ConversionXL

JANUARY 9, 2019

Often, little more than a form fill tells you about the potential for a five-figure sale months down the road. Google Analytics insights frequently end with raw counts of goal completions, leaving a yawning gap between on-site behavior and sales for companies with long sales cycles. Why bother? Analytics incentivize behavior.

Sales Cycle 127

Sales Cycle Conversion Bootstrapping Web 127

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

The Startup Magazine

AUGUST 11, 2023

pexels A war chest is virtually always a competitive edge in all aspects that count, including employing key staff, public relations, marketing, and sales. Analysts perform a valuation of the company in question before the beginning of any round of funding. Hence they will miss the finish line. What is the Evaluation of the Funding?

Seed Stage 119

Seed Stage Technical Review Early Stage Due Diligence 119

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. Below are tips on how you can boost growth and increase your business’s market valuation. Your market share in the industry is 1%, based on the percentage of sales method. Understand market share .

Valuation 157

Valuation Artificial Inteligence Dilution Marketing 157

Startup Professionals Musings

AUGUST 19, 2020

Waiting until you have something to sell before bringing on a sales and operations staff. Getting a sales contract before manufacturing inventory. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity. Social media is not rocket science.

Burn Rate 310

Burn Rate Hockey Stick Salary Social Media 310

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. Dave’s valuation model first appeared in a book published by Harvard’s Howard Stevenson in the middle nineties. Add to Pre-money Valuation. Characteristic.

Valuation 79

Valuation Pre-Money Valuation Intellectual Property Southern California 79

YoungUpstarts

NOVEMBER 19, 2020

EBITDA is the most important profitability metric to consider as many valuations are based on a multiple of this metric. Therefore, the higher your EBITDA is, the higher the price you can demand in the sale of your business. That being said, it makes sense that when business is booming, your valuation will be higher.

Exit Strategy 224

Exit Strategy Intellectual Property Valuation Metrics 224

Both Sides of the Table

SEPTEMBER 28, 2014

Gross margin (GM) is the amount of profit you make per sale of your product or service taking into account your total costs of selling that product or service. If you have a very low gross margin (10-30%) it can be very hard to build a large, scalable business because you need to make a lot of sales to cover your operating costs.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

VC Cafe

SEPTEMBER 26, 2022

Sustainable growth: Prioritise sales efficiency over growth at all costs. ValuatIon should be a function of value, not ego. Kawasaki’s Law of Pre-Money Valuation: for every full-time engineer, add $500,000; for every full-time M.B.A., A good way to think about valuation in seed/pre-seed is to reverse engineer the next round.

Founder 187

Founder Startup Valuation Pre-Money Valuation 187

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

Steve Blank

JUNE 27, 2017

Uber – current valuation >$70 billion – knew the day they started that their ridesharing service violated the law in most jurisdictions. Airbnb – current valuation $31 billion – allows people to rent out their homes, rooms or apartments to visitors. Here are some of the most visible examples.

Startup 275

Startup New York City Valuation Distribution 275

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

Even if this costs more than 2 years of in-house assembly, it’s still worth it, due to accelerating revenue growth due to up-sales and market-differentiation. Pundits couldn’t agree how to analyze the sale of Instagram to Facebook. Remember this is revenue , not valuation. Zoom out to see the strategic decision.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

View from Seed

NOVEMBER 18, 2020

Sales and marketing has been 30%+ basically forever, though undoubtedly Airbnb has enough brand recognition and loyal customers that if you turned off marketing spend then revenue would drop but not to zero. Uber is an $85B+ market cap company today but is essentially flat to its IPO price and late private round valuations.

North America 401

North America IPO Prospectus Europe 401

YoungUpstarts

DECEMBER 12, 2016

When starting a business, chances are you are mainly focused on trying to get everything together so you can make that first sale. In order to attract investors, you have to know the valuation of your company or how much your company is worth. Take a look at this infographic to learn more about valuation.

Valuation 100

Valuation Startup Sales 100

VC Cafe

OCTOBER 31, 2022

But even in the seed market the bar could get higher: I wouldn’t be surprised to see valuations drop and for VCs to have rising expectations about the level of traction they expect to see before funding. Tiger, Softbank and other crossover funds are slowing down significantly and valuations overall are down significantly.

Founder 173

Founder Technical Review Down Round Liquidation Preference 173

Startup Professionals Musings

OCTOBER 14, 2016

The fact is that valuations are largely set by top venture capital investors and financial firms, and they all have their own proprietary formulas for assigning value. If your new venture is still in the idea or development stages, don’t even think about a high valuation. You have to earn a billion-dollar valuation, not declare it.

Intellectual Property 120

Intellectual Property Valuation Exit Strategy Merger 120

Startup Professionals Musings

SEPTEMBER 29, 2018

Waiting until you have something to sell before bringing on a sales and operations staff. Getting a sales contract before manufacturing inventory. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity. Social media is not rocket science.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

YoungUpstarts

MARCH 14, 2016

There are many reasons why you need a current valuation of your business and many business owners assume that it is only necessary when selling but actually, this is not the case. Business valuations and wealth management. Pre-sale planning – the lessons here is simple: buyers will only pay a high price for an attractive business.

