ReadWriteStart

JUNE 1, 2020

I have often been asked about Startup Funding by entrepreneurs. Here is Startup Funding, a Comprehensive Guide for Entrepreneurs. 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. Pre-Requisites of Funding.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

OCTOBER 5, 2014

Desperate entrepreneurs lose their leverage and die young. As a mentor to many entrepreneurs and startups, here are my best recommendations for keeping the burn rate low, planning ahead and maintaining credibility with investors: Manage cashflow personally every day. Things will cost more than you expect.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

The Startup Magazine

FEBRUARY 21, 2024

As the CEO of one of Canada’s largest private credit firms, can you describe the basics of private credit and its increasing importance to budding entrepreneurs? For entrepreneurs, this means not just securing capital, but also gaining a collaborator committed to their growth journey. Are there new revenue streams you can tap into?

Technical Review 158

Technical Review Due Diligence Bankruptcy Intellectual Property 158

YoungUpstarts

NOVEMBER 2, 2020

REASON 2: You Need to Gain the Efficiencies to Be Cost-Competitive. REASON 4: Digitally Driven Companies Have Greater Revenue Growth. Digitally advanced” companies create 9 percent more revenue than their industry competitors, as reported in a study conducted by MIT. REASON 6: Digitally Driven Companies Have Higher Valuations.

Valuation 264

Valuation Technical Review Revenue Operations 264

Both Sides of the Table

SEPTEMBER 28, 2014

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. In a world where the economy only heads in one direction (read: 2009-2014) most investors & entrepreneurs forget to pay attention to gross burn.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Startup Professionals Musings

SEPTEMBER 30, 2013

I hear a lot of entrepreneurs contemplating their great “idea” for several years with little discernable progress, and looking for money to start. Don’t expect them to believe your $100M revenue projection, if you are still waiting for the first revenue dollar. Get a real customer and real revenue. Marty Zwilling.

Intellectual Property 281

Intellectual Property Entrepreneur Sweat Equity CTO Hire 281

Hearpreneur

JANUARY 22, 2023

We asked entrepreneurs and business owners about the 2023 trends they see in their industry and here are the responses. #1- However, that doesn't mean you should ignore cost or quality. In recent years, eCommerce companies have begun to increase revenue by selling products directly via social media networks.

Artificial Inteligence 124

Artificial Inteligence Technical Review Entrepreneur Social Media 124

Startup Professionals Musings

JUNE 26, 2013

It’s higher risk, but higher return, to pick the big winners early, before Angels have set unreasonable valuations and restrictive terms. Technology costs are plummeting, meaning you can do more with less. Twenty years ago, it cost $5 million to really launch a high-tech startup, when the same thing can be done today for $500 thousand.

Angel Investor 231

Angel Investor Entrepreneur Early Stage Silicon Valley 231

Startup Professionals Musings

DECEMBER 11, 2022

After many years of working with angel investors seriously trying to find new ventures worthy of their hard-earned money, I find their frustration often exceeds that of entrepreneurs sincerely looking for financial help. Non-credible funding request or unreasonable valuation. Future unproven projections don’t set today’s valuation.

Due Diligence 271

Due Diligence Intellectual Property Entrepreneur Preferred Stock 271

Startup Professionals Musings

SEPTEMBER 29, 2018

Desperate entrepreneurs lose their leverage and die young. As a mentor to many entrepreneurs and startups, here are my best recommendations for keeping the burn rate low, planning ahead and maintaining credibility with investors: Manage cash flow personally every day. Things will cost more than you expect.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

Steve Blank

SEPTEMBER 5, 2018

Most entrepreneurs today don’t remember the Dot-Com bubble of 1995 or the Dot-Com crash that followed in 2000. Tech IPO prices exploded and subsequent trading prices rose to dizzying heights as the stock prices became disconnected from the traditional metrics of revenue and profits. It’s the antithesis of the Lean Startup.

Lean 335

Lean Burn Rate Startup IPO 335

Both Sides of the Table

SEPTEMBER 22, 2012

He also nails the reason why venture capital is still necessary to grow large businesses quickly in a world where the costs of running startups have fallen dramatically. After all, growth equals high valuations and loads of venture capital! And so do entrepreneurs who are quick to pivot to new businesses or to sell in an acquihire.

