Up and Running

SEPTEMBER 19, 2017

Rule 1: Bootstrap until you have a viable product. Seeking that funding prior to launching a viable product, however, would have virtually ensured that Klemm would largely cede control of the company to PE investors. Takeaway lesson: A shocking number of technology startups never even get their first product out the door.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Steve Blank

APRIL 10, 2019

We slept under the tables, and pulled all-nighters to get to first customer ship, man the booths at trade shows or ship products to make quarterly revenue – all because it was “our” company. Not everyone got the same amount of stock. The founders got most of the common stock. Today, that’s not true.

Stock Options 333

Stock Options Stock Vesting Common Stock 333

YoungUpstarts

JUNE 26, 2020

Going all the way back to Yahoo or Microsoft, the initial products (a directory for a nascent tech called the World Wide Web, and Microsoft BASIC,) didn’t look like billion dollar products at all. a game, we are looking for a product that ends up becoming wildly popular, more popular than anyone thought it could be in the early days.

Finance 205

Finance Silicon Valley Valuation Startup 205

Steve Blank

OCTOBER 24, 2017

— 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.

Founder 245

Founder Technical Review CTO Hire IPO 245

www.inc.com

SEPTEMBER 24, 2011

But with the help of Grahams company, which specializes in creating tech systems for start-ups, Jumpstart grew to more than $50 million in revenue--enough to make it an attractive acquisition for media conglomerate Hachette Filipacchi. Arizona Bay has also blended equity payments with revenue-sharing deals. Why customers watch videos.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Both Sides of the Table

MARCH 21, 2010

Plus, we’re all allured by the false sense that our contract with BigCo is going to “make us&# because once they start using us it will spread like wildfire and the revenue will flow in. BigCo calls you to review your product and decides they want to use you. Make the warrants for common stock and not preferred stock.

Warrant 298

Warrant Dilution Startup Stock Options 298

Startup Company Lawyer

MAY 4, 2009

Startup companies consume resources intelligently, put people to work in efficient ways, and produce market driven products at lower costs. What are common planning mistakes and how do you to avoid them? June 23rd, 2009: Create a revenue model for your business. Description: What it takes to get from an idea to an offering.

Founder 28

Founder Warrant San Francisco Intellectual Property 28

ReadWriteStart

JANUARY 28, 2022

The market regards equity as an ownership “share” in a corporation’s income revenue stream. Common stock. The holding of common stock in a company indicates ownership in the corporation. Investors of common stock are eligible for : The choice of the Board of Directors.

Valuation 108

Valuation Equity Warrant Common Stock 108

Lightspeed Venture Partners

OCTOBER 1, 2012

On the other hand, a 7% royalty means that Kevin and Barbara got to keep 93% of future revenues. The entrepreneur claimed that her patent was weak and as a result competitors had copied her product and were collectively doing $30-40M in sales. The product retails for $39.95, wholesales for $19.95, and costs just $5 to make.

Pre-Money Valuation 158

Pre-Money Valuation Valuation Participating Preferred Preferred Stock 158

Growthink Blog

MAY 10, 2012

Put everything else on your "wish list" to buy with revenues from sales or additional financing. Stage #2: Seed Funding Seed funding (also called seed capital) typically ranges from $100,000 to $500,000 and is often provided by angel investors, and is usually structured as convertible notes or common stock.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

Up and Running

NOVEMBER 23, 2010

At its height, the company employed more than 130 people and their products reached customers in dozens of countries. But, tragically, 3 years after their apex, this firm sold for less than their annual revenue, laid off nearly the entire staff, and left common stock shareholders, my friends included, with nothing.

Common Stock 63

Common Stock Stock Options Stock Cofounder 63

Up and Running

SEPTEMBER 20, 2021

Furthermore, there are various forms of equity, such as preferred stock, common stock, and convertible notes, which influence the present and potential future investors. Total share ownership is the sum of the common stock, stock options, preferred stock, and any other stock category for a single individual.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

Startup Professionals Musings

OCTOBER 29, 2013

Angels might be interested during “early stage” if you have a prototype, but VCs won’t bite until you have a product, customers, and revenue. The most common case is an equity investment, but there are many terms that can impact what request size is credible. Calculate what you need, and add a buffer. Single or staged delivery.

Valuation 258

Valuation Early Stage Warrant Common Stock 258

Startup Professionals Musings

SEPTEMBER 19, 2012

Angels might be interested during “early stage” if you have a prototype, but VCs won’t bite until you have a product, customers, and revenue. The most common case is an equity investment, but there are many terms that can impact what request size is credible. Calculate what you need, and add a buffer. Single or staged delivery.

Valuation 236

Valuation Early Stage Warrant Common Stock 236

Startup Professionals Musings

JULY 8, 2011

Angels might be interested during “early stage” if you have a prototype, but VCs won’t bite until you have a product, customers, and revenue. The most common case is an equity investment, but there are many terms that can impact what request size is credible. Calculate what you need, and add a buffer. Single or staged delivery.

Entrepreneur 234

Entrepreneur Valuation Early Stage Warrant 234

www.paulgraham.com

APRIL 28, 2010

Then you can gradually transformyourself from a consulting company into a product company, and haveyour clients pay your development expenses. There never has to be atime when you have no revenues. To be a startup, a company hasto be a product business, not a service business. Theres only common stock at this stage.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Startup Professionals Musings

JUNE 9, 2010

Angels might be interested during “early stage” if you have a prototype, but VCs won’t bite until you have a product, customers, and revenue. The most common case is an equity investment, but there are many terms that can impact what request size is credible. Calculate what you need. See where your cashflow bottoms out.

Valuation 227

Valuation Early Stage Warrant Common Stock 227

ReadWriteStart

FEBRUARY 13, 2020

The well-known ridesharing giant hit the market this year with a target price of $45 dollars per share, with 180 million shares of common stock available at launch. That means there’s every reason for investors to believe that the strong revenue growth the company has posted is a sign of a profitable future ahead.

IPO 147

IPO Startup Stock Initial Public Offering 147