VC Cafe

FEBRUARY 27, 2024

In smaller funds, ticket sizes tend to be lower, so pre-seed is the only stage where micro funds are able to secure their minimum equity targets. There are of course anomalies, like French AI startup Mistral which raised a “seed” round of $113M in June last year.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

Hearpreneur

OCTOBER 13, 2023

A well-constructed business model is a foundational element of a business plan and strategy. Business models can vary significantly across industries and businesses, reflecting each enterprise's unique characteristics and goals. Thanks to Jordan Adair, ShirtMax ! #2- Thanks to Rodney Warner, Connective ! #3-

Business Model 129

Business Model Affiliate Jordan B2C 129

Startup Professionals Musings

JULY 14, 2014

The problem is that professional investors (Angels and Venture Capital) want a proven business model before they invest, ready to scale, rather than the more risky research and development efforts. It always reduces risk to plan your business first. Apply for contests and business grants. Use crowd funding.

Entrepreneur 283

Entrepreneur Intellectual Property Technical Review Incubator 283

VC Cafe

MARCH 1, 2024

New space companies – If we are entering a future with access to space being as routine and inexpensive as commercial air travel, shipping or trucking… what new businesses does that unlock? Looking for companies creating tools to facilitate construction of or fine tuning models.

Artificial Inteligence 176

Artificial Inteligence Technical Review Software Review Generative AI 176

Startup Professionals Musings

FEBRUARY 19, 2013

The problem is that professional investors (Angels and Venture Capital) want a proven business model before they invest, ready to scale, rather than the more risky research and development efforts. It always reduces risk to plan your business first. Apply for contests and business grants. Use crowd funding.

Intellectual Property 309

Intellectual Property Technical Review Venture Capital Startup 309

Startup Professionals Musings

JANUARY 12, 2018

The problem is that professional investors (angels and venture capital) want a proven business model before they invest, ready to scale, rather than early projections and product development. It always reduces risk to plan your business first. Nevertheless, it’s an option that doesn’t cost you equity.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

Steve Blank

APRIL 1, 2020

Any place with a fixed cost that relies on foot traffic will come under pressure. Cut costs to stay alive for 24 months. Payroll costs/other variable costs. Remember, a year from now no one wants to be the CEO of a company out of business whose lament is, “I did what the board told me to do.”. External Assessment.

South Korea 333

South Korea Salary Business Model China 333

David Teten

JANUARY 19, 2021

From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Equity Ownership. Yes, typically preferred equity. On average, founders own just 43% of equity by Series B , declining thereafter. Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Steve Blank

OCTOBER 30, 2012

The class teaches founders how to dramatically reduce their failure rate through the combination of business model design, customer development and agile development using the Startup Owners Manual. The cost of attending a Startup Weekend Next is ridiculously inexpensive. Your team arrives with an initial Business Model Canvas.

Startup 335

Startup Lean Incubator Business Model 335

ReadWriteStart

JUNE 1, 2020

In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. For these businesses, it is imperative to get funding from the start without which the company cannot be set up. Equity investors.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

MAY 21, 2023

For example, professional investors put great priority on your previous experience in building a business, and they expect to own a portion of the business equity and control for the funds they do provide. Trade equity or services for startup help. The process is long, but it doesn’t cost you any equity.

Equity 266

Equity Startup Small Business Administration SBA 266

www.startuplessonslearned.com

MAY 4, 2012

Founders Dilemmas: Equity Splits. Noam is one of a rare breed of business academics: he studies entrepreneurship using a rigorous empirical approach. The following is an exclusive excerpt which sets up a common pitfall regarding equity splits. Lessons Learned. by Eric Ries. Tuesday, April 24, 2012. Uncertainties abound.

Equity 72

Equity Founder Technical Cofounder Cofounder 72

Startup Professionals Musings

SEPTEMBER 7, 2018

This process costs money, which professional investors are not willing to contribute, since their interest is in scaling a proven product and business model into a growth business. through Grants.gov , an online directory of more than 1,000 federal grant programs that don’t look for equity or payback.

