Startup Professionals Musings

JULY 27, 2018

Unfortunately, customers look for value in solving their problem, and new technologies alone scare them, so these solutions don’t get bought by customers, or funded. Attracting business investors is as tough as attracting customers, but it’s a different challenge. Customized marketing strategy and realistic sales plans. “If

Product 145

Product Intellectual Property Liquidity Event Exit Strategy 145

Steve Blank

JUNE 23, 2016

Capital is returned to these investors through liquidity events (originally public offerings, but today mostly acquisitions). They’re better than large companies at identifying customer needs/problems and finding product/market fit by pivoting rapidly. Filed under: Corporate Innovation , Customer Development.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

Berkonomics

FEBRUARY 3, 2022

First, the implied promise: Taking money from professional investors such as angels or VCs usually requires that you agree to seek an exit for those investors in your plan, often targeting five to seven years as the ideal period for growth before a liquidity event. What if you later decide to just keep control?

Liquidity Event 62

Liquidity Event Preferred Stock Dividend Equity 62

Startup Professionals Musings

DECEMBER 14, 2014

If you take investor money, expect a push for hockey-stick growth and a liquidity event, like going public (IPO) or sale (M&A), to get the payback. You can’t have it all, just like your startup can’t be all things to all customers. Transition to a specialist role, plan to exit, be prepared to be pushed out, or plan to fail.

Hockey Stick 268

Hockey Stick Cofounder Entrepreneur Liquidity Event 268

Women Entrepreneurs Can

NOVEMBER 19, 2022

Investors receive a healthy return on investment when the company reaches a liquidity event. You should also present your company’s progress data and demonstrate customer interest. The startup must also demonstrate the product-market fit and early customer adoption. Pre-Seed Investments.

Venture Capital 52

Venture Capital Early Stage Liquidity Event SEC 52

Pascal's View

DECEMBER 17, 2012

Recent reports reveal that mergers and acquisitions still account for over 90% of liquidity events for venture-backed companies in 2012, a lamentable condition that has plagued the US innovation ecosystem for close to a decade.

Acquisition 38

Acquisition Merger Covenant Liquidity Event 38

Berkonomics

OCTOBER 28, 2021

This insight is like a Hans Christian Anderson parable, but aimed at you and your business… There are big fish and small fish, potential customers, all swimming in the sea that is your potential marketplace. Is this a problem or an opportunity? You, the lonely fisherman, must weave a net to catch your fish.

Liquidity Event 62

Liquidity Event .Net Differentiation Entrepreneur 62

Startup Professionals Musings

AUGUST 7, 2015

When pitching to investors, entrepreneurs always seem to start with a customer pitch, then add a slide or two about the business. In every case, the relevant pitch needs to start by highlighting a real customer problem, then outlining a new solution, with all the features and disruptive technology.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

Startup Professionals Musings

AUGUST 17, 2014

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. The only path to any return for equity investments is a liquidity event, like a merger or acquisition (M&A), or IPO.

Liquidity Event 249

Liquidity Event Equity Venture Capital Merger 249

Steve Blank

JULY 15, 2010

Number of Venture Backed Liquidity Events 1991-2000. Number of Venture Backed Liquidity Events 2000-2010. In either case Customer Development provides entrepreneurs with a methodology for being capital efficient. During the decade between 1991 and 2000, nearly 2000 venture backed companies went public.

Venture Capital 297

Venture Capital IPO Liquidity Event Entrepreneur 297

View from Seed

MAY 19, 2015

A founding team should not only have relevant experience but should have an immediate and authentic understanding of the end-users’ or customers’ needs. While there are notable exceptions, most successful entrepreneurial endeavors are sprung from a genuine idea born from true experience or direct, tangible observation. Taciturnity.

Seed Stage 120

Seed Stage Liquidity Event Cofounder Startup 120

Berkonomics

JANUARY 5, 2023

Accounting and HR operations are combined as quickly as possible, as are customer service call centers, retaining specific product skills on the front line from the acquired company. The best performers from the acquired become candidates to outrank or replace their counterparts, showing that a business combination is not all one–sided.

