Startup Professionals Musings

NOVEMBER 26, 2012

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

Startup Professionals Musings

MARCH 25, 2023

Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation. Startup productivity is embodied in key ratios, including low cost of customer acquisition, high retention, and high revenue per employee. Most are still confused about the right priority.

Valuation 235

Valuation Revenue Viral Retention 235

Startup Professionals Musings

JUNE 21, 2020

Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation. Startup productivity is embodied in key ratios, including low cost of customer acquisition, high retention, and high revenue per employee. Most are still confused about the right priority.

Revenue 434

Revenue Valuation Viral Retention 434

Startup Professionals Musings

OCTOBER 20, 2017

The pervasive Internet and mobile device access allows instant communication of new options, total sharing of customer experiences, and mass customization, on a world-wide scale. The smarter ones look outside regularly for evidence of impending change, and treat these as opportunities to jump ahead of competitors.

Technical Review 136

Technical Review Demand Valuation Business Model 136

Steve Blank

MARCH 31, 2014

Just look at the disruptive challenges that businesses face today– globalization, China as a manufacturer, China as a consumer, the Internet, and a steady stream of new startups. Look at the valuations of companies like Tesla, Illumina, and Twitter. The stock market clearly values companies that can deliver disruptive innovation.

Private Equity 329

Private Equity Metrics China Intellectual Property 329

Startup Professionals Musings

SEPTEMBER 6, 2010

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Gust

NOVEMBER 18, 2012

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

YoungUpstarts

JUNE 29, 2020

estimates in their recent report that medical products will have a very high global market valuation, crossing 30 billion US dollars by 2026. All these things are possible because a smart TV can be connected to Wi-Fi or any Internet source to access certain apps, like YouTube and Netflix.

Demand 173

Demand Product Artificial Inteligence Software Review 173

Startup Professionals Musings

MAY 4, 2016

Who would not want to joint the unicorns (recent startups with a current valuation of over $1 billion)? Rounding out the team with employees and freelancers. With the Internet and modern video communication tools, including Skype and Google Hangout, you can find the people you need, from anywhere in the world, and sign them up quickly.

Intellectual Property 120

Intellectual Property Startup Angel Groups Social Media 120

YoungUpstarts

JUNE 20, 2016

Before the advent of cloud technology and the Internet, company files had to be stored away in physical data rooms (PDRs). The switch from PDRs to VDRs resulted in deal cycles and increased valuations. Corporations store employee records, confidential HR information and other management data in secure Virtual data rooms.

Software Review 100

Software Review Technical Review Due Diligence Security 100

Haystack

DECEMBER 29, 2018

Also during this time, the underlying metrics in that business can change positively, potentially trapping companies to accept the initially-agreed upon valuation. by a mile, continued to soar in volume and valuation. Influenced by the rapid growth of the bike-sharing craze in China, a savvy Uber employee spun out to create Bird.

Technical Review 165

Technical Review Venture Capital Russia China 165

VC Cafe

JULY 4, 2022

The WSJ confirmed what we already know: Q2 venture capital investments declined both in size and in valuation. billion valuation, according to the WSJ, down from $45.6 Declining investment: U.S. VC funds invested about $47.5 VC funds invested about $47.5 Venture Capital Feels the Stock Market’s Pain, Wall Street Journal.

Venture Capital 167

Venture Capital Valuation Private Equity LP 167

www.entrepreneur.com

SEPTEMBER 22, 2011

Answers Ask Entrepreneur Home Business Operations Business Opportunities Sales & Marketing Advertising & PR Finance & Accounting Franchises Home Business Human Resources Internet/E-Commerce Legal Issues Starting Up Technology Most Recent Answers How Can I Streamline My E-Commerce Operation? What is Sweat Equity Worth? BY Asheesh Advani. |.

