David Teten

JANUARY 19, 2021

Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Part of the magic of revenue-based financing is how historical performance and strong, achievable financial projections are ultimately the backbone of how RBI/RBF investment decisions are made.” That said, nothing is cost-free.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Professionals Musings

OCTOBER 19, 2015

Most technologists have little interest in the mechanics of starting and building a business. That’s why I recommend that they find a co-founder who loves business challenges, including marketing and finance. Outside investors are most interested in scaling a proven business model, not research and development.

Technical Review 120

Technical Review Intellectual Property Cofounder Bootstrapping 120

ReadWriteStart

JULY 17, 2023

The platform has raised over $225 million through equity and debt financing to date. Furlenco’s innovative business model has disrupted the traditional furniture industry in India. On the other hand, Sheela Foam will benefit from Furlenco’s innovative business model and expertise in the furniture rental space.

India 104

India Acquisition Merger Curation 104

Up and Running

SEPTEMBER 19, 2017

That’s because obtaining a pre-money valuation for a concept level technology company in excess of $1 million is difficult, particularly for a startup founder without a proven track record. By contrast, obtaining a pre-money valuation of $5 million for a business with a new viable product and even very minimal sales is somewhat reasonable.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Version One Ventures

OCTOBER 15, 2020

Let’s now explore the major developments and ultimate use cases for the Lightning Network in two categories: A) payments/finance and B) Web3. . Use Case I: Payments and Finance . Other businesses are pushing mainstream Lightning adoption for shopping. 1) Generalizable Payments .

Networking 168

Networking Global OTC Security 168

Austin Startup

FEBRUARY 13, 2019

Not necessarily the entire business, but at some point, something will fail and you’ll either learn from it and grow or it will be the beginning of the end. Either way, if you know you’re going to fail, it’s much better to do so with your own money on the line than money that also costs you in dilution, perpetuity or more.

Strategic Investors 49

Strategic Investors Austin Angel Investor Bootstrapping 49

The Startup Magazine

JUNE 1, 2023

There are currently tons of “zombie” startups that have runway, but growth has slowed and they have valuations that they won’t be able to grow into. Be honest with yourself VCs are now going to be looking closer at margins, cost structures and true sales, and product market fit. they still aren’t profitable.

Early Stage 110

Early Stage Los Angeles Silicon Valley Cofounder 110

YoungUpstarts

JANUARY 6, 2014

I like to think that our generation’s digital skills are replacing the startup’s traditional hunt for capital – all we need is a good idea, our team specs it out to make it sell, and we self-finance each company off its own cash flow.

San Francisco 154

San Francisco Business Model Silicon Valley Coder 154

Lightspeed Venture Partners

OCTOBER 7, 2012

As he said, “Great innovations solve problems or reduce costs. 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.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

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

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

VC Cafe

FEBRUARY 27, 2024

While the answers are somewhat semantic, the pre-seed funding round is making a comeback in 2024 startup financing. Lower valuations and follow on valuation sensitivity – fundraising is a recurring event in the life of a startup. Pre-seed tends to be about developing an MVP and generating early traction.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

Startup Professionals Musings

JUNE 26, 2016

Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation. A business only achieved critical mass by becoming cash-flow positive. Re-investing profits to grow the business is organic growth. Most are still confused about the right priority.

Revenue 145

Revenue Valuation Startup Viral 145

Austin Startup

AUGUST 20, 2017

Keep the valuations consistent with company progress. Messy cap tables can come back to haunt you when you do a financing or sell the company. The bottom line is that the pedigree of your investors will have much to do with your ultimate valuation and with your enjoyment of the startup experience. Are the logistics manageable?

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Startup Professionals Musings

AUGUST 10, 2014

Should they focus on increasing revenues and profitability, or entice more and more users with free services to increase their valuation. A business only achieved critical mass by becoming cash-flow positive. Re-investing profits to grow the business is organic growth. Most are still confused about the right priority.

Revenue 246

Revenue Entrepreneur Valuation Viral 246

Startup Professionals Musings

DECEMBER 15, 2014

Entrepreneurs who plan to complete a business plan the first month, find an investor the second, and roll out a product the third month are just kidding themselves. Even a small investor in the early days will take a large equity percentage, due to that pesky valuation challenge. The best partners are ones who share costs and risks.

Bootstrapping 276

Bootstrapping Entrepreneur Startup Burn Rate 276

Duct Tape Marketing

FEBRUARY 3, 2022

So, you know, I, I have kids that are in their thirties and I'm envisioning a purple dinosaur that I did a a lot of watching with, but I guess there's also Smith Barney, which is certainly in the finance space, but I'm sure you have and Barney. Are they all SMBs small businesses or do you have enterprise really big clients?

Entrepreneur 79

Entrepreneur Technical Review Cofounder Valuation 79

www.inc.com

SEPTEMBER 24, 2011

Small Business Success | Mondays and Thursdays. The Goods: Your Business Toolbox | Thursdays. Finance | Tuesdays. Todays Small Business News | Daily. Financing a Small Business. Buying a Small Business. RUNNING A BUSINESS. Financing A Small Business. Business Taxes.

Arizona 40

Arizona Equity Iowa Venture Capital 40

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. Volatility creates opportunities 5.

