ReadWriteStart

JUNE 1, 2020

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. These usually play a role in the very early stage of your business, primarily pre-revenue. For mature businesses, there are Private Equity or PE firms. ?

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

YoungUpstarts

JUNE 6, 2013

If you have a deal that is related to bringing in sales and you do want to have a perpetual compensation you can use some version of a Lehman Formula that incentives the person upfront as they are bringing in revenue for you, then caps it off on an ongoing basis. Balance the risks to your reputation. In Advance vs. Arrears.

Technical Review 164

Technical Review Securities and Exchange Commission Non-disclosure Agreement Due Diligence 164

Startup Professionals Musings

AUGUST 19, 2018

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Angel Investor 184

Angel Investor Intellectual Property Investment Bankers Private Equity 184

Version One Ventures

JANUARY 12, 2021

Combining the investment capital of a private equity firm and the deep operational experience of a startup accelerator, Cap Hill can lead brands to new levels o f growth online. . The company is led by two of the best e-commerce operators and entrepreneurs we know, Kevin Saliba and Jason LeeKeenan.

Private Equity 87

Private Equity Seattle Equity Acquisition 87

Berkonomics

FEBRUARY 9, 2023

The most striking example was the one hundred million–dollar purchase of one of my companies by a New York private equity investor using only five million of its cash. Offering too little in an acquisition to satisfy the seller? But I learned it again and again in my various business lives. Here’s a striking example.

Naming 62

Naming Warrant Private Equity Valuation 62

ConversionXL

DECEMBER 7, 2017

That summer a private equity fund acquired the assets of the company. That latter term is used to describe an initial offer that generates enough revenue to offset the cost of acquiring a customer. And once I took customer acquisition costs into account, this segment was unprofitable and negative-LTV. They returned a lot.

Bankruptcy 106

Bankruptcy Marketing Campaign Intellectual Property 106

Startup Professionals Musings

JULY 4, 2014

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Angel Investor 232

Angel Investor Intellectual Property Investment Bankers Private Equity 232

Rob Go

DECEMBER 28, 2011

61M in Q3 revenue, up 28% YoY. Ebay’s third largest acquisition in the last 3 years. Wayfair: This is somewhere between an exit and and a growth round, but the largest independent ecommerce company focused on the huge home/furniture category raised a $165M round from a group of growth, private equity, and venture investors.

Technical Review 54

Technical Review Boston Software Review IPO 54

Startup Professionals Musings

FEBRUARY 25, 2023

Even still, in the context of all three points, I recommend that you evaluate the most common exit alternatives and considerations, and integrate the right one into your startup strategy and plan: M&A - merger or acquisition by another company. Find a private equity firm or friendly individual.

Exit Strategy 264

Exit Strategy Private Equity Equity Technical Review 264

YoungUpstarts

MARCH 24, 2020

At the time, the company didn’t have the tools or insight to see that the economic boom they thought would last indefinitely had already ended before the ink on the acquisition documents was dry. Second, the company failed to see that the economy of suppliers outside the U.S. The Takeaway. Recognizing where you “are” is half the battle.

Private Equity 127

Private Equity Vertical Forecast Equity 127

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. . The 11 Steps of Investing in Private Companies. In the private equity universe, most Partners have primary training as deal-makers, not as managers. 1) Manage the firm .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Startup Professionals Musings

AUGUST 13, 2016

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Matching 120

Matching Angel Investor Intellectual Property Investment Bankers 120

www.inc.com

SEPTEMBER 24, 2011

Will Work for Equity. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. But with the help of Grahams company, which specializes in creating tech systems for start-ups, Jumpstart grew to more than $50 million in revenue--enough to make it an attractive acquisition for media conglomerate Hachette Filipacchi.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Startup Professionals Musings

MAY 25, 2020

Even still, in the context of all three points, I recommend that you evaluate the most common exit alternatives and considerations, and integrate the right one into your startup strategy and plan: M&A - merger or acquisition by another company. Find a private equity firm or friendly individual.

Exit Strategy 376

Exit Strategy Startup Private Equity Equity 376

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. Our investments or acquisitions won’t be limited by industry or geographically, so “Global” felt adequate.

