Both Sides of the Table

JUNE 17, 2017

If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business 6 months. If you don’t have a strong balance sheet and can’t hire more people that’s fine — but understand this may lead to slower growth.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Steve Blank

MARCH 31, 2014

As the venture capital business has come roaring back in the last 5 years, startups are awash in available capital. Companies horde cash and squeeze the most revenue and margin from the money they use. Instead of measuring success in dollars of profit, …firms focus on measuring capital efficiency.

Private Equity 329

Private Equity Metrics China Intellectual Property 329

Both Sides of the Table

JULY 16, 2010

One is the “denominator problem&# which says that if an LP invests X% (the denominator) into “alternative investments&# such as venture capital and if their total amount available to invest (the numerator) goes down by 30% then the amount they allocate to VC will by definition need to go down by 30% to stay the same percentage.

LP 311

LP Technical Review Early Stage Silicon Valley 311

David Teten

AUGUST 6, 2015

My colleague Paul Bianco serves as interim CFO for a number of ff Venture Capital ’s portfolio companies, and has built and reviewed hundreds of financial models. A more mature organization may project future revenues based on their actual sales pipeline, with a probability adjusted percentage based on stage.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

David Teten

DECEMBER 16, 2015

The most common financial metrics ffVC asks companies to compare vs. budget are: Gross Revenue. Customer Acquisition Cost (CAC). Monthly Recurring Revenue (MRR). Average Revenue Per Account. ff Venture Capital portfolio company. So how do you do it? Identify the metrics that matter. Gross Profit.

Metrics 60

Metrics Analytics Balance Sheet .Net 60

Eric Friedman

AUGUST 18, 2021

I lovingly call him the curmudgeon of fintech – in this episode we go deep into how he is building a venture capital firm and practice, not just running a fund and how he views the world of fintech investing. One of the ones that really bothers me is how Venture Capitalists try and conflate what they do as being complicated.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

Both Sides of the Table

AUGUST 9, 2011

Companies with less than $2 million in revenue were asking for $50-60 million valuations and getting them. The parallels to the music industry are too obvious even though the industry players, the medium and the cost structures are different. Venture capital is an industry best served up from 7-year aged casks.

Stock 305

Stock Technical Review Marketing Greece 305

Both Sides of the Table

JULY 1, 2015

. “the ecommerce company gained fauxmentum by raising artificially high amounts of venture capital and spent lavishly on customer acquisition despite long payback periods and questionable LTV” __. get out and raise money now because when markets change they change on a dime and capital completely dries.

Balance Sheet 150

Balance Sheet eCommerce Venture Capital Acquisition 150

Up and Running

MAY 30, 2022

This includes financial statements such as your profit and loss, cash flow, balance sheet, and sales forecast. Determines financial needs and revenue models. A vital part of starting a business is understanding what your expenses will be and how you will generate revenue to cover those expenses.

Business Plan 150

Business Plan Balance Sheet Revenue Metrics 150

Up and Running

FEBRUARY 14, 2018

However, this dream comes with a big cost. Financial plan : Investors will want to see your revenue and sales forecast, expenses, projected profit and loss, and cash flow, and projected balance sheet. Many people dream of owning their own business. ” The premise?

Balance Sheet 90

Balance Sheet Business Plan Security Forecast 90

Up and Running

FEBRUARY 12, 2014

No doubt you refer to your income statement and your bank account for the basics, but the truth is most businesses ignore the most powerful financial tools in the accounting arsenal: the balance sheet and the cash flow statement. The Balance Sheet. An income statement is usually prepared monthly, quarterly or annually.

Balance Sheet 136

Balance Sheet Small Business .Net Finance 136

Steve Blank

JUNE 23, 2016

It’s a lot easier to get these numbers to look great by outsourcing everything, getting assets off the balance sheet and only investing in things that pay off fast. Intel under their last two CEOs delivered more revenue and profit than any ever before. Risk capital has provided financing for new ideas in the form of startups.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

Both Sides of the Table

MARCH 3, 2013

Obviously that barrier has been brought down with low-cost ability to capture, stream and distribute content over the Internet. He spoke about ROCE (return on capital employed). But “on capital employed” encourages companies to push more off balance sheet and thus into offshore & outsourced situations.