Valuation 100

Valuation Sales Employee Management 100

Both Sides of the Table

JUNE 5, 2011

2: As expected at least one person accused me of writing this post because I want to see lower valuations. As the risks below get eliminated the higher the valuation investors are prepared to pay. So rounds tend to be “range bound&# where the top end of the valuation spectrum often being done in boom markets (i.e.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

allthingsd.com

AUGUST 24, 2012

Fenwick VC Survey: Q2 Funding Valuations Shoot the Moon. According to Fenwick & West’s latest Silicon Valley Venture Capital Survey , fundings in the second quarter of this year showed the highest valuation increases in more than five years. CCIE - Senior Sales Support Engineering. Recent Posts by Kara Swisher.

Valuation 45

Valuation Technical Review Silicon Valley Software Review 45

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 126

Technical Review Due Diligence Bankruptcy Intellectual Property 126

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

The Startup Magazine

APRIL 10, 2019

Knowing the value of real estate is important as it helps determine several things, such as sales listings, financing, property insurance, and taxation. If you have an interest or property in real estate, then here are the 4 things that you need to know about property valuation: Photo by Kevin Wolf on Unsplash. Conclusion.

Valuation 98

Valuation Australia Government Finance 98

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

Berkonomics

JANUARY 28, 2021

I can’t tell you how many times I’ve walked away from deals where the entrepreneur insists on a start-up pre-money valuation that is so high, no angel could expect to make a return upon the investment, even with a reasonable sales price for the company down the road. The post Don’t get hung up on early stage valuation.

Early Stage 62

Early Stage Valuation Pre-Money Valuation Cofounder 62

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

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 132

Green California Government Valuation 132

Startup Professionals Musings

JANUARY 27, 2016

I still generally advise software startups to file a patent as a barrier to entry from competitors and to increase their valuation by investors, but every entrepreneur needs to understand the tradeoffs. This is positive, in educating the public by making them aware of an unknown or non-obvious software invention.

Software Review 120

Software Review Intellectual Property Software Technical Review 120

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

APRIL 8, 2019

Perhaps you’re preparing for retirement or for a transition to a new owner —whether it involves a single private owner or a sale to employees. This will require an accurate valuation. While these ideas may seem foreign at first, it’s possible to become as well-versed in small business valuation as your intermediary might be.

Valuation 92

Valuation Small Business CPA Balance Sheet 92

ReadWriteStart

JUNE 1, 2020

Instead of funding, you pay the investors a structured royalty, which is a portion of the sales. The bridge or exit stage is generally of very large transactions and for companies with substantial valuation. Point number 3: Never raise money with an increased valuation. Royalty based investment. Bridge or exit stage.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

VC Cafe

SEPTEMBER 22, 2022

But becoming a Unicorn, or receiving a billion dollar valuation is no longer an indication of growth. “The Centaur is a business that reaches $100 million of annual recurring revenue (ARR)—a rare breed of cloud business, part of an elite subset of the growing unicorn herd.” ” Bessemer.

Software Review 109

Software Review B2C Open Source 109

Both Sides of the Table

FEBRUARY 8, 2016

The startup industry may be “resetting,” which doesn’t mean a “crash” but rather just a resetting of valuations, timescales, winners/losers, capital sources and the relative emphasis of growth rates vs. burn rates. Be realistic on valuation. So here’s my take away. In my mind this simply means.

Burn Rate 150

Burn Rate Cap Table Dilution Balance Sheet 150

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. Computers : Both Best Buy and Stables said that there have been a surge in the sales of work-from-home products , such as laptops, keyboards, and computer monitors, since the COVID-19 outbreak.

Demand 134

Demand Product Artificial Inteligence Software Review 134

Startup Professionals Musings

OCTOBER 18, 2023

Even if you don’t have a formal board of directors, it pays to have trusted advisors who will give you regular unbiased feedback on your team strengths and weaknesses, financial and operating ratio norms, and an external view of current company valuation issues. Your valuation and salability depends on the credibility of this effort.

Exit Strategy 248

Exit Strategy Valuation Acquisition Metrics 248

SoCal CTO

FEBRUARY 2, 2011

Because of this, I've always tried to stay up-to-speed on how early-stage investors look at valuation of companies. Bill Payne is an expert on how early-stage investors should look at valuation. He just post: Establishing the Pre-money Valuation of Pre-revenue Startups. What are they really looking for? is a requirement.

Valuation 198

Valuation Revenue Pre-Money Valuation Early Stage 198

Steve Blank

FEBRUARY 26, 2020

For a Series A round you want to prove you have built a repeatable and scalable sales/revenue model and understand all parts of the business model. The goal of the product at this stage is not a sale, but to test hypotheses about customer product/market fit. Series B is about proving your net revenue model (can you be profitable?).

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429