Austin Startup

OCTOBER 15, 2017

What seems to be the best way to create customers and revenue may result in a business model that is out of vogue with the investment world and shortchanges you on enterprise valuation. He forgot a major highlight of the business model, and the damage was done. A good example is the marketing technology sector.

Technical Review 48

Technical Review Software Review Nevada Silicon Valley 48

Feld Thoughts

AUGUST 25, 2015

As dollars flowed into the industry, cooperation was replaced by competition, to the detriment of deal flow, due diligence, ability to add value and, of course, returns. “By January 1984, investors had turned away from hardware toward software.” By 1994 the big software wins of the 1980’s were already funded or public.”

Venture Capital 70

Venture Capital SBIC Technical Review Silicon Valley 70

View from Seed

AUGUST 17, 2021

90% of the airtime around ownership and valuations is focused on what happens when the first check is written. Effective post money is the effective valuation of an investor’s dollars at any one time. at exit due to dilution. Also, being too dogmatic isn’t very fun J. What matters is effective post-money at exit.

IRR 136

IRR Dilution Founder Portfolio 136

crowdSPRING Blog

APRIL 8, 2012

Entrepreneurs should always conduct their own historical research to better understand the context of their idea, the likelihood of the venture’s success, and to determine the value of a market or a business model. Academics review one another’s work. Academics experiment. Academics observe and measure.

Software Review 112

Software Review Entrepreneur Incubator Valuation 112

Cracking the Code

DECEMBER 2, 2006

Cracking The Code. Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. Cracking the SMB code. Small and Medium businesses have been the holy grail of High tech and software companies for quite some time now, but the quest is far from ending. "If

Software Review 48

Software Review Technical Review Europe Software 48

Both Sides of the Table

JUNE 22, 2011

It’s like people arguing that there’s a beautiful beach house in 2006 that represents great long-term value due to scarcity of similar property. 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.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Austin Startup

AUGUST 20, 2017

Keep the valuations consistent with company progress. The bottom line is that the pedigree of your investors will have much to do with your ultimate valuation and with your enjoyment of the startup experience. Make your choices only after you’ve done some due diligence with other companies where they’ve served.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Cracking the Code

DECEMBER 16, 2006

Cracking The Code. Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. The theme was "the future of software". He is a great speaker and I enjoyed the speech, but after 40mn, I was still waiting to hear about the future of software.

Software Review 48

Software Review Silicon Valley Technical Review Software 48

David Teten

DECEMBER 3, 2019

However, in private markets, there is more room to optimize across all 11 steps of the investing process: firm management , marketing, fundraising , origination , manage relationships, due diligence, negotiation, monitoring, portfolio acceleration , reporting, and. They read reviews of the products of target investments.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

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 Software Review Generative AI Technical Review 186

crowdSPRING Blog

NOVEMBER 1, 2013

Small Business and Startups: The Trends for 2014 (Pt II) - crowdspring.co/1atXci8. Amazon and the “profitless business model” fallacy – crowdspring.co/1aQZQ04. Entrepreneur PSA – Advertising Businesses are Hard | Seth’s Blog - crowdspring.co/1aHHgHS. But a nearly $4 billion valuation?

Social Media 94

Social Media Small Business Design Media 94

Steve Blank

SEPTEMBER 14, 2009

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.) The valuations for acquisitions were nothing like the Internet bubble, but there was a path to liquidity, difficult as it was.

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

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. Why not go further, develop more valuation, customer experience, and really, deeply validate the business? Next comes the topic of angels.

Cloud 115

Cloud Silicon Valley Incubator Finance 115

www.inc.com

SEPTEMBER 24, 2011

Internet and Online Business. Business Software. Last spring, Dave Graham , founder of software consulting firm Arizona Bay, learned that a major client, Jumpstart Automotive Media, had been acquired for more than $80 million. Human Resources (HR). Employee Benefits. SALES & MARKETING. Online Marketing. Advertising.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Hearpreneur

AUGUST 5, 2020

The global automakers and suppliers will be adapting their business models accordingly, forming new partnerships and investing in new technologies. 9- Online management and accountability software. However, actual business productivity and real-time performance trackers are yet to adapt to remote work environments.

