ReadWriteStart

JUNE 1, 2020

I have often been asked about Startup Funding by entrepreneurs. Many myths surround the subject of startup funding. Here is Startup Funding, a Comprehensive Guide for Entrepreneurs. You must have seen a lot of startups giving out promotions, discounts, and incentives at the early phase of their business.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

AUGUST 19, 2020

Cash flow is a basic survival metric for every startup. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. They understand startup realities. Getting a sales contract before manufacturing inventory.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Both Sides of the Table

SEPTEMBER 22, 2012

I think I’ve read Paul Graham’s post on “ Startup = Growth ” three or four times now. “The growth of a successful startup usually has three phases: There’s an initial period of slow or no growth while the startup tries to figure out what it’s doing. I talked about some of that here.

Silicon Valley 390

Silicon Valley Venture Capital Startup Technical Review 390

Hunter Walker

DECEMBER 13, 2020

If things are going great, you still may get a lower valuation or smaller round. Sales is just storytelling with a desired outcome at the end of the story. And what type of ‘sales’ you’ll mostly be doing. You may end up decreasing the quality of outcomes by a standard deviation or more. How does this harm occur?

Technical Cofounder 144

Technical Cofounder Cofounder Startup Matching 144

Gust

NOVEMBER 15, 2011

The Risk Factor Summation Method the fifth methodology for estimating the pre-money valuation of pre-revenue companies we have described in recent posts. Readers may have noted that both the Scorecard Method and the Dave Berkus Method considered a narrow set of important criteria for investment in arriving at a pre-money valuation.

Valuation 102

Valuation Pre-Money Valuation Ohio Early Stage 102

Both Sides of the Table

JUNE 5, 2011

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. As the risks below get eliminated the higher the valuation investors are prepared to pay.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

The Startup Magazine

JULY 25, 2021

In fact, the announcement of the share issue led to a decline in Galactic share prices and overall market valuation. You should focus on making your startup irresistible to investors without opting for a dilutive capital raise. Below are tips on how you can boost growth and increase your business’s market valuation.

Valuation 162

Valuation Artificial Inteligence Dilution Marketing 162

Gust

NOVEMBER 2, 2011

We recently started a series of posts on establishing the pre-money valuation of pre-revenue startup companies for purposes of investment by seed and startup investors. He has invested in more than 70 startup ventures. Add to Pre-money Valuation. Product Rollout or Sales. Characteristic. Zero to $0.5

Valuation 79

Valuation Pre-Money Valuation Intellectual Property Southern California 79

Both Sides of the Table

NOVEMBER 14, 2017

Nearly every successful tech startup I’ve observed over the past 20 years has gone through a similar growth pattern: Innovate, systematize then scale operations. Innovate In the early years of a startup there is a lot of kinetic energy of enthusiastic innovators looking to launch a product that changes how an industry works.

Operations 286

Operations New York City Technical Review Startup 286

Startup Professionals Musings

NOVEMBER 26, 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?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

Startup Professionals Musings

SEPTEMBER 14, 2016

Cash flow is a basic survival metric for every startup. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. They understand startup realities. Getting a sales contract before manufacturing inventory.

Burn Rate 120

Burn Rate Hockey Stick Startup Salary 120

Mucker Lab

MAY 28, 2020

Like a teenager with a million-dollar allowance and an identity crisis, a startup with too much capital and no product-market fit will become capable of making larger mistakes. As an investor, I root for startups. Startups flush with cash often do the opposite – they jump out of the plane, and then test the parachute as they free fall.

