Startup Lessons Learned

APRIL 24, 2012

." - Eric The following is an exclusive excerpt which sets up a common pitfall regarding equity splits. In Noam’s dataset, 73% of founding teams split equity within a month of founding, a striking number given the big uncertainties early in the life of any startup. But such a best-case approach is hazardous. Uncertainties abound.

Equity 168

Equity Founder Cofounder Vesting 168

Agile VC

APRIL 17, 2011

Obviously most of these employees are working hard primarily for equity upside compensation, but Kayak’s personnel costs are roughly $200K/head so the company is highly productive on a per employee basis. Led by Oak Investment Partners with participation by General Catalyst, Sequoia, & Accel and others. And Why 20%?

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

David Teten

JUNE 22, 2012

FOR IMMEDIATE RELEASE — NEW YORK, June 22, 2012 – Harvard Business School Alumni Angels of Greater New York (HBSAANY) and The National Association of Investment Companies (NAIC) today announced the finalists for their inaugural Venture Capital Access Program (“VCAP©”). Select Finalists for Venture Capital Access Program. Torsh, Inc.’s

Programming 128

Programming Accredited Investor Naming New York 128

David Teten

JUNE 22, 2012

FOR IMMEDIATE RELEASE — NEW YORK, June 22, 2012 – Harvard Business School Alumni Angels of Greater New York (HBSAANY) and The National Association of Investment Companies (NAIC) today announced the finalists for their inaugural Venture Capital Access Program (“VCAP©”). Select Finalists for Venture Capital Access Program. Torsh, Inc.’s

Programming 114

Programming Accredited Investor Naming New York 114

www.thedailymuse.com

SEPTEMBER 18, 2012

by Rebecca Thorman — September 13, 2012 — No comments. You don’t want a senior partner preparing documents for an incorporation, nor do you want a third-year lawyer negotiating with a seasoned venture capitalist for you. What’s the typical hourly cost? How much will it cost to incorporate your new start-up?

Hiring 56

Hiring LLC Intellectual Property Private Equity 56

The Next Web

AUGUST 26, 2013

Both ways are great, I’ve tried both, but personally I wouldn’t try to start something again without partners. Stefan Tirtey, Partner at Doughty Hanson Ventures , created this document with Berlin early stage investors. I’ve seen a few businesses where the first investors took huge pieces of equity for very little money.

Management 120

Management Cofounder Startup Bootstrapping 120

Startup Professionals Musings

JUNE 28, 2013

Based on the latest Startup Environment Index from the Kauffman Foundation and LegalZoom, personal money, or bootstrapping, continued to be the primary startup funding in 2012. Even a small investor in the early days will take a large equity percentage, due to that pesky valuation challenge.

Startup 264

Startup Burn Rate Bootstrapping Valuation 264

Austin Startup

NOVEMBER 25, 2018

5, 2012, and it is a very personal post. 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). This lesson was first shared at Lucky7 on Dec.

Bootstrapping 48

Bootstrapping Austin Equity Cofounder 48

Up and Running

JUNE 23, 2015

Maternova is an online marketplace for low-cost but vital obstetric tools; you might think of it as something like Amazon for childbirth-related medical supplies. Allyson met her co-founder Meg Wirth in 2012 when Wirth was working as a consultant for groups like the Rockefeller Foundation and the United Nations. We can do better.

Cofounder 60

Cofounder Sweat Equity Social Media Business Model 60

Agile VC

FEBRUARY 2, 2012

February 2, 2012. My partner Rob also wondered if Facebook is the next Yahoo! , I’ll focus for now on the business itself, there’s plenty of other info on the web if you care to understand the equity ownership or financing history of Facebook and frankly this has been fairly well known for awhile. ==. Facebook, Inc.

IPO 100

IPO South Korea Venezuela Revenue 100

Hearpreneur

JUNE 19, 2018

As a successful young entrepreneur (he’s only 30! ), Harrison Rogers is Founder and CEO of HJR Global, a private equity company that has increased at least 200% every year for the past 4 years. HJR Global’s product and service is to become the perfect partner to a current or aspiring business owner.

Private Equity 68

Private Equity Entrepreneur Global America 68

Cracking the Code

MARCH 12, 2010

The SaaS growth recovery does not seem to take a "V" shape 2) Sales productivity is ramping up: bottom was hit in the first half of 2009 However, the sales and productivity of the group, measured by the median "Customer Acquisition Cost ratio" or "CAC ratio", seems to be recovering more steeply. ► 2012. (1). Post a Comment.

Software Review 63

Software Review Technical Review Cloud Forecast 63

Gust

SEPTEMBER 5, 2012

Convertible equity? The new form of convertible security or “convertible equity” is essentially a convertible note containing most of the usual terms — except it’s been stripped of the features that would make it a loan. How to finance a new seed-stage startup? Convertible debt?

