Startup Professionals Musings

JUNE 24, 2020

As a frequent advisor to new entrepreneurs and startups, I often hear your frustration with being treated differently from other startups by investors, on expectations for valuation , traction, and market size. Valuations here are always low, and funding generally depends on friends and family, or a few forward-thinking angels.

Artificial Inteligence 436

Artificial Inteligence Marketing Valuation Startup 436

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.

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Valuation Metrics Software Review Technical Review 123

YoungUpstarts

AUGUST 18, 2020

This is a very introductory place to start, but if your company owns the building, machinery, inventory, and/or technology in which it uses to operate, there is often significant value in this in and of itself. Figure Out the Net Assets of the Business. If your company is worth only $2.5 Skip the Guesswork – Use the Tools.

Balance Sheet 165

Balance Sheet Valuation Software Review .Net 165

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. If you don’t keep it top of mind today, then you are going to be left behind.

Technical Review 252

Technical Review Silicon Valley Software Review Metrics 252

Startup Professionals Musings

AUGUST 9, 2020

You need to find the skills or experience you don’t have in business, technology, or money. Investors may not be called co-founders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation. Giving a co-founder a salary won’t get you the “fire in the belly” you want.

Cofounder 435

Cofounder Technical Cofounder Equity Intellectual Property 435

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? Additionally, our products often use new technologies and require people to change their behavior, such as using a camera to talk with their friends. Amazon has continually laddered up. Back to Snap.

Valuation 48

Valuation Technical Review Forecast Social Network 48

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

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. Spotting new trends ahead of your competitors is an excellent way to increase your market valuation.

Valuation 161

Valuation Artificial Inteligence Dilution Marketing 161

Startup Professionals Musings

SEPTEMBER 16, 2023

Who would not want to join the unicorns (recent startups with a current valuation of over $1 billion)? Years ago, it cost a million dollars for a new e-commerce site, one that you can now create for almost nothing with current tools and technology. Building a minimum viable product, with customer validation.

Intellectual Property 261

Intellectual Property Entrepreneur Angel Groups Social Media 261

Startup Professionals Musings

MAY 1, 2023

You need to find the skills or experience you don’t have in business, technology, or money. Investors may not be called cofounders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation. Giving a cofounder a salary won’t get you the “fire in the belly” you want.

Technical Cofounder 247

Technical Cofounder Equity Distribution Cofounder 247

YoungUpstarts

NOVEMBER 2, 2020

They might lack an aligned vision, or encounter resistance, or have the wrong technology. A study by the market research firm Penn, Schoen, & Berland found that 82 percent of millennials can be swayed in their career decisions by a digitally equipped office, while 42 percent would leave a company due to “substandard technology.”

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Valuation Technical Review Revenue Operations 264

Both Sides of the Table

JUNE 30, 2016

How much you raise determines valuation I know it sounds crazy but at the earliest stages of a company your valuation often is determined by how much money you raise. A $15–20 million valuation sounds better than an $8 million valuation, doesn’t it? But people never do. Justin is right. But it’s actually not that silly.

Pre-Money Valuation 292

Pre-Money Valuation Valuation Early Stage Startup 292

The Startup Magazine

AUGUST 11, 2023

Analysts perform a valuation of the company in question before the beginning of any round of funding. The management of a company, its established track record, the size of the market, and the level of risk all play a role in determining a company’s valuation. What is the Evaluation of the Funding?

Seed Stage 125

Seed Stage Technical Review Early Stage Due Diligence 125

Startup Professionals Musings

NOVEMBER 28, 2020

Who would not want to join the unicorns (recent startups with a current valuation of over $1 billion)? Years ago, it cost a million dollars for a new e-commerce site, one that you can now create for almost nothing with current tools and technology. Building a minimum viable product, with customer validation.

Intellectual Property 404

Intellectual Property Startup Angel Groups Social Media 404

Startup Professionals Musings

OCTOBER 27, 2014

I always advise software startups to file patents to protect their “secret sauce” from competitors, and to increase their valuation. The good news is that a patent can scare off or at least delay competitors, and as a “rule of thumb” patents can add up to $1M to your startup valuation for investors or M&A exits (merger and acquisition).

Software Review 250

Software Review Software Technical Review Intellectual Property 250

Steve Blank

JUNE 27, 2017

As more and more companies face disruption from globalization, new technology, and startups that have more capital than the incumbents, the continuing cry from Wall Street investors is, “Why can’t companies be as innovative as startups?”. Tesla – current valuation $50 billion – sells cars directly through its own distribution channel.

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Startup New York City Valuation Distribution 275

Both Sides of the Table

JUNE 28, 2018

How could Bird really be worth the reported $2 billion valuation that I read about in this press? While I promised not to comment on the exact valuation you can assume that it is very large and perhaps the fastest rise from zero to what some have called a “unicorn” valuation. Forget the valuation?—?I Not really.

San Francisco 256

San Francisco Valuation Technical Review Los Angeles 256

YoungUpstarts

OCTOBER 24, 2017

Is it prudent to have a set formula for valuation before you know how the company will perform or will you require the company to pay for an expert to value the company if one side wants to sell? Plan for your company’s eventual valuation. Proper planning for a valuation can make this process much smoother. Lump sum at closing?

