Startup Professionals Musings

OCTOBER 8, 2023

Here are eight key insights that will help you find a productive match: Angels want equity ownership, not causes. Each has met legal securities minimums for net worth and professionalism, to reduce the risk to entrepreneurs. To be fundable, fifth year revenue projections need to be in the $20-$100 million range.

Venture Capital 265

Venture Capital Accredited Investor Syndicate Syndication 265

Up and Running

JUNE 23, 2022

Pre-Tax Return on Net Worth. This ratio is not applicable if the subject company’s net worth for the period being analyzed has a negative value. Where you borrow money from angel investors or venture capitalists willing to lend money to startups for more interest and usually an equity kicker as well. Pre-Tax Return on Assets.

SBA 163

SBA Finance Balance Sheet Technical Review 163

Berkonomics

FEBRUARY 11, 2021

Most entrepreneurs and managers, when modeling their business operations using a spreadsheet, start with expected revenue by month. Project your revenues and costs as in the original exercise. Project your revenues and costs as in the original exercise. The post Could you achieve ten percent net income each month?

.Net 62

.Net Forecast Salary Revenue 62

YoungUpstarts

SEPTEMBER 17, 2020

The income statement is also known as a profits and losses sheet, and it shows the revenue being generated, expenses and costs. The revenue is broken down into revenue that comes directly from sales, and revenue that may come from other non-sales activity. If it’s negative, you’re operating at a net loss.

Balance Sheet 200

Balance Sheet .Net Equity Revenue 200

Startup Professionals Musings

MARCH 16, 2011

Just don’t quit your day job before your new company is producing revenue. A startup incubator is a company, university, or other organization which provides resources for equity to nurture young companies, helping them to survive and grow during the startup period when they are most vulnerable. Bartering services for equity.

Technical Review 233

Technical Review Bootstrapping Startup Venture Capital 233

Startup Professionals Musings

APRIL 23, 2013

Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. Take little to no net profit. In most cases there is a direct correlation between the quality of your decisions and the size of your revenue stream. Marty Zwilling.

Equity 241

Equity Bootstrapping Startup Merger 241

ConversionXL

JUNE 2, 2022

Where lead generation casts a wide net, ABM uses a spear to target and catch the best fish. It’s proven to drive more revenue , improve customer experience , and power growth. To return to our earlier analogy, it’s using a net to catch large schools of fish. Does the client offer more than revenue? Company perception.

Lead Generation 94

Lead Generation Marketing Sales Cycle Campaign 94

Gust

JUNE 17, 2012

Just don’t quit your day job before your new company is producing revenue. A startup incubator is a company, university, or other organization which provides resources for equity to nurture young companies, helping them to survive and grow during the startup period when they are most vulnerable. Bartering services for equity.

Technical Review 164

Technical Review Bootstrapping Venture Capital Incubator 164

Up and Running

MARCH 9, 2022

Use the OLE ratio to measure how your income increases or drops depending on the changes in sales volume to show how much revenue is available to cover non-operating costs. Let’s say that your organization earned $1 million in revenue last year, and it cost you about $300,000 to operate your business. Debt-to-equity ratio.

Equity 136

Equity .Net Balance Sheet Operations 136

Board Effect

MARCH 22, 2022

A recent survey by the Conference of State Bank Supervisors showed that community banks with smaller assets and lower revenues tended to adopt technology more slowly than larger, more profitable banks. Data will help community banks turn data into insights that will help strategize how to drive revenue. .

Community 98

Community Technical Review Agile Non-Compete 98

David Teten

AUGUST 21, 2019

Most founders who are raising capital look first to traditional equity VCs. 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. Who are the major Revenue-Based Investing VCs?

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Startup Professionals Musings

JANUARY 27, 2021

Here are eight key insights that will help you find a productive match: Angels want equity ownership, not causes. Each has met legal securities minimums for net worth and professionalism, to reduce the risk to entrepreneurs. To be fundable, fifth year revenue projections need to be in the $20-$100 million range.

Search 317

Search Accredited Investor Angel Investor Venture Capital 317

Startup Professionals Musings

MARCH 1, 2010

Just don’t quit your day job before your new company is producing revenue. A startup incubator is a company, university, or other organization which provides resources for equity to nurture young companies, helping them to survive and grow during the startup period when they are most vulnerable. Bartering services for equity.

