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Put A Coin In It! Invest In Early Stage Startups To See Maximum ROI

YoungUpstarts

The technology that powers up any developing start-up or company is the foundation of its projected success. As the company scales, hopefully at an accelerated pace, investors can place their faith in developments that provide results and in return, they will feel more secure with the contributions and long term ROI projections.

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How VCs Think About Adding New Partners

Both Sides of the Table

Helped merge company with Seedling – on track to do $20 million combined revenue in 2015 – will now become Chairman). In Kara’s case I got to see her work on deal structuring first hand having worked closely with her on her board at P.S. XO. These are all of the intangibles we were looking for.

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Financing Acquisitions: Keys to Structuring the Deal And Obtaining The Funding

YoungUpstarts

To safeguard your team from getting emotionally over-committed to a specific business, carefully balance the price being offered for the target, the strategic problem or opportunity it addresses, the likely near-term cash flow of the target, the integration strategy, the inherent risks and the deal structure.

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Should You Co-Found Your Company With a Software Development Shop (2 of 2)?

David Teten

Should you co-found your company with a software development shop? I’ve talked with a number of software development shops who are eager to get into the business of cofounding companies, i.e., getting product revenue and equity instead of just consulting revenue. mentor VCs, e.g., most VCs. What are the timelines?

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The Pre-Seed FAQ

K9 Ventures

Unless every aspect of product development is covered by founders who are only receiving equity, there are other parts of building a product that will require hiring highly qualified people. Seed is the new Series A. (~$2M used get for building product, establishing product-market fit and early revenue). Series B is the new Series C.

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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. Farming is also often overlooked, but can help grow customer accounts and revenues from 30% upwards (if successful). Great list! Philippe Botteri.

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Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

I think it’s difficult, if not impossible, to value a pre-revenue company with any reasonable accuracy. The company did have some revenue and paying users, but not enough to make any judgement on the company’s future prospects. The company with all the revenue is Company C. Top 3 Ways to Fail at Customer Development.