YoungUpstarts

OCTOBER 16, 2016

But entrepreneurs face other concerns that compete with this growth focus, including hiring, maintaining current revenue sources and distinguishing themselves from the competition. As your business thrives, the providers who support you with banking, marketing and other services should change as your demands change.

Cofounder 100

Cofounder Balance Sheet Small Business Administration Technical Review 100

Both Sides of the Table

OCTOBER 1, 2009

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.

Technical Review 269

Technical Review Stock Hawaii Early Stage 269

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. In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Both Sides of the Table

JUNE 17, 2017

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.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

YoungUpstarts

MAY 6, 2019

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

Startup Technical Cofounder Merger Early Stage 113

YoungUpstarts

OCTOBER 14, 2019

An article titled “ The unbelievably lucrative business of escape rooms ” with a subtitle “Where locking up your customers can lead to 800% revenue growth in one year” caught entrepreneurial-minded people’s eyes in 2015. And when there’s so much demand for some mind-twisting, enjoyable experience, success in such business is inevitable.

Dilution 113

Dilution Demand Revenue Cost 113

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78

Equity Revenue Cofounder Colorado 78

This is going to be BIG.

OCTOBER 10, 2014

For those of you that have trouble doing division, not surprisingly, that puts the average dilution right around 20%, which isn''t surprising. then you need to take a look at the dilution numbers. Dilution is the price and you''re all pretty much getting the same deal. What about if you have some revenues? No Revenues.

Pre-Money Valuation 146

Pre-Money Valuation Dilution Valuation Term Sheet 146

Both Sides of the Table

JUNE 5, 2011

But the reality is that you’re faced with two problems: 1) the earlier the stage the riskier and thus more write-offs so you need to have enough ownership percentage in your winners to make up for the losers and 2) the earlier stage your check the more likely the company will need many more funding rounds behind you and thus you face dilution.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Duct Tape Marketing

OCTOBER 11, 2023

19:16] How is Thinkific adapting to the demand for community engagement? [21:55] But what the dilution, if you bring it down to it that even creator entertainers and educators have in common is it's this human element. [13:13] How should a B2B person measure the impact of creator economy strategies on engagement and community? [15:45]

B2B 80

B2B Marketing B2C Community 80

Version One Ventures

FEBRUARY 6, 2019

This aggressive ownership target is one reason more and more founders are looking for capital from IT/tech VCs who don’t demand as much equity. Then, the revenue you earn from these partners/customers can cover your operating costs while you develop your own drug to bring to market – which is where the most value is captured in biotech.

Dilution 132

Dilution Artificial Inteligence IPO Valuation 132

Startup Professionals Musings

JANUARY 6, 2021

In reality, too many choices actually dilutes customer interest in your existing market, and makes your job of production, marketing, and support much more complex. Ongoing momentum requires a move to mainstream, or even late adopters, who demand simplicity in your base function. Focus first on finding more of the right customers.

Technical Review 400

Technical Review Technical Cofounder Advisory Board Cofounder 400

K9 Ventures

JUNE 12, 2012

Founders typically get their equity in a company once — at the time of founding and then get diluted with each subsequent round of financing. If you really don’t want to raise another round, then prove that to me based on what really matters: Revenue. This situation is not always in the best interest of founders.

Venture Capital 117

Venture Capital Silicon Valley Founder Seed Stage 117

The Next Web

FEBRUARY 27, 2014

Supply and demand. To start, let’s not forget about the obvious: the natural economic principles of supply and demand apply to valuing your business. your equity in a hot new patented technology business), the higher the demand (e.g., your equity in a hot new patented technology business), the higher the demand (e.g.,

Valuation 167

Valuation Forecast Seed Stage .Net 167

K9 Ventures

JUNE 12, 2012

Founders typically get their equity in a company once — at the time of founding and then get diluted with each subsequent round of financing. If you really don’t want to raise another round, then prove that to me based on what really matters: Revenue. This situation is not always in the best interest of founders.

