VC Cafe

AUGUST 4, 2022

The VC markets have contracted almost overnight and last round’s valuations may no longer hold. In May 2022, I published a post on ‘ advice for startups in a downturn ‘ which is more business oriented advice aggregated from the top pundits. This is an incredibly tough time to a lot of founders.

Founder 158

Founder Aggregator Startup Valuation 158

Steve Blank

MARCH 12, 2014

Therefore we needed them to think and learn about two parts of a startup; 1) ideation - how to create new ideas and 2) customer development – how do they test the validity of their idea (is it the right product, customer, channel, pricing, etc.). We wanted to teach our students how to think like entrepreneurs not accountants.

Lean 334

Lean Customer Development Startup Silicon Valley 334

Startup Professionals Musings

SEPTEMBER 8, 2019

Some nonprofit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Equity 235

Equity Angel Investor Technical Review Exit Strategy 235

VC Cafe

FEBRUARY 26, 2023

” – Marc Andreessen In the book “ Super Founders “, author Ali Tamaseb, studied 200 Unicorns, aka startups valued at over $1 billion, started between 2005 to 2018. Israeli startup Mobileye , which was acquired by Intel for $15 billion, is a great example of a company that exhibited extreme resilience.

Founder 88

Founder Cofounder Seed Stage Valuation 88

Startup Professionals Musings

JUNE 11, 2022

Some nonprofit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Angel Investor 327

Angel Investor Equity Technical Review Exit Strategy 327

Steve Blank

MARCH 17, 2020

With the Covid-19 virus a worldwide pandemic, if you’re leading any startup or small business, you have to be asking yourself, “What’s Plan B? If you’re running a startup or small business, your first priority (after your family) is keeping your employees and customers safe. What does your new business model look like?

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

The Startup Magazine

FEBRUARY 21, 2024

As an investor, these experiences have honed my ability to see beyond spreadsheets and valuations, to the core of what makes businesses thrive: the people, the vision, and the relentless pursuit of excellence. The goal is to transform dormant or underutilized assets into active capital that supports your business.

Technical Review 133

Technical Review Due Diligence Bankruptcy Intellectual Property 133

VC Cafe

OCTOBER 31, 2022

It’s a tough time for a lot of startup founders right now. Mature startups with proven business models and the potential to reach the public markets within a few years will be the safest place to park any new venture capital that comes into the ecosystem. Startups, Don’t Pin Your Hopes on VC Dry Powder ( Source ).

Founder 173

Founder Technical Review Down Round Liquidation Preference 173

Up and Running

SEPTEMBER 19, 2017

Capital investments are like gasoline on a startup business’s metaphorical fire. They allow you to hire more people, purchase new technology, and establish new business connections, among many other benefits. If you’re like most startup CEOs, your startup has been your personal fiefdom and baby.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

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.

Down Round 154

Down Round Marketing Artificial Inteligence Startup 154

Startup Professionals Musings

JANUARY 7, 2013

Based on the final report for 2012 from Thomson Reuters and the National Venture Capital Association (NVCA), it may appear that IPOs are back as a viable startup exit strategy. The market and venture capitalists are looking for business, but with a continuing focus on proven business models.

Venture Capital 252

Venture Capital IPO Elevator Pitch Initial Public Offering 252

Steve Blank

SEPTEMBER 21, 2012

This is a guest post by my Startup Owner’s Manual co-author Bob Dorf. While statistics are weak on startup success rates, the worst one I’ve seen suggests that 2 in 1000 venture backed startups will ever achieve $100-million or more in valuation. Can every startup skyrocket like Facebook or Square or Google?

Startup 332

Startup Cofounder Customer Development Viral 332

Startup Professionals Musings

AUGUST 31, 2012

It doesn’t prove your business model of pricing, distribution, and support. Funding for pre-revenue startups used to be the domain of angel investors, but they have moved up-stage. If your startup is an evening hobby for you and some friends, and they all have a full-time day job elsewhere, don’t expect investors to get excited.

