VC Cafe

FEBRUARY 26, 2023

“unique business models” – Successful startups develop business models that are difficult for competitors to replicate. To implement this trait, founders need to identify a unique value proposition and create a business model that is scalable and sustainable.

Founder 88

Founder Cofounder Seed Stage Valuation 88

The Startup Magazine

MARCH 14, 2022

It is here that the groundwork is laid and the business model developed. A business plan is drawn up to attract investors and partners. The legalities of starting the business are addressed to create a structure for attracting funding. The journey commences by finding a solution for an everyday problem.

Technical Review 145

Technical Review Due Diligence India Startup 145

VC Cafe

AUGUST 4, 2022

The VC markets have contracted almost overnight and last round’s valuations may no longer hold. You can’t change the market, but you can change how you respond to it – is it time to test a change in business model? This is an incredibly tough time to a lot of founders. Focus on what you can change.

Founder 158

Founder Aggregator Startup Valuation 158

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 125

Technical Review Offshore Sweden China 125

ReadWriteStart

JUNE 1, 2020

In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. For these businesses, it is imperative to get funding from the start without which the company cannot be set up. Bridge or exit stage.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

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

Startup Professionals Musings

MARCH 25, 2023

Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation. A business only achieved critical mass by becoming cash-flow positive. Most are still confused about the right priority. Traditionally, it was simple.

Valuation 235

Valuation Revenue Viral Retention 235

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Steve Blank

MARCH 17, 2020

But next the question is, ‘What happens to my business?”. The questions every startup or small business CEO needs to ask now are: What’s my Burn Rate and Runway? What does your new business model look like? What does my business model look like now? Is this a three-month, one-year or a three-year problem?

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

Steve Blank

MARCH 12, 2014

The startups and the teaching team crafted a challenge for the kids to tackle using the Customer Development methodology, Lean Launchpad tools and the business model canvas. These two startups had problems they could not solve on their own due to lack of resources—time, people, money.

Lean 334

Lean Customer Development Startup Silicon Valley 334

Startup Professionals Musings

JANUARY 10, 2016

Perhaps the most famous bubble for startups was the dot.com craze that crashed 15 years ago, where the highest valuations were given to companies with massive user growth, but minimal revenue or profit. Never take your eye off the ball in business. Or ask PlanetRx, an online service for prescriptions, before the Internet was pervasive.

Business Model 120

Business Model Intellectual Property Startup Bankruptcy 120

Startup Professionals Musings

OCTOBER 17, 2022

Super angels sometimes drive up valuations. Perhaps because of their focus on building a large portfolio, or their competitiveness, these angels sometimes accept valuations that cause later friction while moving to VCs, or even other angel groups. Marty Zwilling.

Angel Investor 342

Angel Investor Venture Capital Silicon Valley Portfolio 342

Startup Professionals Musings

JANUARY 7, 2023

Perhaps the most famous bubble for startups was the dot.com craze that crashed 20 years ago, where the highest valuations were given to companies with massive user growth, but minimal revenue or profit. Never take your eye off the ball in business. Or ask PlanetRx, an online service for prescriptions, before the Internet was pervasive.

Intellectual Property 314

Intellectual Property Entrepreneur Bankruptcy Viral 314

Startup Professionals Musings

APRIL 17, 2023

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. Prior to the growth stage, your company valuation is limited to goodwill based on intellectual property and team experience, since you have no revenue. Congratulations!

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

SoCal CTO

FEBRUARY 2, 2011

Because of this, I've always tried to stay up-to-speed on how early-stage investors look at valuation of companies. Think about how you can prove your business model with an MVP. Bill Payne is an expert on how early-stage investors should look at valuation. What are they really looking for? is a requirement.

Valuation 198

Valuation Revenue Pre-Money Valuation Early Stage 198

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 Intellectual Property 325

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. More sources of funding for early-stage startups may drive up valuations on these deals, which will lower the returns for the Angels and super-Angels willing to do these deals.

