Startup Professionals Musings

FEBRUARY 5, 2021

Most aspiring entrepreneurs understand that you can’t build a business if you won’t commit to delivering a product or service, but many are hesitant or refuse to commit to any financial forecasts. Yet every business requires revenue and volumes, as certainly as it requires a product to sell. Quantify overhead costs.

Forecast 369

Forecast Burn Rate Startup Widget 369

Startup Professionals Musings

OCTOBER 12, 2020

Some entrepreneurs start polling venture capitalists for that multi-million dollar investment before they even have a business plan. Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). Funding or rollout stage.

Incubator 429

Incubator Startup Exit Strategy Institutional Investors 429

Startup Professionals Musings

JULY 22, 2020

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. Different types of investors tend to specialize in capitalizing on businesses at different stages. It’s time to scale up and I need money to keep up with demand.”

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

YoungUpstarts

NOVEMBER 27, 2018

A solid marketing strategy shows more than just a long term commitment to effective advertising and self-promotion; it shows investors that the company is determined to gain traction amongst its target demographic or the community it’s meeting the demands of, while on a mission to retain consumers, leading to maximum ROI in the long run.

Early Stage 160

Early Stage Cofounder Startup Security 160

YoungUpstarts

NOVEMBER 20, 2019

You may have a thoughtful business plan, a proven team, and a great product, but if the market isn’t big enough to present them with an outsized opportunity to make money, they’ll pass. You may be able to generate revenue, but VCs want exponential growth. Like you, they’re looking for opportunity. Be ready when it counts.

Technical Review 140

Technical Review Due Diligence Early Stage Differentiation 140

Startup Professionals Musings

DECEMBER 28, 2018

Some entrepreneurs start polling venture capitalists for that multi-million dollar investment before they even have a business plan. Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). Funding or rollout stage.

Incubator 236

Incubator Exit Strategy Institutional Investors Angel Investor 236

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78

Equity Revenue Cofounder Colorado 78

Up and Running

MAY 3, 2012

Sean Seton-Rogers of PROfounders Capital recently claimed that of the more than 3,500 business plans they had received, his London, U.K. based venture capital fund had just invested in 17 companies. Yet the story of perseverance, creative genius and hard work persists.”.

Entrepreneur 82

Entrepreneur Technical Review Silicon Valley Lean 82

Startup Professionals Musings

AUGUST 19, 2018

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. Different types of investors tend to specialize in capitalizing on businesses at different stages. It’s time to scale up and I need money to keep up with demand.”

Angel Investor 184

Angel Investor Intellectual Property Investment Bankers Private Equity 184

Startup Professionals Musings

FEBRUARY 5, 2012

Angel investors typically provide early-stage funding, while venture capital firms typically come in at later stages. Funding of $250,000-$1 million is available from angels, if you have credentials and have done the homework of a good business plan, financial model, and executive presentation. Funding or rollout stage.

Investment Bankers 241

Investment Bankers Venture Capital Startup Initial Public Offering 241

Startup Professionals Musings

MARCH 20, 2013

In startup business plans, a bubble is too many entrepreneurs and too many investors chasing the latest “next big thing,” like Google search engine, Facebook social network, or Amazon e-commerce site. Supply and demand ignored. We all believe that supply and demand meet to create stable prices (reflexive). Overconfidence.

Demand 224

Demand Green Finance Government 224

Startup Professionals Musings

JUNE 15, 2013

Some entrepreneurs start polling venture capitalists for that multi-million dollar investment before they even have a business plan. Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). Funding or rollout stage.

Incubator 256

Incubator Entrepreneur Exit Strategy Institutional Investors 256

Startup Professionals Musings

MARCH 25, 2011

In startup business plans, a bubble is too many entrepreneurs and too many investors chasing the latest “next big thing,” like Google search engine, Facebook social network, or Amazon e-commerce site. Supply and demand ignored. We all believe that supply and demand meet to create stable prices (reflexive). Overconfidence.