Silicon Valley 390

Silicon Valley Venture Capital Startup Technical Review 390

Startup Professionals Musings

AUGUST 25, 2018

Now is the time to be an entrepreneur and create a business from your passion. The cost of rolling out a business has never been lower – it only takes a few hundred dollars to incorporate a Limited Liability Corp (LLC) online, create your own website, use social media to get attention, and you are in business.

Technical Cofounder 184

Technical Cofounder Intellectual Property Silicon Valley LLC 184

Feld Thoughts

JULY 9, 2019

This was before the IPO Summer of 2019 when all conventional valuation metrics have entered the land of “suspension of disbelief” which is short-term good and long-term well-we-will-see-…-eventually. We ended up talking about using Gross Profit, instead of Revenue, to do valuation analysis.

Revenue 179

Revenue Valuation .Net IPO 179

Startup Professionals Musings

AUGUST 10, 2014

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Both have worked.Google reached $1 billion in revenue within five years of incorporation, and now has a market capitalization of over $400 billion. Long-term stability requires revenue growth and profit.

Revenue 246

Revenue Entrepreneur Valuation Viral 246

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Flexible VC: Revenue -based. Of the Inc.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

YoungUpstarts

JUNE 29, 2020

So, what are the in demand products during this time of pandemic that both budding and seasoned entrepreneurs may want to consider manufacturing or distributing? Medical industry manufacturers and suppliers can benefit from the injection molding manufacturing process because of its cost-efficiency. These are some of those: 1.

Demand 173

Demand Product Artificial Inteligence Software Review 173

Startup Professionals Musings

FEBRUARY 15, 2023

It’s more possible to bootstrap today than a few years ago, as the cost of entry continues to go down. Here are the key principles I recommend as an advisor to many entrepreneurs: Start your business in your own home. Likewise, too many volunteers and interns will only increase your workload and rework costs.

Equity 349

Equity Hockey Stick Bootstrapping Sweat Equity 349

Startup Professionals Musings

AUGUST 25, 2017

In case you haven’t noticed it, the rapid evolution of do-it-yourself (DIY) facilities for developers, including 3-D printers, SketchUp and makerspaces such as TechShop , have scaled down the cost of prototypes and hardware design by an order of magnitude. Quick low-cost design and fabrication alternatives are extremely valuable.

Technical Cofounder 153

Technical Cofounder Intellectual Property Wiki Cofounder 153

ReadWriteStart

OCTOBER 7, 2010

Before I do, however, I want to talk about a thumb rule that I'd like to propose to entrepreneurs about raising money. As a thumb rule, try to get enough validation so that you can get to at least a $2 million pre-money valuation before raising equity capital. Bottom line, early stage equity is very, very expensive. Well, I don't.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

VC Cafe

AUGUST 2, 2022

think about the entrepreneurs that started in the early days of the Internet, mobile, crypto, VR and yes… now Metaverse. billion revenue in 2021 for Epic Games and was played by 83.3 billion revenue in 2021, a 107% increase year-on-year. billion revenue in 2021, the second year in a row it made over $1 billion.

IP 206

IP Cofounder Valuation Acquisition 206

www.forentrepreneurs.com

FEBRUARY 2, 2010

Blog About Log in Register Startup Killer: the Cost of Customer Acquisition In the many thousands of articles advising entrepreneurs on what they have to focus on to build successful startups, much has been written about three key factors: team, product and market, with particular focus on the importance of product/market fit.

Acquisition 103

Acquisition Cost Customer Entrepreneur 103

Startup Professionals Musings

NOVEMBER 26, 2012

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” Many entrepreneurs stumble at this point, losing the deal or most of their ownership, by having no answer, saying “make me an offer,” or quoting an exorbitant number.

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

Startup Professionals Musings

SEPTEMBER 20, 2021

Thus entrepreneurs were able to build prototypes and design new products without the traditional huge prototyping cost. They have also become great networking events for meeting other like-minded entrepreneurs. Here are some key positives from an entrepreneur perspective: Shorten the time and cost from idea to prototype.

Startup 397

Startup Cofounder Incubator Early Stage 397

Startup Professionals Musings

DECEMBER 1, 2017

I was mentoring some graduate students at a local university recently, and I sensed again that profit seems to be a dirty word these days to many aspiring entrepreneurs. Every business needs to develop a revenue model even before a product. It’s naïve to think you can sell below costs, and make it up by attracting more customers.

