Both Sides of the Table

JULY 23, 2014

When you think about the trends of faster-growing startups due to social networking, credit card enable and mobile first consumers – the reality is that many startups are becoming very large financially before needing to go public. The “big boom” in startup financing started around March 2009?—?more and hasn’t abated.

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

Both Sides of the Table

SEPTEMBER 16, 2010

As I’ve highlighted I believe we’re in a unique period similar to 2005-08 where the biggest tech firms of Silicon Valley (and some media companies) are scooping up small software companies as “talent acquisitions&# versus accretive revenue / profit generators. Tags: Startup Advice Tech Market Analysis VC Industry.

Cap Table 283

Cap Table Angel Investor Liquidation Preference Deal Flow 283

View from Seed

OCTOBER 11, 2022

And I’ve been fortunate enough to witness their startups scale from ideas to $1B+ businesses (and even an IPO in the case of Poshmark). Simply put, we can flex our check size from $400K to $4M to invest anywhere along the pre-traction to post-revenue spectrum — an abnormality and an advantage in today’s market.

North America 156

North America San Francisco Cap Table Cofounder 156

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. The buyer is shopping for equity in startups and the seller is looking for cash in exchange for equity and shared governing control of his or her company. Entrepreneur : “Sure.

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

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. But should they? Aligned incentives.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Hunter Walker

FEBRUARY 15, 2023

Claire got to experience, and played a large part in, Stripe’s proverbial rocketship, blossoming into thousands of employees, generating billions of dollars in revenue and valuation. While at the company — and especially once she departed — Claire became one of the people I always hoped to add to a cap table or startup board.

Cap Table 75

Cap Table Hiring Viral Valuation 75

Austin Startup

AUGUST 20, 2017

August 20, 2017: This is another in my series of posts all leading up to a book on Startup Decision Making. One of the most common mistakes I see in startups is making decisions that lose sight of the context , including the past, present, and future. Sooner or later everybody in a startup knows what everyone else is getting paid.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Up and Running

SEPTEMBER 20, 2021

This is all incorporated into a document called a Cap Table. . A cap table will help you in the strategic management of business decisions. Wondering what a cap table is, its importance, and how you can maintain it to expand your business? What is a cap table? Let’s dive in.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

Pascal's View

JULY 9, 2017

Unfortunately, what the CEO/founder forgets most often is that the notes have a multiplier effect in the post-money calculation; the more notes and the further the cap is from the new priced equity, the greater the variance between actual and nominal pre- and post-money valuations. It will be worth the time and effort. Sound simple?

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

Gust

NOVEMBER 15, 2012

But by far the biggest issue is that the very essence of public markets (and what makes them “public”) is that the SEC mandates an enormous amount of transparency, including complete quarterly financial statements, complete publication of the company’s cap table including all significant shareholders, and so forth.

Seed Stage 131

Seed Stage Hockey Stick Cap Table Liquidation Preference 131

Both Sides of the Table

SEPTEMBER 12, 2013

But as sweet as that success has been (we invested pre-revenue in a small team) today my even more important news was the further expansion of our partner ranks. He first came to see me in 2008 when we was raising money for his 1st startup – NextMedium. Startup DNA. I’ve known Hamet for 5 years. Media relationships.

Partner 340

Partner Los Angeles South Africa Cap Table 340

adamac.blogspot.com

MARCH 9, 2010

Adam MacBeth Tuesday, April 07, 2009 10 Startup Red Flags Ive worked on a number of startups: from seed-stage through IPO, as a founder, employee, advisor, and consultant, as well as evaluating a bunch from the outside, so Ive seen my share of screw-ups. This means there MUST be a technical founder in a startup. Yeah me neither.

Technical Review 41

Technical Review CTO Hire Fractional CTO Startup 41

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

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

OnlyOnce

MAY 26, 2022

So, getting this role right is one of the most important tasks of any startup team. Do you spend a lot of your time dealing with finance-related issues like fundraising, debt, investors, or cap table questions? The post Signs Your CFO Isn’t Scaling appeared first on The Startup CEO blog. Trust your gut.

Cap Table 62

Cap Table Forecast Finance Metrics 62

View from Seed

OCTOBER 15, 2014

Over the summer, based on feedback from our portfolio and the broader startup community, NextView created pre-formatted board deck templates for seed-stage startups — part of our Growth Guides series. A seed-stage mobile startup’s housekeeping section might look something like this: Section 3: Core Metrics.

Seed Stage 331

Seed Stage Cap Table Metrics Burn Rate 331

Steve Blank

APRIL 8, 2010

I think my startup is going to fail even before I get funded.” Then they had a five-year P&L statement, balance sheet, cash flow and cap table. As I listened, I thought about the other startup I had met an hour earlier. A startup is an organization formed to search for a repeatable and scalable business model.

Business Model 328

Business Model Business Plan Customer Cap Table 328

Hippoland

OCTOBER 18, 2018

Having run a startup that raised money and now in running a VC, ironically, if I were starting a product company today, I would start out with the mentality of bootstrapping for as long as I could. It’s just really hard to keep growing 30% MoM with large revenue numbers. Most of their startups end up failing.

Bootstrapping 90

Bootstrapping Cap Table Salary .Net 90

Bryce Dot VC

FEBRUARY 6, 2017

And not just a token “ramen” level of profitability: The startup is profitable, with January revenue of 10x its burn rate and sales expected to be in the millions for the quarter. Founders can trade the fundraising treadmill for the freedom, control and ownership that comes with managing your cap table closely.