Sweat Equity 55

Sweat Equity Equity Fractional CTO CTO 55

Gust

NOVEMBER 4, 2011

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. Valuation caps can come into play in settings other than seed-stage convertible note financing rounds. Read on for a fuller explanation.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Up and Running

SEPTEMBER 10, 2014

So, if you reference Software as a Service, you might want to add, “A piece of software you access through the internet and is paid for on a subscription basis, like Salesforce.com.” Be realistic about your valuation. You may have heard a valuation should be doubled because investors will cut it in half. ABP: Always be pitching.

Angel Investor 159

Angel Investor Technical Review Software Review Accredited Investor 159

Both Sides of the Table

APRIL 26, 2016

The key to being able to run a business that isn’t yet profitable (on operating margin) is availability of capital to finance losses and preferably at a cost that isn’t too punitive to the founders and employees. This can be a spectacular situation IF there is freely available capital to fund the company at good valuations.

Metrics 150

Metrics Cost Acquisition Startup 150

Both Sides of the Table

JULY 25, 2010

The key to this strategy is getting 5 people who form the social proof to help you get a bigger angel round done at a higher valuation by tons of industry insiders and thus offering the social proof you need attract great employees and ultimately venture capital investors.

Silicon Valley 293

Silicon Valley Technical Review Southern California Angel Investor 293

David Teten

MAY 1, 2013

Wesabe lost out to Mint.com ; Noah Kagan, employee #5 at Mint, later wrote that the awkward Wesabe name was a key reason. Domain names are less important than they were in the first Internet wave, because so many people will access your service on mobile and/or via apps, and because type-in traffic is declining.

Naming 114

Naming Semantic Venture Capital Startup 114

Startup Professionals Musings

SEPTEMBER 30, 2011

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

Startup Professionals Musings

JUNE 26, 2016

Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation. It’s only been in the last ten years that social media companies, like Facebook and Twitter, have achieved market valuations in billions of dollars, while clearly sacrificing revenue to gain users.

Revenue 145

Revenue Valuation Startup Viral 145

Startup Professionals Musings

AUGUST 10, 2014

Should they focus on increasing revenues and profitability, or entice more and more users with free services to increase their valuation. Startup productivity is embodied in key ratios, including low cost of customer acquisition, high retention and high revenue per employee. Most are still confused about the right priority.

Revenue 246

Revenue Entrepreneur Valuation Viral 246

Startup Professionals Musings

OCTOBER 24, 2021

Don’t pick a company name until you are certain that you can get the comparable domain name, so Internet brokers won’t hold you hostage. Internet domain name. Internet domain names can be acquired from most hosting providers or Network Solutions , for as little as $10/year each. This name (www. Business Plan. Marty Zwilling.

Intellectual Property 363

Intellectual Property Portfolio Valuation Non-disclosure Agreement 363

Startup Professionals Musings

AUGUST 5, 2013

It’s no fun on this plateau, just “making payroll,” and watching some employees make more then you as the Founder. At this stage you were expecting to be working on creating a good business valuation to attract future buyers, or at least funding college accounts for your kids. Streamline management costs. Make everyone a salesperson.

Entrepreneur 234

Entrepreneur Vertical Reputation Valuation 234

Steve Blank

SEPTEMBER 14, 2009

In theory when you went public, everyone’s shares were now tradable on the stock exchange, but usually the underwriters required a six month “lockup” when company insiders (employees and investors) couldn’t sell. The boom in Internet startups would last 4½ years until it came crashing down to earth in March 2000. billion.)

Silicon Valley 235

Silicon Valley IPO Technical Review Venture Capital 235

www.inc.com

SEPTEMBER 24, 2011

Employee Benefits. Internet and Online Business. Jumpstart wasnt much at the time, just four employees working from home offices. In the past few years, hundreds of small companies have been snatched up by private equity firms willing to agree to ever-rising valuations. Exit Strategies. Personal Finance. Leadership.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Cracking the Code

OCTOBER 27, 2008

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. Lehman Bank employees stage a protest by blockading the entrance to the Banks Headquarters. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. internet. (6). Hard times.