Early Stage 225

Early Stage SBIR Technical Review Seed Stage 225

Startup Professionals Musings

JULY 8, 2015

The problem is that professional investors (angels and venture capital) want a proven business model before they invest, ready to scale, rather than the more risky research and development efforts. It always reduces risk to plan your business first. Nevertheless, it’s an option that doesn’t cost you equity.

Entrepreneur 120

Entrepreneur Intellectual Property Technical Review Incubator 120

ReadWriteStart

JULY 3, 2023

Private equity firm Alta Semper Capital has provided a financing injection of twenty million dollars to the e-health business MyDawa, which is based in Kenya. The allocation of this capital is a significant step in reorganizing the structure of the healthcare sector as a whole.

Kenya 120

Kenya Artificial Inteligence Africa Technical Review 120

View from Seed

SEPTEMBER 18, 2019

The other aspect of the people roadmap is org-level team building necessary to unlock or accompany certain stages of the business. The decision around sequencing is equally (if not more) important, especially in the first 12-18 months of the business as you search for PMF and test out your initial go-to-market (GTM) strategy.

Part-Time VPE 195

Part-Time VPE Seed Stage CTO Hire Forecast 195

The Startup Magazine

FEBRUARY 21, 2024

The goal is to transform dormant or underutilized assets into active capital that supports your business. It is also the time to take a hard look at your business model. Simultaneously, we conducted a thorough operational review to identify inefficiencies and areas for cost reduction.

Technical Review 133

Technical Review Due Diligence Bankruptcy Intellectual Property 133

Up and Running

SEPTEMBER 19, 2017

When you accept outside money, particularly a private equity (PE) investment, however, that changes. In this article, I’ll provide some personal stories of how investors have navigated the balance between raising private equity capital and not losing control of their startup. You make all the decisions, when you want, how you want.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

YoungUpstarts

APRIL 16, 2020

For example, a rapidly growing business is often purchasing lots of inventory, investing in fixed assets, and not managing their accounts receivable. If your business model is profitable but you’ve mismanaged one of the above categories, you need to build a 13-week cash forecast to manage your short-term crisis.

Recapitalization 172

Recapitalization Forecast Software Review Finance 172

Startup Professionals Musings

NOVEMBER 8, 2021

This usually means not taking money from equity investors, since investors want fast growth, high profits, and an exit event, to allow investments to be recouped. Of course, even lifestyle entrepreneurs want to be happy, and want their business to be “successful.” Business model to maintain lifestyle is the primary driver.

Entrepreneur 371

Entrepreneur Equity Dilution LLC 371

Steve Blank

MARCH 12, 2014

We realized that past K-12 Entrepreneurial classes taught students “the lemonade stand” version of how to start a company: 1) come up with an idea, 2) execute the idea, 3) do the accounting (revenue, costs, etc.). We wanted to teach our students how to think like entrepreneurs not accountants.

Lean 334

Lean Customer Development Startup Silicon Valley 334

SoCal CTO

MARCH 3, 2011

This overview (executive summary) needs to include: Product and Business What is the product? What's the business model short-term and long-term? I'm looking for free (equity only) development, should I contact you? See Equity-Only CTO and Equity-Only Developers for more on this. Who's the customer?

Fractional CTO 264

Fractional CTO CTO Hire NDA Technical Review 264

SoCal CTO

MARCH 3, 2011

This overview (executive summary) needs to include: Product and Business What is the product? What's the business model short-term and long-term? I'm looking for free (equity only) development, should I contact you? See Equity-Only CTO and Equity-Only Developers for more on this. Who's the customer?

Fractional CTO 259

Fractional CTO CTO Hire NDA Technical Review 259

Startup Professionals Musings

AUGUST 29, 2020

For example, professional investors put great priority on your previous experience in building a business, and they expect to own a portion of the business equity and control for the funds they do provide. Trade equity or services for startup help. The process is long, but it doesn’t cost you any equity.

Equity 436

Equity Small Business Administration SBA Syndicate 436

Steve Blank

SEPTEMBER 1, 2011

Unlike small business entrepreneurs, their interest is not in earning a living but rather in creating equity in a company that eventually will become publicly traded or acquired, generating a multi-million-dollar payoff. Their job is to search for a repeatable and scalable business model. Buyable Startup s: Born to Flip.

