The Equity Kicker

DECEMBER 12, 2013

eMarketer are predicting that YouTube revenues will hit $5.6bn this year, 50% up on last year (reported in the Guarian ). Here are some other relevant facts: Projections of YouTube’s revenues are increasing over time – in May Morgan Stanley were predicting $4bn. Secondly Google is sitting on a major media asset.

Revenue 96

Revenue Forecast Advertising Acquisition 96

ConversionXL

JANUARY 18, 2022

And yet, revenue went up by 45% YoY. Can you capture more brand equity by executing marketing tactics in new or better ways? When you think about revenue intelligence platforms, you absolutely expect their content to be full of ignorable charts, graphs, and stats delivered in corporate pseudo-speak that makes your eyes glaze over.

Marketing 109

Marketing Social Media Non-Compete Audience 109

Steve Blank

SEPTEMBER 14, 2009

3) invest in and take equity stakes in exchange for capital. Five Quarters of Profitability During the 1980’s and through the mid 1990’s startups going public had to do something that most companies today never heard of – they had to show a track record of increasing revenue and consistent profitability.

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

Up and Running

AUGUST 29, 2014

Part of a venture feasibility study is to look at what financial resources are already available in personal bank accounts, equity in a home, life insurance, family and friends or from selling assets. CPA’s also can represent clients in case of an Internal Revenue Service (IRS) audit. Often this is not true.

Small Business 87

Small Business CPA Government North America 87

Austin Startup

NOVEMBER 25, 2018

It was there that I met Eric Simone (one of the first investors in Bazaarvoice) as well as Josh Baer (one of the first investors in Bazaarvoice through his team building our first solution and getting paid primarily in equity versus cash). Below is a post I wrote on their Yahoo! Groups list on March 15, 2005.

Bootstrapping 48

Bootstrapping Austin Equity Cofounder 48

Both Sides of the Table

JULY 10, 2010

Michael is a very accomplished corporate executive in his own right having run Sega Gameworks and helped IPO EuroDisney as well as having been on the founding team of DreamWorks SKG (where he helped them raise their first $900 million in equity). Founded in 2002 and expanded after founders graduated from CMU in 2006. We discussed: 1.

IPO 242

IPO Venture Capital Private Placement Cofounder 242

Feld Thoughts

JULY 31, 2013

In late 2006, Zayo was a pure start-up headquartered behind Nick and Willy’s on 8th and Pearl. Today, Zayo has eclipsed $1.1Bin revenue and $600M in EBITDA, leading to an estimated Enterprise Value in the vicinity of $6B. In June of 2006, we sold what remained of ICG Communications to Level 3. I didn’t.

Bandwidth 147

Bandwidth Colorado Startup IRR 147

The Equity Kicker

AUGUST 19, 2015

If you read this Techrunch post profiling 50 of the current YC companies you will notice that many of them are up and running with customers and revenues. In the words of an alum from the 2006 cohort: Companies are joining YC at a much later stage. That relates to a second change he observed: Companies are much more ambitious now.

Later Stage 60

Later Stage Private Equity Venture Capital Valuation 60

Cracking the Code

MARCH 12, 2010

Given the predictability of SaaS GAAP revenues on a quarterly basis, the fact that the 08/09 projections were unchanged is not a surprise. Given that the revenues are not growing very fast, this means that most of the companies have reduced their sales force and focused on productivity improvement. ► 2006. (7).

Software Review 63

Software Review Technical Review Cloud Forecast 63

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

View from Seed

JANUARY 26, 2016

For reference, First Round Capital and Softech were founded in 2004 (although they were less institutional early on), Floodgate in 2006, Harrison Metal in 2008, etc. Third, founders at this stage have an incentive to minimize dilution at the point when their equity is the least valuable.

Seed Stage 120

Seed Stage Early Stage Cofounder Finance 120

Gust

NOVEMBER 4, 2011

In brief, a cap acts to place a limit on the conversion price of a convertible note such that investors are guaranteed a minimum number of shares for their bridge loans if the startup does a priced equity round at a high pre-money valuation – “high” meaning above the cap, which is often a heavily negotiated term. (The by February 2006).

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

This is going to be BIG.

MARCH 23, 2015

Do you think you make a better return by putting in a ton of money to buy expensive growth equity and maintain 20% or by being in a future IPO at a $15mm pre? Otherwise, we should just call this new $2.5mm seed round what it really is: Series A circa 2006. and at least it will all make sense.

Post-Money Valuation 60

Post-Money Valuation Valuation Pre-Money Valuation Seed Money 60

Both Sides of the Table

SEPTEMBER 2, 2009

We should end the year with a few million in fully recurring revenue and we’re projected to double next year. But more spend = more viral opps = more revenue down the road. >50% of our revenue in now viral. Probably revenue based. I think a couple of million or revenues is probably a reasonable goal.

Founder 329

Founder Liquidation Preference Term Sheet Participating Preferred 329

Gust

OCTOBER 20, 2011

Individual accredited investors in typical angel deals put personal capital at risk for an equity share of growth-oriented, start-up companies. In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

The Startup Lawyer

MARCH 11, 2010

Each time a new set of docs get released, I don’t cringe because it means I then have to remove the hockey stick from my revenue projections. Second, the model seed docs tend to impress upon the entrepreneur that preferred equity is the best angel investment structure. Next up: the model reincorporation merger kit). Conclusion.

Delaware 49

Delaware Hockey Stick Preferred Stock Open Source 49

The Startup Lawyer

MARCH 11, 2010

Each time a new set of docs get released, I don’t cringe because it means I then have to remove the hockey stick from my revenue projections. Second, the model seed docs tend to impress upon the entrepreneur that preferred equity is the best angel investment structure. Next up: the model reincorporation merger kit). Conclusion.

Delaware 45

Delaware Hockey Stick Preferred Stock Open Source 45

Tim Keane

SEPTEMBER 18, 2006

» September 18, 2006. But.for a company with investors who expect a "harvest," just as things get good on the revenue side, the strategic plan for the companys future becomes very important. What can we do to their revenue? What can we do to their revenue? « I Wish Id Sold More | Main. | April 2013.

Harvest 60

Harvest LBO Investment Bankers Wisconsin 60

www.singlefounder.com

OCTOBER 23, 2010

Go ahead and laugh, but over 95% of Moon River Software’s revenue this year has been from consulting services. The software I sell has made up less than 5% of total revenue in the past 12 months. CAM Dharmesh Shah says: October 13, 2006 at 4:53 am Great points. Dan says: October 13, 2006 at 9:01 am Re: Number 3.

Software Review 40

Software Review Software Startup Massachusetts 40

techcrunch.com

OCTOBER 23, 2010

This resulted in a recapitilization of the equity away from 33% each (in my favor) and then the ultimate dismissal of one of the co-founders prior to the A-round. Take the top 10 largest tech innovators (take your pick of largest by revenue or largest by idea) of the last 20 years in Silicon Valley. How many were started by MBAs?

Technical Review 84

Technical Review Cofounder Technical Cofounder Software Review 84

VC Cafe

NOVEMBER 3, 2010

In 2006, PMC-Sierra acquired Herzliya-based Passave, a developer of system-on-chip semiconductor solutions for the Fiber To The Home (FTTH) access market, for $300 million. Shamir Optical reported revenues of $142 million in 2009, generated mainly in Europe and the United States, and has about 1,400 employees. billion, of which $2.5

Bandwidth 79

Bandwidth Framework Forecast 79