Remove Business Model Remove Deal Structure Remove Management Remove Valuation
article thumbnail

Are Investors Being Unreasonable? - Startups and angels: Along the.

Tim Keane

"  The problem has been that too-high valuations and too generous terms have spawned painful down rounds that squash the entrepreneur and his early investors.  the business, it will always be worth more to the entrepreneur as well as future investors, if any.    This is fundamental to their business model

article thumbnail

Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

Valuations. I was approached with one sweat equity offer that placed the valuation of the company at >$5 million pre-money and before even a seed round of funding. I would be very wary of accepting a valuation like this, simply because I’m not qualified and as a consultant, I shouldn’t have to be. Unseen Metrics.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

You validated our business model and added huge value to our efforts. However, as we know from the cable industry, subscription businesses can be very profitable over time. This concept is even more critical for SaaS businesses given the large upfront investment required to acquire customers. Michael Kassing.

article thumbnail

Why Leave A Six Figure Corporate Job For Internet Entrepreneurship?

Entrepreneurs-Journey.com by Yaro Starak

I understand business entity establishment. I understand wealth building, management, preservation, protection and estate planning. I understand business. Although I knew I would be working in (not on) the business to some extent, the work turned out to be more than I anticipated, at least initially.