View from Seed

APRIL 30, 2015

note: We’d like to be extra clear that founders should not take on venture debt if they don’t have 100% visibility into repaying the loan, as banks that need to recoup their loan my force the company or you as the guarantor into liquidation or bankruptcy. Traction and revenue? Business model?

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78

Equity Revenue Cofounder Colorado 78

Steve Blank

JUNE 24, 2013

This got me thinking about the legal obstacles that face innovators with new business models. Rent seekers are individuals or organizations that have succeeded with existing business models and look to the government and regulators as their first line of defense against innovative competition. Rent Seekers.

North Carolina 335

North Carolina New Jersey New York Government 335

YoungUpstarts

JUNE 28, 2012

Considering how incredibly popular Harley-Davidson is today, it’s hard to believe that the motorcycle company was ever on the verge of bankruptcy, but it’s true. Harley-Davidson experienced near-bankruptcy from 1969 to 1981 when the American Machine and Foundry (AMF) bought the company and turned it upside down. Harley-Davidson.

Bankruptcy 195

Bankruptcy Texas Naming Venture Capital 195

Startup Professionals Musings

JANUARY 9, 2015

Many are just not facing the reality that their passion had a critical business flaw. Every business, young or old, needs to avoid the following six mistakes that he outlines: Anticipating success based on the recent past. Never take your eye off the ball in business. This one may be back, and due for another crash.

Intellectual Property 120

Intellectual Property Startup Bankruptcy Viral 120

YoungUpstarts

JUNE 27, 2018

You have to align your business model to the needs of the market, find competent staff to execute your plans, develop a high-quality product, invest in marketing and set up a corporate network that can boost growth and revenue. Launching your own startup company takes courage, vision, creativity and determination.

Intellectual Property 100

Intellectual Property Non-Compete Startup Bankruptcy 100

Steve Blank

JUNE 24, 2013

This got me thinking about the legal obstacles that face innovators with new business models. Rent seekers are individuals or organizations that have succeeded with existing business models and look to the government and regulators as their first line of defense against innovative competition. Rent Seekers.

North Carolina 227

North Carolina New Jersey New York Government 227

YoungUpstarts

NOVEMBER 16, 2012

by Lonnie Sciambi, author of “ Secrets to Entrepreneurial Success “ It never ceases to amaze me how many small business owners think that having multiple sources of revenue, often across multiple market types is a good business model.

Vertical 182

Vertical Bankruptcy Small Business Sales 182

YoungUpstarts

JULY 22, 2015

Run of the mill startups accept seasonal drag without a plan while the ones that eventually grow significantly larger do not accept profit swings or revenue losses as part of their company’s reality. Here’s how to change your business model in order to mitigate or leverage seasonal demand: Level out revenues.

Startup 100

Startup Bankruptcy Campaign Demand 100

Both Sides of the Table

MARCH 3, 2013

“In 15 Years From Now Half of US Universities May Be in Bankruptcy.” So pray for Harvard Business School if you wouldn’t mind.” But while universities are developing online content they are not fundamentally disrupting leaning because the method of delivery is not a new business model.

Bankruptcy 403

Bankruptcy Offshore Liquidation Preference Balance Sheet 403

Small Business Force

JANUARY 2, 2012

It never ceases to amaze me how many small business owners think that having multiple sources of revenue, often across multiple market types is a good business model. Small business success, especially in the early years, is dependent on focus.

Vertical 36

Vertical Bankruptcy Sales Business Model 36

Transformify

JUNE 6, 2019

Let's start with what is sometimes called the ''VC business model'' Such companies are pushed to grow fast and raise many founding rounds one after the other which allows early investors to exit and achieve their target ROI ( return on investment). Respect.

Lean 56

Lean Management Technical Review Software Review 56

Steve Blank

JANUARY 4, 2011

Interestingly, CODELCO is required to contribute 10% of its revenues to the armed forces , but the mining industry seems to have little or no connection with innovation and entrepreneurship efforts in universities and startups. Chileans I met were concerned that their culture was not accepting of business and/or personal failure.

Silicon Valley 335

Silicon Valley Chile South America Venture Capital 335

David Teten

DECEMBER 3, 2019

Pacer is useful to search prior litigation, bankruptcies, etc. Technographics vendors such as Builtwith , Datanyze , HG Data , Stackshare, and Stacklist help CEOs identify the right tech platform on which to build their business; they’re also helpful for investors to due diligence a company’s tech stack choices.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Steve Blank

NOVEMBER 1, 2010

But nine months after the first call was made in 1998, Iridium was in Chapter 11 bankruptcy. When it was spun out as a a separate company, Iridium’s 1990 business plan had assumptions about potential customers, their problems and the product needed to solve that problem. No Business Plan Survives First Contact With A Customer.

Business Plan 335

Business Plan Customer Business Model Customer Development 335

ConversionXL

OCTOBER 30, 2019

The Pareto Principle states that you get 80% of your revenue from 20% of your customers. Metric examples: Monthly recurring revenue (MRR); Average revenue per account (ARPA); Engagement; Customer lifetime value (LTV); Upsell/cross-sell conversion rates. Depending on your business model, it can be tricky to define.

Retention 48

Retention Metrics Churn Rate Acquisition 48

Cracking the Code

OCTOBER 10, 2008

Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. Farming is also often overlooked, but can help grow customer accounts and revenues from 30% upwards (if successful). Great list! Michael Kassing.

Software Review 48

Software Review North America Europe Metrics 48

Both Sides of the Table

FEBRUARY 14, 2016

forward revenue for SaaS businesses when in the years before it had been less than 5x. In September 2008 this was the bankruptcy of Lehman Brothers and the rippling effect was massive. Just as with the late 90s there is no new “business model” that defies the laws of gravity.

Valuation 150

Valuation Down Round Startup Later Stage 150

grasshopperherder.com

SEPTEMBER 24, 2011

I think it’s difficult, if not impossible, to value a pre-revenue company with any reasonable accuracy. The company did have some revenue and paying users, but not enough to make any judgement on the company’s future prospects. You don’t have a defensible business model. I’m wrong all the time.

Sweat Equity 41

Sweat Equity Equity Cofounder Non-Compete 41