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.

Angel Investor 269

Angel Investor Cram Down Intellectual Property Venture Capital 269

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. They believe in you above all else.

Angel Investor 256

Angel Investor Early Stage Incubator Government 256

Up and Running

JULY 22, 2014

your “cost of sale” or “cost of goods sold” (COGS)—keep in mind, some types of companies, such as a services firm, may not have COGS. These three components (revenue, COGS, and gross margin) are the backbone of your business model—i.e., your gross margin, which is your revenue less your COGS. how you make money.

Balance Sheet 148

Balance Sheet Forecast Equity .Net 148

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 328

Private Equity Metrics China Intellectual Property 328

Startup Professionals Musings

JANUARY 18, 2021

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. They believe in you above all else.

Early Stage 412

Early Stage Angel Investor Incubator Government 412

Startup Professionals Musings

JANUARY 19, 2020

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. Super angels have greater scope to match talent with a startup.

Angel Investor 314

Angel Investor Venture Capital Silicon Valley Startup 314

Startup Professionals Musings

JUNE 26, 2015

Skip the fuzzy marketing terms, such as "easier to use," "lower cost" and "disruptive technology." " Investors want to buy into an entrepreneur with a startup that can provide evidence of an ability to double customer productivity, at half the cost, with patented technology.

Intellectual Property 120

Intellectual Property Elevator Pitch Angel Investor Technical Review 120

Startup Professionals Musings

OCTOBER 19, 2015

In fact, an entrepreneur friend of mine, who made millions on her marketing expertise, asserted recently that most inventors fail in business because they refuse to believe that any business expertise or experience is worth more than 5 percent in partner equity. The best technologies are barely invisible and low cost.

Technical Review 120

Technical Review Intellectual Property Cofounder Bootstrapping 120

Steve Blank

MAY 3, 2022

The Ukraine conflict is demonstrating the changing character of war such that low-cost emerging commercial technology is extremely effective when deployed against a larger 20th-century industrialized force that Russia is fielding. Integrate and create incentives for the Venture Capital/Private Equity ecosystem to invest at scale.

Ukraine 310

Ukraine China Private Equity Russia 310

Steve Blank

FEBRUARY 26, 2020

For a Series A round you want to prove you have built a repeatable and scalable sales/revenue model and understand all parts of the business model. Series B is about proving your net revenue model (can you be profitable?). Team, Product, Traction, Business Model and Market. Business Model.

Cofounder 431

Cofounder Seed Stage Valuation Metrics 431

Startup Lessons Learned

APRIL 24, 2012

." - Eric The following is an exclusive excerpt which sets up a common pitfall regarding equity splits. In Noam’s dataset, 73% of founding teams split equity within a month of founding, a striking number given the big uncertainties early in the life of any startup. But such a best-case approach is hazardous. Uncertainties abound.

Equity 168

Equity Founder Cofounder Vesting 168

Hearpreneur

JULY 24, 2020

If these new entrepreneurs decide to continue with their newly found business, they’d be an addition to a huge community of entrepreneurs and I, as a business owner myself who started in humble beginnings, is proud and ready to welcome them in the entrepreneurial world. 5- More due to low costs. Photo Credit: Emma Miller.

Entrepreneur 137

Entrepreneur Technical Review Security Demand 137

Startup Professionals Musings

DECEMBER 27, 2014

Individual angel investors have been filling the gap, and now match VCs in total amount invested. 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.

Angel Investor 260

Angel Investor Silicon Valley Startup Portfolio 260

Version One Ventures

OCTOBER 15, 2020

But the Lightning Network offers two entirely different value props that no other blockchain or smart contracts platform can match: Instant settlement in bitcoin with nearly 0 fees (Ethereum fees spiking to >$10 /transaction during the DeFi craze of sumer 2020 was a good reminder of its own scalability limitations).

