Startup Professionals Musings

DECEMBER 1, 2017

Every business needs to develop a revenue model even before a product. The alternatives range from giving the product away for free (revenue from ads), to pricing based on costs, to charging what the market will bear (premium pricing). Revenue is a percentage of every transaction. Facebook spent $150 million getting started.

Revenue 166

Revenue Affiliate Advertising Retention 166

YoungUpstarts

DECEMBER 14, 2016

by Jeff Stark, Audit Partner at Sensiba San Filippo. Watch out for complex areas such as accounting for revenue, inventory, contingencies, equity instruments and consolidation. Documentation such as invoices, bank statements, payroll information and other records should be well organized and easy to obtain.

Acquisition 100

Acquisition Intellectual Property Technical Review Due Diligence 100

Startup Professionals Musings

JUNE 17, 2011

Here are some tips which will signal traction and fundability to investors, as well as to your team: Document your business plan. Make sure your plan answers every relevant question that you could possibly imagine from your business partners, spouse, and potential investors. Get a real customer and real revenue.

Intellectual Property 253

Intellectual Property Sweat Equity CTO Hire Fractional CTO 253

Startup Professionals Musings

MAY 4, 2016

Who would not want to joint the unicorns (recent startups with a current valuation of over $1 billion)? The days of lengthy, text-heavy, business plan documents prepared by expensive experts are behind us. But for founders who do their homework, the cost of entry is lower and the opportunity is higher than ever.

Intellectual Property 120

Intellectual Property Startup Angel Groups Social Media 120

Startup Professionals Musings

MAY 22, 2010

Here are some tips which will signal traction to investors, as well as your team: Document your business plan. Make sure your plan answers every relevant question that you could possibly imagine from your business partners, spouse, and potential investors. Get a real customer and real revenue. Only real results count.

Intellectual Property 222

Intellectual Property Sweat Equity CTO Hire Fractional CTO 222

ConversionXL

AUGUST 11, 2021

A sponsorship strategy should cover five areas: Assets Audience data Asset valuation Activations Market identification. Asset valuation. Next, look at any companies or suppliers you already partner with. Your sponsor proposal document or webpage is a deal-maker or a deal-breaker. Are they a potential sponsor?

Audience 139

Audience Social Media Email Ruby 139

Up and Running

OCTOBER 16, 2019

You don’t need to write a 200-page document, but you will need something to hand to your banker or investor that shows that there’s a market for the problem your business solves and includes your key financial statements and forecasts. . Your business plan is a great place to map how your sales and revenue goals fit with your expense budget.

Business Plan 108

Business Plan Small Business Forecast Balance Sheet 108

Up and Running

OCTOBER 16, 2019

You don’t need to write a 200-page document, but you will need something to hand to your banker or investor that shows that there’s a market for the problem your business solves and includes your key financial statements and forecasts. . Your business plan is a great place to map how your sales and revenue goals fit with your expense budget.

Business Plan 108

Business Plan Small Business Forecast Balance Sheet 108

Startup Professionals Musings

APRIL 24, 2011

Your friends and family are really the only answer until you have a significant revenue stream. Don’t try to talk your way to a deal before you have the documentation. Use friends, family, and angels, if possible, to get a product, revenue, and customers first before the VC connection.

Venture Capital 233

Venture Capital Revenue Elevator Pitch Silicon Valley 233

View from Seed

APRIL 30, 2015

Use good judgment, talk to your co-founders/investors/lawyers, and partner with a bank that values transparency and relationships such as SVB.]. And it’s that important because all companies will go through good times and tough times, and we’ll want to make sure we’ve got the right partner on the other side. Traction and revenue?

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

Pascal's View

JULY 9, 2017

This is a fundamental issue that does, indeed, boil down to understanding the post-money valuation of a company. At its core, this issue points to the lack of understanding about the importance of post-money valuation by both entrepreneurs and investors. But it is also a topic that many find esoteric and difficult to grasp.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

Up and Running

JUNE 14, 2017

Those partners paid for a membership with Recycler Spotter. There were two main benefits for partners who joined the platform: their brand became associated with an eco-friendly company, and their exposure to college students and households in the region helped boost their businesses. 60 percent of respondents chose premium!

