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.” Typical business stage.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Lightspeed Venture Partners

OCTOBER 7, 2012

The founders were very sympathetic; a man, laid off from his job, and his very pregnant wife, who sold their house and investing $150k into the business and are working hard to make a go of it. He had been at it for 6 months and had no sales or distribution lined up yet. He did $5M in 2011 sales and is projected $7.2m

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

Duct Tape Marketing

FEBRUARY 3, 2022

John Jantsch (00:00): This episode of the duct tape marketing podcast is brought to you by the sales podcast, hosted by will Barron brought to you by the HubSpot podcast network. Look, if you work in sales, wanna learn how to sell or just peek at the latest sales news. What does your sales and marketing team look like?

Entrepreneur 79

Entrepreneur Technical Review Cofounder Valuation 79

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. This isn’t the first time that we’ve set new standards for an entrenched market, nor will it be the last.

San Francisco 154

San Francisco Business Model Silicon Valley Coder 154

This is going to be BIG.

MAY 9, 2022

It’s never a good thing to be selling a product for a loss on every sale before you even pay your overhead, or selling something that’s a vitamin, and not medicine. It was super hard to get any kind of financing before, and it will remain so. Even “needing” growth capital can be problematic. You should be all good. 9’s and 10’s only!

Stock 97

Stock Marketing Valuation Later Stage 97

ReadWriteStart

SEPTEMBER 10, 2010

And EVEN if you ARE an experienced entrepreneur, all but just a few VCs still want to see customer validation, business model validation and traction, before they will invest. I call it drip-financing. In 1M/1M, our preferred financing strategy is customers. Because customer financing equals revenue, not equity.

Cloud 115

Cloud Silicon Valley Incubator Finance 115

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

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

ReadWriteStart

MARCH 24, 2011

The discussion today was around Social Media financing and go-to-market strategy. Additional work in figuring out the precise go-to-market consumer, academic institution, or enterprise - each is a different business), and consequent business model and pricing model will help enhance the company's valuation.

Illinois 114

Illinois Entrepreneur Silicon Valley Chicago 114

Women Entrepreneurs Can

NOVEMBER 19, 2022

These firms can provide various services, including financing and business advice. They can also help you develop your product and sales channels. This allows you to skip the complicated valuation calculations. They also look for a robust business model and product/market fit. Seed Rounds.

Venture Capital 52

Venture Capital Early Stage Liquidity Event SEC 52

Austin Startup

AUGUST 20, 2017

Of all your hires, if you have commissioned sales people, those will give you the most problems if they’re not all given an equal chance to make their quotas and achieve their personal earnings goals. Keep the valuations consistent with company progress. If you shoot from the hip, you’ll be shooting your own foot most of the time.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

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. How long will the downturn last?

Software Review 48

Software Review Technical Review Valuation Portfolio 48

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. Sales & Marketing | Wednesdays. Financing a Small Business. Buying a Small Business. RUNNING A BUSINESS. Financing A Small Business.

Arizona 40

Arizona Equity Iowa Venture Capital 40

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. A good chunk of the sales and marketing activities may be automated using tools like Marketo and Oracle Eloqua. But is this model replicable?

Bootstrapping 100

Bootstrapping Cloud Finance eCommerce 100

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

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

Steve Blank

SEPTEMBER 14, 2009

billion for a company with less than $50 million in sales. 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.) times the last whole business and credit cycle. Warning sign?

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

YoungUpstarts

DECEMBER 5, 2018

Lately, we’ve seen startups able to reach a billion-dollar valuation, so-called “unicorn” companies, in the limelight. These companies are changing how we live and work, and they are not only creating tremendous value but are introducing new business models. As Baby Boomers Retire, There Are Many Gazelles for Sale.

Startup 182

Startup Acquisition Portfolio Venture Capital 182

Steve Blank

APRIL 1, 2020

Sales pipeline/forecast. Others are cutting their valuations. I listened in on a board call with an enterprise software company this week, and when the CEO said, “Our VP of sales assured me our pipeline won’t be affected.” Days 3 and 4: Prepare new business model and operating plan. Internal Assessment.

