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

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . The 11 Steps of Investing in Private Companies. In the private equity universe, most Partners have primary training as deal-makers, not as managers. 1) Manage the firm .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Startup Professionals Musings

MAY 30, 2022

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Switch your attention from product development to sales.

Mezzanine 368

Mezzanine Private Equity Bandwidth Metrics 368

Startup Professionals Musings

SEPTEMBER 12, 2014

Investors know that the fun of a startup turns into managing production processes, sales processes, and personnel in a few years. The resulting entity will gain complementary skills, economies of scale, new customer sets, and hopefully a larger growth opportunity. Find a private equity firm or friendly individual.

Exit Strategy 289

Exit Strategy Entrepreneur IPO Startup 289

The Startup Magazine

FEBRUARY 21, 2024

Are there new revenue streams you can tap into? Strategic capital was invested in rationalizing and updating the product line and tapping into new sales channels that aligned with emerging industry trends. Lending decisions in private credit are underpinned by thorough due diligence processes.

Technical Review 158

Technical Review Due Diligence Bankruptcy Intellectual Property 158

YoungUpstarts

OCTOBER 18, 2017

Businesses are well-versed in leveraging technology in customer-facing activities. 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.

Technical Review 124

Technical Review Finance Software Review Due Diligence 124

The Startup Magazine

AUGUST 11, 2023

pexels A war chest is virtually always a competitive edge in all aspects that count, including employing key staff, public relations, marketing, and sales. This suggests the firm should have a list of paying customers, consistent sales cycles, a clear value proposition, and a developing revenue pipeline in the ideal situation.

Seed Stage 148

Seed Stage Technical Review Early Stage Due Diligence 148

The Startup Magazine

NOVEMBER 28, 2022

With his passion for technology coupled with his desire to help others, Mitul graduated with a First Class in BSc in Computer Information Systems and embarked on his journey to help organisations better serve their customers. Mitul’s passion to excel and customer focus have been built into the core values and mission of Citius Partners.

Founder 158

Founder B2B Private Equity India 158

Steve Blank

MARCH 16, 2016

Founders can now access the largest pool of risk capital that ever existed –in the form of Private Equity (Angel Investors, family offices , Venture Capitalists (VC’s) and Hedge Funds.). At its core Venture Capital is nothing more than a small portion of the Private Equity financial asset class. FDA approvals?

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Venture Capital 120

Steve Blank

MARCH 17, 2020

If you’re running a startup or small business, your first priority (after your family) is keeping your employees and customers safe. Next, take a look at your actual revenue each month – not forecast, but real revenue coming in each month. Subtract your monthly gross burn rate from your monthly revenue to get your net burn rate.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

Startup Professionals Musings

APRIL 27, 2016

Investors know that the fun of a startup turns into managing production processes, sales processes, and personnel in a few years. The resulting entity will gain complementary skills, economies of scale, new customer sets, and hopefully a larger growth opportunity. Find a private equity firm or friendly individual.

Equity 120

Equity Exit Strategy Private Equity Startup 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. Any custom manufactured IoT device would require software development as well as hardware customization. Both of which are expensive and time-consuming.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Steve Blank

MAY 17, 2022

And they figure out how they could digitally enable their business – supply chain, customer interactions, etc. They explore and analyze data using machine learning platforms to create models about customers, processes, risks, or whatever they’re trying to predict. Making business smarter : Customer Support. What’s Different?

Artificial Inteligence 419

Artificial Inteligence Software Review Algorithm Technical Review 419

Startup Professionals Musings

SEPTEMBER 1, 2019

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Switch your attention from product development to sales.

Mezzanine 244

Mezzanine Private Equity Startup Bandwidth 244

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). Venture, private equity and more: Here we lump a large number of investor classes into one.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Lightspeed Venture Partners

AUGUST 17, 2014

CEO and co-founder Vincent Yang, a mathematician by training, had built a system while he was at Summit Partners, a private equity firm, to comb the Web looking for investment opportunities. Provide analytic insights on what characteristics represent the best customer prospects, enabling the fine tuning of marketing activities.

B2B 96

B2B Revenue Private Equity Artificial Inteligence 96

Hearpreneur

JANUARY 7, 2022

It's difficult to be rejected for your efforts and time, especially when you merely wanted to do what was best for the customer. And, maybe most importantly, we get to do what is best for our customers. So, I started a sales and marketing company and haven't looked back since. I have no superiors who can tell me no.

Entrepreneur 117

Entrepreneur Technical Review Software Review Non-Compete 117

Both Sides of the Table

SEPTEMBER 29, 2009

Three reasons: There is a relative valuation between the price a VC pays and their expectations of what it will exit for in an IPO or trade sale. Also, it’s harder to pay a $30 million pre-money value on an unproved company when you see public companies with $100 million in sales trading for less than $20 million.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

Berkonomics

FEBRUARY 9, 2023

The most striking example was the one hundred million–dollar purchase of one of my companies by a New York private equity investor using only five million of its cash. But I learned it again and again in my various business lives. Here’s a striking example. Offering too little in an acquisition to satisfy the seller?

Naming 62

Naming Warrant Private Equity Valuation 62

VC Cafe

MAY 18, 2022

And in the private markets (i.e. venture capital and private equity) the VC index (by Refinitiv) shows a nearly 40% decline. What is your plan if half your current customers go bankrupt? David Sacks offers a few benchmarks on growth rates (revenue), gross margins, CAC payback and burn. Gil Dibner, Angular Ventures.

