View from Seed

AUGUST 17, 2021

It’s by far the longest time I’ve spent working on any one thing, and I feel very blessed to have been able to work with my partners, colleagues, founders, and collaborators. My partners will tell you that I am an incredibly impatient person. Effective post money is the effective valuation of an investor’s dollars at any one time.

IRR 156

IRR Dilution Founder Portfolio 156

Startup Professionals Musings

APRIL 17, 2023

Government grants and industry partners are you best bet here, but Angel investors might give you $250,000 to $1 million, if you have the right business case and credentials. At this point, most Angel investors and a few early-stage VCs will be happy to talk, assuming you have the business model validated, and a large opportunity.

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

Startup Professionals Musings

JUNE 26, 2013

It’s higher risk, but higher return, to pick the big winners early, before Angels have set unreasonable valuations and restrictive terms. Being “lifecycle investment partners” has a downside. VCs are finding that they don’t need the “large” funds of $100M to $500M to support a portfolio, if they focus on early-stage startups.

Angel Investor 231

Angel Investor Entrepreneur Early Stage Silicon Valley 231

View from Seed

AUGUST 17, 2021

It’s by far the longest time I’ve spent working on any one thing, and I feel very blessed to have been able to work with my partners, colleagues, founders, and collaborators. My partners will tell you that I am an incredibly impatient person. Effective post money is the effective valuation of an investor’s dollars at any one time.

IRR 136

IRR Dilution Founder Portfolio 136

ReadWriteStart

JANUARY 13, 2024

Startups in the cybersecurity sector are facing a daunting market environment , contending with decreased valuations and increasing pressure to sell while competing for vital funding and collaborations. This collaborative environment plays a crucial role in staying ahead of cyber criminals to protect valuable data and systems.

Down Round 154

Down Round Marketing Artificial Inteligence Startup 154

Startup Professionals Musings

JANUARY 7, 2013

The market and venture capitalists are looking for business, but with a continuing focus on proven business models. Here are some key action items that may give your business some visibility: Start with an investment-grade business plan. To make this work, you will need an initial valuation of at least $5M.

Venture Capital 252

Venture Capital IPO Elevator Pitch Initial Public Offering 252

Startup Professionals Musings

SEPTEMBER 30, 2013

Make sure your plan answers every relevant question that you could possibly imagine from your business partners, spouse, and potential investors. It doesn’t prove your business model of pricing, distribution, and support. Forcing yourself to write down a plan is actually the only way to make sure you actually have a plan.

Intellectual Property 281

Intellectual Property Sweat Equity Entrepreneur CTO Hire 281

Steve Blank

MARCH 31, 2014

Look at the valuations of companies like Tesla, Illumina, and Twitter. The first will be commodity businesses that are valued for their ability to execute their current business model. The second class will be firms with a demonstrated ability to continually innovate and reinvent their business models.

Private Equity 325

Private Equity Metrics China Business Model 325

Startup Professionals Musings

JANUARY 19, 2020

They have too many highly paid partners, fat fees, an aging corporate infrastructure and difficulty raising money from institutions. As lifecycle investment partners, they have become weighted down with portfolios still recovering from the economic downturn. Super angels sometimes drive up valuations. Marty Zwilling.

Angel Investor 314

Angel Investor Venture Capital Silicon Valley Startup 314

VC Cafe

JANUARY 27, 2021

Next47 and American Insight Partners VC, demonstrates growing trust in its current and future business model. billion dollar valuation and has raised 170 million dollars in total merely eight months after its launch — making the British company arguably the fastest-growing startup in Europe.

Vertical 148

Vertical Video Technical Review Europe 148

David Teten

JANUARY 19, 2021

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. Yes, via conversion rights at a valuation cap.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Startup Professionals Musings

OCTOBER 7, 2022

If your financial model projects a negative cash flow in this period of $400,000, you should buffer this amount by 25 percent, and ask for $500,000. Be prepared to explain your business model. The average valuation for angel investments is $2 million, which will get you $500,000 for 20 percent of your startup.

