Both Sides of the Table

MAY 28, 2018

There’s a quick litmus-test conversation any early-stage VC will have with the founder and it’s one that you should be as prepared for as your elevator pitch. Founder: “$8–10 million” VC: “What’s your current burn rate?” Founder: “$250k / month.” Founder: “Um. Having too little demand leads to bankruptcy.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

Hearpreneur

SEPTEMBER 9, 2022

Airbnb founders Brian Chesky and Joe Gebbia had difficulty securing funding, so they launched a mini project to build some funds and catch investors' attention. Using this capital , the founders launched and enjoyed exponential growth in their first year, with 10K users and thousands of listings. Photo Credit: Jack Underwood.

Entrepreneur 94

Entrepreneur Bankruptcy Southern California South Africa 94

Both Sides of the Table

JULY 6, 2016

When I hear the realism that comes from founders with setback it elicits an understanding of what it takes to be successful at a startup that frankly can’t exist unless you’ve walked in those shoes before. In London when founders failed they were ostracized in the press and culturally I believe it became harder to raise capital.

South Korea 261

South Korea Silicon Valley Los Angeles Japan 261

This is going to be BIG.

MARCH 16, 2020

The answer, unfortunately, was to declare bankruptcy. It was a last resort that means that existing investors will get wiped out and some partners the company owes money to will not get paid, which is a devastating thing for the founders who have always been generous partners to the larger community around them.

Bankruptcy 95

Bankruptcy Private Equity Seed Stage Dilution 95

Startup Professionals Musings

JANUARY 14, 2019

Yet the image of leadership in business is at an all-time low, according to national leadership experts, considering the political debacles, record business bankruptcies, and executive fraud cases.

Leadership 235

Leadership Founder Bankruptcy Developer 235

YoungUpstarts

SEPTEMBER 3, 2013

by Kenneth Coats, founder of eKnowID. Doing a background check on a potential partner or co-founder, while unorthodox, could bring to light small issues that could be resolved with a bit of honest dialogue. Kenneth Coats is the founder of eKnowID, a new consumer background-checking solution, and CEO of KENTECH Consulting, Inc.,

Technical Review 219

Technical Review Partner Due Diligence Bankruptcy 219

NZ Entrepreneur

FEBRUARY 4, 2020

Failure will visit you regularly,” warns Group Colleges Australia (GCA) founder and CEO Alan Manly. “It By the time he became a full-time entrepreneur and faced bankruptcy, he was over 40 years of age and poorly educated (in that “year nine” doesn’t impress too many), and a self-confessed business failure.

Bankruptcy 61

Bankruptcy Startup Australia Technical Review 61

YoungUpstarts

JUNE 17, 2020

founder of Pack Law. Companies engaged in an assignment for the benefit of creditors are not afforded protection from the “automatic stay,” a “breathing spell” provided by Federal law in a formal bankruptcy proceeding, which freezes all creditor communication and action in their efforts to collect upon filing. by Joseph Pack, Esq.,

Bankruptcy 179

Bankruptcy Covenant Florida Balance Sheet 179

Startup Professionals Musings

OCTOBER 22, 2010

Remember that up to this point, the investor has primarily seen and talked to the founder and CEO, and studied written documents. Founders with bad credit, active lawsuits, or recent bankruptcies dramatically increase the risk. Tags: entrepreneur investor due diligence founder business. Marty Zwilling.

Technical Review 225

Technical Review Due Diligence Intellectual Property Private Equity 225

Startup Professionals Musings

FEBRUARY 4, 2012

Remember that up to this point, the investor has primarily seen and talked to the founder and CEO, and studied written documents. Founders with bad credit, active lawsuits, or recent bankruptcies dramatically increase the risk. How well have you met previous financial and business milestones?

Technical Review 237

Technical Review Due Diligence Intellectual Property Private Equity 237

Both Sides of the Table

JUNE 27, 2021

They sold 2 years later for $16 million In the financial crisis of 2008 we had a company that had jointly hired lawyers to consider a bankruptcy and also pursued (and achieved!) It was ~30 days from bankruptcy. the sale of the company for $1 billion.

Bankruptcy 294

Bankruptcy Bridge Financing Portfolio Angel Investor 294

The Startup Magazine

JUNE 18, 2019

Our latest venture is a new web platform and app that quickly and easily connects consumers and attorneys for common legal concerns—from divorce and bankruptcy, to personal injury and immigration—called Hotspot Law. Co-Founder Oleg Yavorovskiy has created multiple successful startups in the healthcare, retail and financial services spaces.