Technical Review 96

Technical Review Distribution Redemption Demand 96

Gust

OCTOBER 20, 2011

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Scorecard Valuation Methodology. Such comparisons can only be made for companies at the same stage of development, in this case, for pre-revenue startup ventures. The range of the data is from a low pre-money valuation of $0.8

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

View from Seed

OCTOBER 15, 2014

Regardless, this document is a viable alternative to creating decks at the seed stage, and we wanted to deconstruct what that might look like below. Examples of housekeeping include the following list, though not every item will appear every time: Finance: Cash out date, burn rate, 409A valuation, cap table, common/preferred stock dashboard.

Seed Stage 331

Seed Stage Cap Table Metrics Burn Rate 331

Startup Professionals Musings

AUGUST 13, 2012

Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Many people seem to use the social network advertising model for revenue, but forget it assumes at least 100M users and $50M investment. Exit strategy.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Startup Professionals Musings

AUGUST 27, 2012

The approach I recommend is to build the investor presentation first, by iterating on the bullets with your team, and then fleshing out the points into a full-blown text-based business plan document. In this section, you need to be passionate about recurring revenue, profit margin, and volume growth. Marketing, sales, and partners.

Elevator Pitch 247

Elevator Pitch Exit Strategy Burn Rate Merger 247

Startup Professionals Musings

MAY 2, 2016

I’m not suggesting that formal legal documents are always required, but agreements without some paper or email trail are easily forgotten or misconstrued. This approach has tax implications you won’t like, since the IRS will tax your founder’s shares immediately at the valuation you give investors.

Intellectual Property 120

Intellectual Property Due Diligence Non-Compete Startup 120

Startup Professionals Musings

MAY 13, 2011

Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Many people seem to use the social network advertising model for revenue, but forget it assumes at least 100M users and $50M investment. Exit strategy.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Startup Professionals Musings

JUNE 10, 2011

The approach I recommend is to build the investor presentation first, by iterating on the bullets with your team, and then fleshing out the points into a full-blown text-based business plan document. In this section, you need to be passionate about recurring revenue, profit margin, and volume growth. Marketing, sales, and partners.

Elevator Pitch 234

Elevator Pitch Exit Strategy Burn Rate Merger 234

Up and Running

JULY 22, 2019

Attracting investors in the early stages helps bring in new partners that are committed to your business. They can expand your network by introducing you to other investors, customers, or partners, helping you to continue accelerating your business plan. People love to “average up” by doubling down on winners. Start early.

Canada 78

Canada Early Stage Valuation Finance 78

Startup Professionals Musings

MAY 19, 2010

An alternative approach, which I prefer, is to build the investor presentation first, by iterating on the bullets with your team, and then fleshing out the points into a full-blown text-based business plan document. In this section, you need to be passionate about recurring revenue, profit margin, and volume growth.

Elevator Pitch 235

Elevator Pitch Exit Strategy Burn Rate Merger 235

Gust

AUGUST 5, 2012

Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Many people seem to use the social network advertising model for revenue, but forget it assumes at least 100M users and $50M investment. Exit strategy.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

Gust

AUGUST 19, 2012

The approach I recommend is to build the investor presentation first, by iterating on the bullets with your team, and then fleshing out the points into a full-blown text-based business plan document. In this section, you need to be passionate about recurring revenue, profit margin, and volume growth. Marketing, sales, and partners.

Elevator Pitch 146

Elevator Pitch Exit Strategy Burn Rate Merger 146

David Teten

DECEMBER 3, 2019

But in business, you want a lot of partners. In the private equity universe, most Partners have primary training as deal-makers, not as managers. That Google document provides cut and pasteable text I can share with other investors, based on their stage, focus, and appetite. . Most of us want one spouse and we’re done.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

ReadWriteStart

SEPTEMBER 6, 2019

While most companies focus on revenue and profitability, Silicon Valley leaders tend to view valuation as a success barometer. Coordinating Document Control and Third-Party Sharing. Partnering With AI to Improve Oversight and Insights. Here are a few ways that blockchain already has proven its worth: 1.