Government 335

Government Silicon Valley Startup Venture Capital 335

Startup Professionals Musings

APRIL 26, 2021

Of course, you can find these elements embodied in many of the business plan templates and tools out there, such as the Business Model Canvas. Free” is not an exciting business model for investor interest. Show a cost margin of at least fifty percent. Provide initial and long-term sources of revenue.

Intellectual Property 332

Intellectual Property Angel Investor Business Model Channel 332

Startup Professionals Musings

JUNE 2, 2013

I like the work just published by Bob Rice in “ The Alternative Answer ,” which does a great job of summarizing the investment universe, starting with the “conventional” stocks, bonds, and real estate, but moving on through more esoteric alternatives, including hedge funds, private equity, real assets, managed futures, and finally venture funding.

Cram Down 269

Cram Down Angel Investor Intellectual Property Venture Capital 269

Startup Professionals Musings

OCTOBER 7, 2022

Here is where projections of cost, pricing, volumes and cash flow are critical. If your financial model projects a negative cash flow in this period of $400,000, you should buffer this amount by 25 percent, and ask for $500,000. Be prepared to explain your business model.

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

Startup Professionals Musings

OCTOBER 20, 2023

These advisors need a stake in your success, like a monthly stipend, or an equity share of the business. Client cost differentials of less than twenty percent are usually not enough to incent change. Resist the urge to expand your offering during early growth with additional products, services, and business models.

Marketing 290

Marketing Leadership Differentiation Equity 290

Startup Professionals Musings

APRIL 30, 2023

It may not be as sexy, but starting a new business which builds on an existing technology or business model is usually less risky than introducing that ultimate new disruptive technology. Many of the major business successes started this way. Many of the major business successes started this way.

Social Media 230

Social Media Business Model Equity Distribution 230

Steve Blank

MARCH 31, 2014

In spite of this, private equity funds have used the rallying cry of efficiency to hijack corporate strategy and loot the profits that historically would have been reinvested into research and development and new products. The first will be commodity businesses that are valued for their ability to execute their current business model.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

Startup Professionals Musings

OCTOBER 2, 2023

Angel investors and venture capitalists are looking for startups with real products and a proven business model, ready to scale. Yet I still get too many business plans that clearly are looking for money to do research and development (R&D) on a new and unproven technology.

Angel Investor 256

Angel Investor Early Stage Incubator Government 256

Startup Professionals Musings

OCTOBER 17, 2022

The cost of entry for tech startups continues to go down. Twenty years ago, it cost several million dollars to launch an e-commerce startup, which can be done today for a few thousand dollars. Mobile and web software apps may cost even less. The large investment amounts preferred by VCs are no longer needed to launch winners.

Angel Investor 342

Angel Investor Venture Capital Silicon Valley Portfolio 342

YoungUpstarts

OCTOBER 19, 2018

When you’re looking for extra funds, there are typically two options: debt financing and equity financing. It’s important to understand the difference between debt financing and equity financing so when it comes time to get additional funding, you know which is the right fit for your business and how to get it. Equity Financing.

Finance 138

Finance Equity Vesting Dividend 138

YoungUpstarts

APRIL 7, 2016

The rub is that a startup likely has the ideas to take it straight to the top, but it’s also likely that the company lacks the business skills to make it truly successful. A Startup Lab invests guidance, strategy, and takes equity in a carefully selected collection of early and seed stage startups. The solution: Startup Labs.

Seed Stage 100

Seed Stage Silicon Valley Incubator Asia 100

Startup Professionals Musings

JULY 14, 2023

That leads to switching costs, sunk costs, brand equity, and a host of other considerations, commonly called “barriers to entry.” If you new vehicle costs too much, people take the bus. One of the key sections of every entrepreneur’s business plan is the analysis of the competition.

Differentiation 220

Differentiation Framework Equity Business Plan 220

www.inc.com

SEPTEMBER 24, 2011

Will Work for Equity. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. Determined not to miss another opportunity, Graham has begun waiving fees and instead taking equity in clients he thinks have a good shot at success. Theres a huge opportunity cost in not taking equity," he says.

Arizona 40

Arizona Equity Iowa Venture Capital 40