Startup Professionals Musings

MARCH 3, 2021

To keep you on a positive track with potential investors, I recommend the following logic principles, to balance your passion in presenting your vision of a new business: Make sure your plan includes some business metrics. Every startup demands logical changes along the way. Don’t forget to focus on the value of you and your team.

Exit Strategy 406

Exit Strategy Merger Angel Investor IPO 406

Up and Running

MAY 15, 2014

As an entrepreneur raised in the era of analytics, I want to find metrics for everything. At the end of the month, we’d evaluate the partnership and discuss equity. At our one-month meeting, my equity offer reflected this feeling, which in turn, led my potential partner to pursue other opportunities. I could hustle.

Partner 113

Partner Cofounder Equity Metrics 113

Haystack

DECEMBER 29, 2018

Public investors, cross-over investors, and even traditional private equity firms have taken notice, further blurring the lines of what constitutes true venture capital. Also during this time, the underlying metrics in that business can change positively, potentially trapping companies to accept the initially-agreed upon valuation.

Technical Review 165

Technical Review Venture Capital Russia China 165

Startup Professionals Musings

JUNE 8, 2019

A recent high-profile one, Theranos , the blood-testing company, had no trouble getting customers, but promised more than their technology could deliver, Another, Shyp , an early on-demand delivery platform, blamed their demise on premature scaling. Demand continuous innovation to keep up with change.

Angel Investor 220

Angel Investor Equity Leadership Demand 220

David Teten

AUGUST 19, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. Though RBI will displace some traditional equity VC, its much bigger impact will be to expand the pool of capital available for early-stage entrepreneurs. .

Revenue 60

Revenue Term Sheet Founder Technical Review 60

The Startup Magazine

SEPTEMBER 21, 2020

Abraham: As a company we truly believe in justice and a DE&I space (diversity, equity and inclusion) and help leaders understand the importance of diversity and inclusion of different cultures, whilst still creating a sense of unity by appreciating the differences. TSM: How is your company impacting the world/your clients?

Leadership 167

Leadership Founder Technical Review Entrepreneur 167

Startup Professionals Musings

SEPTEMBER 1, 2019

They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Second-stage growth usually requires a formal sales model, an experienced and disciplined sales team, and a well-defined process to meet your new goals and demands. Managing business growth is more than metrics.

Mezzanine 244

Mezzanine Private Equity Startup Bandwidth 244

Steve Blank

MARCH 4, 2014

It describes the product/service, who is it for, what channel sells/deliver it, how demand is created, how does the company make money, etc. They measure their success on metrics that reflect success in execution, and they reward execution. These metrics stack the deck against a company that wants to invest in long-term innovation.).

IRR 335

IRR Startup Business Model Agile 335

Feld Thoughts

JULY 9, 2019

This was before the IPO Summer of 2019 when all conventional valuation metrics have entered the land of “suspension of disbelief” which is short-term good and long-term well-we-will-see-…-eventually. One of our conversational threads was about how to value companies.

Revenue 179

Revenue Valuation .Net IPO 179

David Teten

MARCH 9, 2021

One or more of our past coworkers are joining us in this new business, and working for sweat equity.”. We built a similar business in the past, and here are our metrics showing how successful it was.”. “We need to raise to keep up with demand.” We hired a coach to help make us a world-class team.” . Current status

Sweat Equity 78

Sweat Equity Equity Metrics Demand 78

Startup Professionals Musings

SEPTEMBER 13, 2017

They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Second-stage growth usually requires a formal sales model, an experienced and disciplined sales team, and a well-defined process to meet your new goals and demands. Managing business growth is more than metrics.

Mezzanine 141

Mezzanine Private Equity Startup Bandwidth 141

Startup Professionals Musings

NOVEMBER 3, 2013

They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Second-stage growth usually requires a formal sales model, an experienced and disciplined sales team, and a well-defined process to meet your new goals and demands. Managing business growth is more than metrics.