Founder 84

Founder New York City New York United States 84

Board Effect

FEBRUARY 16, 2022

When times are tough, boards may have to make the difficult decision to lay off workers, which could cause speculation about financial difficulties or even bankruptcy. Nonprofit boards tend to have lean budgets, and economic fluctuations can intensify financial concerns.

PR 98

PR Management Warrant Bankruptcy 98

David Teten

JANUARY 19, 2021

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Every Flexible VC structure allows founders to access immediate risk capital while preserving exit, growth trajectory, and ownership optionality. . Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

The Startup Magazine

AUGUST 2, 2019

As part of The Startup Magazine Founder Interview Series , we interviewed Mr. Felix Shipkevich. As founder of Shipkevich PLLC, I often deal with financial technology issues and have a long history studying and understanding how financial technology, its legal aspects and regulations impact my clients. LinkedIn: FelixShipkevich.

Founder 90

Founder New York City Cofounder Bankruptcy 90

YoungUpstarts

SEPTEMBER 10, 2013

By Scott Tarlow, founder, president and CEO of Success Systems. For a startup, sustained revenue is of paramount importance: a paucity of sales in one month could lead to bankruptcy the next. Scott Tarlow is the founder, President and CEO of Success Systems. For any business, revenue matters.

Security 147

Security Bankruptcy Startup Revenue 147

Startup Professionals Musings

JANUARY 17, 2015

The Founder needs to remember that meetings up to this point have been primarily off-site, with staged demos, and managed personally by the CEO or a small team. 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 120

Technical Review Due Diligence Startup Term Sheet 120

Both Sides of the Table

APRIL 19, 2011

I recently sat down with Matt Coffin , the founder of LowerMyBills, which sold for $400 million but was very nearly a bankruptcy only a few years early, and talked “startups.&#. I figured if Matt was on the verge of bankruptcy and one mentor changed his trajectory, what if we had a formalized, community-wide program?

Acquisition 304

Acquisition Warrant Customer Term Sheet 304

Startup Professionals Musings

JANUARY 18, 2016

Remember that investors at this stage have heard primarily from the founder, and only reviewed written business plans and collateral. Any unusual financial risks, including contingencies, large contracts, recent bankruptcies or credit denials on the part of any owners must be disclosed. Track record of setting and meeting milestones.

Technical Review 120

Technical Review Due Diligence Cap Table Intellectual Property 120

The Equity Kicker

AUGUST 29, 2012

Within a year, the company was on the path to bankruptcy. Alan quotes David Cohen, founder of Techstars, as saying that due to low conversion from free to paid (typically 1-2%) freemium only makes sense for businesses that can reach millions of users. Most Chargify users never became paying customers. The starter plan is $65 a month.

Bankruptcy 100

Bankruptcy Software Review LLC Business Model 100

Gust

NOVEMBER 14, 2011

Remember that up to this point, the investor has primarily seen and talked to the founder and CEO, and studied written documents. Founders with bad credit, active lawsuits, or recent bankruptcies dramatically increase the risk. How well have you met previous financial and business milestones?

Technical Review 152

Technical Review Due Diligence Intellectual Property Private Equity 152

YoungUpstarts

DECEMBER 9, 2020

by Alex Miller, founder of Alex Miller Credit Repair. Debt collections, repossessions, foreclosures, judgments, tax liens and bankruptcies can all cause your credit score to decline. That’s more than a bankruptcy! Alex Miller, the founder of Alex Miller Credit Repair , is a credit repair expert on debt validation.

Bankruptcy 147

Bankruptcy Reputation Founder Naming 147

NZ Entrepreneur

SEPTEMBER 25, 2023

In Founder Focus we introduce entrepreneurs and change-makers working on innovative startups, social enterprises and SME’s around Aotearoa New Zealand. At a glance Founders: Sasha Lockley and Meurig Chapman Business: Money Sweetspot Founded: 2019 HQ: Auckland Can you tell us a bit about your business?

New Zealand 88

New Zealand Bankruptcy Cofounder Finance 88

Both Sides of the Table

APRIL 26, 2016

The key to being able to run a business that isn’t yet profitable (on operating margin) is availability of capital to finance losses and preferably at a cost that isn’t too punitive to the founders and employees. Poorly calculated LTVs can become BVs (bankruptcy values).

