Startup Professionals Musings

MAY 18, 2020

With one of the many new tools , and a dose of sweat equity, you can create a website for almost nothing -- and you are on your way to success with ecommerce, your latest invention or personal services. It’s more possible to bootstrap today than a few years ago, as the cost of entry continues to go down.

Hockey Stick 423

Hockey Stick Bootstrapping Sweat Equity Intellectual Property 423

Startup Professionals Musings

AUGUST 31, 2012

Intellectual property is a large element of most early-stage company valuations, and this value determines what percent of the company an investor will expect to get for his money. Investors like to see that you have committed personal funds as well as “sweat equity,” and they like to see real progress at this level.

Intellectual Property 260

Intellectual Property Sweat Equity CTO Hire Fractional CTO 260

Startup Professionals Musings

JUNE 17, 2011

Intellectual property is a large element of most early-stage company valuations, and this value determines what percent of the company an investor will expect to get for his money. Investors like to see that you have committed personal funds as well as “sweat equity,” and they like to see real progress at this level.

Intellectual Property 253

Intellectual Property Sweat Equity CTO Hire Fractional CTO 253

Startup Professionals Musings

MAY 22, 2010

Intellectual property is a large element of most early-stage company valuations, and this value determines what percent of the company an investor will expect to get for his money. Investors like to see that you have committed personal funds as well as “sweat equity,” and they like to see real progress at this level.

Intellectual Property 222

Intellectual Property Sweat Equity CTO Hire Fractional CTO 222

grasshopperherder.com

SEPTEMBER 24, 2011

Piercing the Corporate Veil – Sweat Equity Consulting. But much like becoming a co-founder, getting paid sweat equity is essentially becoming an investor in the company. Valuations. If you did, why would you be consulting for sweat equity instead of investing as a VC or for yourself? Jan 20 -->.

Sweat Equity 41

Sweat Equity Equity Cofounder Non-Compete 41

YoungUpstarts

SEPTEMBER 15, 2018

Startup valuation, under no circumstances, can be described as a simple affair. The pre-money valuation of other startups is based on the following factors. It is important for businesses to be duly evaluated because it’s the valuation of businesses that actually go on to draw investors. Importance of Evaluating your Startup.

Pre-Money Valuation 124

Pre-Money Valuation Valuation Sweat Equity Startup 124

The Startup Magazine

JANUARY 10, 2023

Hufnagel hopes the brand will reach a $5 billion valuation. Lemon Perfect’s success comes at a price: Hufnagel and his employees are willing to pay with sweat equity. He unrealistically optimistic about Lemon Perfect’s potential. The Future Is Bright for Yanni Hufnagel and Lemon Perfect. It works. “We That drives me.”.

Hiring 132

Hiring Founder Sweat Equity Cofounder 132

Startup Professionals Musings

APRIL 6, 2016

With one of the new free tools and a dose of sweat equity, you can create a website for almost nothing -- and you are on your way to success with ecommerce, your latest invention or personal services. It’s more possible to bootstrap today than a few years ago, as the cost of entry continues to go down.

Bootstrapping 120

Bootstrapping Hockey Stick Sweat Equity Intellectual Property 120

Startup Professionals Musings

FEBRUARY 13, 2016

Justify funding requirements, use of funds and specify a current valuation estimate. Quantify founder investments, both cash and sweat-equity. Since investors are buying a part of your company (not your product), this is the most important question, and is one often not answered.

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Startup Professionals Musings

AUGUST 13, 2012

Quantify existing skin-in-the-game, by insiders and outsiders, including sweat equity and capital. Include a current valuation estimate. Explain how you calculated the funding requirements, and show details on planned use of funds. See where your cashflow bottoms out.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Startup Professionals Musings

MAY 13, 2011

Quantify existing skin-in-the-game, by insiders and outsiders, including sweat equity and capital. Include a current valuation estimate. Explain how you calculated the funding requirements, and show details on planned use of funds. See where your cashflow bottoms out.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Startup Professionals Musings

FEBRUARY 28, 2010

I would like my sweat equity and existing IP to be the risk that I incur without also risking an asset that could easily represent the majority of my total assets. By separating the name in a lease arrangement, I was also hoping to be able to offer greater equity to a potential co-founder and early employees.

Sweat Equity 188

Sweat Equity Entrepreneur Equity CPA 188

Gust

APRIL 11, 2014

Suppose it raises $2 million at a $6 million pre-money valuation. ” That’s because whatever price the public investors are paying for their shares, the founders, employees and earlier investors invariably paid less (in cash; sweat equity is another story). Before, it might have net assets that are near zero.