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

Both Sides of the Table

JUNE 22, 2011

In addition to FOMO it is partly driven by massive increase in valuations for earlier-stage companies who raised money at bit seed prices but who still have product risk. million pre-money valuation is now raising $1 million at a $12 million valuation the next investor has nowhere to go but up (or sit out the investment).

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Startup Professionals Musings

AUGUST 31, 2012

Make sure your plan answers every relevant question that you could possibly imagine from your business partners, spouse, and potential investors. It doesn’t prove your business model of pricing, distribution, and support. Forcing yourself to write down a plan is actually the only way to make sure you actually have a plan.

Intellectual Property 260

Intellectual Property Sweat Equity CTO Hire Fractional CTO 260

Startup Professionals Musings

NOVEMBER 14, 2010

There is no product idea good enough to overcome bad partners. We look for many attributes amongst the team, including communication, leadership and management skills, subject matter knowledge, business expertise, relevant experience, openness to influence, team cohesion, motivation, integrity and credibility. Participation.

Intellectual Property 265

Intellectual Property Balance Sheet Phoenix Arizona 265

Startup Professionals Musings

JULY 22, 2020

Government grants and industry partners are you best bet here, but Angel investors might give you $250,000 to $1 million, if you have the right business case and credentials. At this point, most Angel investors and a few early-stage VCs will be happy to talk, assuming you have the business model validated, and a large opportunity.

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

Startup Professionals Musings

SEPTEMBER 9, 2010

It’s higher risk, but higher return, to pick the big winners early, before angels have set unreasonable valuations and restrictive terms. Being “lifecycle investment partners” has a downside. VCs are finding that they don’t need the “large” funds of $100M to $500M to support a portfolio, if they focus on early-stage startups.

Technical Review 215

Technical Review Early Stage Venture Capital Startup 215

Startup Professionals Musings

JANUARY 4, 2020

If your financial model projects a negative cash flow in this period of $400,000, you should buffer this amount by 25 percent, and ask for $500,000. Be prepared to explain your business model. The average valuation for angel investments is $2 million, which will get you $500,000 for 20 percent of your startup.

Startup 337

Startup Preferred Stock Exit Strategy Equity 337

Startup Professionals Musings

JUNE 17, 2011

Make sure your plan answers every relevant question that you could possibly imagine from your business partners, spouse, and potential investors. It doesn’t prove your business model of pricing, distribution, and support. Forcing yourself to write down a plan is actually the only way to make sure you actually have a plan.

Intellectual Property 253

Intellectual Property Sweat Equity CTO Hire Fractional CTO 253

Startup Professionals Musings

OCTOBER 19, 2015

In fact, an entrepreneur friend of mine, who made millions on her marketing expertise, asserted recently that most inventors fail in business because they refuse to believe that any business expertise or experience is worth more than 5 percent in partner equity. Intellectual property is a business issue, not a technical issue.

Technical Review 120

Technical Review Intellectual Property Cofounder Bootstrapping 120

David Teten

AUGUST 20, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. John Borchers, Co-founder and Managing Partner of Decathlon Capital , reports that “37% of our portfolio companies would be considered ‘impact’ qualified companies. It was just because we looked at data.”

Revenue 60

Revenue Cofounder Founder Venture Capital 60

Up and Running

OCTOBER 16, 2019

You don’t need to write a 200-page document, but you will need something to hand to your banker or investor that shows that there’s a market for the problem your business solves and includes your key financial statements and forecasts. . Down the road, you might decide that you want to sell your business or position yourself for acquisition.

Business Plan 108

Business Plan Small Business Forecast Balance Sheet 108

Up and Running

OCTOBER 16, 2019

You don’t need to write a 200-page document, but you will need something to hand to your banker or investor that shows that there’s a market for the problem your business solves and includes your key financial statements and forecasts. . Down the road, you might decide that you want to sell your business or position yourself for acquisition.

Business Plan 108

Business Plan Small Business Forecast Balance Sheet 108

Startup Professionals Musings

MAY 22, 2010

Make sure your plan answers every relevant question that you could possibly imagine from your business partners, spouse, and potential investors. It doesn’t prove your business model of pricing, distribution, and support. Forcing yourself to write down a plan is actually the only way to make sure you actually have a plan.