Metrics 150

Metrics Cost Acquisition Startup 150

Hunter Walker

JANUARY 2, 2017

” But we also knew that most Fortune 500 M&A transactions aren’t at unicorn levels (actually well sub-$250m), so we advise founders to not over-raise capital until they’re using it to fund profitable growth (or a clear path to profitability). Better that be a smart acquisition than a bankruptcy. Cruise was this.

Technical Review 115

Technical Review Cap Table Acquisition Startup 115

Austin Startup

MAY 8, 2018

Background reading: Founder Compensation: Cash, Equity, Liquidity Fatal Errors in Early Startup Hiring Early Hires: Options or Stock Given how deeply involved we are with early-stage startups hiring their first key employees, I figured it would be helpful to outline a few key principles to help entrepreneurs navigate the topic.

Employee 48

Employee Seed Stage Startup Equity 48

Both Sides of the Table

SEPTEMBER 8, 2010

Howard Lindzon weighed in with his comments : “As a CEO of a venture backed business myself and founder of many others, I would add one thing… Thick Skin. I have been involved as an investor in many CEO / founder disputes including many that are not in my portfolio. If you fail, you need to start all over.

Ireland 319

Ireland Sales Bankruptcy Germany 319

Gust

DECEMBER 22, 2011

Even in purely online businesses, to scale from zero to millions of users: in the 1990s, an Internet company might have had to build a whole data center from scratch (as we did at Excite@Home, only to ultimately shut it down in bankruptcy ). Has anyone already left the picture? Were outside advisors, contractors or consultants involved?

Intellectual Property 149

Intellectual Property Technical Review Software Review IP 149

Hearpreneur

SEPTEMBER 15, 2019

Our intrepid founder, Tomas Gorny, has a classic immigrant entrepreneur story. Which led me to feel somewhat confident purchasing a much larger niche regulatory print newsletter company out of bankruptcy. Those two pivots ended up being Flickr and Slack. Thanks to Will Hankinson, IntroCave ! #3-Tomas 3-Tomas Gorny.

Entrepreneur 75

Entrepreneur Bankruptcy Bootstrapping B2B 75

NZ Entrepreneur

MAY 2, 2023

Expect to hear from trailblazing enterprise owners and founders who are making waves with their can-do attitude and innovative spirit, all while living the famous Taranaki lifestyle – spanning energy, tech and wellbeing, beverage crafters, commercial developers, and digital storytellers. Morgan Maw, Boring Oat Milk.

Bankruptcy 102

Bankruptcy Global Matching Government 102

View from Seed

APRIL 30, 2015

What is it, and how should founders think about it? 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.

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

The Startup Magazine

APRIL 21, 2020

Loss of income is one of the leading causes of bankruptcy long-term. All in all, losing your business can put you in a tricky financial position, and you may need to look into working with personal bankruptcy specialists. #2 Startup life can be frantic, and you’re putting everything into your company. 2 Your Career.

Bankruptcy 105

Bankruptcy Silicon Valley Startup LLC 105

Lightspeed Venture Partners

OCTOBER 29, 2012

The founder, Shelton Wilder (in the middle below), sought to raise $60,000 for 20% of the company to build inventory. It eventually came out that she had previously been a co-founder of a company that had made a very similar product and had sold $150,000 worth of slips over 18 months. Once again, all the sharks passed.

Pre-Money Valuation 97

Pre-Money Valuation Offshore Valuation Cofounder 97

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

Hearpreneur

MARCH 5, 2017

My dream mentor would be Jeff Bezos, the founder of Amazon.com. Melody McClusky, co founder and CEO of StyleSeat, would be my dream mentor. Additionally, Lisa Price has encouraged me via her brand and ability to persevere despite its bankruptcy. Michael Dubin – Founder of The Dollar Shave Club. 5 – Jeff Bezos.

Technical Review 77

Technical Review Entrepreneur San Francisco Cofounder 77

Austin Startup

MARCH 1, 2018

Intro to the Austin EdTech Startup Scene Come meet Sean Duffy , founder of EdTech Austin and let him tell about everything going on in EdTech in Austin! Join us at this interview and hear how WWE co-founder Linda McMahon fought back from bankruptcy to build her company into a publicly traded entertainment and media powerhouse.

Technical Review 89

Technical Review Austin Texas Cofounder 89

YoungUpstarts

DECEMBER 2, 2014

In fact, since 2000, more than 10 million Americans have filed personal bankruptcy due to their employers’ failed health insurance plan. He is also the founder of six companies including the two largest U.S. For many, it’s been a struggle. But the Affordable Care Act has changed the game.

Software Review 224

Software Review Employee Retention Government 224