Startup 78

Startup Cofounder Burn Rate Technical Review 78

Up and Running

SEPTEMBER 19, 2017

Capital investments are like gasoline on a startup business’s metaphorical fire. If you’re like most startup CEOs, your startup has been your personal fiefdom and baby. Background: Justin Klemm’s analytics and website uptime startup, Ghost Inspector , wants to revolutionize the way businesses manage their ecommerce funnels.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Steve Blank

MARCH 17, 2020

With the Covid-19 virus a worldwide pandemic, if you’re leading any startup or small business, you have to be asking yourself, “What’s Plan B? If you’re running a startup or small business, your first priority (after your family) is keeping your employees and customers safe. Or you change sales strategy. “Winter is coming.”.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

Both Sides of the Table

APRIL 26, 2016

There has been a lot of public debate over the past several weeks about whether it’s a good thing to be “gross margin positive” or not and commentary always reminds me that some people at startups don’t quite understand financial metrics or even how to think about which ones are healthy. Gross margin positive !=

Metrics 150

Metrics Cost Acquisition Startup 150

Startup Professionals Musings

AUGUST 21, 2021

When you see startups like SpaceX and Pinterest grow from a low valuation to a billion dollars in just a few years, it’s easy to assume that if you just keep doing what you are doing, you can get there as well. Switch your focus from product development to sales. Isolate marketing from sales for maximum customer focus.

Merger 379

Merger Due Diligence SEC IPO 379

YoungUpstarts

FEBRUARY 20, 2017

This is where a business for estate appraising and sales would be beneficial. As an appraiser, you would organize the valuation and sale of the contents of a property. After establishing prices for the items that are for sale, you would need to plan and advertise for a day when the public can purchase the items.

Technical Review 138

Technical Review Social Media Startup Valuation 138

Startup Professionals Musings

OCTOBER 14, 2016

Based on some good estimates of how many new ventures have been started in the last five years, the statistical odds of any individual startup making it to this level are less than one in a million. If your new venture is still in the idea or development stages, don’t even think about a high valuation.

Intellectual Property 120

Intellectual Property Valuation Merger Exit Strategy 120

SoCal CTO

JUNE 9, 2010

Continuing my series of posts that I’ve been collecting that live at the intersection of Startups and being a Startup CTO : Startup CTO Top 30 Posts for April 16 Great Startup Posts from March here are the top posts from May 2010. Through advertising or direct sales, these sites harvest intent. It is to out friend.

Fractional CTO 248

Fractional CTO Startup Venture Capital Cofounder 248

Startup Professionals Musings

OCTOBER 5, 2014

Cashflow is a basic survival metric for every startup. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. They understand startup realities. Getting a sales contract before manufacturing inventory.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

Startup Professionals Musings

JANUARY 27, 2016

For a software startup, a patent can be the intellectual property providing the key competitive advantage, or it can be an expensive non-defensible bureaucratic nightmare -- or both. The patent application and approval process is expensive and slow. Even if you start with the U.S. That’s more than a lifetime in today’s technology.

Software Review 120

Software Review Intellectual Property Software Technical Review 120

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?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Both Sides of the Table

OCTOBER 11, 2009

This is part of my ongoing series Startup Advice. Many startup companies hire advisory boards. When they’re first approached it sounds exciting to be involved with a startup and if they’re offered free shares – why not? At a $2 million valuation this is 0.5% It’s very tempting. Not enough time.

Advisory Board 306

Advisory Board Startup Equity Valuation 306

The Startup Magazine

FEBRUARY 21, 2024

As an investor, these experiences have honed my ability to see beyond spreadsheets and valuations, to the core of what makes businesses thrive: the people, the vision, and the relentless pursuit of excellence. The company not only averted bankruptcy but emerged as a leaner, more competitive player in its industry.

Technical Review 133

Technical Review Due Diligence Bankruptcy Intellectual Property 133

Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success. Term-sheets and Valuations: Thinking about Negotiations. The Valuation Question. When companies seeking their first round of serious funding are good enough to receive a term-sheet from an investor, the first issue that always arises is valuation. Let’s start at the end.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

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?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Up and Running

SEPTEMBER 10, 2014

I’m a mom, a full-time sales manager, and recruiter. According to the Angel Capital Association: Angels (private money) invest in 55,000 startups each year versus 1,500 companies by VC (venture capital) funding. Entrepreneurs need to find a way to get traction (sales) without funding. Wait, you didn’t want to be a sales person?

