if they’re not immediately productive due to WFH (work from home) or loss of revenue is better than all of these employees being laid off, where they will likely seek relief via unemployment insurance claims. The goal of the program is in the name?—?payroll

Programming 279

Programming Affiliate SBA Government 279

David Teten

AUGUST 7, 2019

The second strategy is Value Investing , a strategy which “seeks to maximize returns by finding stocks that are undervalued by the market…Investors assess a stock’s intrinsic value…and compare that value with the stock price. LTV / CAC, revenue growth, etc.) A tiny number of winners drive VC returns.

Venture Capital 60

Venture Capital Valuation Stock NDA 60

Both Sides of the Table

FEBRUARY 25, 2010

It quickly became impossible to raise venture capital. If anything changed (stock market crash, real estate crash, somebody trying to buy Salesforce.com, whatever) I could end up with goose eggs. It isn’t even a story about raising venture capital or M&A. It quickly became impossible to raise venture capital.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Both Sides of the Table

APRIL 27, 2010

My company had raised venture capital in April 2001 but we were told that there may never be any more coming. I learned how to retain employees when stock options were no longer a real currency. and we ultimately sold when we hit $14 million and had more than $30 million in backlog revenue. million, then $5.9m, $7.7m

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

Up and Running

AUGUST 18, 2014

Startups tend to rely on capital that comes via angel investors or venture capital firms while small business operations may rely on loans and grants. The interesting thing about venture capital is that those providing it tend to have a more active role in whatever company they are backing.

Small Business 154

Small Business Exit Strategy Cofounder Angel Investor 154

Both Sides of the Table

JUNE 17, 2017

It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. Revenue When I look at an income statement I start by focusing on the revenue line. You need to understand the “quality” of the revenue.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Gust

MAY 24, 2012

As a quick review, most startups begin life as corporations with a single class of equity securities, referred to as Common Stock , issued to founders, employees, and outside service providers. Options and warrants, when issued, are also typically exercisable for shares of Common Stock.

IPO 159

IPO Equity Common Stock Stock 159

Both Sides of the Table

JULY 16, 2010

But VC is an “illiquid asset&# so funds didn’t disappear quickly - In 2000/01 the stock market quickly adjusted punishing investors in the NASDAQ and in individual public technology stocks. What accelerated this was the collapse of the public stock markets. Price MUST be in a certain range.

LP 311

LP Technical Review Early Stage Silicon Valley 311

Both Sides of the Table

JUNE 5, 2011

On a public stock market that is the value that investors place on future free cash flows of the business discounted to today’s date to account for the time value of money. The price of public stocks change instantly in reaction to news that is perceived to affect the future value of that company. Here’s what I mean.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

YoungUpstarts

JULY 16, 2020

If you want your business to grow faster by taking on investors and raising venture capital, you might want to switch your business entity from an LLC to a C Corporation. The C Corporation is often the best choice for companies that want to take on capital from investors or sell shares of stock.

LLC 255

LLC Bankruptcy Venture Capital Stock 255

Startup Professionals Musings

JANUARY 4, 2020

On the other hand, venture capital organizations typically look for needs that exceed $2 million. Angel investors will perk up if you have a prototype or a few real customers, while venture capitalists will likely choose to wait until you have achieved several million in revenue or customer count.

Startup 337

Startup Preferred Stock Exit Strategy Equity 337