Startup Professionals Musings

JANUARY 24, 2021

Sales and distribution channel activity will be analyzed, as well as cost of customer acquisition, to make an independent assessment of your financial projections. During that period, it is very difficult for either party to get out of the deal, since there is no public market for the stock, and business divorces normally mean bankruptcy.

Technical Review 379

Technical Review Due Diligence Term Sheet Bankruptcy 379

ConversionXL

SEPTEMBER 1, 2020

Focusing on the entire customer journey—not just acquisition—and improving each step along the way ensures that customers continue to buy from you, now and in the future. Meaning: C = Customers (traffic x conversion rate) CLV = Customer revenue – (CAC + cost of serving that customer) CAC = Customer Acquisition Cost G = Growth.

Customer 132

Customer SMS Retention Acquisition 132

ReadWriteStart

OCTOBER 2, 2021

In addition, they can neither issue stocks nor bonds. However, most institutional investors (venture capital groups, for instance) don’t mind this structure, and they, in fact, prefer to invest in corporations due to protections from issuing stocks. While LLCs cannot issue stocks, they can sell bonds to investors.

Technical Review 158

Technical Review LLC IPO Stock 158

ReadWriteStart

JANUARY 23, 2023

If you want them to be discerning and choosy when selecting a new acquisition for the company, demonstrate that behavior yourself. Choose your acquisitions carefully. Choose your acquisitions carefully and add them one at a time. Featured Image: Startup Stock Photos; Pexels.com. Invest in now.

Lean 158

Lean Technical Review Startup Acquisition 158

Startup Professionals Musings

JANUARY 15, 2021

When an entrepreneur first incorporates a business, they may find themselves the proud owner of 10 million shares of common stock, commonly called founder’s shares. Startup owners need to assume a three to five year wait for a liquidity event, such as acquisition or going public, before they can cash out. In the U.S.,

Vesting 298

Vesting Dilution Stock Founder Vesting 298

Steve Blank

OCTOBER 23, 2023

Advisory Board members are often paid in a balance of equity (stock options) and cash (“cash” is the industry term for money wired to your bank account). CEOs seek their advice (and often must seek their formal approval) for major strategic decisions such as acquisitions, major budget changes, hiring of C-level executives, etc.)

Government 212

Government Advisory Board Salary Sales Cycle 212

Startup Professionals Musings

JANUARY 29, 2018

I’ll never forget that great sense of excitement I felt when I incorporated my first business, and realized that I was now the proud owner of 10 million shares of common stock. Even though initial stock has no market value today, it is extremely valuable in dividing equity ownership between co-founders, investors, and early partners.

Stock 129

Stock Vesting Preferred Stock Cofounder 129

YoungUpstarts

JUNE 11, 2019

Acquisition entrepreneurship is a model in the same vein. With acquisition entrepreneurship, you focus on establishing revenue and earnings first, and then you provide a platform for a lifestyle business or major innovation from there. ” The Boston Red Sox won the 2004 World Series by adopting the same strategy.

Acquisition 113

Acquisition Oakland Small Business Administration SEC 113

Startup Professionals Musings

SEPTEMBER 14, 2022

A reverse merger is the acquisition of an already public company (usually a dormant shell) to avoid the Initial Public Offering (IPO) process and cost, to quickly get your startup on a public exchange for fund raising through visibility and selling stock. Yet reverse mergers are not all bad.

Merger 261

Merger OTC IPO Due Diligence 261

SoCal CTO

SEPTEMBER 27, 2011

Paul Graham provides what is roughly the core formula for equity at any point in The Equity Equation : You can use the same formula when giving stock to employees, but it works in the other direction. The team gets another $3 million as a severance payment or an earn-out, to sweeten the acquisition offer. Stock vests for 4 years.

Early Stage 391

Early Stage Equity CTO Hire Sweat Equity 391

Both Sides of the Table

AUGUST 3, 2010

500k had come through the last acquisition. For some reason the industry of bankers who try to buy or sell businesses work in what is called the “M&A (mergers & acquisitions) Industry.&# I’ve never understood this. There’s really no such thing as a merger – only acquisitions. million uniques.

Merger 276

Merger Technical Review Early Stage Dilution 276

ReadWriteStart

OCTOBER 2, 2021

In addition, they can neither issue stocks nor bonds. However, most institutional investors (venture capital groups, for instance) don’t mind this structure, and they, in fact, prefer to invest in corporations due to protections from issuing stocks. While LLCs cannot issue stocks, they can sell bonds to investors.