Technical Review 149

Technical Review Bootstrapping Startup Venture Capital 149

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. Today billions of dollars that companies could have invested in innovation are sitting in the hands of private equity funds.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

ReadWriteStart

NOVEMBER 18, 2022

When calculating DSCR, funding companies divide the net operating income by the total debt service. Net operating income is the revenue minus the cost of equity capital. A net operating income of 100,000 dollars and a total debt service of 60,000 creates a DSCR score of 1.67. to get financing. to get financing.

Portfolio 196

Portfolio SBA Balance Sheet .Net 196

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 4, 2016

past product/market fit and into tens of millions in revenue), you realize that cancellation scales with total customers whereas growth scales with sales and marketing costs, which means cancellation necessarily and always outgrows inbound activity, thus growth ceases. Once you’re scaling (i.e. Once you’re scaling (i.e.

Metrics 270

Metrics Retention Revenue Equity 270

Steve Blank

MARCH 17, 2020

Next, take a look at your actual revenue each month – not forecast, but real revenue coming in each month. Subtract your monthly gross burn rate from your monthly revenue to get your net burn rate. All your assumptions about customers, sales cycle and most importantly, revenue, burn rate and runway are no longer true.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

Berkonomics

AUGUST 3, 2023

However, most often, these funds are solicited by a well-meaning entrepreneur from investors who are not qualified as accredited investors under the law (currently requiring a proved income of $200,000 a year or $1 million in net worth for an individual investor). Often private equity investors will want control of the business as well.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

View from Seed

MAY 16, 2019

One of the key questions for me was how might Slack stack up against other great SaaS companies when it comes to average revenue per user (ARPU), and how ARPU and total addressable market (TAM) might drive Slack’s long run market cap. Revenue growth rate of 82% year over year. 10M+ daily active users (DAUs). So Slack generated $1.43

Lock-up Period 168

Lock-up Period Retention Azure .Net 168

Hearpreneur

JULY 24, 2020

Given the current state of our economy, many young and business-minded individuals have begun using pandemic benefits as a safety net to begin a new business venture. Thanks to Mark Woodbury, Minerva Equity ! #12- million workers and generate revenue of $1.9 And this really is to be expected. 12- More due to rise in millennials.

Entrepreneur 136

Entrepreneur Technical Review Security Demand 136

Agile VC

APRIL 17, 2011

How They Make Money: Majority of Kayak’s revenue actually comes from advertising on their site (55%), not lead generation or referral fees to travel suppliers as you might think (more on this below). Financial Snapshot: 2010 Revenue: $170 million. Revenue growth: 51% YoY (2010), 1% YoY (2009), 131% YoY (2008).

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Steve Blank

MARCH 4, 2014

Sales teams are commission-based, executive compensation is based on EPS, revenue and margin, business units on revenue and margin contribution, etc. Finance The goals for public companies are driven primarily by financial Key Performance Indicators (KPI’s). Corporate KPI’s, Policy and Procedures: Innovation Killers.

IRR 335

IRR Startup Business Model Agile 335

Version One Ventures

OCTOBER 15, 2020

And >40% of that revenue is coming from in-game purchases. When they can invest the marginal engineering hour in listing a new token that drives revenue vs. saving some costs on settlement, it’s hard to justify. The app could then take a small % of all revenue from “paid” messages.

Networking 168

Networking Global OTC Security 168

The Equity Kicker

AUGUST 29, 2013

I’m rather late to this, but this morning I was pointed towards an eMarketer projection of Twitter revenues from March this year which has them hitting $950m in 2014, up from $583m this year. Clearly they will need very high net margins to reach the mooted $10bn IPO value. Only 17% of their revenues come from outside of the US.

Revenue 109

Revenue IPO API Valuation 109

Tim Keane

MARCH 9, 2011

This seems like an easy topic – debt where there is appropriate cash flow, equity when there isn’t.    And, while debt is less costly than equity, it can bankrupt a company more quickly than more expensive equity might. Example one: Sustainable net operating income with some growth in a stable market. 

