Lightspeed Venture Partners

SEPTEMBER 21, 2013

Despite having over 500k downloads and making $450k in revenue over the last 21 months, he had only $185k left in the bank, which meant that he would be out of business in 90 days if he didn’t raise more money. pre money valuation seems big, the actual implication is only between 5% and 10% dilution since the round size is small.

Pre-Money Valuation 167

Pre-Money Valuation Valuation Dilution Distribution 167

ReadWriteStart

APRIL 4, 2023

Founders should consider other fundraising possibilities, such as traditional venture capital or angel investment, as well as non-dilutive funding sources such as grants or loans. It can serve as a centralized hub for distributing all of your most important information. Forgoing one is like throwing away money.

Startup 141

Startup Campaign Cofounder Venture Capital 141

Startup Lessons Learned

AUGUST 24, 2009

One is explaining the world as it used to work: the importance of gatekeepers, the scarcity implied by limited distribution, and the resulting quality bar that the industry is so proud of. Mostly it is the time and expense required to create the means of distribution for that industry. It’s just taking some longer than others.

San Francisco 113

San Francisco Lean Technical Review Distribution 113

Austin Startup

MARCH 23, 2017

Priced equity financings make sense as they provide clarity around valuation and ownership dilution, while creating alignment between the investors and founders. I point back to Fred Wilson’s blog, specifically a guest post by Andy Sack on revenue based financing. However as the above links show, debt is a trickier subject.

Dilution 54

Dilution Equity Warrant Distribution 54

ConversionXL

NOVEMBER 6, 2017

What works for first-time customers might have less of an effect on (and be diluted by) people who are returning to buy again. Your experimental controls, Stewart says, need to be equal: sample size, performance range, and distribution of outlier behavior. User segmentation can be vital to gaining insights and maximizing revenue.

Chad 112

Chad Mobile Technical Review Aggregator 112

Tim Keane

JANUARY 12, 2010

It also assumes the entire value of the investment is captured for investors at a sale of the company in the time specified in the term-sheet. 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.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

The Equity Kicker

MAY 14, 2012

achieving first revenues. breaking through revenue thresholds – e.g. run-rates of £1m, £5m, £20m and so on. demonstrating a repeatable sales model (typically telephone sales, direct sales, or channel sales). signing distribution deals. demonstrating that signed distribution deals are working.

Finance 118

Finance Valuation Venture Capital Dilution 118

Up and Running

MAY 21, 2015

What this means, is that he gets paid not as a portion of the profit, but as a portion of the overall revenue, regardless of the profit. They generally also get additional rights that common shareholders don’t get, such as anti-dilution protection, and liquidation preference (discussed further below). Anti-dilution protection.

Covenant 60

Covenant Liquidation Preference Ratchet Dilution 60

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 sharks greeted this with skepticism, and rightfully so, especially given the short time the company has been in business and the relatively low sales volume. In 2010 they did $10k in profits.

Pre-Money Valuation 101

Pre-Money Valuation Valuation Dilution Differentiation 101

Up and Running

APRIL 24, 2018

Of course, you will need a killer product—but, you will also need a competent growth strategy that will encompass comprehensive marketing, sales, research and development, technology, and beyond. That’s why having a revenue-minded focus from the early stages helps to secure funding.

SBIR 73

SBIR Startup Artificial Inteligence Intellectual Property 73

Small Business Force

JANUARY 14, 2016

It is also less understood than it should be, with dilution and control issues being major points of concern. The point of it was that with any kind of equity distribution, dilution will always occur. The % of equity you own is far less important than the value of that equity. Your 80% is now worth $5.6 With each comes risk.

Equity 20

Equity Dilution Distribution Valuation 20

Austin Startup

MARCH 26, 2019

You’ll usually get assigned a contact in the ad sales organization at Facebook or Google once you start spending big bucks. When is the right time to diversify your sales channel mix? Discounts too early can also have the adverse effect of diluting a brand when targeting a more affluent customer segment.

Technical Review 49

Technical Review Software Review China Acquisition 49

Occam's Razor

MAY 2, 2017

The very best analysts distill, rather than dilute. Outcomes: Revenue | Ideas Funded Behavior: Path Length | Cart Abandonment Rate Acquisition: Assisted Conversions | Share of Search. Every ecommerce site has to obsess about Revenue. B2B / Enterprise Sales: Salesforce. And, we can do so much for them!

Metrics 141

Metrics Acquisition eCommerce Analytics 141

Business Plan Blog

OCTOBER 4, 2013

While some investors will be willing to help you build your team, they will not be willing to invest in your startup if you are not willing to distribute responsibility and bring on diversified expertise. Rather, give titles such as VP of Engineering, Product/Technology, Sales, Marketing, Finance, etc. Early Stage.

Part-Time VPE 79

Part-Time VPE Fractional VPE Cofounder CTO Hire 79

maplebutter.com

JANUARY 8, 2013

I would focus on one product and set a goal to generate $1M in yearly revenue from it. Do that – nothing else but one product / company / focus and get to $1M in sales with atleast $15% net profit. Outsourcing is something a big company, with a known customer / problem (that has revenue & traction) does to save cost.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

Lightspeed Venture Partners

SEPTEMBER 16, 2012

The founder wanted to take the offer, but he called his advisor (his business school professor) who told him it was too much dilution for this stage, so he turned it down. It is very positive that the founder had generated some sales and interest from retailers. At some point the fad passes and sales will crash.

Silicon Valley 167

Silicon Valley Salary Dilution Indiana 167

abovethecrowd.com

APRIL 20, 2016

A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue. It will also minimize future dilution. Cash distributions are what matter at the end of the day, bug big paper gains still make for good fundraising pitches. Now you make your own decisions.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

ConversionXL

APRIL 14, 2016

Amazon carried out their own research in this area and discovered that, for every 100ms of page load time, there was a 1% decrease in sales. If your site receives high volumes of traffic that are globally distributed, third-party solutions can be a tremendous help. Additional elements like that dilute the central CTA.

Conversion 48

Conversion Technical Review Audience PPC 48

Up and Running

DECEMBER 9, 2014

Two, revenue. Many business owners today really think of financials as being about the past, how much revenue have we had, how much cost did we have. Inaudible 00:27:51] leading indicator to help you know where your revenue will be over the coming weeks and months but you can actually apply the same concept on the cost side as well.

Small Business 95

Small Business Finance Forecast Metrics 95