Angel Investor 231

Angel Investor Entrepreneur Early Stage Silicon Valley 231

A Smart Bear: Startups and Marketing for Geeks

AUGUST 18, 2015

They have everything: money, brand, momentum, existing customers, press, product teams, distribution channels, expertise, market insight, analysts, sales offices, product features, and, by definition, a working business model. In the big-boy and big-girl world of real, at-scale companies, valuation is about total future earnings.

Technical Review 120

Technical Review Valuation Flash Revenue 120

Startup Professionals Musings

NOVEMBER 21, 2016

They know it’s especially hard to provide a financial return with a free business model. Declare a $10 million valuation with no revenue or customers. The average valuation for Angel investments is about $2.5 Lead with your intent to offer the solution free to customers.

Intellectual Property 120

Intellectual Property Valuation Technical Review Equity 120

Up and Running

SEPTEMBER 19, 2017

That’s because obtaining a pre-money valuation for a concept level technology company in excess of $1 million is difficult, particularly for a startup founder without a proven track record. By contrast, obtaining a pre-money valuation of $5 million for a business with a new viable product and even very minimal sales is somewhat reasonable.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Startup Professionals Musings

DECEMBER 11, 2022

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 271

Due Diligence Intellectual Property Entrepreneur Preferred Stock 271

Startup Professionals Musings

JUNE 21, 2020

Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation. A business only achieved critical mass by becoming cash-flow positive. Most are still confused about the right priority. Traditionally, it was simple.

Revenue 434

Revenue Valuation Viral Retention 434

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

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

Steve Blank

APRIL 26, 2022

At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. Most existing investors (those still in business) hoarded their money and stopped doing follow-on rounds until the rubble had cleared. They’re Back.

Cram Down 404

Cram Down Founder Venture Capital Recapitalization 404

Startup Professionals Musings

OCTOBER 20, 2017

Due to the efficiencies of digital, it is now commonplace to have companies with billions of dollars of revenue and valuation, with few employees, and without years of building infrastructure. Think about the up-and-comers during the past decade that have either created new business models or stolen share from established players.

Technical Review 136

Technical Review Demand Valuation Business Model 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.

Down Round 154

Down Round Marketing Artificial Inteligence Startup 154

Startup Professionals Musings

SEPTEMBER 20, 2017

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

Angel Investor 132

Angel Investor Equity Technical Review Exit Strategy 132

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

Startup Professionals Musings

NOVEMBER 14, 2010

Unfortunately, we read far more poorly written business plans at Main Street than good ones. Entrepreneurs tend to write business plans that are difficult to read, heavy on technology, and give little thought to the business model and commercialization strategy. Participation.

Intellectual Property 265

Intellectual Property Balance Sheet Phoenix Arizona 265

Startup Professionals Musings

JULY 22, 2020

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. Prior to the growth stage, your company valuation is limited to goodwill based on intellectual property and team experience, since you have no revenue. Congratulations!

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

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. Also, being too dogmatic isn’t very fun J. What matters is effective post-money at exit. We think about this a lot too.

IRR 205

IRR Dilution Founder Portfolio 205

Version One Ventures

JULY 20, 2015

I often get asked about how to determine the valuation for a marketplace startup that is starting to scale. The main multiple we like to use for marketplace businesses is GMV (Gross Merchandise Volume…the total volume of goods sold on the marketplace). Our assumptions for this valuation: Scale: > $1b GMV. for 2015 GMV.

Valuation 60

Valuation Early Stage IPO eCommerce 60

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

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. More sources of funding for early-stage startups may drive up valuations on these deals, which will lower the returns for the angels and super-angels willing to do these deals.

Technical Review 215

Technical Review Early Stage Venture Capital Startup 215

Startup Professionals Musings

SEPTEMBER 30, 2013

It doesn’t prove your business model of pricing, distribution, and support. Intellectual property is a large element of most early-stage company valuations, and this value determines what percent of the company an investor will expect to get for his money. Get a real customer and real revenue.

Intellectual Property 281

Intellectual Property Entrepreneur Sweat Equity CTO Hire 281

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