Cap Table 40

Cap Table Burn Rate Dilution Bootstrapping 40

David Teten

SEPTEMBER 23, 2017

The only problem that faces startup investors now is how to mine this new data layer efficiently to increase returns.”. For the broader use case of helping startups execute their legal paperwork, Clerky is a focused solution. EShares is an increasingly popular tool in our portfolio for tracking private company cap tables.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Both Sides of the Table

FEBRUARY 8, 2016

Much has changed in the past four months of the technology startup world and how outsiders value the business. If you raised money in the past 2 years and have grown it is possible that your next round valuation might be flat (or lower) even though you have a higher revenue because investors may value your multiple differently.

Burn Rate 150

Burn Rate Cap Table Balance Sheet Dilution 150

Hippoland

OCTOBER 18, 2018

Having run a startup that raised money and now in running a VC, ironically, if I were starting a product company today, I would start out with the mentality of bootstrapping for as long as I could. It’s just really hard to keep growing 30% MoM with large revenue numbers. Most of their startups end up failing.

Bootstrapping 48

Bootstrapping Cap Table Salary .Net 48

This is going to be BIG.

DECEMBER 21, 2017

Nothing seems to apply--you're not a tech company, you bootstrapped your way to millions in revenues before taking on capital, and you sell mostly through brick and mortar. Technically, that's what we called it, but it didn't seem entirely appropriate given that it had already been up and running for years and had millions in revenue.

Cap Table 90

Cap Table Cofounder Valuation .Net 90

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. historical data).

Balance Sheet 136

Balance Sheet Forecast Cap Table Early Stage 136

Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

David Teten

DECEMBER 3, 2019

See Bessemer Venture Partners’ A comprehensive guide to security for startups. Data companies focused on early-stage startups include Aingel , fundsUP , Preseries , PredictLeads , and Sploda. For more on gathering data and using it to assess companies, see How to Assess Startups Using Machine Learning. 2) Market .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Spencer Fry

APRIL 17, 2017

As a startup in 2017, having limited resources can in and of itself sink your entire ship. There are so many people, products, and startups that are vying for their attention, that it’s harder than ever to rise above the noise. But as an early stage startup, accountability is so important. The quality bar has never been higher.

Bootstrapping 63

Bootstrapping Cap Table Liquidation Preference Cofounder 63

Bryce Dot VC

JANUARY 5, 2015

Currently the mainstream startup narrative is owned by VC backed startups who’s success and ambition are often measured by the amount of capital they’ve raise. VC backed startups, by design, are on a different timeline with a different measure of success for all involved. And revenue better still. . And have their place.

San Francisco 40

San Francisco Cap Table Non-Compete Distribution 40

Hippoland

MAY 16, 2018

(wow, what a concept…) So, now that there are more companies flooding the equity market (via all these blockchain ideas), this means there is increased competition for startups seeking investor-dollars in the traditional equity world. And often, these tranches here and there are done at different valuation caps. And that’s ok!)

Seed Stage 48

Seed Stage Valuation Convertible Security Equity 48

Hippoland

MAY 16, 2018

(wow, what a concept…) So, now that there are more companies flooding the equity market (via all these blockchain ideas), this means there is increased competition for startups seeking investor-dollars in the traditional equity world. And often, these tranches here and there are done at different valuation caps. And that’s ok!)

Seed Stage 48

Seed Stage Valuation Convertible Security Equity 48

This is going to be BIG.

JUNE 2, 2010

Money at a startup is kind of like cash in your wallet—it gets spent. The level of increased complexity in a startup that goes from let’s say two developers and a business or product person just focusing on one thing, to three or four developers and more than one product front to wage war on is significant. Got some dough?

Cap Table 106

Cap Table Seed Stage .Net Venture Capital 106

Hunter Walker

JULY 18, 2022

Why I’m Not Telling Every Startup To ‘Pull The Brakes’ Just Yet. Your runway is impacted by the absence of projected revenue. Instead I’ll suggest there are two specific questions that really matter, the answers to which will have the biggest impact on the next 1–5 years of startups and venture capital.

Valuation 117

Valuation Cap Table Startup Later Stage 117

blog.simeonov.com

FEBRUARY 22, 2010

I have been thinking a lot recently about how to apply agile development principles to investing and key aspects of startup development such as team building. The first post is about agile startup fundraising. The follow-on post is about agile startup team building. If you’ve read and liked these posts, let others know.

Founder 44

Founder Vesting Agile Startup 44

Startup Lessons Learned

JULY 11, 2019

Among her early investments are Lyft, TaskRabbit and Modcloth, which, as our recent conversation shows, are only part of the reason Forbes called her “the most powerful woman in startups.” Ann will be speaking at this year’s Lean Startup Conference in October about all of this and more. This last year, I taught a blockchain class.

Founder 68

Founder Lean Venture Capital Cofounder 68

www.paulgraham.com

APRIL 28, 2010

Want to start a startup? A typical startup goes throughseveral rounds of funding, and at each round you want to take justenough money to reach the speed where you can shift into the nextgear. Few startups get it quite right. 1 ] A startups life will be more complicated, legally, if any of theinvestors arent accredited.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Hunter Walker

JANUARY 13, 2024

That’s the emotion I most associate with Pat Kinsel and his startup, Proof (fka Notarize). 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. Is it hiring for resume vs fit?

Hiring 71

Hiring Cap Table Cofounder Early Stage 71

Berkonomics

JANUARY 20, 2010

Some businesses require very little capital and the founder is able to self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 69

Private Equity Valuation Cap Table Accredited Investor 69