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

Women Entrepreneurs Can

NOVEMBER 19, 2022

These firms can provide various services, including financing and business advice. VC funding is best suited for businesses with high growth potential. Xfund, Patrick Chung is a managing general partner in a venture capital firm that supports lateral thinkers. They may also provide a mentorship network. Seed Rounds.

Venture Capital 52

Venture Capital Early Stage Liquidity Event SEC 52

Startup Professionals Musings

DECEMBER 15, 2014

Even a small investor in the early days will take a large equity percentage, due to that pesky valuation challenge. At least wait until later, when you ready to scale, and have some “leverage” based on a proven business model, some real customers, and real revenue. The best partners are ones who share costs and risks.

Bootstrapping 276

Bootstrapping Entrepreneur Startup Burn Rate 276

Steve Blank

SEPTEMBER 14, 2009

Each VC firm/partner has a different spin on what to weigh more.) Underwriters realized that as long as the public was happy snapping up shares, they could make huge profits on the inflated valuations (regardless of whether or not the company should have ever been public.) 3) invest in and take equity stakes in exchange for capital.

Silicon Valley 223

Silicon Valley IPO Technical Review Venture Capital 223

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

Hunter Walker

MAY 4, 2014

My answers are actually bland, largely because I had a pretty good handle on what the initial 12 months would bring and a great partner in Satya Patel. Not every company is raising money at the valuation you modeled. Congrats, you’ve raised a venture fund by telling your investors about the plan you want to execute.

Software Review 100

Software Review Vertical Seed Stage Portfolio 100

VC Cafe

SEPTEMBER 16, 2021

Let’s start with a short definition: [the creator economy] is defined as the class of businesses built by over 50 million independent content creators, curators, and community builders including social media influencers, bloggers, and videographers, plus the software and finance tools designed to help them with growth and monetization.

Startup 207

Startup Social Media Venture Capital Audio 207

Startup Professionals Musings

JUNE 28, 2013

Even a small investor in the early days will take a large equity percentage, due to that pesky valuation challenge. At least wait until later, when you ready to scale, and have some “leverage” based on a proven business model, some real customers, and real revenue. The best partners are ones who share costs and risks.

Startup 264

Startup Burn Rate Bootstrapping Valuation 264

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. With this decline, the average EV/08 rev.

Software Review 48

Software Review Technical Review Valuation Portfolio 48

Startup Professionals Musings

DECEMBER 5, 2016

Too many entrepreneurs put their best creative thinking into the startup idea, and believe that the business implementation simply requires following tried and true business practices. To win, you need to think outside the box to deliver a better customer experience, business model, and new positioning.

Retention 120

Retention Valuation Equity Analytics 120

ReadWriteStart

JANUARY 27, 2011

And, oh by the way, we also really like the idea of the 1M/1M entrepreneurs building valuation and negotiating leverage through these business development efforts, instead of signing off large chunks of their company in form of equity early on. The business is already profitable with $2.9 million in revenue.

Dilution 114

Dilution Revenue Finance Entrepreneur 114

Up and Running

JULY 22, 2019

Attracting investors in the early stages helps bring in new partners that are committed to your business. They can expand your network by introducing you to other investors, customers, or partners, helping you to continue accelerating your business plan. Then, structure further financing after that. Start early.

Canada 78

Canada Early Stage Valuation Finance 78

Professor VC

APRIL 7, 2011

My partner in Menlo Incubator , Gary Kremen , and I had a recent debate on which one of us hates convertible debt more. This will also serve as a good pointer for all the entrepreneurs who ask why I am not interested in their company led convertible note financing round. ProfessorVC. The last blogger in Silicon Valley.

San Jose 36

San Jose Technical Review Angel Investor Valuation 36

Gust

DECEMBER 7, 2014

Even a small investor in the early days will take a large equity percentage, due to that pesky valuation challenge. At least wait until later, when you ready to scale, and have some “leverage” based on a proven business model, some real customers, and real revenue. The best partners are ones who share costs and risks.