Acquisition 62

Acquisition .Net Retention Sales 62

Steve Blank

JULY 19, 2010

In their mind, since they thought of the idea of the company, spec’d the product, found the first customers and worked their tails off, they are entitled to vest all their stock over time and run their company. Where’s My Liquidity Event.

Vesting 251

Vesting Liquidity Event Venture Capital Founder Vesting 251

Startup Professionals Musings

AUGUST 19, 2017

If you take investor money, expect a push for hockey-stick growth and a liquidity event, like going public (IPO) or sale (M&A), to get the payback. You can’t have it all, just like your startup can’t be all things to all customers. Transition to a specialist role, plan to exit, be prepared to be pushed out, or plan to fail.

Hockey Stick 144

Hockey Stick Cofounder Entrepreneur Liquidity Event 144

Startup Professionals Musings

FEBRUARY 13, 2016

Investors want to hear about customers with money who have a painful problem that you can solve now. Investors are looking for a concise description of your product or service without technical jargon or fuzzy marketing terms with value quantified in customer terms. What is your specific solution and value proposition?

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). For those of you who fit that description, nice work.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Startup Professionals Musings

DECEMBER 11, 2015

Smart investors, competitors and smart customers, will listen and watch carefully as you position your new offering. Use real case studies and customer feedback. Investors need a liquidity event to get their money out. Equally important are relationships with key suppliers, distributors and potential customers.

Intellectual Property 120

Intellectual Property Liquidity Event Exit Strategy Angel Investor 120

Berkonomics

DECEMBER 28, 2017

As you follow these insights from ignition to liquidity event, you’ll detect a continuing theme, emphasizing the need for deep and wide relationships that the CEO and senior staff can call upon for advice and guidance. Forming business relationships at the highest level.

Balance Sheet 97

Balance Sheet Liquidity Event Government Restful 97

Startup Professionals Musings

AUGUST 13, 2012

Terms like “every customer needs this” and “next generation platform” are far too soft, and should be avoided. This is not the place for a detailed product specification, but an explanation of how and why it works, including a customer-centric quantification of the benefits. Solution and benefits. Focus is the keyword here.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Startup Professionals Musings

JULY 19, 2013

If you take investor money, expect a push for hockey-stick growth and a liquidity event, like going public (IPO) or sale (M&A), to get the payback. You can’t have it all, just like your startup can’t be all things to all customers. Transition to a specialist role, plan to exit, be prepared to be pushed out, or plan to fail.

Founder 245

Founder Hockey Stick Cofounder Liquidity Event 245

Startup Professionals Musings

MAY 28, 2013

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. The only path to any return for equity investments is a liquidity event, like a merger or acquisition (M&A), or IPO.

Liquidity Event 243

Liquidity Event Startup Equity Venture Capital 243

Startup Professionals Musings

MAY 13, 2011

Terms like “every customer needs this” and “next generation platform” are far too soft, and should be avoided. This is not the place for a detailed product specification, but an explanation of how and why it works, including a customer-centric quantification of the benefits. Solution and benefits. Focus is the keyword here.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

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. Founders take a lot less risk, raise multimillion-dollar seed rounds and have the ability to cash out way before a liquidity event.

Stock Options 333

Stock Options Stock Vesting Common Stock 333

Steve Blank

MARCH 18, 2011

They taught you about customers, markets and profits. The reward for doing so was a liquidity event via an Initial Public Offering. Startups needed millions of dollars of funding just to get their first product out the door to customers. and aim for hundreds of millions of customers. The New Exits.

Internet 334

Internet IPO Silicon Valley Agile 334

Gust

AUGUST 10, 2014

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. The only path to any return for equity investments is a liquidity event, like a merger or acquisition (M&A), or IPO.

