Remove Demand Remove Dilution Remove IPO Remove Revenue
article thumbnail

On Going Public: SPACs, Direct Listings, Public Offerings, and Access to Private Markets

Ben's Blog

IPO market. There are a number of trends concerning IPOs and capital formation to note: First, the raw number of IPOs has declined significantly: From 1980-2000, the US averaged roughly 300 IPOs per year; from 2001-2016, the average fell to 108 per year. In the first quarter of 2021 alone, SPACs raised $87.9

SEC 36
article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Flexible VC 101: Equity Meets Revenue Share. Flexible VC: Revenue -based. Gross Revenues (generally 2-8%).

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Your Product Needs to be 10x Better than the Competition to Win. Here’s Why:

Both Sides of the Table

I thing I’ve learned over the years is that technology purists hate advertising even when it is that revenue stream that truthfully drives much of our industry. In 1995 Netscape IPO’d and browsers started to become more prevalent. Too many entrepreneurs focus on dilution. That gave Google a huge cost advantage.

Product 350
article thumbnail

Four Major Startup Stages That You Should Know About

YoungUpstarts

If there is a gap in the market, there will be demand. How much revenue are you generating on an annual basis? If you are getting funded for the first time, which means that you have not diluted the shares of your company, you will be receiving Series A funding. These partnerships need to bring in more revenue.

Startup 113
article thumbnail

2010 VC Funding Outlook for Startups – Prepare for Winter (Part 3/3)

Both Sides of the Table

It is also a result of pent-up demand. Consumer spending is 70% of the economy and will continue to be stretched – We can look all we want at tech innovation, VC funding cycles and hot M&A deals, but ultimately growth and therefore investment must be underpinned by revenue. million – take it.

article thumbnail

Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

Early-stage investors in technology startups are only looking for growth-oriented companies that can achieve an “exit&# someday – either via selling your company to a larger company or via an IPO. million post-money valuation with no revenue. The former is much more likely than the latter. I raised my A round at a $31.5

article thumbnail

Should Startups Care About Profitability?

Both Sides of the Table

70–80% of the costs of most startups are employee costs so what you’re really talking about when a company is unprofitable is that they are growing their staff ahead of their revenue. Revenue When I look at an income statement I start by focusing on the revenue line. You need to understand the “quality” of the revenue.