Start Up Blog

FEBRUARY 26, 2023

1) A new technology + (2) A new business model If we only have one, the incumbents can usually adapt. They can plug the new tech into the existing business model. Or, they can revert the old technology into a new business model. Each time they sold the new tech in the old business model.

ChatGPT 90

ChatGPT Technical Review Generative AI Azure 90

Steve Blank

APRIL 26, 2022

For existing investors, sometimes it was a “pay-to-play” i.e. if you don’t participate in the new financing you lose. Startups that can’t find product/market fit and/or generate sufficient revenue and/or lacked patient capital are scrambling for dollars – and the bottom feeders are happy to help. Why do VCs Do This?

Cram Down 414

Cram Down Founder Venture Capital Recapitalization 414

Hearpreneur

SEPTEMBER 9, 2015

Also, I had the opportunity to present my “Organic Reach is Dead: Learn to Pay to Play Like a Pro” Masterclass to a standing room only (or sold out) crowd on the main stage at the Social Media Week Los Angeles conference. We look forward to Cosmoprof every year! Thanks to Shel Horowitz, Green and Profitable ! #7

Los Angeles 48

Los Angeles Las Vegas Entrepreneur Phoenix 48

Tim Keane

JANUARY 12, 2010

3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model.   Pre-bubble Siliicon Valley deals were popularly valued at multiples of revenue.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Both Sides of the Table

FEBRUARY 14, 2016

You’ll see here that in 2007 people were willing to pay 7.7x forward revenue for SaaS businesses when in the years before it had been less than 5x. So inside rounds get delayed and when there are non-participants you often find “recaps” or “structure” or “pay-to-play” provisions.

Valuation 150

Valuation Down Round Startup Later Stage 150