Term Sheet 190

Term Sheet Startup Valuation Ukraine 190

Startup Professionals Musings

SEPTEMBER 13, 2017

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Switch your attention from product development to sales.

Mezzanine 141

Mezzanine Private Equity Startup Bandwidth 141

Startup Professionals Musings

NOVEMBER 3, 2013

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Switch your attention from product development to sales.

Mezzanine 240

Mezzanine Private Equity Bandwidth Metrics 240

Startup Lessons Learned

MAY 25, 2020

Carl was also worldwide head of stores at Home Depot when Hurricane Katrina hit, running sales out of the backs of trucks and accepting IOUs for payment. 7:01) The importance of both customer and employee experience, brand building, and pivoting to anticipate the new normal that's coming. (9:33) Then they've gotten to work.

Technical Review 148

Technical Review Balance Sheet Texas Austin 148

David Teten

SEPTEMBER 5, 2014

I’ve written on the expert network industry a fair amount in the past: see How to Earn More Consulting Revenue from Expert Networks and How Executives Can Work with Private Equity and Venture Capital Portfolio Companies. There are rarely more than ten people at these, so it’s a great environment to learn and network.

New York 114

New York Technical Review Networking Advisory Board 114

www.inc.com

SEPTEMBER 24, 2011

Sales & Marketing | Wednesdays. SALES & MARKETING. Will Work for Equity. Why Arizona Bay started taking stock from its customers instead of cash. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. Theres a huge opportunity cost in not taking equity," he says. Finance | Tuesdays.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Up and Running

SEPTEMBER 10, 2020

Over the past 20+ years, as an angel investor, former venture capitalist and private equity investor, and serial entrepreneur, I have seen and written, a wide variety of pitch decks and business plans. Knowing how you determined revenue and costs over a 5-year projection period let me know if you really understand your business or not.

Business Plan 124

Business Plan Elevator Pitch Equity Private Equity 124

This is going to be BIG.

MARCH 16, 2020

The factory was eating cash faster than our customers were eating our ice cream—and they were eating a lot. The business will be much simpler, focused on our strength—the growing revenues and customer loyalty at our shops, which are profitable when you subtract the costly overhead of a big factory.

Bankruptcy 95

Bankruptcy Private Equity Seed Stage Dilution 95

Startup Professionals Musings

FEBRUARY 4, 2015

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Switch your attention from product development to sales.

Mezzanine 120

Mezzanine Private Equity Startup Bandwidth 120

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 23, 2012

After I sold Smart Bear, that division has increased revenue and profit every year, for five years, even through the 2008/2009 economic disaster. After all, before the house of cards inevitably tumbles, private equity investors get a tidy return. And the same thing happened after we sold IT WatchDogs in 2005.

IPO 240

IPO Flash Bootstrapping Private Equity 240

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). Venture, private equity and more: Here we lump a large number investor classes into one.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

David Teten

AUGUST 7, 2014

Mark has been a startup CEO, management consultant at Accenture, leader of revenue strategies for Starwood Hotels and a $1B aviation company, and spearheaded growth at a portfolio company of the private equity arm of Macquarie. This way the price point doesn’t seem high, but is paid regularly so the revenue adds up over time.

Private Equity 114

Private Equity Early Stage Email Equity 114

Hearpreneur

MARCH 14, 2018

It might be the products or the customers they deal with, or it could even be the fact that they are the ones in charge of it all. While I wasn’t selected by one of the five TV sharks, I was able to create a partnership with a private equity group that saw my segment. The reasons are as varied as the businesses themselves.

Entrepreneur 95

Entrepreneur PR Technical Review Non-Compete 95

Startup Lessons Learned

JULY 15, 2020

That's why the Corona Initiative is a Public Benefit Corporation--a for-profit company dedicated to the public good that aims to fund its research with its revenues. You really want to see how your company treats its employees, treats its customers, treats the environment, taking a longer-term view." Can you just explain that a bit?

Technical Review 68

Technical Review Software Review Finance Technology 68

A Smart Bear: Startups and Marketing for Geeks

MARCH 11, 2014

Listen to this episode if you want to hear about a founder who has a product and users and paying customers … and is trying to figure out how to take his company to the next level and grow faster. Jason: So how many of those 20,000 people are paying customers? Edwin: Okay, I have different types of customers.

Technical Cofounder 220

Technical Cofounder Cofounder Software Review Management 220

YoungUpstarts

SEPTEMBER 12, 2011

The findings come from the initial results of a survey of 7,502 small privately-held businesses with revenues of less than US$5 million dollars by the Pepperdine Private Capital Markets Project with the cooperation of Dun & Bradstreet Credibility Corp. were successful. “If Positions In Demand. Also, 83.0%

Small Business 145

Small Business Hiring Private Equity Angel Financing 145

Growthink Blog

AUGUST 18, 2012

One key reason for this is that most sources of money, like banks and institutional equity investors (defined as institutions like venture capital firms, private equity firms and corporations that invest), are essentially professional risk managers. But unfortunately, that's not how raising capital works.

Private Equity 116

Private Equity Equity Revenue Security 116

Berkonomics

JANUARY 26, 2017

The most striking example was the one hundred–million–dollar purchase of one of my companies by a New York private equity investor using only five million of its cash. But I learned it again and again in my various business lives. Offering too little in an acquisition to satisfy the seller?

Naming 48

Naming Warrant Private Equity Valuation 48