Technical Review 78

Technical Review LLC IPO Stock 78

Startup Professionals Musings

MAY 18, 2015

When an entrepreneur first incorporates his or her business, he or she may find him or herself the proud owner of 10 million shares of common stock, commonly called founder’s shares. Startup owners need to assume a three to five year wait for a liquidity event, such as acquisition or going public, before they can cash out. In the U.S.,

Stock 120

Stock Vesting Common Stock Founder Vesting 120

Steve Blank

MARCH 16, 2016

Risk capital takes equity (stock ownership) in your company instead of debt (loans) in exchange for cash. A liquidity event means that the equity (the stock) you sold your investor can now be converted into cash.) Unfortunately, it’s the rare VC who has already built an acquisition roadmap. Square, Uber, Palantir, Fitbit, etc.)

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Venture Capital 120

Up and Running

NOVEMBER 12, 2014

We will cover them in more depth below: Acquisition. Acquisition: The acquisition is often known as a “merger and acquisition.” An acquisition or merger does not have to happen on a big scale. A couple of well-known examples of restaurants on the stock exchange include Buffalo Wild Wings and BJ’s.

Exit Strategy 117

Exit Strategy Lock-up Period Merger IPO 117

Startup Professionals Musings

MAY 28, 2022

Use acquisitions to complement organic growth. Smart companies use acquisitions to enhance momentum and accelerate revenue growth. Smart companies use acquisitions to enhance momentum and accelerate revenue growth. Avoid stock deals, and pay with cash. Smart companies always have a few “experiments” in process.

Intellectual Property 322

Intellectual Property Acquisition Non-Compete Merger 322

Haystack

NOVEMBER 12, 2018

In the wake of what is now considered the second-highest enterprise SaaS acquisition in history, below are some quick takeaways that are on my mind: 1/ The Efficiency Of Silicon Slopes – By now it should be no surprise that Utah’s tech ecosystem is on fire. And, every year, it doesn’t materialize that way.

Acquisition 105

Acquisition Utah IPO Venture Capital 105

YoungUpstarts

DECEMBER 10, 2015

For most of those that manage to grow big, acquisition of other companies plays a major role in their success. While many businesses are aware of the importance of importance of acquisitions as a growth strategy few get it right when making acquisitions. In fact statistics show that only a quarter of acquisitions succeed.

Acquisition 100

Acquisition Social Media Distribution Startup 100

Startup Professionals Musings

DECEMBER 8, 2019

A reverse merger is the acquisition of an already public company (usually a dormant shell) to avoid the Initial Public Offering (IPO) process and cost, to quickly get your startup on a public exchange for fund raising through visibility and selling stock. Yet reverse mergers are not all bad.

Merger 303

Merger OTC IPO Due Diligence 303

Steve Blank

SEPTEMBER 14, 2009

Posted on September 14, 2009 by steveblank Over the last 30 years Wall Street’s appetite for technology stocks have changed radically – swinging between unbridled enthusiasm to believing they’re all toxic. Your firm worked with an investment banking firm that underwrote and offered stock (typically on the NASDAQ exchange) to the public.

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

YoungUpstarts

OCTOBER 25, 2018

Toronto’s Mark Attanasio has spent some 20 years advising businesses at various stages in their development on what it takes to position themselves for growth – whether it’s through traditional transactional activities like management buyouts and mergers and acquisitions or via a public listing on a Canadian stock exchange.

Partner 113

Partner Technical Review Management Due Diligence 113

Steve Blank

APRIL 23, 2018

While Durant was a great entrepreneur, the integration of the companies and suppliers was difficult, a recession had just hit, and GM was overextended with $20 million in debt ($250 million in 2018 dollars) from all the acquisitions and was about to run out of cash. Durant’s bankers and board fired him from the company he had founded.

Michigan 268

Michigan Cofounder Stock Forecast 268

OnlyOnce

FEBRUARY 1, 2024

Sometimes when you’re doing a strategic acquisition and it’s an all-stock deal, you can insist as a term of the acquisition that the target company’s investors invest more capital into your company. But think of it as a tool in the M&A/financing tool belt.

Cap Table 71

Cap Table Common Stock Acquisition Stock 71

Agile VC

AUGUST 9, 2012

Governance/Control – Founder/CEO Mark Pincus has sold a good amount of his stock and owns <20% of shares outstanding, but now essentially has unilateral voting control of the company. So I can appreciate why public stock investors would be leery of Zynga and why the stock price has been punished recently.

Stock 160

Stock LBO .Net Valuation 160

YoungUpstarts

AUGUST 25, 2015

Owners of corporations also pay taxes when they are paid dividends or profit from sale of the stock, which is why it is common to say that corporations are “double-taxed.” Ownership of a corporation is measured in stock. Stocks are issued at the time the company is formed, and more can be issued over time. Verdict : It’s a tie!