Liquidity Event 176

Liquidity Event Equity Venture Capital Merger 176

Berkonomics

AUGUST 27, 2020

Data rooms contain access to or copies of all significant contracts with suppliers, customers, consultants, and others. A “deal room” is a cloud-based or physical space dedicated to storing the massive amounts of data to be used in due diligence by a buyer, lender or by an investor. Your data room and its contents.

Software Review 62

Software Review Due Diligence Intellectual Property IPO 62

Gust

AUGUST 5, 2012

Terms like “every customer needs this” and “next generation platform” are far too soft, and should be avoided. This is not the place for a detailed product specification, but an explanation of how and why it works, including a customer-centric quantification of the benefits. Solution and benefits. Focus is the keyword here.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Berkonomics

OCTOBER 29, 2015

Taking money from professional investors such as angels or VCs usually requires that you agree to seek an exit for those investors in your plan, often targeting five to seven years as the ideal period for growth before a liquidity event. For some, that comfort is worth forgoing building high equity value.

Liquidity Event 48

Liquidity Event Equity Venture Capital Stock 48

Startup Professionals Musings

APRIL 22, 2010

Terms like “every customer needs this” and “next generation platform” are far too soft, and should be avoided. This is not the place for a detailed product specification, but an explanation of how and why it works, including a customer-centric quantification of the benefits. Solution and benefits. Focus is the keyword here.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

Berkonomics

MAY 7, 2015

This is like a Hans Christian Anderson parable, but aimed at you and your business… There are big fish and small fish, potential customers, all swimming in the sea that is your potential marketplace. You, the lonely fisherman, have to weave a net to catch your fish.

Liquidity Event 48

Liquidity Event .Net Differentiation Business Plan 48

Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). For you who fit that description, nice work. It’s an option, even though an expensive one.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

A Crowded Space

AUGUST 26, 2013

Their customers are thrilled with the service and highly engaged. Everyone wants to focus their energy on product and customers and build the best business. Equity crowd-funding as a broad asset class is similar to VC in that it seeks to take a stake in early stage startups and hope for big liquidity events down the road.

Later Stage 87

Later Stage Liquidity Event Equity Vertical 87

The Next Web

SEPTEMBER 29, 2013

You’re learning who your customers are and what they expect. Investors are always thinking about growth mode because that’s the path to where they want to go – liquidity event. Some metrics that I like to look for are: Lifetime value of a customer, average revenue per buyer, cost of a paying customer, registration rates, etc.

Metrics 136

Metrics Cofounder Cram Down Liquidity Event 136

Growthink Blog

MAY 26, 2011

Last week, TruckCenter.com was purchased by Liquidity Services (NASDAQ: LQDT), a company that runs online auctions for surplus goods. I found this pretty amusing since when a company is purchased, we often say it reached a "liquidity event." This -- TruckCenter.com's customer base -- is a key reason for the transaction.

Acquisition 81

Acquisition Liquidity Event Valuation Revenue 81

Growthink Blog

MAY 13, 2012

And they'll want to invest if they believe your company has great potential to achieve a liquidity event, and one that enables them to earn a significant return on their investment. If you offer a professional services business, you can probably only handle so many customers yourself.

Angel Investor 93

Angel Investor Exit Strategy Liquidity Event Angel Groups 93

Berkonomics

JULY 26, 2010

As you follow these insights from ignition to liquidity event, you’ll detect a continuing theme, emphasizing the need for deep and wide relationships that the CEO and senior staff can call upon for advice and guidance. 15% typically is spent on direct management issues such as supervision of next level subordinates.

Balance Sheet 48

Balance Sheet Liquidity Event Government Restful 48

Berkonomics

DECEMBER 30, 2021

It could then charge for setting up, integrating, and training the company’s software, all because its customers would not know how to do any of these important tasks. This follows from my previous insight: “Where there’s mystery, there’s margin.”.

Bankruptcy 62

Bankruptcy Early Stage Matching Software 62