Startup Professionals Musings

MARCH 16, 2011

Just don’t quit your day job before your new company is producing revenue. If you don't know any “high net worth” individuals, use your advisors to find them. Venture capital. An investment from a venture capital firm is usually expensive, in equity and control. Partner with distributor or beneficiary.

Technical Review 233

Technical Review Bootstrapping Startup Venture Capital 233

Startup Professionals Musings

JANUARY 27, 2021

Most entrepreneurs have found by now one or more of the many popular crowdfunding sites , and have the name and contact information for at least one of the big venture capital firms. Each has met legal securities minimums for net worth and professionalism, to reduce the risk to entrepreneurs.

Search 317

Search Accredited Investor Angel Investor Venture Capital 317

Feld Thoughts

JANUARY 2, 2014

I often get asked how I ended up becoming a venture capitalist. When people ask me how they can become a VC, I point them to my partner Seth Levine’s excellent blog posts How to become a venture capitalist and How to get a job in venture capital (revisited). An accidental one.

San Francisco 159

San Francisco Boston Venture Capital Angel Investor 159

Gust

JUNE 17, 2012

Just don’t quit your day job before your new company is producing revenue. If you don’t know any “high net worth” individuals, use your advisors to find them. Venture capital. An investment from a venture capital firm is usually expensive, in equity and control. Friends and family.

Technical Review 164

Technical Review Bootstrapping Venture Capital Incubator 164

David Teten

NOVEMBER 26, 2019

Howell, Professor of Business Administration at Tuck, writes that you should turn your budgeting process upside down by “reformat[ting] planning and budgeting templates to highlight cash rather than accounting net income.”. Disclosure: Graphite Financial is a spinoff of ff Venture Capital , where I was formerly a Partner.

Agile 60

Agile Management Forecast Silicon Valley 60

Both Sides of the Table

JULY 16, 2010

The VC industry grew dramatically as a result of the Internet bubble - Before the Internet bubble the people who invested in VC funds (called LPs or Limited Partners) put about $50 billion into the industry and by 2001 this had grown precipitously to around $250 billion. Partners leave the industry. Here’s my take: 1.

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LP Technical Review Early Stage Silicon Valley 311

Startup Professionals Musings

MARCH 1, 2010

Just don’t quit your day job before your new company is producing revenue. If you don't know any “high net worth” individuals, use your advisors to find them. Venture capital. An investment from a venture capital firm is usually expensive, in equity and control. Partner with beneficiary company.

Technical Review 149

Technical Review Bootstrapping Startup Venture Capital 149

This is going to be BIG.

JULY 8, 2013

I probably get around a dozen e-mails a week asking me how to get into venture capital. On top of that, anytime I talk to anyone who wants to get involved in startups but isn''t sure what they want to do, inevitably, I hear, "And then I was thinking maybe I should look into venture capital, too.".

Venture Capital 167

Venture Capital Early Stage Portfolio Private Equity 167

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. But should they? Aligned incentives.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

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). It is most often a win-win for both you and the strategic partner.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Steve Blank

MARCH 31, 2014

As the venture capital business has come roaring back in the last 5 years, startups are awash in available capital. Companies horde cash and squeeze the most revenue and margin from the money they use. Instead of measuring success in dollars of profit, …firms focus on measuring capital efficiency.

Private Equity 326

Private Equity Metrics China Intellectual Property 326

Austin Startup

MAY 10, 2021

a full 60x trailing twelve month revenues. Companies have increasingly digitized operations, but in silos, said lead director Rich Wong, a partner at Silicon Valley venture-capital firm Accel, an early investor in UiPath. The IPO netted $500M for UiPath (and another $700M for shareholders).

Silicon Valley 113

Silicon Valley IPO Venture Capital Valuation 113

The Equity Kicker

JANUARY 10, 2020

See below for a good description of what we like to see in deals at Forward Partners and what makes us different from other VCs. An interview with Nic Brisbourne, Forward Partners. Nic is also the author of one of Europe’s most popular venture capital blogs – www.theequitykicker.com. Let’s start with the obvious question.