Technical Review 157

Technical Review Software Review Entrepreneur China 157

www.paulgraham.com

OCTOBER 23, 2010

August 2010 Two years ago I wrote about what I called " a huge, unexploitedopportunity in startup funding :" the growing disconnect betweenVCs, whose current business model requires them to invest largeamounts, and a large class of startups that need less than theyused to. Butthere may not have to be just one valuation.

Startup 93

Startup Valuation Non-Compete Deal Flow 93

www.forentrepreneurs.com

FEBRUARY 2, 2010

Business Model I would like to propose that in addition to team, product, and market, there is actually a fourth, equally important, core element of startups, which is the need for a viable business model. These new business models focused heavily on how buying behavior has changed because of the power of the web.

Acquisition 103

Acquisition Cost Customer Entrepreneur 103

Steve Blank

APRIL 1, 2020

This article previously appeared in the Harvard Business Review. 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.” But it’s increasingly looking grim.

South Korea 333

South Korea Salary Business Model China 333

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

The reason they want to trade balance-sheet assets for strategy-execution, is that (healthy, growing) software companies are valued on their P&L, i.e. the size and growth of income and earnings. So the shift to mobile meant Facebook’s business model was breaking. Remember this is revenue , not valuation.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

David Teten

DECEMBER 12, 2017

As a globally focused LP in early stage VC funds, we at Blue Future Partners have observed a growing trend of firms investing substantially in software tools, whether developing proprietary solutions or adopting off the shelf tools. But what tools are they using themselves to automate their own processes? How do VCs originate investments?

Early Stage 60

Early Stage Technical Review Software Review Venture Capital 60

Steve Blank

OCTOBER 24, 2017

A version of this article is in the Harvard Business Review. — all great things when you are executing and scaling a known business model. But in the 20th century, dominated by hardware and software, technology swings inside an existing market happened slowly — taking years, not months. Board Control.

Founder 245

Founder Technical Review CTO Hire IPO 245

Agile VC

JANUARY 13, 2016

Was this simply a shift in sentiment among the tech & business media? A realignment of valuations by late stage investors? A pure software company might have 80-90%+ gross profit margins, but a commerce company might at best be 30-50% and service marketplaces might be far lower when measured on a gross revenue / GMV basis.

Technical Review 157

Technical Review .Net Revenue Software Review 157

Steve Blank

APRIL 5, 2017

She was an academic on leave from Stanford now selling SAAS software to large companies, but was being inundated with marketing communications advice. “My I reminded her that all the Lean tools she learned in class–Customer Discovery, business model and value proposition canvases– contained her answer. Here’s how.

Marketing 310

Marketing Audience Technical Review PR 310

Both Sides of the Table

MAY 23, 2012

Looking ahead at the next decade I am excited by what I believe will be viewed as one of the best and most rational investment periods for venture capital due to seven discrete factors: 1. If you want to understand the details of why this is, I covered it in detail in this post, Understanding Changes in the Software Industry.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

VC Cafe

JUNE 29, 2012

Kevin – consumer Internet plays, often times they don’t have a business model. A lot is happening because we have deployment platforms, code platforms, and now we have capital platforms like angellist. The top 10-15 we manually review. Don – Private money valuations have gone up.

Developer 103

Developer Silicon Valley Software Review Mexico 103

www.paulgraham.com

OCTOBER 23, 2010

Our startup made software for making online stores. We knew that ifonline shopping ever took off, these sites would have to be generatedby software, so we wrote some. Slowness in Launching Companies of all sizes have a hard time getting software done. Itsintrinsic to the medium; software is always 85% done.

