Startup Professionals Musings

AUGUST 31, 2012

It doesn’t prove your business model of pricing, distribution, and support. Intellectual property is a large element of most early-stage company valuations, and this value determines what percent of the company an investor will expect to get for his money. Get a real customer and real revenue.

Intellectual Property 260

Intellectual Property Sweat Equity CTO Hire Fractional CTO 260

Version One Ventures

JULY 20, 2015

I often get asked about how to determine the valuation for a marketplace startup that is starting to scale. The main multiple we like to use for marketplace businesses is GMV (Gross Merchandise Volume…the total volume of goods sold on the marketplace). Our assumptions for this valuation: Scale: > $1b GMV. for 2015 GMV.

Valuation 60

Valuation Early Stage IPO eCommerce 60

crowdSPRING Blog

AUGUST 22, 2014

Complete Guide to Google My Business | TechFunction – crowdspring.co/1ldeJWm. How to Test Whether Your Business Model is Worth Pursuing – crowdspring.co/1nbEqBG. Our Additions to Tomasz Tunguz’s Seed Fundraising Post | PitchBook Blog – crowdspring.co/1tmZRok. 1pPWohJ.

Social Media 92

Social Media Small Business Design Media 92

The Startup Magazine

APRIL 24, 2020

Whether you’re interested in selling a website you built from scratch, or want to sell your Amazon-based B2C brand, there are many different baseline factors that go into determining an appropriate website valuation number. While it’s true that valuations can get quite technical, the basics are relatively easy to understand.

eCommerce 91

eCommerce Valuation B2C Revenue 91

Startup Professionals Musings

JUNE 17, 2011

It doesn’t prove your business model of pricing, distribution, and support. Intellectual property is a large element of most early-stage company valuations, and this value determines what percent of the company an investor will expect to get for his money. Get a real customer and real revenue.

Intellectual Property 253

Intellectual Property Sweat Equity CTO Hire Fractional CTO 253

crowdSPRING Blog

NOVEMBER 30, 2012

Small Business and Startups: 5 DIY Things To Do For Your Brand! crowdSPRING Blog – [link]. How To Choose A Market For Your Startup Or Small Business – [link]. How Small Businesses Can Compete with Big Business – [link]. Start With a Business Model, Not a Business Plan | WSJ – [link].

Social Media 100

Social Media Small Business Central African Republic Design 100

Startup Lessons Learned

SEPTEMBER 22, 2008

Lessons Learned by Eric Ries Monday, September 22, 2008 The three drivers of growth for your business model. The AARRR model (hence pirates, get it?) He also has a discussion of how your choice of business model determines which of these metric areas you want to focus on. Choose one.

San Francisco 167

San Francisco CPA SEM CTO Hire 167

crowdSPRING Blog

NOVEMBER 1, 2013

Amazon and the “profitless business model” fallacy – crowdspring.co/1aQZQ04. Entrepreneur PSA – Advertising Businesses are Hard | Seth’s Blog - crowdspring.co/1aHHgHS. But a nearly $4 billion valuation? Is Small Business Marketing On Facebook A Complete Failure? - crowdspring.co/1aWQct4.

Social Media 94

Social Media Small Business Design Media 94

Startup Professionals Musings

MAY 22, 2010

It doesn’t prove your business model of pricing, distribution, and support. Intellectual property is a large element of most early-stage company valuations, and this value determines what percent of the company an investor will expect to get for his money. Get a real customer and real revenue.

Intellectual Property 222

Intellectual Property Sweat Equity CTO Hire Fractional CTO 222

David Teten

JANUARY 19, 2021

Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Typical business stage. An already proven business model and its already valuable assets. Typical business model. (co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. Of the Inc.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Lightspeed Venture Partners

OCTOBER 7, 2012

That’s why most entrepreneurs do not make a specific ask on valuation, but wait to hear offers from investors. As Cuban pointed out, this is a “down round” Zomm is seeking $2M for 10% of the company, implying an $18M pre money valuation today. The last company was a bit of a puzzler.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

Startup Professionals Musings

MARCH 18, 2016

As an entrepreneur looking for professional investors, one of the quickest ways to lose credibility and get rejected is to start with a ridiculously high pre-money valuation. Equally bad is professing no valuation estimate at all, asking investors to “make me an offer.” First priority is real revenue, customers and contracts.

Intellectual Property 120

Intellectual Property Valuation Pre-Money Valuation Startup 120

Up and Running

OCTOBER 13, 2014

Either way, he says, these smaller firms gain major clients that fund further growth and drive their valuations higher. The Bottom Line for Small Businesses. Templeman advises and challenges small business owners to consistently consider such opportunities to help larger companies innovate. See Also Innovate!