Networking 168

Networking Global OTC Security 168

Austin Startup

AUGUST 20, 2017

You can conduct group interviews, get your candidate “liquored up” (not a recommendation), and even have a trial period on the job to see if there’s a good match. They’re looking to be paid properly in the context of the overall salary structure, including cash, benefits, and equity, and to be paid commensurate with performance.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Tim Keane

MARCH 9, 2011

This seems like an easy topic – debt where there is appropriate cash flow, equity when there isn’t.  The overarching idea, of course, is to reduce the cost of capital while maintaining appropriate flexibility for the venture.  Business success is the ultimate goal. This is an equity example, of course. 

Finance 83

Finance Bootstrapping Startup Equity 83

Up and Running

FEBRUARY 12, 2019

Outline your business model. Your business model tells an investor how your idea will (or does) convert into being economically viable. The best way to show you how to communicate your business model is to show you an example of a good one. Your business model should answer the questions: What do you sell?

Sweat Equity 122

Sweat Equity Churn Rate Elevator Pitch Forecast 122

Startup Professionals Musings

AUGUST 27, 2012

The approach I recommend is to build the investor presentation first, by iterating on the bullets with your team, and then fleshing out the points into a full-blown text-based business plan document. Explain in analogies your mother could understand, and quantify the “cost-of-pain” in dollars or time. Business model.

Elevator Pitch 247

Elevator Pitch Exit Strategy Burn Rate Merger 247

Up and Running

JUNE 23, 2015

Maternova is an online marketplace for low-cost but vital obstetric tools; you might think of it as something like Amazon for childbirth-related medical supplies. “It took an enormous investment of sweat equity on both our parts,” Allyson admits. See Also What Is a Social Enterprise? Always be learning.

Cofounder 60

Cofounder Sweat Equity Social Media Business Model 60

Up and Running

MAY 1, 2014

If your business model (i.e., “how If you are raising money to start or grow your business, you need to include the details of what you need in the executive summary. Deciding on your price can feel more like an art than a science, but there are some basic rules that you should follow: Your pricing should cover your costs.

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

Startup Professionals Musings

APRIL 25, 2016

If you expect an equity investment from reputable investors for your new startup, you need to know the boundaries that often limit their interest. In the jargon of investors, certain businesses may be viable but not fundable. Team not a good match for the challenge. Outside investors bet more on the team than the solution.

Intellectual Property 120

Intellectual Property Accredited Investor Angel Investor Reputation 120

Startup Professionals Musings

APRIL 13, 2015

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. They believe in you above all else.

Product Development 120

Product Development Developer Product Angel Investor 120

Startup Professionals Musings

JUNE 10, 2011

The approach I recommend is to build the investor presentation first, by iterating on the bullets with your team, and then fleshing out the points into a full-blown text-based business plan document. Explain in analogies your mother could understand, and quantify the “cost-of-pain” in dollars or time. Business model.

Elevator Pitch 234

Elevator Pitch Exit Strategy Burn Rate Merger 234

Transformify

JULY 23, 2018

It is a grant, not an equity funding. The startups are not selling equity or issuing new shares. Powerful matching algorithms are used to allocate the projects and ensure a stringent and high-quality evaluation process. Business valuation or investor background is among the expert evaluator’s selection criteria.

Intellectual Property 66

Intellectual Property Angel Investor Dilution Startup 66

Startup Professionals Musings

MAY 19, 2010

An alternative approach, which I prefer, is to build the investor presentation first, by iterating on the bullets with your team, and then fleshing out the points into a full-blown text-based business plan document. Explain in analogies your mother could understand, and quantify the “cost-of-pain” in dollars or time. Business model.

Elevator Pitch 235

Elevator Pitch Exit Strategy Burn Rate Merger 235

Up and Running

JANUARY 24, 2014

Outline your business model. Your business model tells an investor how your idea will (or does) convert into being economically viable. The best way to show you how to communicate your business model is to show you an example of a good one. Your business model should answer the questions: What do you sell?