Software Review 48

Software Review Technical Review Europe Venture Capital 48

Startup Professionals Musings

JULY 6, 2012

It’s no fun on this plateau, just “making payroll,” and watching some employees make more then you as the founder. At this stage you were expecting to be working on creating a good business valuation to attract future buyers, or at least funding college accounts for your kids. Streamline management costs. Make everyone a salesperson.

Startup 236

Startup Vertical Reputation Valuation 236

Cracking the Code

JULY 10, 2009

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. When I complained at the United Airlines desk, the employee looked at me in disdain, saying that this was not enough to be called a "damage" and that - of course - she could not do anything for me. SaaS 13 Index Valuation.

Software Review 63

Software Review Technical Review RSS Europe 63

Cracking the Code

NOVEMBER 10, 2009

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. The internet is your new channel and Technology Enabled Service providers are among the few partners that actually care if you succeed (more.) Build Employee Software. SaaS 13 Index Valuation. internet. (6).

Software Review 48

Software Review Cloud Technical Review Sales Cycle 48

Startup Professionals Musings

MARCH 28, 2011

It’s no fun on this plateau, just “making payroll,” and watching some employees make more then you as the founder. At this stage you were expecting to be working on creating a good business valuation to attract future buyers, or at least funding college accounts for your kids. Streamline management costs. Make everyone a salesperson.

Startup 230

Startup Vertical Reputation Valuation 230

Start Up Blog

APRIL 28, 2011

There are 5 senses, and we still can’t experience 3 of them on the internet – so we must complete the connection / transaction off line…. The internet is trying to mimic the real world. The internet is in every second pocket. People born after 1995 have never know life without the internet. Maybe Paypal will do it for us?

Moldova 91

Moldova Internet Australia Libya 91

Steve Blank

JANUARY 4, 2010

In fact, Google’s offer for $15 Million was equal to the highest valuation from the venture firms. They hired a world-class team with co-founders and early employees who shared their vision. After that, there was no doubt to existing employees and new hires what the company was aiming for. One founder quit and joined Google.)

Hockey Stick 299

Hockey Stick Venture Capital Startup Cofounder 299

David Teten

SEPTEMBER 23, 2017

Meyler Capital is taking the analytical rigor of modern internet marketing and applying it to fund marketing. Close to 80% responded that manual processes, such as tracking down support, preparing reports and pulling data from different sources, are the biggest pain points they face in the valuation process. 2) Raise capital.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

www.inc.com

SEPTEMBER 24, 2011

Employee Benefits. Internet and Online Business. Back in 1997, Randy Parker was staring at a blank whiteboard, wondering where hed find the money to hire the employees and consultants he needed to build his new product. "We a 50-employee provider of e-marketing solutions to small and midsize businesses, based in Needham, Mass.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

ReadWriteStart

SEPTEMBER 10, 2012

The new generation of billion-dollar internet companies is built on revenue. Users do still figure into the equation when VCs evaluate an Internet startup. Instagram reached 80 million users with only six employees. So a lot of Internet startup founders now emphasize early revenue when they pitch VCs. Revenue Rules.

Burn Rate 148

Burn Rate Startup Revenue Valuation 148

The Equity Kicker

JANUARY 25, 2016

On Friday it seemed like everyone in the venture capital industry was again reading about market turmoil, this time the news is that angel investors are pulling back and valuations taking a hit. The best startups capture all the returns so focusing too much on entry valuation is a mistake. I read it too, because it’s a big deal.

Venture Capital 60

Venture Capital Angel Investor Startup Participating Preferred 60

thebarefootvc

DECEMBER 16, 2011

Discovery, in contrast to search, took center stage as Pinterest displayed hockey stick growth (and raised VC money near a $200M valuation in late 2011). As penetration peaks in the Western countries (see my post on global internet trends), startups are looking to expand quickly to underpenetrated markets before local solutions are developed.

Technical Review 110

Technical Review India Mobile Hockey Stick 110