Venture Capital 105

Venture Capital Silicon Valley Founder Seed Stage 105

Startup Professionals Musings

SEPTEMBER 5, 2016

Many aspiring entrepreneurs jump ship from corporate environments, complaining that they want to be their own boss, only to find that investors are more demanding bosses than the ones they left. Don’t quit your day job until the revenue is flowing. Don’t let early funding increase risk and dilute your potential.

Bootstrapping 120

Bootstrapping Entrepreneur Startup Exit Strategy 120

The Next Web

SEPTEMBER 13, 2013

They want to see cash flow quickly (you cannot wait 2-3 years before determining your revenue model, like in Silicon Valley), so make sure you’re ready for this next step and have a solid plan in place on how to accomplish it. This is driven both by supply and demand. This is even true for the Asian arms of Silicon Valley VCs.

Asia 132

Asia Silicon Valley India Term Sheet 132

This is going to be BIG.

AUGUST 13, 2015

Think of yourself as the "Uber for" when you don't even understand what makes Uber "Uber"--namely a commoditized, interchangeable workforce performing singular tasks whose demand is unpredictable geographically and schedulewise, that had lots of unused inventory. Thinking that PR alone is going to get you millions of users.

Dilution 60

Dilution Cofounder PR Demand 60

Occam's Razor

APRIL 15, 2019

The goal was to deliver a 30% increase in revenue, the team delivered 1.7953%. They dilute the analysis with non-facts. Invest in self-learning every week – even couple hours a week – to ensure you can keep pace with the demands for sophisticated analysis which will be expected at an agile pace.

Leadership 79

Leadership Non-Compete Analytics Software Review 79

Tim Keane

JANUARY 12, 2010

3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model.   Pre-bubble Siliicon Valley deals were popularly valued at multiples of revenue. This is why a bottom up approach is more credible.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Gust

DECEMBER 23, 2011

By the way, there’s a very beautiful thing about organic growth, aside from the absence of dilution: it usually forces you to try to monetize early. There’s no better test of how well your idea works, nor any better way of iterating it to real market demand, than to watch how the checks come in.

Intellectual Property 127

Intellectual Property Balance Sheet Dilution Bootstrapping 127

Lightspeed Venture Partners

OCTOBER 22, 2012

The company has gotten off to a fast start, $150k in revenue in the first two months, with all the marketing coming from social media. The founders have more demand than they know what to do with, and want to raise $55k for 5% equity in the company to buy a second truck. They have more demand than they can fulfill already.

Pre-Money Valuation 101

Pre-Money Valuation Valuation Dilution Differentiation 101

Both Sides of the Table

APRIL 25, 2011

A great recent example of this was a successful group of entrepreneurs who had created a company that will do $10-12 million in revenue at their system integration business (read: services business) in 2011 after having done $5 million or so in 2010 and $2-3 million in 2009. One big challenge is how to grow the company.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

Startup Lessons Learned

AUGUST 24, 2009

The other revels in the world as we all know it will be someday: limitless distribution enabled by new technologies, the importance of collaborative filters, and on-demand availability of all content for end-users. And as everyone’s attention starts to focus on those same indicators, their value is being diluted.

San Francisco 113

San Francisco Lean Technical Review Distribution 113

Ben's Blog

APRIL 1, 2011

If the sales team made unreasonable demands on the product organization, then that was my fault. Raise money in a highly dilutive way. Revenue at Ning is soaring and team morale is high. If someone was promoted for all the wrong reasons, that was my fault. If we missed the quarterly earnings target, that was my fault.

Management 78

Management Cap Table Balance Sheet Bankruptcy 78

K9 Ventures

OCTOBER 10, 2017

In order for a company to attract a full Seed round ($2M – $3M), that company needs to show an almost completed product, an advanced prototype, or some kind of traction/demand metrics. 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.