Bootstrapping 191

Bootstrapping Entrepreneur Startup Burn Rate 191

Steve Blank

JULY 15, 2010

VC’s invested their limited partners’ “risk capital” in a portfolio of startups in exchange for illiquid stock. Most of the startups they invested in either died by running out of money before they found a scalable business model or ended up in the “land of the living dead” by never growing (failing to Pivot.). Lessons Learned.

Venture Capital 299

Venture Capital IPO Liquidity Event Entrepreneur 299

YoungUpstarts

MARCH 30, 2017

What is your business model? Social enterprises have unique challenges when building a business model. Generally, investors focus on growth, profits and valuation. Social enterprises need a business model that demonstrates value while remaining true to a social mission.

Global 100

Global Argentina Elevator Pitch Business Model 100

The Equity Kicker

JULY 8, 2019

From around 2000, and perhaps coinciding with the need to work harder to win deals as opportunities dried up after the internet bubble burst, individual partners at VC firms began adding ‘helping CEOs win’ to their job descriptions. . Value add strategies make partners at VC firms more personally effective. Building platforms.

Portfolio 84

Portfolio LP Venture Capital Partner 84

Startup Professionals Musings

APRIL 24, 2011

billion to work across 738 financing deals with U.S. Here are some key action items that will give you some priority: Create an investment-grade business plan. Be ready with a killer executive summary , investor presentation , and financial model. To make this work, you will need an initial valuation of at least $5M.

Venture Capital 233

Venture Capital Revenue Elevator Pitch Silicon Valley 233

genylabs.typepad.com

SEPTEMBER 24, 2011

EMERGENT RESEARCH is focused on better understanding the small business sector of the US and global economy. Steve and Carolyn are partners at Emergent Research and Senior Fellows at the Society for New Communications Research. AOL, Tech Crunch and What Selling Your Business Means. Business Models. Categories.

Equity 40

Equity Technical Review San Jose Stock 40

Ben's Blog

AUGUST 17, 2020

When speaking with founders and private growth investors, we hear countless references to “multiples paid” on current or near-term revenue; both obsess over this because a higher multiple translates to a higher valuation. How valuation multiples work Why did multiples become a shortcut-heuristic for estimating valuations in the first place?

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

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. Michelle Stansbury , a realtor at Bluegrass Partners Trust Realty says, “My first year was a lot of fumbling around figuring out what didn’t work.

Reputation 60

Reputation Cofounder Naming Business Plan 60

The Equity Kicker

JULY 26, 2012

Back in 2011 I wrote about how DCF isn’t appropriate for startups, quoting Benchmark Capital partner Bill Gurley : Those of us with a fondness for finance will argue until we are blue in the face that discounted cash flows (DCF) are the true drivers of value for any financial asset, companies included. Garbage in, garbage out.

Investment Bankers 96

Investment Bankers IPO Marketing Valuation 96

Cracking the Code

DECEMBER 2, 2006

Today, VARs are the key to the SMB segment and their business model is collapsing, opening new opportunities for them and for technology providers. To survive, VARs need to change their business model and move from product sales to services. Philippe Botteri Accel Partners London, UK My Bio. Yahoo Finance.

Software Review 48

Software Review Technical Review Europe Software 48

David Teten

DECEMBER 3, 2019

But in business, you want a lot of partners. In the private equity universe, most Partners have primary training as deal-makers, not as managers. See Bessemer Venture Partners’ A comprehensive guide to security for startups. Cobalt for General Partners helps GPs to optimize their fundraising strategy. 2) Market .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Professor VC

JANUARY 17, 2008

A partner from the law firm (sponsor, covers the drinks and food) tosses out some softball questions to the panelists, the audience chimes in with Q&A and finally, culminates with the meet and greet where the panelists are flooded with business cards and pitches on the next great thing, which is often very similar to the last great thing.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Reid Hoffman

JULY 27, 2021

Greylock Partners · Reid Hoffman | Philosopher Versus MBA. If they don’t have the right skills or resources, they’ll pick them up along the way by hiring someone, partnering with someone, or just learning it themselves. MBA programs teach valuable analytical skills that can help you evaluate and refine strategies and business models.