Sweat Equity 138

Sweat Equity Churn Rate Forecast Business Model 138

Gust

AUGUST 19, 2012

The approach I recommend is to build the investor presentation first, by iterating on the bullets with your team, and then fleshing out the points into a full-blown text-based business plan document. Explain in analogies your mother could understand, and quantify the “cost-of-pain” in dollars or time. Business model.

Elevator Pitch 146

Elevator Pitch Exit Strategy Burn Rate Merger 146

Ben's Blog

APRIL 28, 2010

From a pattern matching perspective, it makes sense that we’d prefer founding CEOs, but as I said in an earlier post, pattern matching is not knowledge. The new, professional CEOs were unwilling to let go of the most basic assumptions driving the cost structure of their businesses. The underlying reasons.

Technical Review 78

Technical Review Cofounder Technical Cofounder Software Review 78

The Equity Kicker

JULY 8, 2019

This is what brings us to the second big difference: the cost of Applied Venture is too large to finance from a standard VC management fee. . Different funds finance the cost of these teams with a differing weighting of asking portfolio companies to pay for services, larger than normal management fees, and reduced compensation for partners.

Portfolio 84

Portfolio LP Venture Capital Partner 84

A Smart Bear: Startups and Marketing for Geeks

MARCH 11, 2014

Edwin: Oh sorry, so the business model. Edwin: The business model is that the organizer has to pay. Another idea would be to say matching up. the sort of pain solution match-up process can work. After that, I did it for a private equity firm then we became a part of a larger corporation.

Technical Cofounder 220

Technical Cofounder Cofounder Software Review Management 220

Startup Lessons Learned

JULY 15, 2020

You're selling a consumable product, which is a great business model. What's the cost of delay? Robert Rhinehart : The cost of delay is deceptively enormous, especially when it comes to people's health. So the cost of delay is immense. Eric Ries : It comes back to cost of delay, doesn't it?

Technical Review 68

Technical Review Software Review Finance Technology 68

www.chubbybrain.com

SEPTEMBER 28, 2011

If you are an entrepreneur seeking funding, try our free Funding Recommendation Engine to identify a list of angels, venture capital and state grant programs that best match your business. Contributing to the high cost structure was the new culture of working 9-5 Monday through Friday. We had the wrong business model.

Software Review 79

Software Review Startup Technical Review Vesting 79

Business Plan Blog

SEPTEMBER 10, 2013

Most entrepreneurs understand the need to have strategic advantages (both product/service advantages as well as business strategy advantages), but what many fail to understand is that venture capitalists want to know just how sustainable that advantage is. Proof of Concept. Lastly, we have proof of concept, or market validation.

Intellectual Property 53

Intellectual Property Venture Capital Equity Business Plan 53

Hearpreneur

JANUARY 7, 2017

The idea for my business came when I was stranded on the side of the road with my broken down vehicle. I knew it was an easy fix, so I really didn’t want to pay for a tow truck in addition to the cost of the repair. 20 – To Blend A Beautiful Business Model. He laughed and said I don’t do house calls.

Entrepreneur 91

Entrepreneur LLC Cofounder Green 91

sivers.org

JUNE 25, 2010

Youll estimate time and cost better. The programmer will probably not understand your business model, and therefore cant help you point out anything that doesnt make sense in the requirements. Thinking of your project in milestones makes all the difference. Misunderstandings cant run on too long. in a short period of time.

CTO Hire 84

CTO Hire Hiring Software Review Technical Review 84

Babbling VC

APRIL 3, 2011

I know it goes against your business model :-) but it must tickle you that to some, the sign of success is funding and not a successful business. I have no idea whether any other VC would so openly say this but if you can avoid taking venture capital, do so at all costs. This is a good one. I love talking about this.

Venture Capital 81

Venture Capital Bootstrapping Global Valuation 81