David Teten

NOVEMBER 23, 2020

I highlight endogenous social impact because many of my portfolio companies might give money to charity or provide low-cost pricing to nonprofits, but that’s not what I think of as an impact company; they’re tacking on social impact on top of their core business, whatever that is. . Are you politically active? Why is that?

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60

Steve Blank

MARCH 31, 2014

Companies horde cash and squeeze the most revenue and margin from the money they use. Metrics like Return on Net Assets, Return on Capital and Internal Rate of Return are the guiding stars of the board and CEO. For example they can reduce component cost, introduce a line extension or create new versions of the existing product.

Private Equity 329

Private Equity Metrics China Intellectual Property 329

Steve Blank

MARCH 4, 2014

These groups are adapting or adopting the practices of startups and accelerators – disruption and innovation rather than direct competition, customer development versus more product features, agility and speed versus lowest cost. For most companies it feels like innovation can only happen by exception and heroic efforts, not by design.

IRR 335

IRR Startup Business Model Agile 335

David Teten

AUGUST 21, 2019

Or should they look to one of the new wave of Revenue-Based Investors? Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. For more background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Lower processing cost.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Up and Running

AUGUST 19, 2014

An angel investor is a high net worth individual who invests their own money into startup companies in the hopes of gaining a return on their money. Entrepreneurs impress me when they demonstrate a proven revenue stream before asking for capital. Many angels are entrepreneurs themselves, or executives and business or community leaders.

Angel Investor 161

Angel Investor Technical Review Due Diligence Startup 161

Steve Blank

JUNE 23, 2016

As a consequence, corporations used metrics like return on net assets (RONA), return on capital deployed, and internal rate of return (IRR) to measure efficiency. Intel under their last two CEOs delivered more revenue and profit than any ever before. On the low-end, they undercut cost structures, resulting in customer migration.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

Both Sides of the Table

MAY 19, 2018

A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. These collective sets of documents form the basis of what somebody looking at investing would call “financial due diligence.”

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336