Partner 68

Partner Early Stage Portfolio Metrics 68

Both Sides of the Table

JUNE 17, 2017

70–80% of the costs of most startups are employee costs so what you’re really talking about when a company is unprofitable is that they are growing their staff ahead of their revenue. Revenue When I look at an income statement I start by focusing on the revenue line. You need to understand the “quality” of the revenue.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

David Teten

JANUARY 28, 2019

My former Partner John Frankel of ff Venture Capital observes that 20 years ago, the defining movie of the generation was “Wall Street”. This is a topic we care a lot about, given HOF Capital’s long-term strategy for partnering with universities and my forthcoming book on “ hacking the university ”.

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Affiliate Connecticut Programming Community 60

BeyondVC

JANUARY 3, 2019

We had another solid year filled with learning, growth, laughter, and new projects and partners. Thanks to all of the amazing founders, advisors, co-investors, corporate partners, and others that helped make 2018 an amazing year. The 10 year bull market where every company’s revenue chart is up and to the right is over.

Stealth 79

Stealth Advisory Board Cloud Virginia 79

The Next Web

FEBRUARY 27, 2014

George Deeb is the Managing Partner at Chicago-based Red Rocket Ventures , a startup consulting and financial advisory firm based in Chicago. Juniors have achieved a full proof of concept around their business, with rapid user or revenue growth, approaching up to $1MM in revenues (Series A venture capital—raise $1MM to $5MM).

Valuation 167

Valuation Forecast Seed Stage .Net 167

Both Sides of the Table

MAY 4, 2010

Had a great chat with Jim Armstrong who is a General Partner at Clearstone Venture Partners today on TWiVC. We also talked a lot about Geodelic , a portfolio company of Clearstone, who is trying to change the metaphor of how people discover location based information by partnering with large companies and brands.

IPO 236

IPO .Net Venture Capital Strategic Investors 236

Startup Professionals Musings

MAY 14, 2012

There are dozens of sources to help you construct your business model, and a good example is a recent book by venture capital investor Elizabeth Edwards, simply named “ Startup ,” which is really designed as a handbook for launching a company for less. Revenue model. What is the need you fill or problem you solve? Target market.

Business Model 242

Business Model Distribution Viral Green 242

Startup Professionals Musings

FEBRUARY 16, 2015

Most entrepreneurs have found by now one or more of the many popular crowdfunding sites , and have the name and contact information for at least one of the big venture capital firms. Each has met legal securities minimums for net worth and professionalism, to reduce the risk to entrepreneurs.

Angel Investor 120

Angel Investor Accredited Investor Venture Capital Startup 120

Cracking the Code

JANUARY 22, 2009

While it may make sense to offer very slight adjustments for favorable payment terms and one time revenue, net additions to MRR should dominate the sales rep’s thoughts. 1 of MRR generates $12 of annual revenue, so $1 commission equals 1/12=8.3% of Year One Revenue Sounds high, but is that considered a reasonable package?

Software Review 91

Software Review Clawback Sales Salary 91

Austin Startup

DECEMBER 17, 2017

I will always remember his pre-speech pep talk: “Dyer, your entire net worth rides on not screwing this up.” Hurricane Irma had a major negative revenue impact on one whose fall book of business was mostly in Florida. I got the message.

Silicon Valley 48

Silicon Valley Atlanta Software Review Early Stage 48

Startup Professionals Musings

JANUARY 29, 2011

There are dozens of sources to help you construct your business model, and a good example is a recent book by venture capital investor Elizabeth Edwards, simply named “ Startup ,” which is really designed as a handbook for launching a company for less. Revenue model. What is the need you fill or problem you solve? Target market.

Business Model 246

Business Model Distribution Viral Green 246

Growthink Blog

AUGUST 3, 2016

That plan, along with our company’s past financial statements, are reviewed by a prospective investor / partner and the feedback comes back as: “I love your big vision and ambitious financial goals, and I want to be involved. But, last year your revenues only grew 10% and your net margins were very thin.

