Startup Professionals Musings

FEBRUARY 21, 2012

Pay people with equity or future revenue. Another one to avoid cash burn for software development is a contract for percent of future revenue. For example, a web-based startup should be able to operate for a year if they raise $500,000 from the founders or angels. Great strategy. Do it yourself and barter for services.

Burn Rate 232

Burn Rate Startup Salary Equity 232

Startup Professionals Musings

JUNE 26, 2016

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $400B. Long-term stability requires revenue growth and profit. Both have worked. Traditionally, it was simple.

Revenue 145

Revenue Valuation Startup Viral 145

A Smart Bear: Startups and Marketing for Geeks

JUNE 20, 2011

They’ve heard rules of thumb like “A growing software company is worth 5 times their trailing 12-months revenue.&# Even narrowing the field as much as feasible, revenue multiples varied between 1.2x The “Multiples&# argument does work well in industries where company’s growth and revenue is highly predictable.

Sales 260

Sales Channel Cofounder Valuation 260

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 173

Demand Product Artificial Inteligence Software Review 173

Both Sides of the Table

MAY 23, 2012

Yes, it’s true that FOMO (fear of missing out) is driving some irrational behavior and valuations amongst uber competitive deals and well-financed VCs. hours per day on average, and that’s excluding the other 13 hours a day where we have our mobile devices, our connected TVs, our iPads and Kindles and soon our cars connected to the web.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

Startup Professionals Musings

JANUARY 28, 2011

Pay people with equity or future revenue. Another one to avoid cash burn for software development is a contract for percent of future revenue. For example, a web-based startup should be able to operate for a year if they raise $500,000 from the founders or angels. Great strategy. Do it yourself and barter for services.

Burn Rate 231

Burn Rate Startup Salary Equity 231

Steve Blank

FEBRUARY 26, 2020

There are two reasons to raise money: You have a killer idea that is only partially validated, that you think can get to $50M+ of revenue in 5 years with 80%+ gross margins (if margins are lower, you need a lot more revenue)and you need money to get to product-market fit, or. Revenue per customer? Revenue, Gross Margin?

Cofounder 431

Cofounder Seed Stage Valuation Metrics 431

Startup Professionals Musings

SEPTEMBER 6, 2010

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” This time I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points. Assign real value to intellectual property.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Gust

NOVEMBER 18, 2012

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” This time I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points. Assign real value to intellectual property.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Start Up Blog

OCTOBER 12, 2022

When a top 10 company by valuation like Facebook, changes its name and focus to the MetaVerse – it is going to generate a lot of attention. Both in terms of revenue and profit. 97% of FB / Meta’s revenue comes from advertising. Since its launch in 2004, Facebook was the clear winner of social networking with 3.6

Social Network 48

Social Network Government Valuation Advertising 48

YoungUpstarts

OCTOBER 28, 2020

It’s not just about revenue. While revenue is taken into consideration, there are more components involved in valuing a business. . The only way to get an accurate value estimation is to hire a business broker to perform a business valuation. This detailed information will be important to potential buyers.

eCommerce 264

eCommerce Database Social Media Valuation 264

Feld Thoughts

JANUARY 7, 2015

When I saw the proposal, I immediately thought of the web consulting rollups of 1999. Do you remember US Web, iXL, Scient, and Viant? Companies were being bought (and valued) at 10x forward revenue only to be valued at between 0.5x revenue several years later. Anyone remember the web hosting rollup?

Stock Options 70

Stock Options Cofounder Revenue Hosting 70

VC Cafe

JANUARY 27, 2021

Similarly, Grapevine strives to eliminate scheduling issues and cheekily open its landing web page with the sentence “Schedule fewer Zoom meetings.” But within two weeks its Israeli founders managed to pivot their product into the virtual events world and have concluded 2020 with 100% growth and tens of millions of dollars in revenue.