Startup 225

Startup Demand Green Government 225

Startup Professionals Musings

JULY 4, 2014

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. Different types of investors tend to specialize in capitalizing on businesses at different stages. It’s time to scale up and I need money to keep up with demand.”

Angel Investor 232

Angel Investor Intellectual Property Investment Bankers Private Equity 232

Startup Professionals Musings

OCTOBER 13, 2010

Angel investors typically provide early-stage funding, while venture capital firms typically come in at later stages. Funding of $250,000-$1 million is available from angels, if you have credentials and have done the homework of a good business plan, financial model, and executive presentation. Funding or rollout stage.

Investment Bankers 231

Investment Bankers Venture Capital Startup Initial Public Offering 231

Startup Professionals Musings

NOVEMBER 27, 2016

Some entrepreneurs start polling venture capitalists for that multi-million dollar investment before they even have a business plan. Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). Funding or rollout stage.

Incubator 120

Incubator Startup Exit Strategy Institutional Investors 120

Gust

NOVEMBER 22, 2011

Angel investors typically provide early-stage funding, while venture capital firms typically come in at later stages. Funding of $250,000-$1 million is available from angels, if you have credentials and have done the homework of a good business plan, financial model, and executive presentation. Funding or rollout stage.

Venture Capital 171

Venture Capital Investment Bankers Angel Investor Initial Public Offering 171

Startup Professionals Musings

MAY 16, 2012

Some entrepreneurs start polling venture capitalists for that multi-million dollar investment before they even have a business plan. Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). Funding or rollout stage.

Incubator 237

Incubator Startup Exit Strategy Institutional Investors 237

Startup Professionals Musings

JANUARY 4, 2015

Most aspiring entrepreneurs understand that you can’t build a business if you won’t commit to delivering a product or service, but many are hesitant or refuse to commit to any financial forecasts. Yet every business requires revenue and volumes, as certainly as it requires a product to sell. Quantify overhead costs.

Forecast 120

Forecast Entrepreneur Burn Rate Widget 120

Startup Professionals Musings

AUGUST 13, 2016

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. Different types of investors tend to specialize in capitalizing on businesses at different stages. It’s time to scale up and I need money to keep up with demand.”

Matching 120

Matching Angel Investor Intellectual Property Investment Bankers 120

Startup Professionals Musings

SEPTEMBER 5, 2016

The reality is that over 80 percent of new businesses will never attract venture capital or Angel funding, according to experts , and there are many good reasons for skipping that painful and distracting process. A limited budget makes for a better business plan. Outside funding is not a startup entitlement.

Bootstrapping 120

Bootstrapping Entrepreneur Startup Exit Strategy 120

Startup Professionals Musings

JANUARY 13, 2011

Some entrepreneurs start polling venture capitalists for that multi-million dollar investment before they even have a business plan. Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). Funding or rollout stage.

Incubator 230

Incubator Startup Exit Strategy Institutional Investors 230

Steve Blank

AUGUST 31, 2009

As a result the young company is now saddled with an expensive, scaled-up sales organization frustrated trying to execute a losing sales strategy and a marketing organization desperately trying to create demand without a true understanding of customers’ needs. Where exactly did the assumptions in our startup business plan come from?”

Customer Development 242

Customer Development Developer Customer Silicon Valley 242

Growthink Blog

DECEMBER 20, 2017

As reviewed last week , these soft assets include our business and strategic plan , our brand and company culture, and our Innovation Quotient , or our ability to change and grow as market and competitive conditions dictate and demand. NativeAds (digital advertising) closed on a $4M venture financing.

Balance Sheet 48

Balance Sheet Malaysia Indonesia Finance 48

Steve Blank

DECEMBER 7, 2010

Many entrepreneurship courses focus on teaching students “how to write a business plan.” are what make it a business, 2) business plans are fine for large companies where there is an existing market, existing product and existing customers. . This class is not about how to write a business plan.