Jordan 48

Jordan Chicago Washington Technical Review 48

SoCal CTO

MARCH 22, 2007

I have to say that it has netted far more than I would have thought. Charles Edge :: Partner, 318 Author :: Mac Tiger Server Little Black Book April 16, 2007 1:37 AM Shashank said. Weve also found that potential clients find us through LinkedIn. Im very happy with the time Ive spent building up my LinkedIn network.

Technical Cofounder 150

Technical Cofounder Southern California Los Angeles CTO Hire 150

Berkonomics

JUNE 8, 2017

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). It is most often a win-win for both you and the strategic partner.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

The Startup Magazine

OCTOBER 14, 2021

Fast forward to today; since we founded Taxfyle in 2015, it has earned the support and investment of numerous venture capitalists and is one of the fastest-growing companies in any sector in the U.S. 5000 list , which lists private American companies based on three-year revenue growth between 2016 and 2019. Magazine’ Inc.

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CPA Founder Vertical Cofounder 138

Eric Friedman

AUGUST 18, 2021

I lovingly call him the curmudgeon of fintech – in this episode we go deep into how he is building a venture capital firm and practice, not just running a fund and how he views the world of fintech investing. Today, we are lucky to welcome Dan Kimerling of Deciens Capital. Venture Capital is not a complicated business.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

Both Sides of the Table

APRIL 25, 2011

This thinking is largely driven by the venture capital industry (and subsequently Wall Street) who are in search of high margin, highly scalable businesses. I gave them advice I don’t think they were expecting from a VC, “Don’t raise venture capital for this business. This team is talented.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . But, most of use raise capital and source deals the same way people looked for dates 20 years ago: by networking at conferences (or bars). . But in business, you want a lot of partners.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

YoungUpstarts

SEPTEMBER 7, 2014

by TX Zhuo , managing partner at Karlin Ventures. Revenue Growth. Enterprise startups must have processes in place to monitor revenue growth. According to a Pacific Crest survey , the average year-over-year revenue for enterprise startups is 89 percent. Here are a few metrics your startup should be watching: 1.

Metrics 219

Metrics Churn Rate Startup Acquisition 219

Both Sides of the Table

APRIL 27, 2010

I didn’t mean to be so insulting and I didn’t mean for the net to be cast so wide that many people wondered whether I was talking about them when I was speaking of “job hoppers.&# I learned a lot from reading the comments. and we ultimately sold when we hit $14 million and had more than $30 million in backlog revenue.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

The Equity Kicker

SEPTEMBER 3, 2015

If a VC has a $200m fund, a 20% stake in a $1bn exit will net them $200m and hence be a fund returner. First there’s enough to be sure there’s a tiny market, then a small, one and so on, until, assuming the best, several $100m+ revenue companies have emerged and all analysts everywhere agree the market is huge.

Marketing 60

Marketing .Net Revenue Partner 60

David Teten

AUGUST 20, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching Revenue-Based Investing and other new approaches to VC. The question I’m asking myself: should a new VC fund use Revenue-Based Investing, traditional equity VC, or possibly both (likely from two separate pools of capital)? When It’s a Venture Capital Mark ”.

Revenue 60

Revenue SBIC Cofounder Venture Capital 60

abovethecrowd.com

APRIL 17, 2013

With each hand, a small percentage of the pot is scraped off by the dealer, which in essence becomes the “revenue” for the casino. While casinos use the term “rake,” a plethora of interesting word choices exist which all describe the same thing – keeping a little bit of the revenue for the company that is running the service.

Europe 101

Europe Social Network Technical Review IPO 101

Berkonomics

JANUARY 20, 2010

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).

Private Equity 69

Private Equity Valuation Cap Table Accredited Investor 69

Reid Hoffman

MARCH 19, 2019

Google realized that being the way to find the world’s information was a blitzscalable market, thanks to the network effects in its AdWords revenue engine. He also had backing from well-known venture capital investors like Union Square Ventures, Lightspeed Venture Partners, Google Ventures, and even Richard Branson.

Cofounder 28

Cofounder Business Model IPO Non-Compete 28