Startup Professionals Musings

NOVEMBER 28, 2020

Who would not want to join the unicorns (recent startups with a current valuation of over $1 billion)? He nails the current key startup parameters, including the following: Crafting a lean business plan as your road map. The days of lengthy, text-heavy, business plan documents prepared by expensive experts are behind us.

Intellectual Property 404

Intellectual Property Startup Angel Groups Social Media 404

Startup Professionals Musings

JUNE 11, 2022

You still start the process with a business plan, but then you look for a philanthropist rather than an investor. 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

ReadWriteStart

JUNE 1, 2020

You can get a personal loan without a business plan. The bridge or exit stage is generally of very large transactions and for companies with substantial valuation. These phases are focused on inorganic growth, mergers, buyouts, acquisitions, and exit preparation for the business. Bridge or exit stage.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

MARCH 10, 2021

Often, the number one question that entrepreneurs fail to address is: “How much money do you need, and what valuation do you place on your company?” After a good elevator pitch or initial presentation, investors will ask for your formal business plan and financial projections. Lack of clear objectives/goals.

Software Review 307

Software Review Due Diligence Elevator Pitch Early Stage 307

Both Sides of the Table

MAY 28, 2018

Let me check my plan.” There are many things a VC is looking for in reviewing your business plan but beyond things the like the quality of revenue, margins, OPEX and CAPEX there’s a really simple rule I call, “Cash In, Cash Out, Milestones Achieved.” Every VC knows that the amount you raise is often a proxy for your valuation.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

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. At this stage, the idea is pitched mainly to family and friends. 3) Company formation.

Technical Review 145

Technical Review Due Diligence India Startup 145

YoungUpstarts

JUNE 16, 2020

Business valuation is defined as a way to determine the overall economic value of a company , and is a necessary component of a sound business plan and strategy. Any of these situations will demand a valuation to determine current and future projected value. . Three Methods of Valuation.

Valuation 162

Valuation CPA Software Review Revenue 162

Startup Professionals Musings

SEPTEMBER 8, 2019

You still start the process with a business plan, but then you look for a philanthropist rather than an investor. 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

Steve Blank

APRIL 23, 2014

VCs like acquisitions as much as IPOs because the acquiring companies often can rationalize paying large multiples over the current valuation of the startup. For acquirers this math makes sense since they can factor in the potential impact the startup has when combined with their existing business.

Acquisition 332

Acquisition Intellectual Property Silicon Valley Startup 332

Steve Blank

SEPTEMBER 5, 2018

Startups wrote business plans, generated expansive 5-year forecasts and executed (hired, spent and built) to the plan. What matters to investors now is to drive startup valuations into unicorn territory (valued at $1 billion or more) via rapid growth – usually users, revenue, engagements but almost never profits.

Lean 335

Lean Burn Rate Startup IPO 335

Startup Professionals Musings

SEPTEMBER 10, 2018

Building a new business is quite different from an executive role in a mature company, so people from these backgrounds are often a liability. Value is embodied in previous success with investors, proven problem solving ability, and having built and executed a business plan with minimal resources.

Equity 238

Equity Cofounder Technical Cofounder Intellectual Property 238

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. The business plan must reflect both growth phases. Most are still confused about the right priority.

Valuation 235

Valuation Revenue Viral Retention 235

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. Declare a $10 million valuation with no revenue or customers.

Intellectual Property 120

Intellectual Property Valuation Technical Review Equity 120

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

Startup Professionals Musings

AUGUST 13, 2012

People ask me if they really need ANY business plan, unless they are looking for an outside investor. In fact, a business plan is needed more by you than investors, as the blueprint for your company, team communication, and progress metrics. Include a current valuation estimate. See where your cashflow bottoms out.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

The Startup Magazine

AUGUST 29, 2019

However, funding involves the usual process of sharing the valuation details and business plan along with the project reports, which then determines the sanctioning of the loan. The working capital loan is required to run a complete cycle of revenue-generating operations.

Startup 96

Startup Government Valuation Technical Review 96

Berkonomics

MARCH 5, 2020

So, it is important for the entrepreneur to identify, address and mitigate each of these in order to increase valuation and decrease the risk of ultimate loss of the business. Reduction or elimination of one or more of these risks increases the valuation of the company and certainly improves its chances of survival and growth.

Valuation 62

Valuation Down Round Early Stage Demand 62

Startup Professionals Musings

NOVEMBER 14, 2010

We look for many attributes amongst the team, including communication, leadership and management skills, subject matter knowledge, business expertise, relevant experience, openness to influence, team cohesion, motivation, integrity and credibility. Unfortunately, we read far more poorly written business plans at Main Street than good ones.

Intellectual Property 265

Intellectual Property Balance Sheet Phoenix Arizona 265

Startup Professionals Musings

APRIL 17, 2023

It never hurts to start networking personally with all levels of investors early, but sending out teasers and business plans to every name you can find on the Internet is a waste of your time and theirs. Tune your investor pitch and funding expectations accordingly.