Silicon Valley 103

Silicon Valley Artificial Inteligence Database SQL 103

Startup Professionals Musings

APRIL 22, 2010

Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Many people seem to use the social network advertising model for revenue, but forget it requires at least 100M users and $50M investment. Exit strategy.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

Gust

SEPTEMBER 5, 2012

.” Yet in my little corner of Wonksville, Founder Institute CEO Adeo Ressi and Yoichiro “Yokum” Taku , a partner at my “alma mater” law firm Wilson Sonsini Goodrich & Rosati , created quite a stir this past week by announcing a new set of template deal documents dubbed “ Convertible Equity.”

Finance 134

Finance Convertible Security Equity Seed Stage 134

abovethecrowd.com

JULY 10, 2014

Financial models, especially valuation models, are interesting in that they can be particularly precise. While it may seem like a tough question to answer, I would argue that most practitioners of valuation analysis would state “not very high.” It is not my aim to specifically convince anyone that Uber is worth any specific valuation.

San Francisco 111

San Francisco San Jose Marketing Technical Review 111

crowdSPRING Blog

APRIL 15, 2012

While much of the literature on succession planning tends to be about long-term legal planning as well as the importance of valuation, buy/sell agreements, and tax and estate planning, my advice is that you first focus on what will happen tomorrow if you don’t have any plan already in place. ” Throne, you say?

Startup 94

Startup Valuation Small Business Database 94

Software By Rob

APRIL 2, 2014

With SaaS businesses the majority of revenue will be through monthly, quarterly or annual billing recurring payment plans. Ensure they document everything they do in detail. As a general rule of thumb, any passive income stream in an online business will attractive a premium valuation. Choose your payment processor carefully.

Affiliate 67

Affiliate Valuation Reputation Sales 67

Up and Running

APRIL 11, 2016

More importantly, it is a document that you can provide to lenders or investors to clearly illustrate not only your direction but where you are and how you got there.” Michelle Stansbury , a realtor at Bluegrass Partners Trust Realty says, “My first year was a lot of fumbling around figuring out what didn’t work.

Reputation 60

Reputation Cofounder Naming Business Plan 60

Both Sides of the Table

FEBRUARY 25, 2010

We were trying to optimize around a few criteria: price, size of round, number of syndicate partners and, of course, terms. million at a $15 million pre-money valuation. Morgan Stanley had proposed a higher valuation to let them in. You know that every turn of the legal documents can add weeks. Yes, this was stupid.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Duct Tape Marketing

APRIL 28, 2011

Less dependent on you Done right, marketing builds the kind of repeatable momentum that can be documented and taught like a system. Start looking for ways to create and document a marketing system that you can teach others to run and remove yourself from the lead generation and conversion game. The deal ends this Saturday April 30.

Marketing 65

Marketing Valuation Differentiation Lead Generation 65

reidhoffman.org

NOVEMBER 12, 2013

× At Greylock , my partners and I are driven by one guiding mission: always help entrepreneurs. Friendster’s valuation set the tone for the entire social networking space. we had no revenue. As a result, we knew that our pitch would need to steer into investors’ biggest concern: the lack of revenue. Reid Hoffman.

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111

Steve Blank

FEBRUARY 26, 2020

There are two reasons to raise money: You have a killer idea that is only partially validated, that you think can get to $50M+ of revenue in 5 years with 80%+ gross margins (if margins are lower, you need a lot more revenue)and you need money to get to product-market fit, or. Not all startups need outside investment to grow.

Cofounder 431

Cofounder Seed Stage Valuation Metrics 431

Bryce Dot VC

SEPTEMBER 28, 2015

What that meant is that six companies a year could achieve a hundred million in revenue or a billion in valuation. Back in 2005 we started a venture firm called OATV, O’Reilly Alpha Tech Ventures, myself, my partner Tim O’Reilly, and my partner Mark Jacobson. I think that’s dangerous. or someone else. So we have.

Venture Capital 40

Venture Capital Valuation Los Angeles Chicago 40

Software By Rob

APRIL 2, 2014

With SaaS businesses the majority of revenue will be through monthly, quarterly or annual billing recurring payment plans. Ensure they document everything they do in detail. As a general rule of thumb, any passive income stream in an online business will attractive a premium valuation. Choose your payment processor carefully.

Affiliate 27

Affiliate Valuation Reputation Sales 27