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. on the entrepreneur side of the table) when I raised at too high of a price. This is wrong.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

Both Sides of the Table

JUNE 17, 2017

It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. I often ask entrepreneurs to consider, “What’s your objective? Revenue When I look at an income statement I start by focusing on the revenue line.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Hearpreneur

DECEMBER 31, 2017

So that’s why we are excited about 2018 because there will be more and more entrepreneurs and businesses. Here’s something other entrepreneurs look forward to:: #1- Bring in a new team. Along with the capital costs of this investment, there was also a steep learning curve that resulted in rookie mistakes. 10- Team growth.

Entrepreneur 61

Entrepreneur Stock Options Programming Washington 61

Startup Professionals Musings

JANUARY 13, 2018

With the current strong economy, as an active startup mentor, I’m seeing a new surge of entrepreneurs and startups, with the commensurate scramble for funding. This approach is not for entrepreneurs already out of money. Increased jeopardy and less fun for the entrepreneur. It takes real money to get into the game.

Merger 198

Merger OTC IPO Due Diligence 198

The Startup Magazine

JUNE 1, 2023

We’re hitting record revenue months, weeks, and margins. Be honest with yourself VCs are now going to be looking closer at margins, cost structures and true sales, and product market fit. Don’t be afraid to pivot The collapse of SVB spurred us to do a deep evaluation of how we’re generating revenue and value for customers.

Early Stage 110

Early Stage Los Angeles Silicon Valley Cofounder 110

Startup Professionals Musings

MAY 3, 2014

With the uptick in the economy, as an active startup mentor, I’m seeing a new surge of entrepreneurs and startups, with the commensurate scramble for funding. This approach is not for entrepreneurs already out of money. Increased jeopardy and less fun for the entrepreneur. It takes real money to get into the game.

Merger 246

Merger OTC IPO Stock 246

Agile VC

JUNE 5, 2011

They’ve grown from nothing to >$2B in revenue in 30 months time, making the company among the fastest growing businesses in the histroy of the world. How They Make Money: Groupon keeps a share of the coupon value (typically 40-50%) as its net revenue (1). Financial Snapshot: 2010 Revenue: $713M. to the merchant.

North America 100

North America Chicago Boston Silicon Valley 100

Both Sides of the Table

SEPTEMBER 18, 2014

At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. Your A round?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

The Startup Magazine

AUGUST 6, 2021

The question for many entrepreneurs is, how do you start a business the right way with the right startup business structure? . Without them, you cannot earn any revenue. A common mistake made by entrepreneurs as they assess their startup business structure is to try and do everything themselves. Find Your Passion.

Limited Liability Company 163

Limited Liability Company Silicon Valley Business Model Stock Options 163

Startup Professionals Musings

JUNE 15, 2015

With the uptick in the economy, as an active startup mentor, I’m seeing a new surge of entrepreneurs and startups, with the commensurate scramble for funding. This approach is not for entrepreneurs already out of money. Increased jeopardy and less fun for the entrepreneur. It takes real money to get into the game.

Merger 120

Merger OTC IPO Due Diligence 120

Berkonomics

APRIL 4, 2019

On the other side, entrepreneurs and CEO’s usually have a natural fear of giving too much information to us investors after the initial investment is received. Shareholders may vote on other issues during the year by written consent, including acquisitions, stock issuance, changes to the articles of incorporation and bylaws, and more.

Stock Options 48

Stock Options Balance Sheet Stock Common Stock 48

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. Most entrepreneurs (and VCs raising from LPs) think this means progress. Entrepreneur : “Sure. Some people find this elitist?—?I It doesn’t. No problem.

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

Gust

SEPTEMBER 17, 2014

Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. It’s like we need a finance 101 course for entrepreneurs.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

infochachkie.com

SEPTEMBER 24, 2011

Hands-on startup advice for emerging entrepreneurs. For instance, many a BDC CEO has initiated a consultant to study cost cutting issues before announcing a significant layoff. Tracking such revenue can be a challenge but is possible to approximate the revenue impact of PR activities via the use of unique URLs, customer surveys, etc.