Intellectual Property 222

Intellectual Property CTO Hire Fractional CTO Sweat Equity 222

SoCal CTO

JUNE 9, 2010

VCs in seed clothing: Chris Dixon, Mark Suster, and Naval Ravikant interviewed - Venture Hacks , May 5, 2010 I recently got on the phone for a cross-continent conference call with Chris Dixon from Founder Collective , Mark Suster from GRP Partners , and our own Naval Ravikant. SlideShare: VC signaling in seed rounds. Prerequisites.

Fractional CTO 248

Fractional CTO Startup Venture Capital Cofounder 248

Both Sides of the Table

MARCH 6, 2010

If I’m interested I get to spend more time with them, if I’m not I don’t have to – A few companies per month come in that have fascinating business ideas that warrant my spending more time trying to understand their people, company, technology and market. The upside for entrepreneurs is the equity in their business.

Technical Review 312

Technical Review Due Diligence Spain Warrant 312

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. And they probably never will be unless business model viability is reassessed across the board. they still aren’t profitable.

Early Stage 112

Early Stage Los Angeles Silicon Valley Cofounder 112

Both Sides of the Table

FEBRUARY 6, 2019

Valuations are out of control” is the mantra of others. Others believe that new business models are emerging that could replace venture capital all together. Companies are raising billions of dollars in the private markets and the valuations are enormous PRIOR to the IPO. We’re in a new tech bubble!” some have pronounced.

Venture Capital 292

Venture Capital IPO Mezzanine Early Stage 292

Startup Professionals Musings

MAY 1, 2019

With the real data from that surge, you need to take a hard look at business model realities, cost of customer acquisition, inventory costs, and other key metrics. Here is my summary of the key focus activities of that challenge for every business owner: Manage cash flow daily and plot a plan to profitability.

Silicon Valley 215

Silicon Valley Bankruptcy Metrics Valuation 215

Startup Professionals Musings

DECEMBER 27, 2014

They have too many highly paid partners, fat fees, an aging corporate infrastructure and difficulty raising money from institutions. As lifecycle investment partners, they have become weighted down with portfolios still recovering from the economic downturn. Super Angels sometimes drive up valuations.

Angel Investor 260

Angel Investor Silicon Valley Startup Portfolio 260

Startup Professionals Musings

AUGUST 19, 2018

Government grants and industry partners are you best bet here, but Angel investors might give you $250,000 to $1 million, if you have the right business case and credentials. At this point, most Angel investors and a few early-stage VCs will be happy to talk, assuming you have the business model validated, and a large opportunity.

Angel Investor 184

Angel Investor Intellectual Property Investment Bankers Private Equity 184

VC Cafe

FEBRUARY 27, 2024

Everyone moved to earlier stage – part of the decline in late stage investing is the ‘baggage’ of companies that previously raised money at inflated valuations that they would struggle to justify in today’s market. That’s yet another reason for micro funds to move earlier in the fundraising timeline.

Valuation 186

Valuation Generative AI Software Review Technical Review 186

Up and Running

OCTOBER 13, 2014

One recent development has been that larger companies are now looking at small innovative companies in a new light — as potential partners in developing new products, processes and services. And this presents significant opportunities for small businesses that can provide the needed assistance. A Case in Point.

Intellectual Property 106

Intellectual Property Philadelphia Small Business California 106

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 217

Silicon Valley Technical Review IPO Venture Capital 217

View from Seed

APRIL 30, 2015

Use good judgment, talk to your co-founders/investors/lawyers, and partner with a bank that values transparency and relationships such as SVB.]. And it’s that important because all companies will go through good times and tough times, and we’ll want to make sure we’ve got the right partner on the other side. Business model?

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

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

Women Entrepreneurs Can

NOVEMBER 19, 2022

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. This allows you to skip the complicated valuation calculations. They also look for a robust business model and product/market fit.

Venture Capital 52

Venture Capital Early Stage Liquidity Event SEC 52