Finance 134

Finance Convertible Security Equity Seed Stage 134

Both Sides of the Table

APRIL 25, 2011

They feel very confident they can hit $18 – 20 million in 2012. So assume that in 2012 the company would do $20 million in sales and $2 million in profits (10%) and 2013 they would do sales of $25 million and $4 million in profit (16% net margin) and then slow growth in 2014 to $30 million and $6 million in profit (20% profit).

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

Hearpreneur

JANUARY 7, 2017

I knew it was an easy fix, so I really didn’t want to pay for a tow truck in addition to the cost of the repair. It struck me that had the technology existed, travelers could have taken advantage of our empty aircraft to get back to London and then the aircraft could be dropped in Oxford, with minimal additional cost.

Entrepreneur 91

Entrepreneur LLC Cofounder Green 91

Cracking the Code

JANUARY 22, 2009

What is my cost of capital and how much is worth an incremental upfront payment? If you assume that the cost to renew a contract costs you 20% of the MRR, then adding increasing the commission by 10% for each additional year seems reasonable. Accelerating bonuses for upfront cash payment depends on your cost of capital.

Software Review 91

Software Review Clawback Sales Salary 91

finance.fortune.cnn.com

AUGUST 21, 2012

Term Sheet The latest on private equity, M&A, deals and movements — from Wall Street to Silicon Valley. Exclusive: Returns for brand-name VC funds By Dan Primack August 20, 2012: 12:15 PM ET. Through 12/31/11, less than 66% of the fund-of-funds called capital had been returned to limited partners. Term Sheet.

Naming 49

Naming Term Sheet Private Equity Equity 49

Lightspeed Venture Partners

OCTOBER 22, 2012

As you may have already seen , I’ve been breaking down the pitches on this season’s Shark Tank while wearing my work hat as a Managing Director at Lightspeed Venture Partners. The founders have more demand than they know what to do with, and want to raise $55k for 5% equity in the company to buy a second truck. and costs $1.10

Pre-Money Valuation 101

Pre-Money Valuation Valuation Dilution Differentiation 101

The Equity Kicker

AUGUST 24, 2016

The cue for this post was Harry Stebbing’s 20MinuteVC interview with David Pakman , the partner at Venrock who led the Series A and Series B rounds at Dollar Shave Club and recently had his faith justified with a $1bn exit to Unilever. We are happy investing in sectors where we see opportunity, even if others don’t.

eCommerce 60

eCommerce Investment Bankers Curation Stock 60

David Teten

JANUARY 10, 2012

Christopher Fralic, Managing Partner, First Round Capital. Christopher Fralic is a Managing Partner at First Round Capital’s New York office, and has focused on a number of the firm’s investments in Advertising Technology, Social Media, Ecommerce, Gaming, Mobile and more. Thursday, January 12, 2012.

Portfolio 122

Portfolio New York Social Bookmarking Philadelphia 122

Up and Running

AUGUST 21, 2017

After describing the uncertainty private investors were feeling about the future of the economy, the outcome of the presidential election, and other factors, Fast Company quoted Brian Hughes , a partner at KPMG (one of the organizations responsible for the Venture Pulse Report): “It’s a challenging time for VC investors.

Silicon Valley 86

Silicon Valley Venture Capital Valuation Later Stage 86

ConversionXL

JULY 29, 2015

So you might be paying higher costs with those projects too. To alleviate that blindness, separate the project into specific costs. When we intentionally or unintentionally hurt our relationship partners, we apologize.” ( Estrada-Hollenbeck & Heatherton, 1998 ). Equity-based – Equity returns (e.g.,

Campaign 48

Campaign Reputation Metrics Naming 48

blog.captainrecruiter.com

MARCH 8, 2012

Partnering with me at that stage was speculative at best. If there's a business co-founder with an idea looking to partner with me, they've flunked their first test if they weren't able to raise cash. It's not a question of me being unwilling to work for equity -- I am. ► 2012. (3). Programming.

Cofounder 40

Cofounder Technical Cofounder Founder Software Engineering 40

David Teten

JANUARY 10, 2012

With a unique vision for starting and successfully managing innovative companies, he is the Managing Partner of Social Leverage, a holding company that invests in early stage web businesses. Panel 2 – How Social Investing is Disrupting Investments in Hedge Funds, Private Equity Funds, and Other Alternatives.

