The Startup Magazine

MARCH 8, 2024

Equipment Financing: Leveraging Assets for Growth Equipment financing allows businesses to purchase or lease equipment needed for expansion without tying up capital or resorting to large upfront payments. They offer flexibility for short-term expenses or help in unexpected opportunities.

Finance 121

Finance Technical Review Metrics .Net 121

Startup Professionals Musings

APRIL 22, 2023

Many entrepreneurs are convinced that banks are not worth the effort for startups, especially early-stage ones that still don’t have a revenue stream, or collateral to back up their financing needs. This question gets to the heart of what bank financing is and isn't supposed to accomplish. Bankers do not contribute equity.

Equity 303

Equity Silicon Valley Finance Early Stage 303

VC Cafe

FEBRUARY 27, 2024

especially if the startup already has a product and revenue? While the answers are somewhat semantic, the pre-seed funding round is making a comeback in 2024 startup financing. In smaller funds, ticket sizes tend to be lower, so pre-seed is the only stage where micro funds are able to secure their minimum equity targets.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

SoCal CTO

SEPTEMBER 27, 2011

I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. Founders are likely not paid for a long time and have a sizeable equity percentage for early risk and having the concept. Same Value for Sweat Equity as Investment Dollars? and we have 11.1%

Early Stage 391

Early Stage Equity CTO Hire Sweat Equity 391

Startup Professionals Musings

JUNE 30, 2019

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Use crowd funding.

Intellectual Property 219

Intellectual Property Technical Review Startup Incubator 219

David Teten

AUGUST 19, 2019

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. Rational burn profile, up to 50% of revenue at close, scaling down.

Revenue 60

Revenue Technical Review Software Review Equity 60

VC Cafe

MARCH 1, 2024

Personal Finance Cross-account visibility and management – Today’s AI products can analyze and move money between accounts – as agents improve, they will make trades across accounts. Technological Convergence – The global equity market value associated with disruptive innovation could increase to 60% by 2030.

Artificial Inteligence 176

Artificial Inteligence Technical Review Software Review Generative AI 176

YoungUpstarts

OCTOBER 18, 2017

If the entire business isn’t caught up on digital transformation, it makes it difficult (impossible, even) for finance leaders to engage in strategic leadership and optimize revenue opportunities by driving ROI from tech investments. The responsibilities of finance have changed over time and leaders must adjust accordingly.

Technical Review 124

Technical Review Finance Software Review Due Diligence 124

The Startup Magazine

JUNE 4, 2023

In a perfect world, small businesses would have an endless stream of revenue coming in and there wouldn’t be need to worry about financing. Sometimes businesses have to get creative when it comes to their small business financing, especially when revenue is low. However, we all know that’s not the case.

Finance 108

Finance Revenue Small Business Bootstrapping 108

David Teten

AUGUST 19, 2019

Does the traditional VC financing model make sense for all companies? A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. So what is Revenue Based Investing? Absolutely not.

Revenue 60

Revenue Term Sheet Founder Technical Review 60

Startup Professionals Musings

JULY 14, 2014

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Use crowd funding.

Entrepreneur 283

Entrepreneur Intellectual Property Technical Review Incubator 283

The Startup Magazine

FEBRUARY 21, 2024

TEC is one of Canada’s largest and most experienced private credit firms, specializing in providing asset-based capital solutions to companies that are underserved or overlooked by traditional sources of financing, primarily banks. Are there new revenue streams you can tap into? The firm has made more than $4.5

Technical Review 132

Technical Review Due Diligence Bankruptcy Intellectual Property 132

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Flexible VC 102: Variations. The State of Flexible VC.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Startup Professionals Musings

FEBRUARY 19, 2013

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Use crowd funding.

Intellectual Property 309

Intellectual Property Technical Review Venture Capital Startup 309

Startup Professionals Musings

JANUARY 12, 2018

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Join a startup incubator.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

David Teten

MARCH 14, 2018

. – Build out low-cost force multipliers such as scouts , Advisors, Entrepreneurs in Residence, Venture Partners, and so on. Sophisticated VC and private equity funds have a wide array of options for leveraging outside operating executives. All of the strategies above have very modest fixed cost.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

Feld Thoughts

OCTOBER 28, 2011

While Jane was building SayAhh’s revenue projections , Dick focused his attention on building the expense side of the projections. It is simple in that it forecasts how much cash will be coming in the door (revenues + equity financing + debt financing) and then subtracts from that amount how much cash is expected to be going out the door.

Revenue 127

Revenue Balance Sheet Forecast Software Review 127

View from Seed

SEPTEMBER 18, 2019

With extremely limited resources and time, one wrong step could cost you 6-9 months of runway. The point here is not to do a granular forecast of revenue or number of users/customers, but to put a stake in the ground so investors understand what you believe is achievable with X amount of resources given Y timeframe.

Part-Time VPE 195

Part-Time VPE Seed Stage CTO Hire Forecast 195

Startup Professionals Musings

JULY 8, 2015

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Join a startup incubator.

Entrepreneur 120

Entrepreneur Intellectual Property Technical Review Incubator 120

ReadWriteStart

JUNE 1, 2020

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. It is going to cost a lot of money just to get the initial batch of products to test the market and would definitely require external funding. Sources of Funding.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

Revenue multiples, profit multiples, premium over the previous financing — these are metrics used by sellers to help determine a minimum acceptable price. In terms of acquisition, they ask more specifically: “How can we trade balance sheet assets (cash, equity) in exchange for executing our strategy better?”.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

The Startup Magazine

MAY 11, 2020

Whether you are new in business or an established entrepreneur, you need to be diligent with your finances. There are several reasons a bank will reject financing applications, but the most common is a low credit score. If your business credit score is low, applying for a bad credit loan can help you secure the financing you need.

