Gust

NOVEMBER 1, 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. It is one of the useful methods for establishing the pre-money valuation of pre-revenue startup ventures. Post-money Valuation = $ 2.125 million.

Venture Capital 161

Venture Capital Valuation Pre-Money Valuation Post-Money Valuation 161

Both Sides of the Table

MARCH 21, 2013

I recently wrote a blog post in which I pointed out that many investors & advisors discourage enterprise startups from having a professional services (PS) business and I think this is a big mistake. I think it’s important for enterprise startups to layer in professional services into your revenue stream. rollout support.

Software Review 321

Software Review Software IP Technical Review 321

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

SEPTEMBER 29, 2018

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. Desperate entrepreneurs lose their leverage and die young.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

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. Desperate entrepreneurs lose their leverage and die young.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Steve Blank

NOVEMBER 2, 2021

They heard from a professor that the ratio of Stanford students taking software versus hardware courses was 10-to-1 software, a complete reversal from decades ago.

Technical Review 366

Technical Review Taiwan Technology Artificial Inteligence 366

Austin Startup

APRIL 25, 2017

In summary: Snap’s current business doesn’t justify a $20B valuation. How can one justify a $20B valuation for Snap? The product that could most likely justify Snap’s $20B valuation is Spectacles. But if it can’t, it’s going to take Snap a long time to the achieve financial performance necessary to sustain a $20B+ valuation.

Valuation 48

Valuation Technical Review Forecast Social Network 48

Startup Professionals Musings

DECEMBER 30, 2022

Every business owner and entrepreneur I meet in my consulting rounds dreams of finding that “ disruptive ” innovation that will supercharge their business and move it into the ranks of business unicorns (billion-dollar valuations), such as SpaceX and Apple. Be sure to hire and cultivate new talent with the right mindset.

Technical Review 252

Technical Review Silicon Valley Software Review Metrics 252

Up and Running

SEPTEMBER 15, 2021

In the last decade, SaaS (Software as a Service) has become a very popular model for new software product development. 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.

Cost 158

Cost Developer Azure Cloud 158

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

ReadWriteStart

JULY 2, 2022

Since most startups in 2022 are going online, you need to think about starting your business on the Internet. A startup on online platforms is an excellent idea for those who like flexible working hours and complete control over their income. Before preparing to launch for a startup, consider the following factors: Expertise.

Cost 140

Cost Software Review Technical Review Cloud 140

Hunter Walker

SEPTEMBER 3, 2023

Holiday weekend here in the US means links for you to read Playing Different (Stupider) Games The Other End Of The Valuation Stick [Kyle Harrison, Contrary Capital] – Kyle puts out a new essay (almost) every Saturday and I really enjoy his consistent and clear eyed POV on venture capital.

Technical Cofounder 79

Technical Cofounder Cofounder Coder Canada 79

Startup Professionals Musings

FEBRUARY 21, 2012

Cash is the fuel of every startup. It continually amazes me how two startups, seemingly comparable in stage and objective, can be so far apart in their burn rate. Here are some recommendations on how to keep the rate low, and help your startup to prosper at the same time: Measure it and manage it. Which would you bet on?

Burn Rate 232

Burn Rate Startup Salary Equity 232

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. Desperate entrepreneurs lose their leverage and die young.

Burn Rate 120

Burn Rate Hockey Stick Startup Salary 120

Startup Professionals Musings

MARCH 10, 2021

A while back I received a discouraging note from an entrepreneur with a patent and a medical software application who couldn’t find a dime of investment, and was grousing that seed funding just wasn’t available anymore. Lack of clear objectives/goals. Then you have to have evidence to support your request.

Software Review 307

Software Review Due Diligence Elevator Pitch Early Stage 307

Startup Professionals Musings

SEPTEMBER 20, 2021

I believe the Maker Movement and hardware startups with limited resources are made for each other. They come at the early stage while a startup has no revenue or valuation, so professional investors are hard to find. Countless startup teams have already been spawned from these.

Startup 397

Startup Cofounder Incubator Early Stage 397

Startup Professionals Musings

JANUARY 28, 2011

Cash is the fuel of every startup. It continually amazes me how two startups, seemingly comparable in stage and objective, can be so far apart in their burn rate. Here are some principles on how to do that, and help your startup to prosper and live another day: Measure it and manage it. Which would you bet on? Great strategy.

Burn Rate 231

Burn Rate Startup Salary Equity 231

Startup Professionals Musings

NOVEMBER 17, 2013

A while back I received a discouraging note from an entrepreneur with a patent and a medical software application who couldn’t find a dime of investment, and was grousing that seed funding just wasn’t available anymore. angels entrepreneur funding gaps process startup' Lack of clear objectives/goals. Use them and win. Marty Zwilling.