Wiki 315

Wiki Lean Management Business Model 315

Steve Blank

MARCH 18, 2011

VC’s worked with entrepreneurs to build profitable and scalable businesses, with increasing revenue and consistent profitability – quarter after quarter. The Business Plan (Concept- Alpha-Beta - FCS ) became the playbook for startups. 1970 – 1995: The Golden Age. They taught you about customers, markets and profits.

Internet 334

Internet IPO Silicon Valley Agile 334

Cracking the Code

JANUARY 22, 2009

While it may make sense to offer very slight adjustments for favorable payment terms and one time revenue, net additions to MRR should dominate the sales rep’s thoughts. 1 of MRR generates $12 of annual revenue, so $1 commission equals 1/12=8.3% of Year One Revenue Sounds high, but is that considered a reasonable package?

Software Review 91

Software Review Clawback Sales Salary 91

Steve Blank

SEPTEMBER 3, 2009

Once the product begins to ship, startup sales execs use orders and revenue as its marker of progress in understanding customers. While these objectives provide an illusion of progress, in reality they do little to validate the business plan hypotheses about customers and what they will buy. What plan says that?

Customer Development 221

Customer Development Developer Customer Silicon Valley 221

Steve Blank

NOVEMBER 2, 2009

In times when venture capital is hard to get, investors extract high costs for failure (down-rounds, cram downs , new management teams, shut down the company.) Sales people cost money, and when they’re not bringing in revenue, their wandering in the woods is time consuming, cash-draining and demoralizing. Something else?

Lean 253

Lean Silicon Valley Startup RSS 253

Scalable Startup

APRIL 6, 2015

The frenzy at these higher levels, and the continuous stories of first time entrepreneurs in their early 20s who magically start these amazing companies is creating a demand at the bottom of the funding market, like the pyramid schemes in Southern California in 980 (see below). No business plan, no ROI. t [at] tomnora dot com.

Angel Investor 20

Angel Investor Technical Review Southern California Startup 20

www.forentrepreneurs.com

FEBRUARY 2, 2010

Lessons Learned – Business Planning Stage My advice to entrepreneurs working on a new business plan is to build a model similar to those above to estimate the cost of customer acquisition. It appears that LTV should be about 3 x CAC for a viable SaaS or other form of recurring revenue model.

Acquisition 103

Acquisition Cost Customer Entrepreneur 103

Up and Running

APRIL 24, 2018

Build and commit to your long-term growth plan , while keeping your approach flexible. You and your team must know how to think about problems from new angles and adapt to changing market and customer demands. Your health startup business plan should be a tool to guide your growth. Have a comprehensive growth strategy.

SBIR 73

SBIR Startup Artificial Inteligence Intellectual Property 73

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . 3) Raise capital. Lean Case provides standard business models & metrics, so you can apply a standard approach to business planning, modeling, and profitability tracking.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Cracking the Code

JANUARY 28, 2008

This represents an outstanding 2,298% growth vs. 2006 (this type of growth seems big but you get used to it when reading business plans is you day job). Cornerstone on Demand is a fast growing Learning and Talent management company based in Los Angeles. Small and medium businesses. (2). Venture Capital. (3).

Software Review 48

Software Review Technical Review Los Angeles Europe 48

Steve Blank

JUNE 8, 2009

Customer Development by Vertical - Click to Enlarge (As a reminder, the Customer Development process says your business plan is just a series of untested hypothesis (unless you’re a domain expert.) Some of these are questions that would be addressed in a business plan. Others you need to know when you execute the plan.

Vertical 123

Vertical Silicon Valley RSS Marketing 123

Tim Keane

JANUARY 12, 2010

  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.]   Pre-bubble Siliicon Valley deals were popularly valued at multiples of revenue.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Professionals Musings

MARCH 12, 2023

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited angel investors. The amounts from angels start as low as $25K, while minimum venture capital amounts usually start in the $2M range. In fact, the reality is quite the opposite.

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246