Bankruptcy 403

Bankruptcy Offshore Liquidation Preference Balance Sheet 403

Both Sides of the Table

APRIL 14, 2012

You’ve found yourself in a super hot category and – let’s face it – it’s still a very frothy venture capital funding market so you may have loads of VCs chasing you. Just checked their balance sheet. They have $339 million in cash on their balance sheet. Uh… yeah.

Valuation 316

Valuation Balance Sheet Dilution Term Sheet 316

Up and Running

FEBRUARY 8, 2016

Here’s what they discovered: They found firms that quickly institute formal mechanisms such as operation budgets, cash budgets, and financial monitoring systems (tools that measure profitability, customer acquisition costs, variance from actual budget, and so forth) had higher growth rates in terms of revenues and headcount.

Entrepreneur 60

Entrepreneur Software Review Balance Sheet Partner 60

Up and Running

SEPTEMBER 26, 2016

Venture debt provides a very cost-effective way to receive capital from a big financial institution if you have liquidity or existing financial backing from a well-known investor. Here’s the scoop on what raising venture debt means for startups, what and when they need to consider it, how to negotiate the best terms, and more.

Covenant 60

Covenant Institutional Investors Balance Sheet Warrant 60

ReadWriteStart

JULY 15, 2020

Venture capitalists and early-stage investors have told all of us, founders are critical to a startup’s valuation. As a unicorn approaches an exit, the balance sheet needs to make sense. The action includes training in the full range of customer service skills that bring in revenue.

Valuation 91

Valuation South Carolina San Jose Balance Sheet 91

David Teten

NOVEMBER 17, 2011

We had a simple balance sheet by financing round model in our earlier master template financial model , but this model is more suitable for use in employment negotiations. Enter Raul: This capital table startup options valuation model was created with the purpose of valuing options for an illiquid, early-stage start-up.

Employee 155

Employee IRR Startup Mexico 155

Up and Running

MARCH 11, 2015

You should have a good solid executive summary, you should have full financials, and that means a projected balance sheet, P&L and cash flow. This includes again another acronym I’m going to share, CAC, the cost to acquire a customer, the customer acquisition cost. Okay, so now your revenue model, so this is—.

Technical Review 60

Technical Review Software Review Due Diligence Exit Strategy 60

Gust

DECEMBER 23, 2011

Similarly, start calling VCs if your customer acquisition costs can only be recaptured over a substantial period of time. So: think deeply about the nature of your competitive advantage, your basic revenue vs. expense model, and whether the perception of a well-funded venture is important or not.

Intellectual Property 127

Intellectual Property Balance Sheet Dilution Bootstrapping 127

Growthink Blog

MARCH 14, 2018

No, those next levels of competitive business striving - toward double digit and beyond revenue growth, real and tangible profit, meaningful asset aggregation, and toward brands, cultures, and reputations that stand the test of time. With your balance sheet? Does Your Business Have REAL Competitive Advantage? With your culture?

Balance Sheet 48

Balance Sheet Jordan Non-Compete Aggregator 48

Growthink Blog

NOVEMBER 30, 2016

They build on business assets and trade secrets, they often leverage "remnant" organizational resources, and diversification of revenues and customers is a sought after business goal is it not? Operations Strengths : Our operational systems allow us to deliver high quality at low cost.

Balance Sheet 48

Balance Sheet Non-Compete eCommerce Differentiation 48

Altgate

MARCH 8, 2009

Growth stage investors are usually the Series B or C investors who come in when the product is in the market but there is little or no revenue and the team is probably in the 20-something range with the goal to ramp it up to 40-50 employees with the new money, build out a sales team, etc. So what to do?

Later Stage 34

Later Stage Early Stage Venture Capital Portfolio 34