Intellectual Property 106

Intellectual Property Philadelphia Small Business California 106

ReadWriteStart

MARCH 24, 2011

Additional work in figuring out the precise go-to-market consumer, academic institution, or enterprise - each is a different business), and consequent business model and pricing model will help enhance the company's valuation. I like these two strategies. From 2008 to 2010, Mitra was a columnist for Forbes.

Illinois 114

Illinois Entrepreneur Silicon Valley Chicago 114

Both Sides of the Table

MARCH 6, 2010

Since I answer this all the time anyway I thought it might make an interesting blog post. I get to do a deep dive on their business model, product roadmap and competitive positioning. Writing this bl0g – This blog is a huge creative outlet for me. I’m enjoying the chaotic creativity that comes with blogging.

Technical Review 312

Technical Review Due Diligence Spain Warrant 312

Steve Blank

SEPTEMBER 14, 2009

Underwriters realized that as long as the public was happy snapping up shares, they could make huge profits on the inflated valuations (regardless of whether or not the company should have ever been public.) The valuations for acquisitions were nothing like the Internet bubble, but there was a path to liquidity, difficult as it was.

Silicon Valley 223

Silicon Valley IPO Technical Review Venture Capital 223

ReadWriteStart

SEPTEMBER 10, 2010

And EVEN if you ARE an experienced entrepreneur, all but just a few VCs still want to see customer validation, business model validation and traction, before they will invest. Why not go further, develop more valuation, customer experience, and really, deeply validate the business? Next comes the topic of angels.

Cloud 115

Cloud Silicon Valley Incubator Finance 115

Growthink Blog

APRIL 15, 2015

Now given that the company has yet to even come close to breaking even, this can be viewed as either a great validation of Domo''s business model, or as more evidence of the “Bubble Mania” of the current technology financing landscape and a screaming signal to get out while you still can.

Valuation 48

Valuation Venture Capital Finance Acquisition 48

www.forentrepreneurs.com

FEBRUARY 2, 2010

Blog About Log in Register Startup Killer: the Cost of Customer Acquisition In the many thousands of articles advising entrepreneurs on what they have to focus on to build successful startups, much has been written about three key factors: team, product and market, with particular focus on the importance of product/market fit.

Acquisition 103

Acquisition Cost Customer Entrepreneur 103

View from Seed

APRIL 30, 2019

All three have different business models… SaaS, media/ad, and consumer transactional. All three are impressive and valuable businesses in their own right. In the last decade or so, high profile consumer IPOs have often gotten lofty valuations. Zoom is a B2B company Pinterest and Lyft are obviously B2C companies.

IPO 180

IPO B2B B2C Institutional Investors 180

Agile VC

APRIL 30, 2019

This post also appears on NextView’s blog. All three have different business models… SaaS, media/ad, and consumer transactional. In the last decade or so, high profile consumer IPOs have often gotten lofty valuations. 2019 is off to an exciting start for IPOs of VC-backed startups.

IPO 100

IPO B2B B2C Institutional Investors 100

Tim Keane

MAY 16, 2010

A philosophy of valuations and term-sheets. A Philosophy of Valuation and  Term Sheet Calcs   the accompanying spreadsheet.  Listed below are links to weblogs that reference A philosophy of valuations and term-sheets : Comments. A philosophy of valuations and term-sheets. Subscribe to this blogs feed.

Term Sheet 60

Term Sheet Valuation Wisconsin Angel Investor 60

Version One Ventures

OCTOBER 15, 2020

Suredbits has a fantastic blog series on DLCs, but basically they allow two parties to make a bet and use a data feed as the arbiter of truth for the outcome without that arbiter knowing it’s involved. A new breakthrough could solve this problem: Discreet Log Contracts (DLCs).

Networking 168

Networking Global OTC Security 168

crowdSPRING Blog

APRIL 8, 2012

Entrepreneurs should always conduct their own historical research to better understand the context of their idea, the likelihood of the venture’s success, and to determine the value of a market or a business model. Academics review one another’s work.

Software Review 112

Software Review Entrepreneur Incubator Valuation 112

Cracking the Code

NOVEMBER 13, 2008

The fact that SaaS valuations are being more affected by the downturn than the Nasdaq can be surprising given the supposed resiliency of the SaaS model (recurring revenues) but it translates the public investors belief that SMB software spend is going to be hit very hard by this recession. SaaS 13 Index Valuation. Thank you.