Startup 108

Startup Software Review Hiring Detroit 108

Software By Rob

AUGUST 18, 2010

About the Author Ruben Gamez is the founder of Bidsketch , web based proposal software for designers. When he’s not developing software, he’s furiously working towards becoming a better Micropreneur. I cover topics that affect software and web startups of all sizes, but mostly relating to startups you can fund yourself.

Software Review 78

Software Review Software Revenue Cofounder 78

crowdSPRING Blog

DECEMBER 21, 2012

Why You Should Want to Pay for Software, Instagram Edition | The Atlantic - [link]. Bonnstetter-Harvard Business Review - [link]. Good read about how Aviary changed its business model | The Verge - [link]. This is a very useful valuation tool from AngelList (browse startup valuations) - [link].

Social Media 100

Social Media Small Business Design Media 100

Cracking the Code

SEPTEMBER 2, 2008

Cracking The Code. Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. So where does Salesforces profitability stands today compared to the most successful on premise public software companies? traditional software is like cocaine--youre hooked.

Software Review 48

Software Review Software Technical Review Cloud 48

Cracking the Code

OCTOBER 10, 2008

Cracking The Code. Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. Save Asia for post-IPO Single instance, multi-tenant, single datacenter - Have only one version of the code in production. Labels: SaaS , sales and marketing , software. at 11:09 AM.

Software Review 48

Software Review North America Europe Metrics 48

crowdSPRING Blog

MAY 4, 2011

Good post by Twilio about strategies to avoid downtime due to single point (i.e. Must read article for all startup entrepreneurs about valuation – [link]. Interesting perspective by @msuster on product vs. service startup business models – [link]. AWS) failures – [link].

Social Media 92

Social Media Small Business Design Media 92

Ben's Blog

APRIL 28, 2010

Looking across these nearly 50 companies, the study finds that founding CEOs consistently beat the professional CEOs on a broad range of metrics ranging from capital efficiency (amount of funding raised), time to exit, exit valuations, and return on investment. Knowledge of exactly what’s strong and weak about the code base.

Technical Review 78

Technical Review Cofounder Technical Cofounder Software Review 78

Up and Running

MARCH 21, 2016

It’s tempting to focus on yourself and your business model, but ultimately, investors want to know what’s in it for them. Your users’ reviews are your best weapon going into a pitch,” says Nanxi Liu of Enplug. “We See Also: How the Accelerator Experience Improved My Startup. Follow through.

Cofounder 60

Cofounder Metrics Angel Investor Silicon Valley 60

crowdSPRING Blog

APRIL 26, 2013

10 Breakthrough Technologies 2013 | MIT Technology Review – [link]. Job Titles Aren’t That Important | Matt Ferguson-Harvard Business Review – [link]. Q1 Venture Capital Spending & Number Of Deals Down, M&A Activity Drops 44 Percent And Pre-Money Valuations Plummet – [link].

Social Media 90

Social Media Small Business Design Media 90

David Teten

MARCH 18, 2021

Valuation: $1M – $3M. Foundry Group, investing primarily in “ Software and Internet ”, follows six major themes, e.g., Human Computer Interaction (HCI) or Distribution. Software is by far the most sought-after class, with 94% of VCs investing in it. software”); 43 invest in 2 types of technology (e.g.,

Technical Review 78

Technical Review Cofounder Venture Capital Deal Flow 78

techcrunch.com

FEBRUARY 19, 2010

According to VCs, there’s been a 65% decrease in up-rounds (where a company gets a bigger valuation) in the last six months and more than 60% of those polled expect a longer wait for an exit. And investors said they intend to invest more in cleantech than software going forward. A lot of the stats weren’t surprising.

Venture Capital 62

Venture Capital Technical Review Sweat Equity Valuation 62

steveblank.com

JULY 8, 2011

signup, upgrade, trial pricing Zuora – online subscription management FeeFighters – find the cheapest credit card processors HealPay – Collections made easy Customer Support Tender – support, knowledgebase tool for your site GetSatisfaction - conversations between companies / customers.

Software Review 110

Software Review Startup Silicon Valley Analytics 110