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

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

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? Who might be partners? I'm looking for free (equity only) development, should I contact you? See Equity-Only CTO and Equity-Only Developers for more on this.

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? Who might be partners? I'm looking for free (equity only) development, should I contact you? See Equity-Only CTO and Equity-Only Developers for more on this.

Fractional CTO 259

Fractional CTO CTO Hire NDA Technical Review 259

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

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 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

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. It will certainly also decrease profitability over time, as well as test your sustainable competitive advantage.

Differentiation 220

Differentiation Framework Equity Business Plan 220

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

David Teten

AUGUST 19, 2019

This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. Repaid 12-36 months with ability to prepay at reduced cost. Bigfoot Capital.

Revenue 60

Revenue Technical Review Software Review Equity 60

Startup Professionals Musings

SEPTEMBER 30, 2013

Make sure your plan answers every relevant question that you could possibly imagine from your business partners, spouse, and potential investors. It doesn’t prove your business model of pricing, distribution, and support. Forcing yourself to write down a plan is actually the only way to make sure you actually have a plan.

Intellectual Property 281

Intellectual Property Entrepreneur Sweat Equity CTO Hire 281

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

View from Seed

APRIL 30, 2015

It can be lower cost and can either buy more time or accelerate growth. Glen Mello: Venture debt is a good complement to equity. It’s generally got a lower cost compared to equity capital and can help support growth. Equity doesnt need to be repaid, so it’s a more “permanent” capital source.).

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

Startup Professionals Musings

OCTOBER 24, 2020

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. It will certainly also decrease profitability over time, as well as test your sustainable competitive advantage.

Differentiation 378

Differentiation Framework Equity Business Plan 378

Startup Professionals Musings

APRIL 12, 2021

In my experience as a business advisor and occasional investor, many of you won’t make it that far, succumbing to the high costs of getting those first customers, funding an initial inventory, and building an operational support process. Negotiate bartering deals versus cash contracts.

Dilution 404

Dilution Incubator Bootstrapping Government 404

Startup Professionals Musings

DECEMBER 14, 2022

Based on my years of experience in both startups and large companies, trusted relationships are more the key to success than a great business model, how smart you are, or how much money you have. Don’t wait for the right people in business to find you – developers, investors, partners, or key customers.

Silicon Valley 284

Silicon Valley Bandwidth Angel Investor Equity 284

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.

Early Stage 412

Early Stage Angel Investor Incubator Government 412

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

David Teten

AUGUST 19, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. Though RBI will displace some traditional equity VC, its much bigger impact will be to expand the pool of capital available for early-stage entrepreneurs. .

Revenue 60

Revenue Term Sheet Founder Technical Review 60

Startup Professionals Musings

JANUARY 4, 2020

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.

Startup 337

Startup Preferred Stock Exit Strategy Equity 337

Startup Professionals Musings

AUGUST 31, 2012

Make sure your plan answers every relevant question that you could possibly imagine from your business partners, spouse, and potential investors. It doesn’t prove your business model of pricing, distribution, and support. Forcing yourself to write down a plan is actually the only way to make sure you actually have a plan.

Intellectual Property 260

Intellectual Property Sweat Equity CTO Hire Fractional CTO 260

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. The large investment amounts preferred by VCs are no longer needed to launch winners.

Angel Investor 314

Angel Investor Venture Capital Silicon Valley Startup 314

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

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

Startup Professionals Musings

JUNE 17, 2011

Make sure your plan answers every relevant question that you could possibly imagine from your business partners, spouse, and potential investors. It doesn’t prove your business model of pricing, distribution, and support. Forcing yourself to write down a plan is actually the only way to make sure you actually have a plan.

Intellectual Property 253

Intellectual Property Sweat Equity CTO Hire Fractional CTO 253

Startup Professionals Musings

OCTOBER 10, 2018

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. Negotiate an advance from a strategic partner or customer.

Entrepreneur 240

Entrepreneur Equity Small Business Administration SBA 240

Startup Professionals Musings

MARCH 16, 2020

Based on my years of experience in both startups and large companies, trusted relationships are more the key to success than a great business model, how smart you are, or how much money you have. Don’t wait for the right people in business to find you – developers, investors, partners, or key customers.

Silicon Valley 312

Silicon Valley Bandwidth Angel Investor Equity 312

ConversionXL

JUNE 2, 2022

If ABM gives your ideal customer everything they want and need to become a long-term partner, is there actually a need for lead generation? LiveRamp’s product is designed to “enable companies and their partners to better connect, control, and activate data to transform customer experiences and generate more valuable business outcomes.”.

Lead Generation 94

Lead Generation Marketing Sales Cycle Campaign 94

Startup Professionals Musings

MAY 22, 2010

Make sure your plan answers every relevant question that you could possibly imagine from your business partners, spouse, and potential investors. It doesn’t prove your business model of pricing, distribution, and support. Forcing yourself to write down a plan is actually the only way to make sure you actually have a plan.

Intellectual Property 222

Intellectual Property Sweat Equity CTO Hire Fractional CTO 222

Hearpreneur

DECEMBER 18, 2022

I'm considering offering my guests additional personalised experiences for an extra cost. 4- Online coaching business. I am launching my own online coaching business in 2022, and I would like to share my experience with everyone. You may reach all types of clients by using a variety of pricing tiers and business models.

Affiliate 62

Affiliate United States Entrepreneur Software Review 62

Startup Professionals Musings

OCTOBER 12, 2014

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. Negotiate an advance from a strategic partner or customer.

Entrepreneur 283

Entrepreneur Startup Equity Small Business Administration 283

David Teten

JANUARY 21, 2021

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. V: Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? VI: Revenue-based financing: The next step for private equity and early-stage investment. II: Who are the major Revenue-Based Investing VCs?

Equity 78

Equity Revenue Cofounder Colorado 78

Up and Running

AUGUST 28, 2018

Financial summary: Explain your business model, startup costs, revenues, and liabilities to the company. First, your business plan laid out the opportunity at hand. Now is the time to lay out what you’ll do to attract patients and set up a viable business model with healthy financials. Be specific.

Business Plan 72

Business Plan Technical Review Exit Strategy Oregon 72

The Equity Kicker

FEBRUARY 24, 2014

I’m excited to let you know that David Norris joined us today as my Partner. He’s been COO of some amazing businesses, including HouseTrip and LiveBookings, and will now help our founders succeed just as he helped the founders of those companies. Today I am proud to join Forward Partners as a VC.

Partner 91

Partner Early Stage Business Model HTML 91

Startup Professionals Musings

DECEMBER 27, 2014

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 260

Angel Investor Silicon Valley Startup Portfolio 260

David Teten

JULY 14, 2014

However, as always in a period of change, innovative business models emerge and financial technology is more and more at play as critical enablement of innovation. Katina Stefanova : There are a number of business models that have already taken place or are at the tipping point.

Management 114

Management Portfolio Institutional Investors Government 114

Startup Professionals Musings

DECEMBER 8, 2017

Since this document is outward facing, it is important to keep the terminology and tone consistent with that of your customer set, investors, and business partners. For example, “I just patented a new cell-phone technology that will double battery life for half the cost. Provide details on the business model and cash flow.

Elevator Pitch 163

Elevator Pitch Angel Investor Silicon Valley Revenue 163