View from Seed

AUGUST 17, 2021

at exit due to dilution. It creates dilution, and investing in these rounds increases your effective post-money. But the general idea is that for software driven businesses, traction can create unpredictable upside that is hard to account for but should not be ignored. So it’s like this same fund actually invested $2.5M

IRR 205

IRR Dilution Founder Portfolio 205

Startup Professionals Musings

AUGUST 31, 2018

Totally new and risky products will dilute your focus, and may confuse existing customers. For example, I once worked for a small software company selling a sophisticated enterprise workflow solution fighting a similar solution in the marketplace. Expand your product line, staying close to the core.

Angel Investor 167

Angel Investor Dilution Software Review Distribution 167

View from Seed

AUGUST 17, 2021

at exit due to dilution. It creates dilution, and investing in these rounds increases your effective post-money. But the general idea is that for software driven businesses, traction can create unpredictable upside that is hard to account for but should not be ignored. So it’s like this same fund actually invested $2.5M

IRR 156

IRR Dilution Founder Portfolio 156

Startup Professionals Musings

JULY 31, 2012

If you already have some technical people on board, like software developers, and need a new manager, you supply the candidates based on credentials, and let them do initial interviews and make recommendations. Focus on finding the right partner to double your strength rather than dilute it. Outsource your technical requirements.

Technical Review 230

Technical Review Technology Founder Management 230

A Smart Bear: Startups and Marketing for Geeks

MARCH 1, 2010

Hanging your hat on just one advantage that you can own completely is stronger than diluting your message across many advantages. We employ actual software developers for Level 1 tech support and email, so you're talking to someone who not only can answer every question but can even read the code to get answers. Let's get specific.

Open Source 239

Open Source Dilution Software Developers Software Development 239

YoungUpstarts

JANUARY 19, 2015

They usually have to work with screen reading software to “speak” website content aloud to them. Don’t dilute your content. Many website owners make the mistake of diluting their content. They will ensure that what gets written is not diluted. But did you know that few websites are accessible to disabled people?

Dilution 100

Dilution Web Web Development Flash 100

Startup Professionals Musings

OCTOBER 17, 2022

Mobile and web software apps may cost even less. This can cause early investor dilution, lower ultimate returns or leave the startup stranded. The cost of entry for tech startups continues to go down. Twenty years ago, it cost several million dollars to launch an e-commerce startup, which can be done today for a few thousand dollars.

Angel Investor 342

Angel Investor Venture Capital Silicon Valley Portfolio 342

View from Seed

AUGUST 17, 2021

at exit due to dilution. It creates dilution, and investing in these rounds increases your effective post-money. But the general idea is that for software driven businesses, traction can create unpredictable upside that is hard to account for but should not be ignored. So it’s like this same fund actually invested $2.5M

IRR 136

IRR Dilution Founder Portfolio 136

Startup Professionals Musings

MAY 11, 2011

If you already have some technical people on board, like software developers, and need a new manager, you supply the candidates based on credentials, and let them do initial interviews and make recommendations. Focus on finding the right partner to double your strength rather than dilute it. Outsource your technical requirements.

Technical Review 236

Technical Review Partner Entrepreneur Architecture 236

Startup Professionals Musings

NOVEMBER 5, 2022

Modern Internet communication and video meeting software have given new scope and immediacy to communal work efforts and customer feedback. Outside contracts and freelancing rapidly dilute everyone’s focus on the higher company mission and purpose. Office jobs and communication technology have evolved.

Management 333

Management Dilution Forecast Leadership 333

Both Sides of the Table

SEPTEMBER 28, 2014

This is why investors really like SaaS software companies where you have recurring revenue and your largest customer accounts for < 5% of your revenue and your renewals rates are > 90%. Many software companies have > 80% gross margins which is why they are more valuable than say traditional retailers or consumer product companies.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

David Teten

JANUARY 21, 2021

Jonathan Bragdon , CEO, describes Capacity as “a team of founders-turned-funders making non-dilutive, founder-aligned investments of $50-$300k in post-startup, post-revenue businesses planning to 2X revenues in 12-24 months. We determine a salary cap with the founder based on a software engineer in the closest major city.

Equity 78

Equity Revenue Cofounder Colorado 78

YoungUpstarts

JULY 31, 2019

It has become an established term in the software industry to indicate the short term fixes of quick and dirty coding that can create problems down the road — problems that come knocking at the door to collect with interest. by Anish Sebastian and Juan Pablo Segura, co-founders of Babyscripts.