Dilution 162

Dilution Equity Pre-Money Valuation Prospectus 162

Business Plan Blog

NOVEMBER 15, 2013

Investors at any stage like to see that you have committed personal funds in addition to sweat equity. You will want to demonstrate this timeline and the strategy behind it as well as the effects of accomplished milestones on the company’s future valuation. If your product is not developed, you will need some sort of mockup.

Sweat Equity 71

Sweat Equity Founder Cofounder Valuation 71

techcrunch.com

FEBRUARY 19, 2010

According to VCs, there’s been a 65% decrease in up-rounds (where a company gets a bigger valuation) in the last six months and more than 60% of those polled expect a longer wait for an exit. e.g. invest $2 mil and expect a $60-$100 mil valuation for exit. A lot of the stats weren’t surprising. the article here. Share and [.]

Venture Capital 62

Venture Capital Technical Review Sweat Equity Valuation 62

BeyondVC

APRIL 15, 2011

And with that, it was clear to see how much these startups could accomplish with so little capital and just sweat equity. I can't comment on the public markets but what I can tell you is how these Techstars companies raise capital and at what valuations and timeframe will surely provide us with some leading indicators.

New York 129

New York Sweat Equity Marketing Startup 129

BeyondVC

APRIL 15, 2011

And with that, it was clear to see how much these startups could accomplish with so little capital and just sweat equity. I can't comment on the public markets but what I can tell you is how these Techstars companies raise capital and at what valuations and timeframe will surely provide us with some leading indicators.

New York 129

New York Sweat Equity Marketing Startup 129

Austin Startup

SEPTEMBER 19, 2017

You might consider starting with an offer to invest at a low valuation before discussing sweat equity. Even better if the advisors are able to invest money in the company, even a small amount ($10K), so they feel like there is more at stake. It is up to you as the founder to keep your advisors accountable.

Advisory Board 48

Advisory Board Sweat Equity Marketing Vertical 48

Gust

AUGUST 5, 2012

Quantify existing skin-in-the-game, by insiders and outsiders, including sweat equity and capital. Include a current valuation estimate. Explain how you calculated the funding requirements, and show details on planned use of funds. See where your cashflow bottoms out.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Startup Professionals Musings

APRIL 22, 2010

Quantify existing skin-in-the-game, by insiders and outsiders, including sweat equity and capital. Include a current valuation estimate. Explain how you calculated the funding requirements, and show details on planned use of funds. See where your cashflow bottoms out.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

Small Business Force

OCTOBER 14, 2016

For a startup, how much “skin-in-game” do you and your team have, either in sweat equity or real cash invested. Because, as I’ve said many times, valuation like beauty is in the eye of the beholder. How have you funded it and managed it to date? How have you operated on that “shoestring?”

Sweat Equity 20

Sweat Equity Private Equity Valuation Equity 20

Tim Keane

APRIL 12, 2006

valuation than the previous round. It is used by some investors who like the deal but can’t come to terms on valuation. How do you approach valuation? The percentage owned by the entrepreneur after the investment has been made is the “sweat equity” that represents the work the entrepreneur has done to get to this point.

Entrepreneur 60

Entrepreneur Valuation Sweat Equity Common Stock 60

BeyondVC

OCTOBER 8, 2003

The only other term sheet he had was at a much lower valuation but in his mind a little too onerous. VCs like sweat equity. Isn’t the whole point of working at a startup to build real value through equity? Price isn’t everything-sometimes too high of a price can cripple your company.

Sweat Equity 60

Sweat Equity Term Sheet Bankruptcy Salary 60

Small Business Force

AUGUST 22, 2009

Your business is typically the single largest element of your asset base and estate, often with both real capital tied up and huge amounts of sweat equity invested. Do expectations far exceed those multiple of revenues or valuations? And a word of caution about valuation. Can You Live with the Result? maybe, just okay.

Entrepreneur 20

Entrepreneur Valuation Sweat Equity Merger 20

Small Business Force

AUGUST 22, 2009

Your business is typically the single largest element of your asset base and estate, often with both real capital tied up and huge amounts of sweat equity invested. Do expectations far exceed those multiple of revenues or valuations? And a word of caution about valuation. And it's probably been the center of your life.

Valuation 20

Valuation Sweat Equity Merger Sales 20