David Teten

AUGUST 21, 2019

Or should they look to one of the new wave of Revenue-Based Investors? Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. For more background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Lower processing cost.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Both Sides of the Table

MAY 19, 2018

A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. Can you please send us your certificate of incorporation, your Cap Table, your 3-year P&L and last year’s historical trading information? Entrepreneur : “Sure.

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

Hunter Walker

JULY 18, 2022

But you need to remain great and investable while also managing your costs, extending your runway, tightening your operating plan, and so on. Do you understand your cost structure and can you manage to a forecastable growth rate. Do you understand your cost structure and can you manage to a forecastable growth rate.

Valuation 116

Valuation Cap Table Startup Later Stage 116

Berkonomics

AUGUST 3, 2023

When the need is high… For the rest of us, desiring to build large, valuable enterprises quickly, the need for outside capital is high on our list of requirements and even the source for some sleepless nights as we worry over the availability and cost of capital. Taking this kind of money has several pitfalls you should be aware of.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Austin Startup

AUGUST 20, 2017

Your Cap Table is something that deserves constant care and attention. Messy cap tables can come back to haunt you when you do a financing or sell the company. Can you acquire them at a sustainable cost? I am very surprised when that cool thing actually meets a customer need or drives revenue.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

David Teten

NOVEMBER 14, 2019

I wrote recently about Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? Since then, I’ve talked with a number of other firms, and greatly expanded my database: Who are the major Revenue-Based (RBI) Investing VCs? Revenue-based investing VC. Venture debt.

SBIC 60

SBIC SBA Cap Table Database 60

abovethecrowd.com

JUNE 2, 2021

According to an interview with Elon Musk, this campaign cost Paypal about $60 million , which most Silicon Valley historians would consider money well spent. It would cost a tremendous amount of money to run such a program. With the 7% banker fee that is a 35% AVERAGE cost of capital. Billions of dollars. Wouldn’t that be great?

IPO 82

IPO Customer Matching Silicon Valley 82

Hunter Walker

JANUARY 13, 2024

Fast forward a few years and we finally connect via mutual friends and Twitter threads, but Proof is Too Successful for our early stage capital, meaning I admire from afar versus from the cap table. Most of us cut costs and reduced our team sizes, but what we also needed to do was reset how we work.

Hiring 71

Hiring Cap Table Cofounder Early Stage 71

Steve Blank

APRIL 8, 2010

They collected information that justified their assumptions about the problem, opportunity, market size, their solution and competitors and the their team, They rolled up a 5-year sales forecast with assumptions about their revenue model, pricing, sales, marketing, customer acquisition cost, etc. It was an exquisitely crafted plan.

Business Model 328

Business Model Business Plan Customer Cap Table 328

Hippoland

OCTOBER 18, 2018

It’s just really hard to keep growing 30% MoM with large revenue numbers. There are low operational costs – software has high margins, so you can often pour profits back into the business to keep growing (at least to a good level). So you get money upfront and pay costs later in most cases. But, I think that’s false.

Bootstrapping 90

Bootstrapping Cap Table Salary .Net 90

YoungUpstarts

OCTOBER 7, 2015

When we started our business, SecureDocs, we underestimated the cost of dedicated marketing software and also the potential value of marketing software. Relative to the cost of people it’s a small expense with a potentially large return. Same goes for using an accounting professional, even if you are not making money.

Cap Table 100

Cap Table Intellectual Property Salary Bootstrapping 100

View from Seed

OCTOBER 15, 2014

Examples of housekeeping include the following list, though not every item will appear every time: Finance: Cash out date, burn rate, 409A valuation, cap table, common/preferred stock dashboard. Team: Hires, fires, departures, responsibility changes, major promotions, and your org chart. The seed stage is all about traction.

Seed Stage 331

Seed Stage Cap Table Metrics Burn Rate 331

Hippoland

OCTOBER 18, 2018

It’s just really hard to keep growing 30% MoM with large revenue numbers. There are low operational costs – software has high margins, so you can often pour profits back into the business to keep growing (at least to a good level). So you get money upfront and pay costs later in most cases. But, I think that’s false.

Bootstrapping 48

Bootstrapping Cap Table Salary .Net 48

David Teten

SEPTEMBER 23, 2017

Sources like Crunchbase , Angel List , and Seed Invest even give this data away for free or very low cost. EShares is an increasingly popular tool in our portfolio for tracking private company cap tables. The only problem that faces startup investors now is how to mine this new data layer efficiently to increase returns.”.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

David Teten

OCTOBER 1, 2015

I’ve talked with a number of software development shops who are eager to get into the business of cofounding companies, i.e., getting product revenue and equity instead of just consulting revenue. We know it’s important to keep the cap table clean, and we want to focus on where/when we add value and then get out of the way.

Software Developers 60

Software Developers Software Development Software Review Technical Cofounder 60

Berkonomics

JUNE 8, 2017

For the rest of us desiring to build large, valuable enterprises quickly, the need for outside capital is high on our list of requirements and even the source for some sleepless nights as we worry over the availability and cost of capital. It is for this group that we explore the implications implicit in raising money for growth.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Feld Thoughts

AUGUST 12, 2011

Revenues and costs should both be based off of a robust set of assumptions. Anytime the financial model indicates that SayAhh will run out of cash, determine how you will raise capital to ensure liquidity and be sure to properly account for the debt or equity transaction on the balance sheet and Cap Table.

Balance Sheet 136

Balance Sheet Forecast Cap Table Early Stage 136

Startup Lessons Learned

JUNE 9, 2020

A complete collapse of revenue that simultaneously affects your employees and your customers, your partners, your investors, everyone all at once and all the news is bad. That meant of course initially raising money and cutting costs. We have to manage our stakeholders, raise money, diversify our business, and cut costs."

Silicon Valley 60

Silicon Valley Hosting Cofounder Employee 60

abovethecrowd.com

APRIL 20, 2016

A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue. You can no longer simply look at the cap table and estimate your return. As an example, most Unicorn CEOs still have no idea that discounts, coupons, and subsidies are contra-revenue.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

This is going to be BIG.

JUNE 2, 2010

Historically, that was one where the business was clear and there was some initial revenue, even if slight. On top of all this, isn’t there something to be said for the opportunity cost in your own career? When you go straight to a Series A round, you forget that your next round needs to be a Series B round.

Cap Table 106

Cap Table Seed Stage .Net Venture Capital 106

Berkonomics

JANUARY 20, 2010

For the rest of us desiring to build large, valuable enterprises quickly, the need for outside capital is high on our list of requirements and even the source for some sleepless nights as we worry over the availability and cost of capital. Taking this kind of money has a number of pitfalls you should be aware of.

Private Equity 69

Private Equity Valuation Cap Table Accredited Investor 69

www.paulgraham.com

APRIL 28, 2010

There never has to be atime when you have no revenues. It costs you a little more equity, but being able to play the two firms off each other (as well as ask one if the other is being out of line) is invaluable. The lower your costs, the moreoptions you have—not just at this stage, but at every point tillyoure profitable.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

This is going to be BIG.

AUGUST 16, 2012

Foursquare was always about connecting to commercial establishments--not that they're doing tons of revenue yet, but at least you could see where they're going. Twitter has lots of revs, b/c they've been about broadcast since the day they hid @ replies--and when you're a broadcast channel, you're going to get business presence and revenues.

Cap Table 100

Cap Table Sales Cycle Venture Capital Curation 100