Private Equity 68

Private Equity Entrepreneur Global America 68

YoungUpstarts

MAY 7, 2015

In reality, many businesses are a perfect fit for ESOPs, but the business owners will never know because they think selling to a private equity or other third-party buyer are their only legitimate alternatives: Discussed below are some of the most common myths associated with ESOPs (sometimes referred to as “ESOP Fables”): 1.

Stock 100

Stock Employee Private Equity Valuation 100

Feld Thoughts

NOVEMBER 2, 2016

For growth companies (usually Series D or later), there are pretty clear market comparables based on growth rate, revenue, gross margin %, and type of company. In 2015, there was a huge influx of hedge fund, crossover, and private equity investors doing late stage rounds. For everything in between, good luck and be flexible.

Venture Capital 70

Venture Capital Private Equity Early Stage Valuation 70

Berkonomics

JANUARY 26, 2017

The most striking example was the one hundred–million–dollar purchase of one of my companies by a New York private equity investor using only five million of its cash. Offering too little in an acquisition to satisfy the seller? But I learned it again and again in my various business lives.

Naming 48

Naming Warrant Private Equity Valuation 48

Growthink Blog

MARCH 1, 2017

Rising public markets, with big companies flush with fresh equity and thus able to more assertively pursue growth-by-acquisition strategies, creates a virtuous trickle-down effect on valuations and business sale probabilities for even the smallest of firms. Ask Yourself What is Wrong.

Marketing 48

Marketing Private Equity Acquisition Equity 48

Growthink Blog

JUNE 25, 2014

By almost any objective standard, paying into the billions of dollars for businesses with little revenues and/or significant operating losses - as is the case with all the companies mentioned above - is absurd. Let''s take the bubble question first. And their options for doing so are far more limited than one might think.

South America 81

South America Marketing Private Equity Russia 81

The Startup Lawyer

AUGUST 22, 2011

By paying your investor a dividend (rather than having dividends accrue and be paid out at acquisition or other typical payable events), you are simply paying back the investor with his own money. This is something you might see in a late stage private equity financing with a company that has a history of generating revenue.

Angel Investor 99

Angel Investor Dividend Dilution Cofounder 99

Startup Professionals Musings

SEPTEMBER 12, 2014

Even still, in the context of all three points, I recommend that you evaluate the most common exit alternatives and considerations, and integrate the right one into your startup strategy and plan: M&A - merger or acquisition by another company. Find a private equity firm or friendly individual.

Exit Strategy 289

Exit Strategy Entrepreneur IPO Startup 289

Startup Professionals Musings

JUNE 2, 2013

I like the work just published by Bob Rice in “ The Alternative Answer ,” which does a great job of summarizing the investment universe, starting with the “conventional” stocks, bonds, and real estate, but moving on through more esoteric alternatives, including hedge funds, private equity, real assets, managed futures, and finally venture funding.

Cram Down 269

Cram Down Angel Investor Intellectual Property Venture Capital 269

Growthink Blog

FEBRUARY 8, 2010

in 2009 was greater than the revenues of Microsoft, Cisco, Google, and Apple. Strictly First Come, First Serve If you're interested in learning the who, what, and how of private equity activity in a recession-proof sector, then join us this Thursday, February 11th at 1 pm EST/10 am PST for a web conference you don't want to miss.

Hockey Stick 72

Hockey Stick Private Equity Washington Government 72

Startup Professionals Musings

APRIL 27, 2016

Even still, in the context of all three points, I recommend that you evaluate the most common exit alternatives and considerations, and integrate the right one into your startup strategy and plan: M&A - merger or acquisition by another company. Find a private equity firm or friendly individual.

Equity 120

Equity Exit Strategy Private Equity Startup 120

ConversionXL

MAY 14, 2014

Internally, Adria was able to summarize eCommerce by one simple equation: Visitors *conversion rate *Average Order Size = Revenue. Always show revenue gains , not conversion increase percentages. Meanwhile this company gets bought by a private equity group who installs a new CEO. Show that others have done it.