Finance 83

Finance Bootstrapping Startup Equity 83

Austin Startup

NOVEMBER 6, 2017

C-Corp largely because (i) VCs have historically favored C-Corps for nuanced tax and other reasons, and (ii) virtually all of the standardized legal infrastructure around startup finance and equity compensation assumes a C-Corp. However, times are changing. But not all VCs think that way. If you are an LLC tech startup, you need tax counsel.

Delaware 48

Delaware LLC Startup Silicon Valley 48

View from Seed

MARCH 5, 2019

There are a variety of quick write-ups on the Lyft S-1 for basic figures like annual revenue, rider growth, or who the largest shareholders are. Lyft helpfully provides the number of active riders, total number of rides, and average revenue per rider on a quarterly basis. Rough estimate of 2019 revenue, excluding new riders.

Aggregator 120

Aggregator IPO .Net Revenue 120

Both Sides of the Table

JULY 16, 2010

LP’s who invest in funds are typically university endowments, public & private pension funds, insurance companies, large corporations and very high net worth individuals called “family offices.&# To give you an indication of how bad, for example, university endowments are suffering check out this chart. VC will shrink.

LP 311

LP Technical Review Early Stage Silicon Valley 311

The Next Web

FEBRUARY 27, 2014

your equity in a hot new patented technology business), the higher the demand (e.g., As an example, a new restaurant may get valued at 3-4x EBITDA (earnings before interest, taxes, depreciation, and amortization) and a hot dot com business with meteoric traffic growth could get valued at 5-10x revenues. Supply and demand.

Valuation 167

Valuation Forecast Seed Stage .Net 167

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 11, 2014

If you like this, go see his Shockwave Innovations blog ) Anyone that has taken an accounting class or learned basic business financials knows the interaction between key elements of a P&L (revenue, cost, expense) and a balance sheet (assets, liabilities, equity).

Churn Rate 288

Churn Rate .Net Metrics Hosting 288

Agile VC

MARCH 5, 2019

There are a variety of quick write-ups on the Lyft S-1 for basic figures like annual revenue, rider growth, or who the largest shareholders are. Lyft helpfully provides the number of active riders, total number of rides, and average revenue per rider on a quarterly basis. Rough estimate of 2019 revenue, excluding new riders.

Aggregator 100

Aggregator .Net Revenue IPO 100

Agile VC

MAY 16, 2019

One of the key questions for me was how might Slack stack up against other great SaaS companies when it comes to average revenue per user (ARPU), and how ARPU and total addressable market (TAM) might drive Slack’s long run market cap. You can see this both by looking at a cohort “layer cake” graph or by examining the net dollar retention.

Lock-up Period 100

Lock-up Period Retention Azure .Net 100

Startup Professionals Musings

NOVEMBER 3, 2014

Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. Take little to no net profit. In most cases there is a direct correlation between the quality of your decisions and the size of your revenue stream.

Bootstrapping 278

Bootstrapping Startup Merger Salary 278

Growthink Blog

FEBRUARY 21, 2013

The JOBS Act makes equity-based crowdfunding much easier The JOBS Act makes it possible to raise funds from investors and donors through certain crowdfunding sites in exchange for equity in your company. As mentioned above, equity based crowdfunding was supposed to go live on January 1st 2013. more on this below). Remember that.

Equity 74

Equity Securities and Exchange Commission SEC Accredited Investor 74

Berkonomics

NOVEMBER 21, 2019

We measure it by profit or revenue in dollars. But that is a number in a vacuum without at least two other measures: return on investment (ROI) and percentage of net profit to revenue. But some of our own small businesses have even higher percentages of return on investment and percentage of net to gross.

Management 62

Management .Net Revenue Equity 62

The Equity Kicker

JANUARY 27, 2015

As board members we needed to plan for the next round of fundraising, and that required knowing when product would be released and revenues could be expected to increase. Agile methods are also more attractive to the best employees. That takes a high degree of trust and a thick skin to take the flack when things go wrong.

Agile 60

Agile Management Forecast .Net 60

YoungUpstarts

JUNE 27, 2019

For instance, customer service is one area that many businesses choose to outsource to help them cast a wider net and better service their clients and customers. However, you can break your own remote program into pieces by keeping some members of the team in-house and building smart work-from-home teams. Make Traveling Easy.

Salary 127

Salary .Net Equity Programming 127