Silicon Valley 69

Silicon Valley Venture Capital Balance Sheet Cofounder 69

Reid Hoffman

JULY 27, 2021

Greylock Partners · Reid Hoffman | Philosopher Versus MBA. If they don’t have the right skills or resources, they’ll pick them up along the way by hiring someone, partnering with someone, or just learning it themselves. MBA programs teach valuable analytical skills that can help you evaluate and refine strategies and business models.

Silicon Valley 69

Silicon Valley Venture Capital Balance Sheet Cofounder 69

Hearpreneur

AUGUST 5, 2020

This will lead to a lot of opportunities for insurance companies willing to blaze that trail and for SaaS companies and other partners who can help them do it. The global automakers and suppliers will be adapting their business models accordingly, forming new partnerships and investing in new technologies. 19- Silvertech.

Technical Review 157

Technical Review Software Review Entrepreneur China 157

View from Seed

JANUARY 11, 2023

We wholeheartedly believe in the potential of each company we select; the smaller batch size allows the NextView partners, who possess deep operating and founding experiences at companies like LinkedIn, PayPal, eBay, and Blue Apron, the space to spend meaningful one-on-one time with each founder every single week.

Programming 156

Programming Sacramento San Francisco Founder 156

Rob Go

FEBRUARY 5, 2012

A founder may feel like she has made amazing strides in the 18 months since a series A, only to find few investors excited about investing in their business with a meaningful valuation step up. The reason is that the next MAJOR and OBVIOUS value-inflection point is evidence of a repeatable and scaleable business model.

Business Model 65

Business Model Seed Stage Valuation Vertical 65

reidhoffman.org

NOVEMBER 12, 2013

× At Greylock , my partners and I are driven by one guiding mission: always help entrepreneurs. Friendster’s valuation set the tone for the entire social networking space. You may happen to emphasize the right points that pique an investor’s interest, but you shouldn’t leave your financing up to chance. Reid Hoffman.

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111

Hearpreneur

AUGUST 18, 2017

I worked as a public television editor while in highschool, and in college worked two different jobs in finance while I started to develop Waiakea. Make sure you have a business model, not just users, with a pathway to profitability and cash flow break even. I also did a lot of volunteering.

Hawaii 48

Hawaii Fiji Africa Cofounder 48

Reid Hoffman

JANUARY 26, 2021

One common mistake is for entrepreneurs to simply select whichever venture capital firm is offering the highest valuation. One of the things a financing round brings is an opportunity to strengthen the startup’s overall network. In both cases, the correct goal is to partner with the CEO to help the company achieve its goals.

Startup 36

Startup Equity Early Stage Green 36

Cracking the Code

DECEMBER 16, 2006

Philippe Botteri Accel Partners London, UK My Bio. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. Bessemer Venture Partners Expands BVP VII Fund. Yahoo Finance. Post a Comment. Newer Post. Older Post. Subscribe to: Post Comments (Atom). Subscribe in a reader. Add RSS feed.

Software Review 48

Software Review Silicon Valley Technical Review Software 48

Steve Blank

FEBRUARY 26, 2020

Luckily, I teach with two great VCs, Mar Hershenson of Pear Ventures and Jeff Epstein of Bessemer Venture Partners who both put together presentations unraveling the mysteries of how and why startups raise money. Btw, the definition of each startup financing stage has changed in the last decade. Business Model.

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

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. The later you raise money, the better your chances of having a higher valuation, giving up less of the company and keeping the most control. This is a good one.

Venture Capital 81

Venture Capital Bootstrapping Global Valuation 81

Steve Blank

NOVEMBER 5, 2009

Unfortunately in early stage startups the drive for financing hijacks the corporate DNA and becomes the raison d’etre of the company. Chasing funding versus chasing customers and a repeatable and scalable business model, is one reason startups fail. Is there a profitable business model? How many are there?

Customer Development 264

Customer Development Developer Customer Silicon Valley 264