article thumbnail

Equity for Early Employees in Early Stage Startups

SoCal CTO

I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. Founders vs. Early Employees To help with this discussion, let me start with a definition of "early employee." I'll get to service providers in a later post.

article thumbnail

Corporate Acquisitions of Startups: Why Do They Fail?

Steve Blank

More often than not the results of these acquisitions are disappointing. buy out an entire company for its revenue and profits. The goal is to get a corporate investment or an outright acquisition of the startup. The common mistake acquirers make is treating all acquisitions the same.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

What Does the Post Crash VC Market Look Like?

Both Sides of the Table

Should SaaS companies trade at a 24x Enterprise Value (EV) to Next Twelve Month (NTM) Revenue multiple as they did in November 2021? Median valuations for early-stage valuations tripled from around $20m pre-money valuations to $60m with plenty of deals being prices above $100m.

article thumbnail

The Most Effective Early-Stage Growth Strategies for Emerging Businesses

ReadWriteStart

Still, you need to find some way to pull your company out of this early-stage quicksand. First, we need to address the core challenges of developing effective early-stage growth strategies for new businesses. Many new businesses have a small customer base, limited revenue, and a finite amount of funding to work with.

article thumbnail

Digital Revenue Expert – Vince Thompson

SoCal CTO

Today I lead a small consultancy that helps advertising supported develop and scale the revenue producing sides of their businesses. I usually.just focus on revenue. My management book, Ignited, was released in 2007 and serves a guide and champion for middle managers. How do you explain your personal brand to people?

article thumbnail

Who are the Major Revenue-Based Investing VCs?

David Teten

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Rational burn profile, up to 50% of revenue at close, scaling down. Bigfoot Capital.

Revenue 60
article thumbnail

Pricing Customer Acquisition Sunk Costs and More - Ten Recent Great Startup Posts

SoCal CTO

Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs , February 2, 2010 Looks at the critical equation around customer acquisition cost vs. customer lifetime value similar to what I discussed in Startup Metrics but in more depth. Great stuff. They now have a cool new way to get intros to these angels: StartupList.