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

Startup Professionals Musings

MAY 13, 2011

People ask me if they really need ANY business plan, unless they are looking for an outside investor. In fact, a business plan is needed more by you than investors, as the blueprint for your company, team communication, and progress metrics. Include a current valuation estimate. See where your cashflow bottoms out.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Startup Professionals Musings

AUGUST 25, 2018

Those that do it right also have the unprecedented opportunity to join the elite ranks of 250 unicorns (relatively new companies with a current valuation of over $1 billion). A full business plan and financial modelling can come later to add details. Ideas are not enough to gauge business potential.

Technical Cofounder 184

Technical Cofounder Intellectual Property Silicon Valley LLC 184

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. The business plan must reflect both growth phases. Most are still confused about the right priority.

Revenue 434

Revenue Valuation Viral Retention 434

Startup Professionals Musings

NOVEMBER 4, 2011

They must amplify your “elevator pitch” to investors, as well as key points from the business plan and the financial model. Prepare an investment-grade business plan. Every entrepreneur needs a professional business plan for their own use, whether they intend to seek investor funding or not.

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

Both Sides of the Table

JULY 29, 2010

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. The best thing to get is a “right sized&# valuation. A: It’s not best.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

Startup Professionals Musings

AUGUST 4, 2014

Building a new business is quite different from an executive role in a mature company, so people from these backgrounds are often a liability. Value is embodied in previous success with investors, proven problem-solving ability, and having built and executed a business plan with minimal resources.

Cofounder 261

Cofounder Stock Founder Technical Cofounder 261

Startup Professionals Musings

MARCH 11, 2016

Angel investors expect to review a short executive summary before booking time to hear an investor presentation or taking the time to analyze a full business plan. Remember that angel investors are buying equity in your business, so they are not impressed with a customer presentation.

Angel Investor 120

Angel Investor Intellectual Property Accredited Investor Angel Groups 120

Startup Professionals Musings

JANUARY 7, 2013

Here are some key action items that may give your business some visibility: Start with an investment-grade business plan. This means build a plan that hits all the hot buttons; problem/solution, executive team, competition, business model, reasonable financial projections, and what’s in it for the investor.

Venture Capital 252

Venture Capital IPO Elevator Pitch Initial Public Offering 252

The Startup Magazine

AUGUST 15, 2022

In many cases, your advisor will identify key employees and create a business plan to help you find a buyer and negotiate the best price possible. Creating a business plan. The first step in creating a business plan to sell your startup to an acquirer is to create a valuation of your company.

Merger 130

Merger Acquisition Due Diligence Valuation 130

Startup Professionals Musings

FEBRUARY 15, 2023

Adding free users or customers to increase valuation makes sense for a venture-backed startup looking to go public, but will kill bootstrapping. Self-sustainability, independence, and real fun requires paying customers, profitability and an early cash-flow-positive business plan. Favor profitability over revenue and user growth.

Equity 349

Equity Hockey Stick Bootstrapping Sweat Equity 349

Startup Professionals Musings

NOVEMBER 17, 2013

Often, the number one question that entrepreneurs fail to address is: “How much money do you need, and what valuation do you place on your company?” After a good elevator pitch or initial presentation, investors will ask for your formal business plan and financial projections. Lack of clear objectives/goals.

Software Review 265

Software Review Due Diligence Elevator Pitch Startup 265

Startup Professionals Musings

JUNE 5, 2021

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. High valuation, low profit. In finance, a bubble is too much money chasing assets, greater asset production and a herd mentality.

Demand 362

Demand Government Venture Capital Valuation 362

Startup Professionals Musings

SEPTEMBER 20, 2017

You still start the process with a business plan, but then you look for a philanthropist rather than an investor. 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

Gust

AUGUST 5, 2012

People ask me if they really need ANY business plan, unless they are looking for an outside investor. In fact, a business plan is needed more by you than investors, as the blueprint for your company, team communication, and progress metrics. Include a current valuation estimate. See where your cashflow bottoms out.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Startup Professionals Musings

APRIL 11, 2021

At this point your entity may already have several million in valuation, so the IRS will tax your shares at that value immediately as income, just when your cash flow is at its lowest. Business plans and other documents should always be labeled as confidential. Trouble with the IRS over Founders stock value.

Cost 363

Cost Non-Compete Accredited Investor Cofounder 363

SoCal CTO

JANUARY 18, 2011

I have been through many months with them but because of lack of funds, I spent lot of time doing non-technical work for first 4-5 months, spending time with them on putting pitches for investors, cash flows, budgets, writing business plans, product prototype setups etc.

CTO 167

CTO CTO Hire Equity Vesting 167

The Startup Magazine

FEBRUARY 21, 2022

With a present valuation of over $35 billion, the frozen food market is likely to increase in size by 1.3% That is a 40% increase in value from the market’s 2018 frozen food business valuation of $260 billion. Developing a Business Plan. Globally, the frozen food market is worth more than $300 billion.

Valuation 152

Valuation Demand Business Plan Social Media 152

Startup Professionals Musings

JULY 22, 2020

It never hurts to start networking personally with all levels of investors early, but sending out teasers and business plans to every name you can find on the Internet is a waste of your time and theirs. Tune your investor pitch and funding expectations accordingly.

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370