LLC 100

LLC Technical Review Software Review Limited Liability Company 100

Transformify

MARCH 4, 2020

The stock price of Wirecard plunged almost immediately and it took sufficient time to recover. From an investor’s point of view, the acquisition of Hermes iTickets in 2015 is a clear red flag. What is even more surprising is that the alleged roundtripping is related to the controversial acquisition of Hermes iTickets.

Technical Review 78

Technical Review Valuation Stock Acquisition 78

YoungUpstarts

FEBRUARY 13, 2019

Just ask Blue Apron, which has found itself in the news recently for its poor stock market performance and its widely criticized acquisition-focused growth strategy — not to mention CEO Brad Dickerson’s unwillingness to release its retention numbers. Blue Apron is hardly alone with its churn problem.

Customer 173

Customer Technical Review Retention Acquisition 173

David Cohen

JULY 15, 2019

Alpha Stock Images?. The post Watch out for unfair indemnity during acquisitions appeared first on Hi, I'm David G. Unfair by Nick Youngson CC BY-SA 3.0 In other words, we are being asked to guarantee that our portfolio companies, and sometimes even that other shareholders of these companies, have not committed fraud.

Acquisition 70

Acquisition Portfolio Stock Startup 70

Feld Thoughts

APRIL 15, 2014

6M-$15M used to scale customer acquisition and revenue). Today at 5pm I’m doing a fireside chat with Eliot Peper , the author of Uncommon Stock , the first book published by FG Press. The post Today’s Fun – Gnip, Twitter, Uncommon Stock, and Pre-Seed Rounds appeared first on Feld Thoughts.

Stock 114

Stock Mezzanine Acquisition Revenue 114

Startup Professionals Musings

MAY 29, 2022

Last year was quite a year for IPOs, largely influenced by the significant rise in the number of special purpose acquisition companies (SPACs) who went public, despite almost uniformly negative returns. Smart entrepreneurs are now starting to look at this option again, as well as the challenges of running a public company.

IPO 245

IPO SEC Prospectus Startup 245

YoungUpstarts

MAY 7, 2015

Employee stock ownership plans (ESOPs) can be an attractive way for an owner to sell a company and for employees to gain an ownership stake. ESOPs are qualified retirement plans that buy, hold and sell company stock for the benefit of employees. more than 50% of the stock is sold to the ESOP). by Timothy L.

Stock 100

Stock Employee Private Equity Valuation 100

Feld Thoughts

APRIL 21, 2014

Yesterday I read Kara Swisher’s post What Does the Recent Tech Stock Downturn Mean? In the last two weeks there’s been a flurry of articles about the implications of a 25% decline in the public market value of a bunch of Internet stocks. A few weeks later Internet stocks started to fall. The Truth Is Nobody Knows.

Stock 140

Stock Internet SEC Italy 140

The Startup Magazine

SEPTEMBER 14, 2023

By outsourcing the order fulfilment process, you can save valuable time and resources that can be better invested in other areas of your business, such as product development, marketing, and customer acquisition. With third-party eBay fulfilment, you can maintain accurate inventory records and gain real-time visibility into stock levels.

Partner 148

Partner eCommerce Reputation Stock 148

YoungUpstarts

DECEMBER 22, 2020

For instance, an AI system may be able to streamline the talent acquisition process by vetting applicants’ resumes and filtering out unqualified candidates. AI should be viewed not as a one-time fix for all operational problems, but as a tool to be leveraged only when it will be cost-effective, efficient, and culturally valuable to do so.

Artificial Inteligence 165

Artificial Inteligence San Diego Leadership B2C 165

David Teten

JANUARY 19, 2021

The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). Eligible for favorable treatment under Qualified Small Business Stock exemption, if structured as equity. This applies if the investment converts into common stock; details are beyond this essay’s scope. Governance.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

The Startup Magazine

NOVEMBER 8, 2020

IV is based on how a stock is expected to perform over the course of a year. Standard deviation (SD) is the unit of measurement that represents the probability that the stock will reach the end of a specific price range in one year. The standard deviation for stock options is 68.2%. Possible mergers or acquisitions.

Stock Options 144

Stock Options Merger Stock Entrepreneur 144

ReadWriteStart

JUNE 1, 2020

The shares given out can either be common stocks or preferred stocks. ? Debt investment. These phases are focused on inorganic growth, mergers, buyouts, acquisitions, and exit preparation for the business. Equity investment is the most popular and most talked-about avenue for startup funding. Stages of Funding.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150