Down Round Finance Revenue Sales 
Berkonomics
OCTOBER 5, 2023
Since this number is budgeted and pre-authorized, managers tend to focus upon other things such as sales, marketing and product development issues. How about young or pre-revenue companies? And professional investors often penalize the company with lower-priced down rounds or expensive loans as a result.
Berkonomics
AUGUST 10, 2017
Since this number is budgeted and pre-authorized, managers tend to focus upon other things such as sales, marketing and product development issues. Although young companies rarely measure profitability this repeatedly, more mature companies usually can bring from five to ten percent of revenues to the bottom line in the form of net profit.
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Both Sides of the Table
JUNE 5, 2011
Then you can do a little bit of research and find out that very few companies ever achieve this valuation in a trade sale so you’re clearly gunning for an IPO. That’s the deal you get when you’re raising in a good market for startup financing. I raised my A round at a $31.5 That’s fine. It was early 2000.
Both Sides of the Table
JUNE 22, 2011
Ah, but today’s Internet companies have real revenue! New investors hate down rounds. Huge structural under-employment in much of the country and full employment in some niche tech markets where it’s impossible to hire developers, designers or sales professionals. Or worse yet they may never get financed.
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. Instead of funding, you pay the investors a structured royalty, which is a portion of the sales. Reasons for funding. ? Royalty based investment. Government programs.
Berkonomics
AUGUST 3, 2023
Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.
Lightspeed Venture Partners
OCTOBER 7, 2012
The company has done $400k in sales in less than two years and had an early test deal with a local supermarket chain that they were massively overperforming on. He had been at it for 6 months and had no sales or distribution lined up yet. They won a design award at a trade show, but have no revenue and no orders. WRAP UP.
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