Mezzanine 240

Mezzanine Private Equity Bandwidth Metrics 240

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

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. . In the private equity universe, most Partners have primary training as deal-makers, not as managers. (To see the video above, please click the image, and then click on the Play button.).

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Startup Professionals Musings

FEBRUARY 4, 2015

They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Second-stage growth usually requires a formal sales model, an experienced and disciplined sales team, and a well-defined process to meet your new goals and demands. Managing business growth is more than metrics.

Mezzanine 120

Mezzanine Private Equity Startup Bandwidth 120

YoungUpstarts

JUNE 16, 2020

Any of these situations will demand a valuation to determine current and future projected value. . When you’ve properly valued your business, you can use that valuation as collateral for a loan or new equity to expand operations, or establish another location. Three Methods of Valuation. This is called a multiple.

Valuation 162

Valuation CPA Software Review Revenue 162

Occam's Razor

NOVEMBER 24, 2009

Are not just reporting "hits", rather coming up with clever metrics. Quantitative Metrics / Analyses. While on the surface they might seem useful, I am always suspicious of compound metrics. See more here for Compound Metrics: Four Not Useful KPI Measurement Techniques ].

Social Media 124

Social Media Analytics Metrics Media 124

ConversionXL

JANUARY 14, 2020

Whether it improves the quality of an existing page (and, therefore, rankings for keywords you’re already addressing) or justifies new page creation (to rank for new keywords), there has to be demand. In each case, the identified demand can be addressed and lead to more organic traffic (and, of course, happier customers).

SEO 159

SEO Framework SCRUM Search 159

Board Effect

SEPTEMBER 21, 2020

In the 1970s, shareholders protested against apartheid in South Africa by withdrawing their equity from companies in that country. Donors demanded it. Make a point to incorporate ESG goals and metrics into your strategic planning efforts. The first socially responsible strategies rose during the 1950s and 1960s.

South Africa 76

South Africa Government Africa Institutional Investors 76

Board Effect

MAY 13, 2019

The realistic demands of cap table management will increase as your business grows and matures—that much is a no-brainer. What we’re really looking for is the baseline of management startups should afford their cap tables as they grow—in both size and the complexity of their equity structures. Defining Cap Tables.

Cap Table 40

Cap Table Management Liquidity Event Dilution 40

K9 Ventures

OCTOBER 10, 2017

If the Micro-VCs are looking for Series A-like metrics, what does a company do when it’s just getting started? 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 Stage 82

Seed Stage Finance Later Stage Equity 82

K9 Ventures

APRIL 9, 2014

The low supply and high demand is driving up the valuations and deal sizes. They’re starting to use similar metrics and structures as what the old Series A folks used to. For example, doing equity rounds only, no convertible notes, leading rounds and taking on board seats. The seed round is bigger.

Mezzanine 134

Mezzanine Seed Stage Early Stage IPO 134

Ben's Blog

OCTOBER 29, 2020

The laws of supply and demand, and marginal pricing, withstand the test of time. Demand matters: IPOs are a bull market product Gauging demand for an IPO can be difficult, in part because so many IPO order books are over-subscribed. IPO “over-subscription” has also become a vanity metric for the bankers and the issuing company.

IPO 36

IPO Securities and Exchange Commission Demand SEC 36

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

Revenue multiples, profit multiples, premium over the previous financing — these are metrics used by sellers to help determine a minimum acceptable price. In terms of acquisition, they ask more specifically: “How can we trade balance sheet assets (cash, equity) in exchange for executing our strategy better?”.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

The Equity Kicker

AUGUST 14, 2014

Just like the print ads you know and love, only cheaper and with better metrics!” ” Google Adwords, Demand Media: “ Publish what you want, when you want, and make a living through Google Adwords! Trackable analytics on reader behavior! Build a business outside of the stranglehold of portals!

Advertising 106

Advertising Web Viral Mobile 106

Startup Lessons Learned

JULY 6, 2011

Inspired by lessons from lean manufacturing, it relies on “validated learning,” rapid scientific experimentation, as well as a number of counter-intuitive practices that shorten product development cycles, measure actual progress without resorting to vanity metrics, and learn what customers really want.