Equity 40

Equity Silicon Valley Cofounder Technical Review 40

Startup Professionals Musings

JANUARY 16, 2011

He says that you should never consider a public offering unless you are confident that the company will deliver increasing profits and revenue after the offering, so that the public buyer can anticipate a gain. Of course, you’re going to have to perform well to make that stock useful in the acquisitions process.

IPO 223

IPO Social Media Media Exit Strategy 223

Gust

DECEMBER 8, 2011

I urge all entrepreneurs to consult and develop a good working relationship with a qualified startup lawyer. Sales contracts accounting for significant revenue. In the case of revenue contracts, they help pay for the related legal work. Caveat entrepreneur ! Employment handbooks and policies. Office and equipment leases.

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

Tim Keane

JANUARY 12, 2010

Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react. Term-sheets and Valuations: Thinking about Negotiations.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Agile VC

FEBRUARY 2, 2012

How They Make Money : Facebook’s primary revenue stream is of course selling advertising on Facebook.com, which in total accounts for 85% of revenue. The next chunk comes from Facebook’s platform, in essence “taxing” the revenues of app developers like Zynga, which represents 15% of revenue.

IPO 100

IPO South Korea Venezuela Revenue 100

Eric Friedman

JUNE 11, 2019

This keeps the firm and final answer on investing nebulous and entrepreneurs moving the firm in their tracking sheet or CRM around for no reason. Partnership Forcing Functions can be tricky because they typically don’t involve revenue, which drives most business decisions, but there are other reasons to do the deal.

Term Sheet 68

Term Sheet Stock Options Early Stage Agile 68

Berkonomics

AUGUST 27, 2015

He has written numerous books and articles for entrepreneurs and investors, and was the publisher and editor-in-chief of Venture Magazine. Mr. Lipped addresses the issue of exits, and whether entrepreneurs should take the long view or cash out quickly when the opportunity arises. By Arthur Lipper.

Intellectual Property 48

Intellectual Property Balance Sheet Stock Options Valuation 48

Both Sides of the Table

APRIL 27, 2010

I learned how to retain employees when stock options were no longer a real currency. I learned how to get press coverage when we were no longer “hot.&# I learned how to manage costs effectively. and we ultimately sold when we hit $14 million and had more than $30 million in backlog revenue.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

ReadWriteStart

JANUARY 28, 2022

The market regards equity as an ownership “share” in a corporation’s income revenue stream. In the case of a warrant, the expiration date is the final day on which it can be converted into common stock. Therefore, CEOs have strong reasons to issue stock options. What is Company Equity?

Valuation 108

Valuation Equity Warrant Common Stock 108

A Smart Bear: Startups and Marketing for Geeks

MARCH 11, 2014

Welcome back to Smart Bear Live … the show were Jason speaks with entrepreneurs looking to improve their businesses. How do you split revenue? You may call it employee number one with a really low salary and really generous stock options and as the company grows, you’ll fix their salary. ” Jason: So?

Technical Cofounder 220

Technical Cofounder Cofounder Software Review Management 220

techcrunch.com

OCTOBER 23, 2010

It is the first in a series of posts he’s writing about the decisions a young entrepreneur needs to make when she/he is first starting a business. One of the things I do as a founder of a later stage startup is to meet with early stage entrepreneurs to help them get their companies going. Unless that person is … you?

Technical Review 84

Technical Review Cofounder Technical Cofounder Software Review 84

ReadWriteStart

JUNE 15, 2012

For help, we asked seven successful young entrepreneurs from the Young Entrepreneur Council (YEC) about what really attracts rock-star talent. (To Also, using this method aligns the interests of the developer with that of the entrepreneur – to grow the business. Instead, give them a revenue or profit-sharing option.

Developer 130

Developer Equity Ruby Cofounder 130