Cofounder 118

Cofounder Burn Rate Technical Cofounder Seed Capital 118

Both Sides of the Table

SEPTEMBER 16, 2010

As I’ve highlighted I believe we’re in a unique period similar to 2005-08 where the biggest tech firms of Silicon Valley (and some media companies) are scooping up small software companies as “talent acquisitions&# versus accretive revenue / profit generators. avoid being diluted). But it is. So know that going in.

Cap Table 283

Cap Table Angel Investor Liquidation Preference Deal Flow 283

View from Seed

JULY 15, 2020

Certain sectors are seeing remarkable tailwinds, such as ecommerce (especially household consumables), digital entertainment, collaboration software, and health and fitness. Other companies are great businesses, but are effectively encountering a dilution event. Some companies are seeing a massive acceleration event because of Covid.

Portfolio 215

Portfolio IRR Dilution Distribution 215

Startup Professionals Musings

JANUARY 19, 2020

Mobile and web software apps may cost even less. This can cause early investor dilution, lower ultimate returns or leave the startup stranded. The cost of entry for tech startups continues to go down. Twenty years ago, it cost several million dollars to launch an e-commerce startup, which can be done today for a few thousand dollars.

Angel Investor 314

Angel Investor Venture Capital Silicon Valley Startup 314

ReadWriteStart

JANUARY 27, 2011

I have discussed at length why revenue sharing channel deals may serve as perfectly fine alternatives to raising equity (or even complements) because of their non-dilutive nature. Also, an Incubation Radar profile on CrowdEngineering explains more about this very, very cool company doing crowdsourced customer support. LetsGiftIt.

Dilution 114

Dilution Revenue Finance Entrepreneur 114

Up and Running

SEPTEMBER 20, 2021

Using software. To overcome this hassle of adding more and more sheets, a cap table software is used that can do it all for you, no matter how big your company is. Moreover, this is one reason where cap table software comes in handy and is preferred over the traditional excel cap table. percent going to Investor B, and 9.6

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

Both Sides of the Table

NOVEMBER 14, 2017

He came to work in our offices at Upfront Ventures as an EIR and immediately began building software to improve how storage was picked up, photographed, scanned and routed to a warehouse. Sam began drawing out plans for a new way to provide storage after he had horrific experiences with traditional storage after the storm.

Operations 286

Operations New York City Technical Review Startup 286

Transformify

MAY 22, 2023

In essence, platform work has introduced the concept of "algorithmic management," where decision-making processes are delegated to AI-driven software and applications. They also utilize automated systems to assign tasks, schedule shifts, monitor employees, and determine their access to job opportunities through internal rankings.

Algorithm 40

Algorithm Italy Spain France 40

View from Seed

APRIL 30, 2015

Typically, the gross margins aren’t there compared to software, so revenue isn’t quite as important in the early stages of getting to market. NVV: Is there any dilution? So although the startup’s plans may change, understanding product and go-to-market milestones is pretty important. But the costs are definitely there.

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

Both Sides of the Table

OCTOBER 1, 2009

If you’re raising $2 million and can close on $3 million – don’t optimize to minimize short-term dilution, optimize for contingencies in case the market gets worse. In the first post in this three part series I described why I believe the VC market froze between September 2008 – April 2009. million – take it.

Technical Review 269

Technical Review Stock Hawaii Early Stage 269

Agile VC

JULY 11, 2012

On the IT side of VC investing, we’ve seen countless waves crest and fall… mainframes to minicomputer/workstation, workstation to PC, copper to optical networking, client/server software to cloud, the fabless semiconductor model, magnetic tape to hard drive, etc.

Silicon Valley 240

Silicon Valley Carried Interest Cofounder Boston 240

The Startup Magazine

JULY 15, 2023

Smart software is revolutionizing the way security firms operate, changing everything from shift scheduling to camera monitoring. Make it so that they don’t need to combine services – something that could dilute your brand and offering. Unsplash – CC0 License Just look at what’s happened in the last five years.