Vertical 148

Vertical Video Technical Review Europe 148

Both Sides of the Table

JUNE 22, 2011

I spoke about how Amazon Web Services deserves far more credit for the last 5 years of innovation than it gets credit for and how I believe they spawned the micro-VC category. Ah, but today’s Internet companies have real revenue! And for some that means that despite waiting they may see worse valuations in the future than now.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Both Sides of the Table

MARCH 1, 2011

Because he was particularly attracted to the idea of positioning Quigo in the business of helping retailers with search, Quigo started building sophisticated technology for applied semantics stuff with web pages. So, what Quigo would do is analyze a web page for Overture and tell them what they thought it was about.

Semantic 302

Semantic Acquisition Valuation Angel Investor 302

Gust

DECEMBER 6, 2011

An experienced software engineer, for example, can develop a new mobile app with his or her own resources and market the product on the web with very little capital. Milestones are accomplishments that demonstrate the viability of the business; hence, they increase the valuation of the company.

Angel Investor 179

Angel Investor Venture Capital Valuation Software Engineering 179

Steve Blank

MARCH 12, 2014

We realized that past K-12 Entrepreneurial classes taught students “the lemonade stand” version of how to start a company: 1) come up with an idea, 2) execute the idea, 3) do the accounting (revenue, costs, etc.). We wanted to teach our students how to think like entrepreneurs not accountants.

Lean 334

Lean Customer Development Startup Silicon Valley 334

Up and Running

SEPTEMBER 19, 2017

That’s because obtaining a pre-money valuation for a concept level technology company in excess of $1 million is difficult, particularly for a startup founder without a proven track record. By contrast, obtaining a pre-money valuation of $5 million for a business with a new viable product and even very minimal sales is somewhat reasonable.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Startup Professionals Musings

NOVEMBER 4, 2011

In today’s world, if you don’t have a web site up and running, you will not be perceived as a real company. Investors routinely go to candidate web sites to get a feel for the tone and scope of the company, as well as its maturity and offerings. Get your Internet domain name and website. Finalize your financial model.

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

Version One Ventures

OCTOBER 15, 2020

And >40% of that revenue is coming from in-game purchases. When they can invest the marginal engineering hour in listing a new token that drives revenue vs. saving some costs on settlement, it’s hard to justify. Use Case II: Decentralized Data Network (Web 3) . account-based identity model to the Web 3.0

Networking 168

Networking Global OTC Security 168

SoCal CTO

OCTOBER 5, 2010

Why Every Entrepreneur Should Write and 9 Tips To Get Started - OnStartups , September 27, 2010 "The best part of blogging is the people you will meet"- Hugh MacLeod repeating wisdom from Loic Lemeur to me at the Big Pink at 2 am in South Beach after the Future of Web Apps 2008. Another important web 2.0 Why You Should Write.

Technology 191

Technology Product San Francisco CTO Hire 191

Startup Professionals Musings

FEBRUARY 5, 2010

Pay people with equity or future revenue. Another one to avoid cash burn for software development is a contract for percent of future revenue. For example, a web-based startup should be able to operate for a year if they raise $500,000 from the founders or angels. Great strategy. Do it yourself and barter for services.

Burn Rate 120

Burn Rate Startup Salary Equity 120

YoungUpstarts

JUNE 26, 2020

To do that you have to show how your market is big enough (a multi-billion dollar market) to support that kind of valuation. Going all the way back to Yahoo or Microsoft, the initial products (a directory for a nascent tech called the World Wide Web, and Microsoft BASIC,) didn’t look like billion dollar products at all. I was wrong.

Finance 205

Finance Silicon Valley Valuation Startup 205

Steve Blank

MARCH 31, 2014

Companies horde cash and squeeze the most revenue and margin from the money they use. Ask Sony about Samsung, ask any retailer about Amazon, any car company about Tesla, and any newspaper company about the web. Look at the valuations of companies like Tesla, Illumina, and Twitter.

Private Equity 328

Private Equity Metrics China Intellectual Property 328

YoungUpstarts

FEBRUARY 14, 2017

Your revenues are declining or you don’t have any revenue at all! Revenues don’t appear overnight; even the greatest success stories had to work hard to start getting traction and growth. Yet if revenues start to decline, or after a few months customers are still leaving you for other solutions, then you may have an issue.