Software Review 48

Software Review Technical Review Valuation Portfolio 48

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. But this automation does not come cheap and often costs several hundred dollars a month. But is this model replicable?

Bootstrapping 100

Bootstrapping Cloud Finance eCommerce 100

Startup Professionals Musings

JUNE 28, 2013

Entrepreneurs who plan to complete a business plan the first month, find an investor the second, and roll out a product the third month are just kidding themselves. Even a small investor in the early days will take a large equity percentage, due to that pesky valuation challenge. The best partners are ones who share costs and risks.

Startup 264

Startup Burn Rate Bootstrapping Valuation 264

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. Others are cutting their valuations. Days 3 and 4: Prepare new business model and operating plan. How many months of cash do you have?

South Korea 333

South Korea Salary Business Model China 333

Gust

DECEMBER 7, 2014

Entrepreneurs who plan to complete a business plan the first month, find an investor the second, and roll out a product the third month are just kidding themselves. Even a small investor in the early days will take a large equity percentage, due to that pesky valuation challenge. The best partners are ones who share costs and risks.

Bootstrapping 191

Bootstrapping Entrepreneur Startup Burn Rate 191

Transformify

JULY 23, 2018

Business valuation or investor background is among the expert evaluator’s selection criteria. The good news is that startups from all sectors of the economy can apply and leverage on novel combinations of existing business models and technologies. How to Determine if Your Startup is Eligible? Not necessarily.

Intellectual Property 66

Intellectual Property Angel Investor Dilution Startup 66

Start Up Blog

MAY 13, 2019

But I do think this IPO is very instructive from a technology business strategy and investment perspective, so I thought I’d lay it out in clear terms why I don’t think Uber has a bright future as a publicly traded stock. So get ready for some finance meets tech nerdocity below. Uber, on the other hand, doesn’t.

IPO 48

IPO Valuation Stock Cost 48

YoungUpstarts

OCTOBER 18, 2016

Make no mistake, starting your own business is indeed gratifying that way, but not all startups are an escape from a regular job. The business model and investors play a critical role in shaping the independence and work-style of an entrepreneur. What Investors Mean For A Startup.

Startup 100

Startup Equity Bootstrapping Early Stage 100

Up and Running

APRIL 11, 2016

While traditional business models provide a more regular income, in the real estate world, it might be three months before you get paid—and it could even be longer. How and Where to Obtain Business Licenses and Permits. Step 5: Getting financed. “Also, create a flawless business plan to present to them.”.

Reputation 60

Reputation Cofounder Naming Business Plan 60

Austin Startup

MARCH 23, 2017

Digital ink has been spilled across the interwebs these past two weeks on the issues with different types of venture financings. Priced equity financings make sense as they provide clarity around valuation and ownership dilution, while creating alignment between the investors and founders.

Dilution 54

Dilution Equity Warrant Distribution 54

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. . Over the last twenty years both of these features of the startup financing world have changed dramatically flipping the balance of power from investor to entrepreneur. . Business model.

Portfolio 84

Portfolio LP Venture Capital Partner 84

Tim Keane

JUNE 22, 2006

Testing to Increase Valuations. If lowered risk translates into higher valuations when the business either attracts investors or is sold, then lowering risk for the lowest possible dollars creates very high returns. If customer interest can be obtained in a live test involving revenue, valuation may rise again.

Valuation 60

Valuation Wisconsin Angel Investor Startup 60

Up and Running

OCTOBER 24, 2016

The cheerleading tech press and massive valuation rounds have built a mystique around startup culture. The goal for a lifestyle business is to build sustainable revenue streams that are set up to operate on their own. Remember to factor in costs in addition to salaries like payroll taxes, Social Security, and Medicare.

Startup 60

Startup Venture Capital Salary Equity 60

Austin Startup

SEPTEMBER 17, 2017

A business model must be created out of whole cloth, and generally it’s a compilation of assumptions piled on top of other assumptions. Every model has a happy outcome when a founder is trying to convince himself or herself, a team, an investor, or even a spouse that the venture ahead is a good idea.

Valuation 48

Valuation Forecast Seed Money Business Model 48

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

Revenue multiples, profit multiples, premium over the previous financing — these are metrics used by sellers to help determine a minimum acceptable price. Even if this costs more than 2 years of in-house assembly, it’s still worth it, due to accelerating revenue growth due to up-sales and market-differentiation.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

Berkonomics

AUGUST 27, 2015

They financed their companies, to the extent possible, in a manner minimizing the cost of capital, planning for organic growth in the number of customers served and in associated revenues. Flippers financed by venture capitalists are more likely to hire executives having high level profiles and previous exit experience.

Intellectual Property 48

Intellectual Property Balance Sheet Stock Options Valuation 48

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 23, 2012

But all that investment in growth and sales force didn’t have a long-term payback, and the actual value of the product to small businesses wasn’t as high as claimed, even though the simplest of customer development reveals this fact (ask any restauranteur). The thing is, these companies are not like Nguyen’s Color.

IPO 240

IPO Flash Bootstrapping Private Equity 240

Steve Blank

OCTOBER 24, 2017

— all great things when you are executing and scaling a known business model. Because the new CEO had built a team capable of and comfortable with executing an existing business model, the company would fail or get acquired. A 20th century VC was likely to have an MBA or finance background. Board Control.

Founder 245

Founder Technical Review CTO Hire IPO 245