Security 137

Security Artificial Inteligence Differentiation Dilution 137

David Teten

AUGUST 19, 2019

Benefits: Non-dilutive, flexible credit offerings that fit SMB or enterprise SaaS. Manuge continues, “Corl connects to a business’ bank accounts, accounting software, payment processors, and other digital services to collect 10,000+ historical data points that are analyzed in real-time. Capital need of up to $1.5M

Revenue 60

Revenue Technical Review Software Review Equity 60

Startup Professionals Musings

JANUARY 23, 2019

Dilution of focus kills too many small businesses, as they try to attract more customers and counter more competitors. I once worked in a software startup that continually delayed initial shipment to add new features, based on feedback from early adopters and competitor concerns.

Intellectual Property 248

Intellectual Property Dilution Cofounder Social Media 248

Both Sides of the Table

JUNE 17, 2017

The first company represents a normal software company that sells its products directly (either via sales staff or directly off of the internet). Many software companies have 85–90% gross margins, which is why it has historically been a very attractive industry. Stock option grants dilute your ownership in the company.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

crowdSPRING Blog

SEPTEMBER 5, 2014

The Pernicious Effect of Dilution in SaaS: The Cold, Hard, Bloody numbers | saastr – crowdspring.co/W6Bwqs. Legal Contracts for Software Developers Who Hate Contracts (w/free contract template to use today) – [link]. How to Market Test a New Idea | Harvard Business Review – crowdspring.co/1vSai6S. What’s on the MENU?

Social Media 92

Social Media Small Business Design Media 92

Startup Professionals Musings

SEPTEMBER 5, 2018

Also you need to make sure that highly skilled key people are not diluted by unfulfilling routine work. Someone decided to initiate a software arm to grow the business, so key executives and skilled resources were re-allocated to start a software project. Document required systems for repeatability without you.

Advisory Board 152

Advisory Board Non-Compete Dilution .Net 152

ReadWriteStart

JUNE 1, 2020

Any custom manufactured IoT device would require software development as well as hardware customization. Raising higher capital at an early stage means more equity to be diluted to the investors. For these businesses, it is imperative to get funding from the start without which the company cannot be set up. Capital is expensive.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Both Sides of the Table

SEPTEMBER 10, 2021

A-Rounds used to be $3–7 million with the best companies able to skip this smaller amount and raise $10 million on a $40 million pre-money valuation (20% dilution). Before Twitter he held similar roles at SuccessFactors (SaaS), Akamai (telecoms infrastructure), McAfee (Security Software) and was an investment banker.

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

Version One Ventures

FEBRUARY 6, 2019

On the flip side, biotech is much more capital intensive than software. What is the best thesis to ensure companies are well capitalized, without diluting everyone’s ownership with every round raised, assuming every round is larger in both size and valuation than a traditional IT one?

Dilution 132

Dilution Artificial Inteligence IPO Valuation 132

ReadWriteStart

OCTOBER 28, 2010

Common areas to address are decisions around capitalization, executive hiring and firing, share issuance (dilution), and acquisitions. You'll need to decide what kinds of decisions the board makes, and which ones it won't. What happens if one of us leaves the company? However, there may be elements of the plan that you don't want to change.

Cofounder 128

Cofounder Founder Equity Dilution 128

Startup Lessons Learned

JUNE 15, 2009

Of all the tactics I have advocated as part of the lean startup , none has provoked as many extreme reactions as continuous deployment , a process that allows companies to release software in minutes instead of days, weeks, or months. All customers will see the new software as soon as it’s deployed.

Continuous Deployment 167

Continuous Deployment Software Review San Francisco Lean 167

Duct Tape Marketing

OCTOBER 11, 2023

She is the director, mother and teacher based in Vancouver, British Columbia currently serves as the VP of marketing at Thinkific, a software platform that enables entrepreneurs to create, market, sell, and deliver their own online courses. It's over 10 years experience in the B two B and B two C SaaS based. So Christie, welcome to the show.

B2B 80

B2B Marketing B2C Community 80

Startup Company Lawyer

MARCH 14, 2010

If new investors get better rights in a future equity financings (such as registration rights, price-based anti-dilution, redemption rights, etc.), Anti-dilution protection. Deleting anti-dilution rights saves several pages of text in the Certificate of Incorporation. Future rights. Right of first offer on future financings.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Startup Professionals Musings

DECEMBER 27, 2014

Mobile and web software apps may cost even less. This can cause early investor dilution, lower ultimate returns or leave the startup stranded. The cost of entry for tech startups continues to go down. Twenty years ago, it cost several million dollars to launch an e-commerce startup, which can be done today for a few thousand dollars.

Angel Investor 260

Angel Investor Silicon Valley Startup Portfolio 260