article thumbnail

Why The Government is Isn’t a Bigger Version of a Startup

Steve Blank

As there was no venture capital, these early startups were funded by early sales to weapon systems prime contractors and subcontractors. Within a decade, the rise of venture capital in Silicon Valley enabled startups to find commercial customers rather than military ones.

article thumbnail

Use agile budgeting to manage your cash

David Teten

The next most important set of metrics are sales by category; working capital (cash and other current assets, less current liabilities); EBITA; and gross margin. Consider ThedaCare , a healthcare system in Wisconsin, which eliminated its budgeting process in 2010. This agile approach is not restricted to small startups.

Agile 60
Insiders

Sign Up for our Newsletter

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

article thumbnail

Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

  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.] This results in a range of sale prices; in this example from $118.6MM to $21MM.

article thumbnail

The Venture Capital Secret: 3 Out of 4 Start-Ups Fail

online.wsj.com

SIGNIFICANCE PROMINENT. --> The Venture Capital Secret: 3 Out of 4 Start-Ups Fail. An entrepreneur with a hot technology and venture-capital funding becomes a billionaire in his 20s. The National Venture Capital Association estimates that 25% to 30% of venture-backed businesses fail. NAME David Cowan.

article thumbnail

A budget discussion with an entrepreneur - Startups and angels.

Tim Keane

So, if all of your costs rise smoothly in direct proportion to sales, I would suspect you built these costs for the first month and then just scaled them going forward. By the time we were done, we proved the model and gained enough new business that we didn’t need venture capital for almost a decade. Signup for email updates.

article thumbnail

In Silicon Valley, Founders Fight for Control

online.wsj.com

Over the past two years, one of the most influential venture-capital firms has turned the usual rules of start-up investing on its head. In the early days of venture capital, when money was scarce, entrepreneurs often gave up control of their company in exchange for their first investment funds. LUBLIN And SPENCER E.

article thumbnail

Lessons Learned: A Successful VC Reflects on his Experience.

Tim Keane

Last night, Bob Zieserl, Venture Capitalist, and general partner at Stratus Ventures, was the keynote speaker at the Marquette University Business Plan Competition. "Over the last twenty years, 11,000 companies have had Venture Capital investments. We had a business at $2MM in sales look like it could go to $8MM.