Technical Review 157

Technical Review Architecture Revenue Channel 157

abovethecrowd.com

FEBRUARY 24, 2015

As a result, a “late-stage” financing is no longer reserved for high-revenue, pre-profitability companies getting ready for an IPO; it is simply any large round of financing done at a high price. An unprecedented 80 private companies have raised financings at valuations over $1B in the last few years.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40

Startup Professionals Musings

SEPTEMBER 23, 2010

In today’s world, if you don’t have a web site up and running, you will not be perceived as a real company. Investors routinely go to candidate web sites to get a feel for the tone and scope of the company, as well as its maturity and offerings. Get your Internet domain name and website. Finalize your financial model.

Angel Investor 224

Angel Investor Intellectual Property Technical Review Elevator Pitch 224

The Next Web

MARCH 26, 2015

Setting a valuation for an early-stage startup looking to raise money is tough. Should you rethink your magic number if you still have no revenue? Should you rethink your magic number if you still have no revenue? For starters, do you know where you stand in relation to other companies? In regards to your market?

Valuation 60

Valuation Early Stage Startup Video 60

Both Sides of the Table

MAY 19, 2010

Gilt Group is currently the largest private sale web site in US. Founded in November 2007 in New York City by Alexis Maybank and Kevin Ryan (co-founder of DoubleClick); CEO is Susan Lyne (ex-CEO Marta Stewart Living Omnimedia) Revenue estimates: $50mm in 2008; $170mm in 2009 (versus budget of $150mm); $450mm forecasted for 2010.

Partner 240

Partner New York City Cofounder Syndicate 240

Ben's Blog

MARCH 24, 2011

As we do so, keep in mind that the relevant bubble statistic is not valuation. High valuations are fine if the underlying value is there. In the great bubble of 1998-2000, the boom in public valuations mirrored the boom in private valuations. If too much venture capital hits the streets, valuations will bubble up.

Technical Review 78

Technical Review Venture Capital Valuation Database 78

Steve Blank

MAY 19, 2015

I had lunch last week with Tom, the CEO of a startup that was quickly becoming a large company – last year’s revenue was $40M, this year likely to be $80M maybe even $100 million in ad revenue. to drive traffic to their site, which they then turned into ad revenue.

Technical Review 120

Technical Review Salary Early Stage Software Review 120

Agile VC

MAY 26, 2011

The market size for online advertising, e-commerce, and web premium services are 1/10th to 1/3rd the size they are today. It’ll be nearly two years before the concept of “Web 2.0″ ″ is popularized by Tim O’Reilly (the first Web 2.0 It was a pretty good valuation for the time. It was a $4.7M

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

The Equity Kicker

AUGUST 30, 2012

I woke up this morning to read Yelp shares were up 22% after the lockup ended and Pandora shares pop 9% after revenue beats expectations. It’s good to see that some web companies are doing well and it’s not all bad news out there. LinkedIn is another good performer. Their share price is up 63% since the start of the year.

Web 94

Web Valuation Revenue Startup 94

Both Sides of the Table

AUGUST 9, 2011

Valuations were enormous relative to progress in companies. Companies with less than $2 million in revenue were asking for $50-60 million valuations and getting them. I spent my days meeting companies, figuring out what areas of the market interested me and trying to get a sense for how VCs thought about fair valuations.

Stock 305

Stock Technical Review Marketing Greece 305

Startup Professionals Musings

SEPTEMBER 30, 2011

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” This time I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points. Assign real value to intellectual property.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

Berkonomics

DECEMBER 17, 2020

The European Business Angel Network (EBAN), and similar organizations in other countries including Canada, all have web sites with directories of angel groups that are local to you. They look for businesses that are in large markets, that can grow fast, and that can achieve revenues in excess of $20 million within five years of founding.

Equity 62

Equity Finance Liquidity Event Angel Groups 62

crowdSPRING Blog

NOVEMBER 1, 2013

These posts and videos are about logo design , web design , startups, entrepreneurship, small business, leadership, social media, marketing, and more! The Pricing Model That Increased Our Free Trial Signups by 358% (and Revenue by 25%) – crowdspring.co/1alarDV. But a nearly $4 billion valuation? Nuts - crowdspring.co/1akpXj7.

Social Media 94

Social Media Small Business Design Media 94