YoungUpstarts

APRIL 19, 2012

When not approached carefully, growth can destroy value as it outstrips a company’s managerial capacity, processes, quality, and financial controls, or substantially dilutes customer value propositions. Often, if not always, the business model and customer value proposition evolve, too. The jobs simply outgrew their skills.

Dilution 209

Dilution Virginia Management Washington 209

View from Seed

OCTOBER 28, 2019

But this financing contour description is just a proxy for underlying business metrics. In reality, a pre-seed is “an early round of financing that is designed to help a company achieve certain intermediate milestones PRIOR to the magic combination of strong PMF + meaningful traction.”.

Seed Stage 247

Seed Stage Finance Dilution Early Stage 247

David Teten

JANUARY 19, 2021

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. 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.” Typical business stage.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

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. Inception stage.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

SEPTEMBER 5, 2016

Here are some key advantages I see in starting a new business through bootstrapping, without outside investors: The business is all yours, and you are really the boss. A limited budget makes for a better business plan. Keep later critical financing needs viable. For aspiring entrepreneurs, a fallback plan is always good.

Bootstrapping 120

Bootstrapping Entrepreneur Startup Exit Strategy 120

K9 Ventures

JUNE 12, 2012

Founders typically get their equity in a company once — at the time of founding and then get diluted with each subsequent round of financing. This situation is not always in the best interest of founders. The VC focus on quick growth is not without reason.

Venture Capital 117

Venture Capital Silicon Valley Founder Seed Stage 117

Tim Keane

JANUARY 12, 2010

For angel groups, the distinction between groups and VCs on this issue is dwindling, especially as angel groups do bigger rounds of financing.   You can vary both valuation and term-sheet assumptions (in the gray boxes) to assess the impact on the values of the business. This is why a bottom up approach is more credible.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68