Gust

OCTOBER 19, 2014

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 Review 173

Software Review Software Technical Review Intellectual Property 173

The Equity Kicker

JUNE 20, 2014

When companies attract high valuations their investors are predicting the future too – either that the business will trade in M&A at a ‘strategic multiple’ or that they will generate big cash flows. For larger valuations it is the latter. That’s true, but in the startup industry we have to do it every day.

Valuation 123

Valuation Metrics Software Review Technical Review 123

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. million ÷ 20X.

Venture Capital 161

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

Both Sides of the Table

MARCH 21, 2013

deliver profitable revenue that while on gross margins of 50% vs. software at 85-95% it is still profits to help you cover fixed costs. You don’t want to run the risk that having a PS business that takes your eye of off the ball of growing a large software business. That is the software business. rollout support.

Software Review 321

Software Review Software IP Technical Review 321

YoungUpstarts

AUGUST 18, 2020

While this “balance sheet” valuation of your company overlooks important value factors such as revenue and earnings potential, it is a good place to start in determining the actual material value of physical property. If your company is worth only $2.5 Skip the Guesswork – Use the Tools.

Balance Sheet 143

Balance Sheet Valuation Software Review .Net 143

Lightspeed Venture Partners

OCTOBER 27, 2021

The post ClickUp Raises $400 Million At $4 Billion Valuation As Competition Heats Up In Productivity Software appeared first on Lightspeed Venture Partners.

Valuation 147

Valuation Software Product Partner 147

Startup Professionals Musings

MAY 14, 2023

For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity.

Burn Rate 258

Burn Rate Hockey Stick Management Salary 258

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

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

VC Cafe

APRIL 26, 2021

In March 2021, Israeli venture capital fund Benson Oak introduced a “passionware” as a new category of software tools and platforms? billion valuation just one year from funding, or Israeli founded Deel, that recently raised $156M series C at a $1.25 Source: The Digital Insurer in collaboration with the InsurTech Israel ( Download ).

Technical Review 215

Technical Review Artificial Inteligence Startup 215

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

Both Sides of the Table

SEPTEMBER 28, 2014

This is why investors really like SaaS software companies where you have recurring revenue and your largest customer accounts for < 5% of your revenue and your renewals rates are > 90%. Many software companies have > 80% gross margins which is why they are more valuable than say traditional retailers or consumer product companies.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Startup Professionals Musings

AUGUST 19, 2020

For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity.

Burn Rate 310

Burn Rate Hockey Stick Salary Social Media 310

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

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. Requirement analysis is one of the earliest and most important stages of software development. They were able to take their market valuation to $1.0 Software design is a process.

Cost 158

Cost Developer Azure Churn Rate 158

ReadWriteStart

JULY 2, 2022

Conforming with Torchbankz, the dropshipping industry is expected to reach a market valuation of $557.9 To minimize your costs, before launching a full-fledged software, you can use an MVP, with which you will test the main functions of the app and attract the first customers. billion before 2025.

Cost 140

Cost Software Review Technical Review Cloud 140

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

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 Sub-$2 million pre-money, it is better to bootstrap.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

View from Seed

OCTOBER 31, 2018

Properly provides full-service brokerage service through its data and software platform, just like what you’d get from a traditional agent. Since launching in Atlanta in 2015, it has sold over 100 homes with an average of 18 days on the market (3x faster vs. market average) for more than 98% of the recommended list price.

Atlanta 159

Atlanta Cofounder Software Review Technical Review 159

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. Internet/digital media and software was the biggest beneficiary of the rise.

Valuation 45

Valuation Technical Review Silicon Valley Software Review 45

YoungUpstarts

JULY 10, 2017

In certain industries, such as Software as a Service (SaaS) and hardware companies, the new standard is a minor tweak. For other sectors, notably enterprise software, the changes will be very significant. Effects on valuation.

Technical Review 124

Technical Review Revenue Software Review Due Diligence 124

VC Cafe

AUGUST 2, 2022

billion valuation) to invest in the Metaverse and build the future of digital entertainment Epic owns Fortnite, one of the most popular multiplayer games, enabling users to interact with each other online in an immersive way to play, socialise, attend to virtual concerts. In April 2022, the company announced it has raised $2 billion (at $31.5

IP 206

IP Cofounder Valuation Acquisition 206

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

YoungUpstarts

APRIL 12, 2019

Intangible property means trademarks, patents, copyrights, software and even reputation and trust of customers. Use one of two business valuation formulas. The second, so-called market approach of valuation assumes considering the probable cost which could be paid for your business by the potential buyer.

Small Business 101

Small Business Valuation .Net Balance Sheet 101

Startup Professionals Musings

SEPTEMBER 29, 2018

For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

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

Gust

OCTOBER 16, 2012

This summer I conducted our third annual survey of the pre-money valuation of pre-revenue companies recently funded by angel groups in North America. Access to our 2010 and 2011 surveys can be found at 2011 Valuation Survey of North American Angel Investor Groups. Pre-revenue software, internet, mobile and telecom deals.

Angel Groups 169

Angel Groups Valuation Pre-Money Valuation North Dakota 169

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

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

ReadWriteStart

JUNE 1, 2020

Any custom manufactured IoT device would require software development as well as hardware customization. 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. Both of which are expensive and time-consuming.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

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

View from Seed

FEBRUARY 16, 2016

As of January 20, 2016, based on the “CrunchBase Unicorn Leaderboard,” there are 157 unicorns (companies with $1 billion+ valuations) which have not IPOed or been acquired—and more start-ups reaching unicorn status every day. MBA Unicorns Weigh Heavily Toward Software, Consumer Internet, and E-Commerce. Key Insights. that of GSB).

Programming 120

Programming St. Louis Cofounder India 120

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

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. Digital products, like business management software, cloud-based data storage systems, and communication apps, are also in demand. Assistive Devices : Global Market Insights, Inc.

Demand 136

Demand Product Artificial Inteligence Software Review 136

VC Cafe

FEBRUARY 26, 2023

The company has grown rapidly and achieved a valuation of over $7 billion by delivering a product that is both intuitive and powerful. Israeli startup Checkmarx , which provides software security solutions, is an excellent example of a company that fulfills this trait.

Founder 88

Founder Cofounder Seed Stage Valuation 88

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. A normalization of the venture capital market will bring more rational valuations over time but should produce more stable companies and better returns for VCs and LPs. The Coming Brick Wall.

Venture Capital 289

Venture Capital Early Stage Valuation Angel Investor 289

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

The reason they want to trade balance-sheet assets for strategy-execution, is that (healthy, growing) software companies are valued on their P&L, i.e. the size and growth of income and earnings. Remember this is revenue , not valuation. Zoom out to see the strategic decision. In no case does it mean $10m/yr or less.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242