South Korea 333

South Korea Salary Business Model China 333

Professor VC

APRIL 7, 2011

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. In a convertible note structure, Im penalized for increasing your valuation. This can make it much more difficult to get any bank financing, new investment, and trade credit.

San Jose 36

San Jose Technical Review Angel Investor Valuation 36

genylabs.typepad.com

SEPTEMBER 24, 2011

I wont bother going into details on start-up financing terms ( see this post for an overview of typical VC terms) except to say if you dont know and understand: the firms cap table and valuation. They had a great managment team, A list VCs, great technology, excellent sales traction and market leadership in a very exciting space.

Equity 40

Equity Technical Review San Jose Stock 40

Steve Blank

JULY 15, 2010

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.). New, agile and adroit venture firms with new business models have emerged to deal with the reality that 1) web 2.0

Venture Capital 297

Venture Capital IPO Liquidity Event Entrepreneur 297

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

Steve Blank

JANUARY 4, 2010

(Not only did their sales curve look like a textbook case of a VC-friendly hockey stick, but their Lessons Learned funding presentation was an eye-opener.). In fact, Google’s offer for $15 Million was equal to the highest valuation from the venture firms. They grow their business via profits or traditional bank financing.

Hockey Stick 276

Hockey Stick Venture Capital Startup Cofounder 276

Steve Blank

OCTOBER 24, 2017

This required a repeatable and scalable sales process, which required a professional sales staff and a product stable enough that customers wouldn’t return it. — all great things when you are executing and scaling a known business model. A 20th century VC was likely to have an MBA or finance background.

Founder 245

Founder Technical Review CTO Hire IPO 245

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

Cracking the Code

DECEMBER 2, 2006

"If you would ask me what part of the market is most underserved by technology companies today, Id tell you its small and medium sized business. If you would ask me what part of the market is most underserved by technology companies today, Id tell you its small and medium sized business. and the skills to sell high value solutions.

Software Review 48

Software Review Technical Review Europe Software 48

ReadWriteStart

SEPTEMBER 25, 2012

Many business models that failed in the early 2000s are now incredibly successful because now, the timing is right, the technology is here, and it’s easier than ever before to achieve scale. Fast forward a few years, with the iTunes revolution, Kindle and iPad, and all of a sudden, eBook sales are trending sharply upward every year.

Social Media 152

Social Media Flash Business Model Startup 152

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

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. million customers.

Valuation 48

Valuation Forecast Seed Money Business Model 48

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

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

Up and Running

AUGUST 17, 2022

Investors want to have a real shot at growing your valuation when they write you a check. They want your business to be able to scale up. This will be difficult if your business model doesn’t easily scale. Can you increase sales tenfold without having to increase your headcount proportionately?

Venture Capital 146

Venture Capital Intellectual Property Angel Investor Bootstrapping 146

ReadWriteStart

SEPTEMBER 25, 2012

Many business models that failed in the early 2000s are now incredibly successful because now, the timing is right, the technology is here, and it’s easier than ever before to achieve scale. Fast forward a few years, with the iTunes revolution, Kindle and iPad, and all of a sudden, eBook sales are trending sharply upward every year.

Social Media 103

Social Media Flash Business Model Startup 103

This is going to be BIG.

DECEMBER 26, 2011

The thing you need to be careful of, however, is only paying attention to big trends, because you never know when you're thinking big data and you miss the awesome direct sales jewelry company. PS.there are various companies in this article I have or have had business involvements with. What's the business model?

Technology 116

Technology Valuation Community Restful 116

Both Sides of the Table

MAY 23, 2012

Yes, it’s true that FOMO (fear of missing out) is driving some irrational behavior and valuations amongst uber competitive deals and well-financed VCs. Try charging customers for your product when you have 12 competitors giving the product away free finances by $20 million of VC. Bottom of the sales funnel. Morning in VC.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347