Lean 167

Lean Startup Metrics Private Equity 167

Mike Michalowicz

DECEMBER 20, 2013

If you want to work together start off with 5% ownership each, and then each quarter assign equity based on performance, something that can be easily measured. The entrepreneur’s life is demanding. More than 50% of marriages end in divorce – so if you want to hang on to your business and your best friend, nix this idea pronto.

Business Plan 68

Business Plan Equity Revenue Partner 68

Cracking the Code

JANUARY 22, 2009

For SaaS companies, we found that MRR is the best metric on which to base sales commissions. If you assume a 20% cost of capital (typical for equity, debt is generally cheaper), then getting an upfront payment for one additional year on a $10k MRR contract saves you $24k. SaaS business metrics: why are they different?

Software Review 91

Software Review Clawback Sales Salary 91

Up and Running

SEPTEMBER 19, 2016

After graduating college, I spent several years on Wall Street, first at a large investment bank working on M&A for large corporate clients, then as a private equity professional helping invest hundreds of millions of dollars in private companies. See Also: The 5 Metrics You Need to Track for Your Subscription (SaaS) Business to Succeed.

Private Equity 60

Private Equity Acquisition B2B Partner 60

ConversionXL

APRIL 27, 2017

With a 404, link equity is totally lost. Unexpected demand. For instance, if a product page had garnered external links, you’re able to retain most of the link equity from those links via a 301 redirect (whereas with a 404, that link equity is lost). Again, not a good signal to send Google. Manufacturing issues.

Stock 90

Stock Product eCommerce SEO 90

Tim Keane

JANUARY 12, 2010

The investors and the entrepreneurs are – or should be – aware that the price of the company’s equity is set by the market – in simplest terms, what an informed buyer is willing to pay.   Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

ConversionXL

JUNE 2, 2022

With only 25 salespeople, it also required moving away from “spray-and-pray” demand generation to a more focused ABM. The more brand equity you have, the easier it will be to get customers onside. Does your company clearly understand current CAC , LTV, CAC payback period, and other core growth metrics? Conclusion.

Customer 98

Customer Marketing Channel Acquisition 98

Pascal's View

AUGUST 21, 2011

Capital Markets Advisory Partners cleaves the demand for pre-public VC-backed equities into two worlds: “Demand Pull (Buzz) and Supply Push (No Buzz) companies. … We have a stock market that works for one kind of buzzy (Demand Pull) stock but is a disaster for the rest of the economy. .

Valuation 50

Valuation Social Media Media IPO 50

Up and Running

MAY 1, 2014

Milestones and Metrics. Your prices need to match up with consumer demand and expectations. Milestones and Metrics. While the Milestones and Metrics chapter of your business plan may not be long, it’s critical that you take the time to look forward and schedule the next critical steps for your business. Read more ».

Business Plan 163

Business Plan Forecast Balance Sheet Distribution 163

crowdSPRING Blog

DECEMBER 13, 2018

There are three parts to a good competitive analysis: (1) defining the metrics and identifying the competitors you’re comparing, (2) gathering the data, and (3) the analysis. You’re going to need some brand health metrics to track. Start by defining what metrics are important. This isn’t an issue you can afford to ignore.

Marketing 162

Marketing Charlotte Naming Design 162

maplebutter.com

JANUARY 8, 2013

Written By Dan Martell on February 2nd, 2012 | Category: Hiring LeanStartup Marketing Metrics Startup Life | 6 Comments. Building Metrics / Usage Reports / KPI 3. Product/Metrics (70%/30% time) * Get your product activation (sign-up + meaningful action) to 60% * then, Get your product retention to 20% weekly. 10) Metrics.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

Pascal's View

NOVEMBER 15, 2011

equity capital markets for emerging growth companies with market capitalizations below $500 million are structurally broken and systemically dysfunctional. Dan’s second post did make it clear that there is considerable confusion over the relevant metrics to determine the health of the IPO market for small cap companies.

IPO 31

IPO Term Sheet Marketing United States 31