Partner 203

Partner Technical Review Intellectual Property Due Diligence 203

VC Cafe

AUGUST 2, 2022

Is there an early mover advantage for being early on a technology trend? In the first five months of 2022, more than $120 billion have been invested in building out metaverse technology and infrastructure, according to McKinsey. Tim Sweeney, the founder and CEO of Epic is a long term visionary of our online future and the Metaverse.

IP 206

IP Cofounder Valuation Acquisition 206

The Startup Magazine

JANUARY 14, 2020

With advances in technology, green buildings can also be built at fairly competitive prices. 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.

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Green California Government Valuation 137

Both Sides of the Table

MAY 28, 2018

Of course the VC is looking to have specificity in how you plan to spend the money you’re going to raise and plans that show a pie chart that says, “25% on marketing, 30% on technology and R&D, 20% on infrastructure, 25% on G&A” do not get funded. Every VC knows that the amount you raise is often a proxy for your valuation.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

ReadWriteStart

JULY 15, 2020

New talk of capital efficiency is gratifying, but there was another lesson from pre-COVID-19 valuation struggles. Venture capitalists and early-stage investors have told all of us, founders are critical to a startup’s valuation. Remember Morality Impacts Valuation appeared first on ReadWrite. Morality matters. Bank on it.

Valuation 91

Valuation South Carolina San Jose Balance Sheet 91

The Startup Magazine

MARCH 14, 2022

And with the technology available these days, it is convenient to invest in emerging startups. Of late, with the advent of new technology and the spread of the internet to nearly all corners of the country, Indians have taken up a new kind of shop! Indians have excelled on the domestic front and across nations.

Technical Review 144

Technical Review Due Diligence India Startup 144

Hearpreneur

JANUARY 22, 2023

We've also seen extensive use of technology and increased remote working. As a result, businesses in this field should leverage technology to provide interactive, easy-to-understand educational content that can help customers make health-related decisions and maintain healthy habits. Thanks to Erik Pham, Health Canal ! #2-

Artificial Inteligence 122

Artificial Inteligence Technical Review Entrepreneur Social Media 122

SiliconHills

OCTOBER 22, 2022

billion valuation. Its technology has been used in companies to help with blog posts and write and illustrate […]. Jasper, an AI content platform based in Austin, announced last week that the company raised a $125 million Series A funding round at a $1.5

Valuation 95

Valuation Artificial Inteligence Austin Technology 95

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

Both Sides of the Table

SEPTEMBER 10, 2021

The world around us is being disrupted by the acceleration of technology into more industries and more consumer applications. Technology solutions are now used by authoritarians to monitor and control populations, to stymie an individual company’s economic prospects or to foment chaos through demagoguery. Are we in a bubble?”

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

The Startup Magazine

SEPTEMBER 4, 2020

The entry of tech giants like Apple, Microsoft, Google, Facebook, Amazon, Tesla, and Intel into the world renders NASDAQ ‘The Mecca of Technology Companies.’ ’ Its valuation is $13.8 TSE has approximately 3,575 listed firms that have taken their market valuation to 5.67 Its total valuation is 4.9

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Stock Initial Public Offering New York China 90

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 Sramana Mitra is a technology entrepreneur and strategy consultant in Silicon Valley.

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Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

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. That’s more than a lifetime in today’s technology. Patent offices can’t keep up with software technology.

Software Review 120

Software Review Intellectual Property Software Technical Review 120

YoungUpstarts

OCTOBER 24, 2013

One of the challenges for investing in startups has always been the lack of an established way for founders and investors to actually measure and decide on the valuation of the startup concerned. ” Ideaspotting investment pre-money valuation valuation Worthworm'

Pre-Money Valuation 150

Pre-Money Valuation Web Technical Review Angel Investor 150

Steve Blank

SEPTEMBER 5, 2018

But as Carlota Perez has so aptly described, all new technology industries go through an eruption and frenzy phase, followed by a crash, then a golden age and maturity. Then the cycle repeats with a new set of technologies. And if the company does go public, the valuations are at least 10x of the last bubble.

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Lean Burn Rate Startup IPO 335

The Startup Magazine

FEBRUARY 21, 2024

Billion in investments across a range of industries, including technology, sustainability, traditional and alternative energy, mining, construction services, transportation, and healthcare. The firm has made more than $4.5

Technical Review 133

Technical Review Due Diligence Bankruptcy Intellectual Property 133

Altgate

DECEMBER 15, 2010

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← No one wants to tell you your baby is ugly More on Liquidation Preferences → Pre-Money Valuation vs Number of Founders Posted on December 15, 2010 by admin Here’s a chart of the day worth sharing.

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Pre-Money Valuation Valuation Cofounder Founder 66

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

VC Cafe

FEBRUARY 27, 2023

Seed and pre-Seed investment levels and valuations remain healthy, there’s more talent in the market and less competition. From a technology point of view, new tech tools like generative AI means that tasks can be accomplished with fewer resources and at a higher speed. Luck favours the bold!

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Venture Capital Technical Review LP Institutional Investors 215

Both Sides of the Table

JULY 23, 2014

We are in a bubble (with so many private $1bn+ valuations). pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. From a technology perspective our journey is nowhere near over. Where are we today? .” But about that “bubble” we always hear about?

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398