Intellectual Property 260

Intellectual Property Sweat Equity CTO Hire Fractional CTO 260

Steve Blank

APRIL 1, 2020

So here’s a five-day playbook to help CEOs of cash-flow negative startups, or ones about to go negative, assess the new normal and respond with speed and urgency. For companies burning cash, such as startups, how much cash do you have? For startups: source of VC money? Others are cutting their valuations.

South Korea 333

South Korea Salary Business Model China 333

The Startup Magazine

MAY 27, 2020

Although developments are slow and should continue to be that way thanks to the current global health issues, regulators around the world are expected to show an increasing interest in cryptocurrencies and regulatory actions are already having an impact on crypto valuations.

Technical Review 124

Technical Review Offshore Sweden China 124

Startup Professionals Musings

JULY 22, 2020

Luckily, not all investors are looking for the same thing, so it pays to know what type of investors are most interested in what your startup brings to the table. The key is understanding how potential investors see you, and especially how they view the maturity stage of your startup. Congratulations!

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

Steve Blank

OCTOBER 24, 2017

. — Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed: IPOs/M&A without a profit (or at times revenue) have become the norm. The startup process has become demystified – information is everywhere. Not every startup ended up this way. Board Control.

Founder 245

Founder Technical Review CTO Hire IPO 245

Startup Professionals Musings

SEPTEMBER 9, 2010

Every early-stage startup should explore this new funding alternative. Business Week ran a more thorough analysis of this movement a while back, which I am summarizing here. Venture capital dispensed quarterly to startups continues to decline, down to about $3 billion in the first quarter, which is the lowest level since 1997.

Technical Review 215

Technical Review Early Stage Venture Capital Startup 215

SoCal CTO

JUNE 9, 2010

Continuing my series of posts that I’ve been collecting that live at the intersection of Startups and being a Startup CTO : Startup CTO Top 30 Posts for April 16 Great Startup Posts from March here are the top posts from May 2010. For a micro-ISV, selling to big businesses can be more lucrative than selling to consumers.

Fractional CTO 248

Fractional CTO Startup Venture Capital Cofounder 248

Startup Professionals Musings

JANUARY 4, 2020

They know from forums such as Shark Tank on TV that asking for either too much or too little will derail credibility in the eyes of the investor, and leave the entrepreneur with no money and a struggling startup. Be prepared to explain your business model. Can you justify your use of funds to this investor? Marty Zwilling.

Startup 337

Startup Preferred Stock Exit Strategy Equity 337

Startup Professionals Musings

APRIL 12, 2020

As an entrepreneur mentor and startup investor, I see with sadness the 50 to 90 percent that fail. Many are just not facing the reality that their passion had a critical business flaw. Every business, young or old, needs to avoid the following six mistakes that he outlines: Anticipating success based on the recent past.

Intellectual Property 310

Intellectual Property Startup Bankruptcy Viral 310

Startup Professionals Musings

OCTOBER 17, 2022

Venture capitalists (VCs) have long been seen as the top of the pyramid for startup funding sources, but in fact angel investors now fund over twice as many companies, according to a classic Crunchbase article. The cost of entry for tech startups continues to go down. Super angels have greater scope to match talent with a startup.

Angel Investor 342

Angel Investor Venture Capital Silicon Valley Portfolio 342

Startup Professionals Musings

JUNE 17, 2011

It doesn’t prove your business model of pricing, distribution, and support. Funding for pre-revenue startups used to be the domain of angel investors, but they have moved up-stage. If your startup is an evening hobby for you and some friends, and they all have a full-time day job elsewhere, don’t expect investors to get excited.

Intellectual Property 253

Intellectual Property Sweat Equity CTO Hire Fractional CTO 253

Startup Professionals Musings

JANUARY 19, 2020

Venture capitalists (VCs) have long been seen as the top of the pyramid for startup funding sources, but in fact angel investors now fund over twice as many companies, according the Crunchbase. The cost of entry for tech startups continues to go down. Super angels have greater scope to match talent with a startup.