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

crowdSPRING Blog

AUGUST 7, 2011

Businesses large and small will continue to struggle as long as demand is soft and business budgets are constrained. This means that the shock to the economy will be diluted and consumers will not feel the impact immediately. Cost of capital may increase. Tax increases may be ahead. Photo: Kevin Krejci.

Small Business 86

Small Business IRR Government United States 86

Up and Running

APRIL 24, 2018

You and your team must know how to think about problems from new angles and adapt to changing market and customer demands. That’s why having a revenue-minded focus from the early stages helps to secure funding. Build and commit to your long-term growth plan , while keeping your approach flexible.

SBIR 73

SBIR Startup Artificial Inteligence Intellectual Property 73

Both Sides of the Table

MARCH 11, 2011

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. Too many entrepreneurs focus on dilution. But over-optimizing for dilution is a bad attribute relative to focusing on creating a big & winning company.

Product 350

Product Tuvalu Dilution Incubator 350

Gust

OCTOBER 12, 2011

Thus, it’s in everyone’s best interest to see the startup raise more capital rather than declaring default and demanding repayment. Entrepreneurs generally prefer #2, provided it’s at a valuation that wouldn’t be absurdly dilutive given the amount of notes outstanding.

Finance 107

Finance Term Sheet Pre-Money Valuation Early Stage 107

Startup Lessons Learned

JUNE 15, 2009

As a consumer internet company with millions of customers, it may seem to have little relevancy for an enterprise software company with only a handful of potential customers, or a computer security company whose customers demand a rigorous audit before accepting a new release.

Continuous Deployment 167

Continuous Deployment Software Review San Francisco Lean 167

Startup Professionals Musings

MARCH 12, 2023

VCs tend to demand more control of your spending and strategic decisions, with required board seats and lower valuations. Angels will likely agree to simpler term sheets, better valuations, and less restrictive terms on potential dilution, voting rights, exit options, and executive roles. How big is your startup opportunity?

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246

Seeing Both Sides

JANUARY 4, 2012

After three or four years of jamming on your start-up, you've finally crossed a few million in revenue, gotten north of 10-20 employees, and it's all starting to click. Once things are working well, there is a magnetic power that demands pouring more fuel onto the fire. Scaling is hard. Now the pressure really begins.

Lean 53

Lean Dilution Revenue Hiring 53

Startup Professionals Musings

JUNE 13, 2020

VCs tend to demand more control of your spending and strategic decisions, with required board seats and lower valuations. Angels will likely agree to simpler term sheets, better valuations, and less restrictive terms on potential dilution, voting rights, exit options, and executive roles. How big is your startup opportunity?

Angel Investor 314

Angel Investor Entrepreneur IRR Valuation 314

Entrepreneurs-Journey.com by Yaro Starak

JUNE 14, 2011

There’s income at risk, an audience who may leave, a brand that could become diluted. Customer Demands Sometimes it’s better NOT to know how the future will be! If you read the comments on Yaro’s post , you’ll see how mixed the reactions are. Can you imagine being in his shoes, wondering what to do next?

Entrepreneur 90

Entrepreneur Non-Compete Internet Dilution 90

Startup Professionals Musings

AUGUST 2, 2014

VCs tend to demand more control of your spending and strategic decisions, with required board seats and lower valuations. Angels will likely agree to simpler term sheets, better valuations, and less restrictive terms on potential dilution, voting rights, exit options, and executive roles. How big is your startup opportunity?

Angel Investor 266

Angel Investor Entrepreneur Venture Capital IRR 266

maplebutter.com

JANUARY 8, 2013

I would focus on one product and set a goal to generate $1M in yearly revenue from it. Outsourcing is something a big company, with a known customer / problem (that has revenue & traction) does to save cost. I have a proposal written up including full cost and revenue projections. Once you’ve done that – then. 1) Hire A’s.

Technical Review 44

Technical Review Startup Cofounder Software Review 44