Angel Investor 159

Angel Investor Technical Review Software Review Accredited Investor 159

Startup Professionals Musings

OCTOBER 18, 2023

Although many won’t admit it, true entrepreneurs can’t wait to exit their current startup, and build a new and better one with their next great idea. For these reasons, I always look for an overt exit strategy in every startup I might consider for an angel investment. Set your startup health gauges and use them.

Exit Strategy 248

Exit Strategy Valuation Acquisition Metrics 248

YoungUpstarts

MAY 29, 2011

This week Blackbox , founded by entrepreneurs Bjoern Lasse Herrmann and Max Marmer, released its first Startup Genome Report — a 67-page in depth analysis on what makes Silicon Valley startups successful based on profiling over 650 startups. Startups that pivot once or twice times raise 2.5x better user growth.

Silicon Valley 230

Silicon Valley Cofounder Technical Cofounder Startup 230

Startup Professionals Musings

MARCH 16, 2011

Money to build the business is the number one challenge for most startups. A large percentage of startups never apply to either. You need to explore more common and more productive approaches for getting your startup moving forward. Self-funding is the preferred source of cash for your startup – if you can do it.

Technical Review 233

Technical Review Bootstrapping Startup Venture Capital 233

Steve Blank

JULY 11, 2017

By coincidence, the CEO was an intern at one of my startups more than two decades ago.) Before the rapid rise of Unicorns, (startups with a valuation over a billion dollars), when boards were still in control, they “encouraged” the hiring of “adult supervision” of the founders after they found product/market fit. The founders.

Part-Time VPE 308

Part-Time VPE Liquidity Event Stock Engineer 308

Steve Blank

MAY 29, 2011

He set up Blackbox.vc, a seed accelerator for technology startups (and one of the tour stops for entrepreneurs from around the world.) They went to work gathering deep knowledege of what makes successful Internet startups. Max and his partners interviewed and analyzed over 650 early-stage Internet startups. better user growth.

Technical Cofounder 333

Technical Cofounder Early Stage Startup Silicon Valley 333

The Startup Magazine

JANUARY 14, 2020

Higher asset valuation – growing awareness about the environment; the social impact of buildings and the need to meet sustainability credentials is increasingly making real estate investors and occupiers turn to green buildings. The cumulative cost impact often adds to lower building operation and corresponding maintenance cost.

Green 138

Green California Government Valuation 138

Startup Professionals Musings

NOVEMBER 21, 2016

After listening to hundreds of startup pitches, and reading even more business plans, most new venture investors develop their own favorite list of “red flags” that signal the beginning of the end of their interest. Every startup needs focus, due to limited resources, so setting irrational goals implies overall poor business acumen.

Intellectual Property 120

Intellectual Property Valuation Technical Review Equity 120

Up and Running

SEPTEMBER 15, 2021

How to optimize SaaS startup development costs. In this blog, we are going to discuss some of the important practices to optimize product development and remove unnecessary startup expenses. Most SaaS startups want to launch with more features because of the belief that it will help them increase the adoption.

Cost 158

Cost Developer Azure Cloud 158

Startup Professionals Musings

JANUARY 9, 2021

Although many won’t admit it, true entrepreneurs can’t wait to exit their current startup, and build a new and better one with their next great idea. For these reasons, I always look for an overt exit strategy in every startup I might consider for an angel investment. Set your startup health gauges and use them.

Exit Strategy 434

Exit Strategy Valuation Acquisition Metrics 434

The Startup Magazine

AUGUST 15, 2022

There are many benefits of selling your startup through a mergers and acquisitions advisor. If all else fails, your advisor may be able to salvage the sale by reengaging other interested parties. Before considering selling your startup to a larger company, it is critical to determine the compensation of each of these key employees.

Merger 130

Merger Acquisition Due Diligence Valuation 130