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A heartbreaking story about time and money.

Berkonomics

How about young or pre-revenue companies? 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. And we were able to secure that investment along with a partner from that firm joining our board.

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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

To secure your funding, you must establish the feasibility of your idea through proper planning and implementation. 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. Many myths surround the subject of startup funding.

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Wasted time is money lost.

Berkonomics

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. It is not a strong bargaining position for the CEO to ask for money to complete a product promised for completion with the previous round of funding.

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Grow or Die – - Revenue growth must be the core strategy and drive all other strategies.

Scalable Startup

And by growth I mean revenue growth. Growth means bigger and more complex barriers to entry – more advertising, products, support and security for your users/buyers, advanced services, etc. Flat to negative revenue growth is a real red flag, especially for early stage companies. And protection form death. What about users?

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Need money? Read this!

Berkonomics

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). For those of you who fit that description, nice work. Do not expect grand valuations of your enterprise from these professional angels.

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Wasted time is money lost. (And another story of lost opportunity.)

Berkonomics

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. And we were able to secure that investment along with a partner from that firm joining our board.

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Sensitivity Analysis key in startup financial projections

NZ Entrepreneur

The statistics show that even though most founders bet their time and resources that their startups will be the best in the world, 90% of those new startups won’t be in operation in 10-15 years. For example, “How will unit cost affect our capital requirements and how will product pricing affect revenue?”

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