Revenue 166

Revenue Affiliate Advertising Retention 166

Startup Professionals Musings

SEPTEMBER 14, 2016

Desperate entrepreneurs lose their leverage and die young. As a mentor to many entrepreneurs and startups, here are my best recommendations for keeping the burn rate low, planning ahead and maintaining credibility with investors: Manage cash flow personally every day. Things will cost more than you expect.

Burn Rate 120

Burn Rate Hockey Stick Startup Salary 120

Both Sides of the Table

JULY 23, 2014

We are in a bubble (with so many private $1bn+ valuations). Lower costs to start a business (95% reduction), many more companies created & funded by angels / seed. pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. Where are we today?

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

Startup Professionals Musings

FEBRUARY 21, 2012

The cost of giving up more equity early is often more than offset by the increased flexibility to recover from mistakes. Your startup will require more money than you expect, and the cost of going back to the well is very high. Pay people with equity or future revenue. Include buffer when you raise money. Great strategy.

Burn Rate 232

Burn Rate Startup Salary Equity 232

Startup Professionals Musings

MAY 18, 2020

It’s more possible to bootstrap today than a few years ago, as the cost of entry continues to go down. Here are the key principles I recommend as an advisor to many entrepreneurs: Start your business in your own home. Likewise, too many volunteers and interns will only increase your workload and rework costs.

Hockey Stick 423

Hockey Stick Bootstrapping Sweat Equity Intellectual Property 423

Duct Tape Marketing

FEBRUARY 3, 2022

Helping Entrepreneurs Buy And Sell Their Agencies written by John Jantsch read more at Duct Tape Marketing. In this episode, she’s sharing how she’s helped many entrepreneurs buy and sell businesses. And we're gonna talk today about helping entrepreneurs buy and sell their agencies. So Amanda, welcome to the show.

Entrepreneur 79

Entrepreneur Technical Review Cofounder Valuation 79

Both Sides of the Table

JUNE 22, 2011

This was an audience of mostly first-time entrepreneurs. It is great for entrepreneurs and great for VCs. So here is what I have been telling entrepreneurs privately for the past 6 months. Ah, but today’s Internet companies have real revenue! I believe that. I will write more about this in the next 2 weeks.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Both Sides of the Table

FEBRUARY 15, 2016

There is much talk these days that startup valuations have decreased and may continue to do so and that the amount of time it takes to fund raise may take longer. The earlier the round, the less capital you need and the more reasonable your valuation the less time that is needed generally to raise capital.

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

ReadWriteStart

JULY 15, 2020

New talk of capital efficiency is gratifying, but there was another lesson from pre-COVID-19 valuation struggles. Venture capitalists and early-stage investors have told all of us, founders are critical to a startup’s valuation. The action includes training in the full range of customer service skills that bring in revenue.

Valuation 91

Valuation South Carolina San Jose Balance Sheet 91

Startup Professionals Musings

JUNE 26, 2016

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $400B. Long-term stability requires revenue growth and profit. Both have worked. Traditionally, it was simple.

Revenue 145

Revenue Valuation Startup Viral 145

Startup Professionals Musings

AUGUST 31, 2012

I hear a lot of entrepreneurs contemplating their great “idea” for several years with little discernable progress, and looking for money to start. Don’t expect them to believe your $100M revenue projection, if you are still waiting for the first revenue dollar. Get a real customer and real revenue.

Intellectual Property 260

Intellectual Property Sweat Equity CTO Hire Fractional CTO 260

Startup Professionals Musings

JANUARY 28, 2011

The cost of giving up more equity early is often more than offset by the increased flexibility to recover from mistakes. Your startup will require more money than you expect, and the cost of going back to the well is very high. Pay people with equity or future revenue. Include buffer when you raise money. Great strategy.

Burn Rate 231

Burn Rate Startup Salary Equity 231

Startup Professionals Musings

MAY 4, 2016

Of course, that’s both the good news and the bad news for aspiring entrepreneurs, since it means more competition, and the business landscape is changing faster than ever. But for founders who do their homework, the cost of entry is lower and the opportunity is higher than ever. The cost of social media done well is low.

Intellectual Property 120

Intellectual Property Startup Angel Groups Social Media 120