Conversion 124

Conversion eCommerce Technical Review Software Review 124

Hearpreneur

MARCH 14, 2018

While I wasn’t selected by one of the five TV sharks, I was able to create a partnership with a private equity group that saw my segment. We’ve made an acquisition of a smaller company and have added some products and services. (Unfortunately, I didn’t win the million dollars!) Photo Credit: Chip Miceli.

Entrepreneur 95

Entrepreneur PR Technical Review Non-Compete 95

VC Cafe

JANUARY 15, 2024

M&A/ Exits – This situation is compounded by a narrowing window for mergers and acquisitions (M&A) and initial public offerings (IPOs). There’s a pecking order, and perhaps the right timing will be the end of the year or beginning of 2025.

IPO 88

IPO Valuation Private Equity 88

Duct Tape Marketing

SEPTEMBER 10, 2019

And I’m guessing one of them certainly is a lot of, “What’s the revenue? So what’s your top-line revenue? The more revenue you have, the more valuable your company is going to be, generally. The more revenue you have, the more valuable your company is going to be, generally. Here’s why.

Entrepreneur 49

Entrepreneur Switzerland Revenue Differentiation 49

A Smart Bear: Startups and Marketing for Geeks

MARCH 11, 2014

After that, I did it for a private equity firm then we became a part of a larger corporation. How do you split equity? How do you split revenue? And then the final thing is just getting the revenue up. Jason: A lot of things are solved with revenue. You know that I ran WinZip before. ” Jason: So?

Technical Cofounder 220

Technical Cofounder Cofounder Software Review Management 220

This is going to be BIG.

JULY 25, 2012

Some of those were clearly the result of acquisitions--whether the founders lost their hunger or whether the acquiring company smothered the baby is up for debate, but Digg, Dailybooth and Turntable stayed on their own. These are the grey haired white dudes that show up as Operating Partners on Private Equity fund pitch books.

Web 94

Web Acquisition Private Equity Bandwidth 94

Women Entrepreneurs Can

MAY 9, 2019

These folks are accessible across any industry and are particularly useful for entrepreneurs who have moved beyond the seed stage of financing, but don’t yet have the significant revenue needed to court venture capital funding. Venture capitalists are used only after a startup has begun to show a significant amount of revenue.

Programming 40

Programming Sweat Equity Startup Private Equity 40

Small Business Force

OCTOBER 14, 2016

Professional investors, be they angels, venture capital or private equity firms are always looking at far more deals than they could invest in. However you define it, be it eyeballs, customers, revenue, cash flow, what have you accomplished to date with your business? So, at the end of the day, you are selling.

Sweat Equity 20

Sweat Equity Private Equity Valuation Equity 20

VC Cafe

NOVEMBER 3, 2010

Shamir Optical reported revenues of $142 million in 2009, generated mainly in Europe and the United States, and has about 1,400 employees. In 2008, the company, which employs about 30,000 worldwide, reported revenues of $28.8 In 2009 it boasted revenue of $4.49 iSkoot is Qualcomm’s first acquisition in Israel.

Bandwidth 79

Bandwidth Framework Forecast 79

A Smart Bear: Startups and Marketing for Geeks

JUNE 20, 2011

They’ve heard rules of thumb like “A growing software company is worth 5 times their trailing 12-months revenue.&# Even narrowing the field as much as feasible, revenue multiples varied between 1.2x The “Multiples&# argument does work well in industries where company’s growth and revenue is highly predictable.

Sales 260

Sales Channel Cofounder Valuation 260

This is going to be BIG.

JUNE 29, 2020

The easiest new source of revenue for the city would be areas where there’s already lots of illegal economic activity that doesn’t get taxed at all, but where legalization would actually bring regulation and improvements—namely, vices. 2) Cut the police budget. Fred Wilson agrees. 8) Bank the underbanked.

New York 153

New York Vermont Carried Interest New Jersey 153

Up and Running

DECEMBER 9, 2014

Two, revenue. Many business owners today really think of financials as being about the past, how much revenue have we had, how much cost did we have. Inaudible 00:27:51] leading indicator to help you know where your revenue will be over the coming weeks and months but you can actually apply the same concept on the cost side as well.

Small Business 95

Small Business Finance Forecast Metrics 95