Software Review 48

Software Review Technical Review Valuation Portfolio 48

Steve Blank

MARCH 18, 2011

The signals are loud and clear : seed and late stage valuations are getting frothy and wacky, and hiring talent in Silicon Valley is the toughest it has been since the dot.com bubble. Underwriters realized that as long as the public was happy snapping up shares, they could make huge profits from the inflated valuations. Carpe Diem.

Internet 334

Internet IPO Silicon Valley Agile 334

Startup Professionals Musings

AUGUST 5, 2013

At this stage you were expecting to be working on creating a good business valuation to attract future buyers, or at least funding college accounts for your kids. Accreditations, licenses, and certification – for your business or for individual employees – can set you apart from your competition. Maximize cash flow.

Entrepreneur 234

Entrepreneur Vertical Reputation Valuation 234

Professor VC

SEPTEMBER 26, 2011

However, I have seen some blog posts posing the question about whether the same principles of valuing baseball players could be applied to entrepreneurs. RCSMs premise is that they can reach an investment decision (and valuation) based on an application completed by the founders and take gut feel out of the decision process.

Technical Review 38

Technical Review Early Stage San Jose Angel Investor 38

Start Up Blog

NOVEMBER 18, 2020

Here are some of their key numbers below: Filed to float with a valuation of around $13b USD. The problem is that it has a technology company valuation. Valuation around $30b. It is purely connection via software, and hence deserves a technology company style valuation. DOOR DASH – IPO. Lost $450m USD last year.

IPO 62

IPO Valuation Software Venture Capital 62

This is going to be BIG.

NOVEMBER 3, 2014

Billion valuation. Personally, I think it was kind of a bad idea--not necessarily because of the valuation, but because it seems like $120mm is way too much money for a software company at this stage, especially one that might even be cashflow positive right now. The company is doing about a million a month in recurring revs.

Venture Capital 151

Venture Capital Marketing Valuation Lead Investor 151

Startup Professionals Musings

JULY 6, 2012

At this stage you were expecting to be working on creating a good business valuation to attract future buyers, or at least funding college accounts for your kids. Accreditations, licenses, and certification – for your business or for individual employees – can set you apart from your competition. Maximize cash flow.

Startup 236

Startup Vertical Reputation Valuation 236

genylabs.typepad.com

SEPTEMBER 24, 2011

Small Business Blogs. Entrepreneur Magazine Blog. SBA: Small Business Administration Office of Advocacys Home Page. The Franchise King Blog. The Global Small Business Blog. Blog powered by TypePad. « Lawyers and CPAs Blogging | Main. BizTech Magazine: 50 Must-Read IT Blogs.

Equity 40

Equity Technical Review San Jose Stock 40

Professor VC

APRIL 7, 2011

We werent able to declare a winner, but I did agree to write a blog post on the topic. In a convertible note structure, Im penalized for increasing your valuation. Instead of getting a 2-3x multiple from seed to Series A, I get a discount off of the Series A, so Im better off financially with a lower valuation. Blog Archive.

San Jose 36

San Jose Technical Review Angel Investor Valuation 36

Startup Professionals Musings

MARCH 28, 2011

At this stage you were expecting to be working on creating a good business valuation to attract future buyers, or at least funding college accounts for your kids. Accreditations, licenses, and certification – for your business or for individual employees – can set you apart from your competition. Maximize cash flow.

Startup 230

Startup Vertical Reputation Valuation 230

www.inc.com

SEPTEMBER 24, 2011

Todays Small Business News | Daily. Writing A Business Plan. Running A Home-Based Business. Naming a Business. In the past few years, hundreds of small companies have been snatched up by private equity firms willing to agree to ever-rising valuations. Leadership & Managing | Tuesdays. Email address: Home.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Version One Ventures

DECEMBER 7, 2016

If you have been following our blog or firm, you know how much we love network effects. As investors, we love the underlying business models, including the daily use case, virality, and network effects. There are chapters on metrics, exits, valuations, as well as our outlook for future opportunities in social. Why social?

Artificial Inteligence 60

Artificial Inteligence Viral Valuation Networking 60

YoungUpstarts

MARCH 9, 2015

While most of the startup blogs and magazines focus on the VC fundings and their million dollar valuations, the truth is that a whopping majority of entrepreneurship stories are never shared. Bootstrapping a business has another unintended consequence – a sustainable business model. But is this model replicable?

Bootstrapping 100

Bootstrapping Cloud Finance eCommerce 100