Angel Investor 314

Angel Investor Venture Capital Silicon Valley Startup 314

Startup Professionals Musings

NOVEMBER 14, 2010

After considering about 200 investment opportunities over the past two years, we have established a decision making process to identify trophy entrepreneurs and startups. Unfortunately, we read far more poorly written business plans at Main Street than good ones. Proposition. Participation.

Intellectual Property 265

Intellectual Property Balance Sheet Phoenix Arizona 265

Startup Professionals Musings

MARCH 14, 2020

Non-credible funding request or unreasonable valuation. Investors are looking to buy a chunk of the business, not the product. They need to know how much money you need, and what portion of the current business you are willing to offer for the investment. Future unproven projections don’t set today’s valuation.

Due Diligence 308

Due Diligence Intellectual Property Preferred Stock Seed Stage 308

Startup Professionals Musings

MARCH 25, 2023

Every startup dreams of achieving that milestone, when they can focus more on scaling the business and enjoying their earnings, rather than fighting for another investment infusion. Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation.

Valuation 235

Valuation Revenue Viral Retention 235

Startup Professionals Musings

JANUARY 10, 2016

As an entrepreneur mentor and startup investor, I see with sadness the 50 to 90 percent that fail. Many are just not facing the reality that their passion had a critical business flaw. Every business, young or old, needs to avoid the following six mistakes that he outlines: Anticipating success based on the recent past.

Business Model 120

Business Model Intellectual Property Startup Bankruptcy 120

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

Startups shouldn’t act smug about this. Even for startups, it takes years for a new product to become good enough to demand many millions of dollars in revenue.). This acquirer doesn’t care about the financials of the startup. So the shift to mobile meant Facebook’s business model was breaking.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

Startup Professionals Musings

JANUARY 7, 2023

As an entrepreneur mentor and startup investor, I see with sadness the 50 to 90 percent that fail. Many are just not facing the reality that their passion had a critical business flaw. Every business, young or old, needs to avoid the following six mistakes that he outlines: Anticipating success based on the recent past.

Intellectual Property 314

Intellectual Property Entrepreneur Bankruptcy Viral 314

Startup Professionals Musings

APRIL 17, 2023

Luckily, not all investors are looking for the same thing, so it pays to know what type of investors are most interested in what your startup brings to the table. The key is understanding how potential investors see you, and especially how they view the maturity stage of your startup. Congratulations!

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success. Term-sheets and Valuations: Thinking about Negotiations. The Valuation Question. When companies seeking their first round of serious funding are good enough to receive a term-sheet from an investor, the first issue that always arises is valuation. Let’s start at the end.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Steve Blank

FEBRUARY 26, 2020

Not all startups need outside investment to grow. What most founders don’t realize is: Every stage of a startup requires a different set of metrics and milestones and founder skills. Here’s the first 2½ years of a startup journey. The Startup Investment Landscape. Team, Product, Traction, Business Model and Market.

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

Steve Blank

MARCH 31, 2014

Just look at the disruptive challenges that businesses face today– globalization, China as a manufacturer, China as a consumer, the Internet, and a steady stream of new startups. Perhaps that’s because where established companies might see risks or threats, startups see opportunity.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

Startup Professionals Musings

JUNE 26, 2013

Every early-stage startup should explore this new funding alternative. Venture capital dispensed quarterly to startups actually declined again in the first quarter of 2013 to $6.3 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

Startup Professionals Musings

NOVEMBER 21, 2016

After listening to hundreds of startup pitches, and reading even more business plans, most new venture investors develop their own favorite list of “red flags” that signal the beginning of the end of their interest. They know it’s especially hard to provide a financial return with a free business model.

Intellectual Property 120

Intellectual Property Valuation Technical Review Equity 120

Startup Professionals Musings

FEBRUARY 15, 2015

Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy. donation equity grant investment non-profit philantropy startup' In addition, the best non-profits turn out to be the angel, rather than require one. That’s a higher calling. Marty Zwilling.

Angel Investor 120

Angel Investor Equity Technical Review Exit Strategy 120