Remove Common Stock Remove Customer Remove Finance Remove Revenue
article thumbnail

8 Tips To Get the Most Out of Your Investors and Board

Both Sides of the Table

In his tenure as CEO of DataSift we have never missed a monthly revenue figure. He has grown our US operations from 1 employee (him) to a global organization of 75 employees that will finish the year with 8-digit revenues (90+% recurring) and more than 350% year-over-year growth. In his spare time he raised nearly $30 million.

article thumbnail

Cram Down – A Test of Character for VCs and Founders

Steve Blank

For existing investors, sometimes it was a “pay-to-play” i.e. if you don’t participate in the new financing you lose. Some even insisted that all prior preferred stock had to be converted to common stock. Other times it was simply a take-it-or-leave-it, here are the new terms. A cram down is different than a down round.

Cram Down 413
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. Any custom manufactured IoT device would require software development as well as hardware customization. Both of which are expensive and time-consuming.

Startup 150
article thumbnail

Venture Capital Q&A Session

Both Sides of the Table

People buy companies for 3 primary reasons: 1) they want the management team / talent 2) they want the technology or 3) they want the market traction (revenue, customer base, profits, etc). The downside is that people need to buy their stock. In fact, far better if you haven’t raised venture capital. Do it early.

article thumbnail

Will Work for Equity - Investing in Clients - Arizona Bay

www.inc.com

Finance | Tuesdays. Financing a Small Business. Financing A Small Business. Personal Finance. Why Arizona Bay started taking stock from its customers instead of cash. Because many of these businesses dont yet have revenue, valuation discussions arent very scientific, and the process requires some haggling.

Arizona 40
article thumbnail

Startups and IP Ownership Issues

Scott Edward Walker

electronic files, prototypes, customer lists, etc.). prior to incorporation is typically assigned to the company as part of the founder’s restricted stock purchase agreement (or a separate assignment agreement). Founders should also make sure that when they leave their prior employer they don’t take anything with them (e.g.,

IP 40
article thumbnail

Why Uber is The Revenge of the Founders

Steve Blank

— Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed: IPOs/M&A without a profit (or at times revenue) have become the norm. Typically, this caliber of bankers wouldn’t talk to you unless your company had five profitable quarters of increasing revenue. The founders.

Founder 263