Technical Review 128

Technical Review Technology North Carolina Switzerland 128

Eric Friedman

AUGUST 18, 2021

He is also co-founder and Managing Partner of Deciens Capital, an early stage investment fund. I think there are some real virtues to that, however, when I talk to my business partner, Ishan [Sachdev], about it, I use a slightly different metaphor: I talk about Jiro [Ono], Nobu [Matsuhisa], and Benihana. On Sushi and VC.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

View from Seed

NOVEMBER 7, 2019

2012-2016: The Era of Blitzscaling. If you understand the premise of blitzscaling, it’s not truly growth at any and all cost… it’s a strategic mindset for building a company from scratch at previously unheard pace specifically where digital innovation enables capturing a large addressable market. Rowe Price, hedge funds, etc.

IPO 202

IPO Early Stage Cofounder B2C 202

David Teten

JANUARY 8, 2013

According to Jeff Bussgang, General Partner at Flybridge Capital Partners, about 10-15% of the 1,000 active venture capitalists in the U.S. Fewer private equity funds are using social media for outreach, but 2xPartners , Healthpoint Capital , and MCM Capital Partners are notable exceptions.

Private Equity 114

Private Equity Social Media Equity Media 114

Seeing Both Sides

JANUARY 4, 2012

At the onset of 2012, many start-up executives around the world are sticking their copy of Lean Start-Up on the shelf, leaning back, and bemoaning the fact that they have a new set of challenges ahead of them. Now the pressure really begins. Financial Strategy: Exit vs. Raise Additional Capital. Obviously, it's not that easy a decision.

Lean 53

Lean Dilution Revenue Hiring 53

David Teten

FEBRUARY 2, 2012

I have ranked this list in ascending order of cost (defined as combined time and money). - Educating the VC/angel community on the city/state resources available to them to build companies. HBS Angels will likely execute this in 2012. We typically do this by partnering with graduate student teams.

Government 146

Government Technical Review New York Offshore 146

Agile VC

NOVEMBER 7, 2019

2012-2016: The Era of Blitzscaling. If you understand the premise of blitzscaling, it’s not truly growth at any and all cost… it’s a strategic mindset for building a company from scratch at previously unheard pace specifically where digital innovation enables capturing a large addressable market. Rowe Price, hedge funds, etc.

IPO 100

IPO Early Stage Cofounder B2C 100

maplebutter.com

JANUARY 8, 2013

Written By Dan Martell on February 2nd, 2012 | Category: Hiring LeanStartup Marketing Metrics Startup Life | 6 Comments. What is the best advice you can give for finding a business partner? Don’t quickly choose any business partner. The key is to ask the right people what they think – not your friends, parents or partner.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

David Teten

NOVEMBER 15, 2013

It is mathematically impossible for the median investor to beat a low-cost index, after expenses. (Of For the twenty years ending 12/31/2012 the S&P 500 Index averaged 8.21% a year, an attractive return. For the twenty years ending 12/31/2012 the S&P 500 Index averaged 8.21% a year, an attractive return.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

abovethecrowd.com

JANUARY 30, 2015

When Uber launched its low-cost UberX offering in the summer of 2012, the company quickly realized that the demand for its transportation services is HIGHLY elastic. UberPool will allow Uber to achieve radically lower price points, magnifying the already positive impact Uber is having in its partner cities.

Technical Review 40

Technical Review Algorithm San Francisco Demand 40

techcrunch.com

SEPTEMBER 2, 2012

Convertible Equity, A Better Alternative To Convertible Debt? Friday, August 31st, 2012. As a refresher, a convertible note is a loan that automatically converts into equity upon the closing of a Series A round of financing. Headphones. CrunchBase. Hot topics. Disrupt SF. View Staff Page.

Equity 87

Equity San Francisco Technical Review Angel Investor 87

Both Sides of the Table

AUGUST 9, 2011

Venture Capitalists typically have partners’ meetings on Mondays. So the industry formed around a day of the week when all partners could avoid having company board meetings or traveling. The parallels to the music industry are too obvious even though the industry players, the medium and the cost structures are different.

Stock 305

Stock Technical Review Marketing Greece 305

Both Sides of the Table

OCTOBER 6, 2012

We met at a private party hosted by his venture partner Mike Yavonditte and I outlined my concerns for the lack of precision of the algorithm. Other people were convinced including Kleiner Perkins who lead their $30 million fund raising in 2012 (they had previously also invested in 2011). Thank you also to Detroit Venture Partners.

Los Angeles 303

Los Angeles Detroit Venture Capital Lean 303

Ben's Blog

MAY 24, 2021

Editor’s Note: This testimony was delivered by a16z managing partner Scott Kupor to the U.S. By way of background, I am the Managing Partner for Andreessen Horowitz, a $16.5 Importantly as well, the positive implications of the 2012 JOBS Act cannot be understated. IPO market.

SEC 36

SEC Accredited Investor IPO Technical Review 36