Software Review 105

Software Review Small Business Management Bankruptcy 105

The Startup Magazine

SEPTEMBER 21, 2021

The primary goal of any corporate firm is to benefit from the business’s finances while operating at its maximum capacity. Entrepreneurs often feel like spending too much time sorting out the finances can lead to a halt in developing innovative ideas for the growth of the business.

Finance 156

Finance Balance Sheet Operations Framework 156

Steve Blank

APRIL 1, 2020

Any place with a fixed cost that relies on foot traffic will come under pressure. Your revenue plans are no longer valid. What’s your monthly cash burn at your new low revenue level? Cut costs to stay alive for 24 months. Payroll costs/other variable costs. The ripple effects won’t be obvious at first.

South Korea 333

South Korea Salary Business Model China 333

Hearpreneur

JANUARY 1, 2023

During such times a firm should take measures that have historically been thought to safeguard it, such as cutting costs, lowering goals, and keeping an eye on cash flow to weather the impending storm. Make a budget and keep a close watch on the finances , ensuring that there are no unnecessary expenses. 2- Create an emergency fund.

Entrepreneur 92

Entrepreneur Software Review Technical Review Revenue 92

Tim Keane

MARCH 9, 2011

How should I finance my new venture? It’s a deceptively simple question:  what is the optimal way to finance a new startup? This seems like an easy topic – debt where there is appropriate cash flow, equity when there isn’t.  2]   Aligning interests in structure: cost and risk. Align Everyone’s Interests.

Finance 83

Finance Bootstrapping Startup Equity 83

ReadWriteStart

JANUARY 28, 2022

With the rise of startups and growing businesses , it has become more critical for investors to have a thorough understanding of equity to be aware of all of the advantages they are receiving from the companies they have invested in. What is Company Equity? Types of equity. Common stock. Preferred shares.

Valuation 108

Valuation Equity Warrant Common Stock 108

Up and Running

DECEMBER 16, 2021

In order to avoid formal valuation report costs, shareholders utilize benchmarks of the industry and rules of thumb to estimate the ballpark values of their interests. It enables shareholders to estimate the rough value of their business quickly and cost-effectively. Rules of thumb and business valuation.

Valuation 86

Valuation .Net Metrics Balance Sheet 86

YoungUpstarts

JULY 6, 2017

Once you learn about all of your financing options, you could choose the one best suited to help your business grow. ANGEL INVESTOR : These are individuals who offer capital to startups in exchange for equity, partial ownership or convertible debt. By self-financing, you can maintain control of your startup.

Syndicate 127

Syndicate Syndication Software Review Angel Investor 127

Up and Running

DECEMBER 9, 2014

Bates: Good morning and welcome to our CEO panel, “How to Fine-Tune Your Small Business Finances From Funding to Growth” which I think is the direction that we would all like to be going. I’m here with some really phenomenal CEOs who are going to talk to us today about small business finances from funding to growth.

Small Business 95

Small Business Finance Forecast Metrics 95

The Startup Magazine

SEPTEMBER 10, 2020

The company focuses on managing well costs and reducing its costs per barrel. Main Street Capital is a publicly traded private equity firm that offers equity and debt financing to lower middle-market companies with a revenue between $10 million and $150 million. Keep in mind that as a Canadian company, U.S.

Dividend 89

Dividend Stock Finance Private Equity 89

Startup Professionals Musings

AUGUST 18, 2023

Some argue the only way to start is to drop everything and jump in with both feet, while others recommend an overlapped approach to the lifestyle, including not quitting your day job until you have revenue and a proven business model. McGinnis, a well-known venture capitalist and private equity investor.

Private Equity 255

Private Equity Salary Cofounder Equity 255

YoungUpstarts

APRIL 22, 2014

Shark Question #2: What were your total revenues for the last quarter and last 12 months, including profit margins? To get these “numbers,” do a review of total revenue and expenses, review by product or service line, and a profit-margin analysis – all of which can all be obtained from your company’s income statement.

CPA 160

CPA Technical Review Later Stage Equity 160

www.inc.com

SEPTEMBER 24, 2011

Finance | Tuesdays. Financing a Small Business. Financing A Small Business. Personal Finance. Will Work for Equity. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. Theres a huge opportunity cost in not taking equity," he says. Start-up | Mondays. Technology | Thursdays.

Arizona 40

Arizona Equity Iowa Venture Capital 40

YoungUpstarts

MAY 14, 2018

Think of financing an acquisition as an exercise with two parts that work in concert: 1) structuring a desired deal with a suitable target and 2) obtaining the funding. Growth scenarios or turnarounds and fixes often require an infusion of cash beyond the cost of the acquisition. Structuring the Desired Deal. Obtaining the Funding.

Acquisition 124

Acquisition Finance Raleigh Mezzanine 124

YoungUpstarts

SEPTEMBER 17, 2020

Not only is the information listed on them important for tax purposes, but it will also be needed if you’re looking to finance your business through small business lending. The income statement is also known as a profits and losses sheet, and it shows the revenue being generated, expenses and costs.

Balance Sheet 200

Balance Sheet .Net Equity Revenue 200

David Teten

NOVEMBER 23, 2020

I highlight endogenous social impact because many of my portfolio companies might give money to charity or provide low-cost pricing to nonprofits, but that’s not what I think of as an impact company; they’re tacking on social impact on top of their core business, whatever that is. . Goldman Sachs bought Clarity for ~$100m. . Why is that?

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60