Software Review 265

Software Review Due Diligence Elevator Pitch Startup 265

Startup Professionals Musings

MARCH 16, 2016

Whether you are talking to peers, competitors or investors, you as an active entrepreneur will be judged on your familiarity with today’s startup and funding jargon. This term is currently applied to recent startups who profess a current valuation which exceeds $1 billion. Could your startup be the next one? Sweat equity.

Software Review 120

Software Review Sweat Equity Accredited Investor Angel Investor 120

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

JULY 11, 2017

They make hardware with a large part of their innovation in embedded software and services. While a significant part of the headcount of this tech company was in manufacturing, the director’s group was made up of experienced software engineers. I was visiting with an ex-student who’s now the CFO of a large public tech company.

Part-Time VPE 308

Part-Time VPE Liquidity Event Stock Engineer 308

VC Cafe

FEBRUARY 26, 2023

” – Marc Andreessen In the book “ Super Founders “, author Ali Tamaseb, studied 200 Unicorns, aka startups valued at over $1 billion, started between 2005 to 2018. Israeli startup Mobileye , which was acquired by Intel for $15 billion, is a great example of a company that exhibited extreme resilience.

Founder 88

Founder Cofounder Seed Stage Valuation 88

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. This is how much you spend to get a new customer.

Metrics 150

Metrics Cost Acquisition Startup 150

Startup Professionals Musings

DECEMBER 13, 2012

I always advise software startups to file patents to protect their “secret sauce” from competitors, and to increase their valuation. Yes, the software patent process is a mess. I say this with conviction even after I survived the process, and have a software patent pending. Software technology changes rapidly.

Software 233

Software Intellectual Property Algorithm Startup 233

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. You could just outspend. It is to out friend. Enjoyed this post? Disruptive. We get it!

Fractional CTO 248

Fractional CTO Startup Venture Capital Cofounder 248

Both Sides of the Table

FEBRUARY 15, 2016

There is much talk these days that startup valuations have decreased and may continue to do so and that the amount of time it takes to fund raise may take longer. The earlier the round, the less capital you need and the more reasonable your valuation the less time that is needed generally to raise capital. Only you know.

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

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

Startup Professionals Musings

JANUARY 19, 2020

Venture capitalists (VCs) have long been seen as the top of the pyramid for startup funding sources, but in fact angel investors now fund over twice as many companies, according the Crunchbase. The cost of entry for tech startups continues to go down. Mobile and web software apps may cost even less.

Angel Investor 314

Angel Investor Venture Capital Silicon Valley Startup 314

Startup Professionals Musings

OCTOBER 17, 2022

Venture capitalists (VCs) have long been seen as the top of the pyramid for startup funding sources, but in fact angel investors now fund over twice as many companies, according to a classic Crunchbase article. The cost of entry for tech startups continues to go down. Mobile and web software apps may cost even less.

Angel Investor 342

Angel Investor Venture Capital Silicon Valley Portfolio 342

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. Desperate entrepreneurs lose their leverage and die young.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

VC Cafe

AUGUST 2, 2022

As an early stage investor in the world of gaming and metaverse technology at Remagine Ventures, I find these companies have the potential to set the agenda, become the potential platforms for developers building in this space and future acquirers/consolidators of startups building the next generation of the Internet. Here we go! Epic Games.

IP 206

IP Cofounder Valuation Acquisition 206

ReadWriteStart

OCTOBER 7, 2010

As a thumb rule, try to get enough validation so that you can get to at least a $2 million pre-money valuation before raising equity capital. That is debt financing that converts into equity at the Series A valuation once the price for that is set. (I Tags: StartUp 101. Sub-$2 million pre-money, it is better to bootstrap.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

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

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. ” Yes, the JOBS Act (Jumpstart Our Business Startups) is exciting, and it will bring a lot more potential investors into the marketplace. I’m not your average angel.

Angel Investor 159

Angel Investor Technical Review Software Review Accredited Investor 159

Both Sides of the Table

JUNE 30, 2011

This is the final part of a 3-part series on the major changes in the structure of the software & the venture capital industries. Or the Cliff Note’s version: Open Source & Cloud Computing (led by Amazon) drove down tech startup costs by 90%. Continued high pace of startup innovation. The Coming Brick Wall.

Venture Capital 289

Venture Capital Early Stage Valuation Angel Investor 289

Startup Professionals Musings

AUGUST 25, 2017

This new culture builds on hobbyist technologies, extends the open-source inventory of hardware and software, and bridges the gap into real business solutions with other advantages, as follows: Shortens the time and cost from idea to prototype. Countless startup teams have already been spawned from these.

Technical Cofounder 153

Technical Cofounder Intellectual Property Wiki Cofounder 153