Up and Running

DECEMBER 16, 2021

Metrics such as discretionary cash flow or business revenue are used. A company’s goodwill might be worth 2x more than the discretionary cash flow, or the accounting practice’s value might be worth 1 to 1.35x the annual revenue + work-in-progress (inventory). their net commission revenue. It has $600,000 in EBITDA.

Valuation 86

Valuation .Net Metrics Balance Sheet 86

Startup Professionals Musings

APRIL 8, 2015

If the company has been around for more than a couple of years, and still has no product or revenue flow, there better be a good explanation. One more key employee or one more investor will probably not turn the situation around. Look for examples of similar companies and revenue multiples achieved from acquirers.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

Startup Professionals Musings

APRIL 10, 2016

If the company has been around for more than a couple of years, and still has no product or revenue flow, there better be a good explanation. One more key employee or one more investor will probably not turn the situation around. Look for examples of similar companies and revenue multiples achieved from acquirers.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Women Entrepreneurs Can

FEBRUARY 8, 2023

Depending on the type of property you purchase, you may also benefit from tax deductions or additional revenue streams through tenant renting fees. Invest in Your Employees Investing in your employees is just as important as investing in technology or physical assets.

Artificial Inteligence 52

Artificial Inteligence Guerilla Technical Review Stock Options 52

YoungUpstarts

FEBRUARY 1, 2020

These are: Revenue Recognition issues. Share-based Compensation. Accounting for Income Taxes. Revenue Recognition. This accounting principle determines the exact conditions in which revenue is recognised and accounted. Stock Option Expensing. . Accounting for Income Tax. Share-Based Compensation.

CPA 165

CPA Stock Options Valuation Stock 165

Steve Blank

MARCH 16, 2016

For the first few years, your VCs want you to keep your head down, build the product, find product/market fit and ship to get to some inflection point (revenue, users, etc.). For example, in your industry do companies build value the old fashion way by generating revenue? If so, how is the revenue measured? FDA approvals?

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Venture Capital 120

Startup Professionals Musings

NOVEMBER 19, 2017

Here is my summary of the ten top creativity mistakes we both still see too often: Criticize any new idea or employee suggestion. Typical incentives give percentages of quarterly revenues and contribution as rewards for success. An even better alternative could be stock options, linked to the long-term success of the company.

Stock Options 141

Stock Options Incubator Framework Stock 141

Berkonomics

OCTOBER 21, 2021

Should be overwhelm prospective employees with stock options and perks? But more difficult is the sticky issue of employee incentive compensation. This one seems non-negotiable for many non-production-line workers and offers savings for both the company and employee if properly implemented and supervised.

Employee 62

Employee Stock Options Salary Stock 62

Both Sides of the Table

JULY 29, 2010

People buy companies for 3 primary reasons: 1) they want the management team / talent 2) they want the technology or 3) they want the market traction (revenue, customer base, profits, etc). Mark Jeffrey - Q: “Is it more traditional to do your ESOP (employee stock option plan) before or after your angel or Series A funding?&#

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

Startup Professionals Musings

SEPTEMBER 14, 2022

It better be an established company, with millions of dollars in annual revenue and profits, following generally accepted accounting, reporting, and audit procedures. Being a public company isn’t cheap or easy. Is your startup really ready to play in the corporate world? A classic survey from a while back sets the burden at up to $2.5M

Merger 261

Merger OTC IPO Due Diligence 261

Both Sides of the Table

JUNE 17, 2017

It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. Revenue When I look at an income statement I start by focusing on the revenue line. You need to understand the “quality” of the revenue.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Startup Professionals Musings

DECEMBER 8, 2019

It better be an established company, with millions of dollars in annual revenue and profits, following generally accepted accounting, reporting, and audit procedures. Being a public company isn’t cheap or easy. Is your startup really ready to play in the corporate world? A survey from a while back sets the burden at up to $2.5M

Merger 303

Merger OTC IPO Due Diligence 303

The Startup Magazine

JUNE 1, 2023

We’re hitting record revenue months, weeks, and margins. There are startups out there that are valued at a billion dollars, but because of employee salaries, assets, etc. Don’t be afraid to pivot The collapse of SVB spurred us to do a deep evaluation of how we’re generating revenue and value for customers.

Early Stage 110

Early Stage Los Angeles Silicon Valley Cofounder 110

Both Sides of the Table

AUGUST 28, 2009

And I made a version of this company-wide speech to our employees: “Look. I know that we haven’t brought in revenue as quickly as we had hoped. They haven’t hit their revenue targets. Don’t overset expectations for your employees on the way in. We do hand out stock options.

PR 331

PR Software Review Ireland Germany 331

Berkonomics

OCTOBER 12, 2017

They include an expense account, company car, profit sharing, 401k contributions, medical coverage for dependents, free life insurance, educational payments, extra vacation, relocation expenses, paid trips to industry association meetings, or a small override on revenue from new products developed under the candidate’s watch.

Employee 97

Employee Stock Options Dilution Salary 97

Up and Running

SEPTEMBER 20, 2021

And as the company grows, it brings on new people and may decide to issue stock options to attract new staff and funding from investors. Total share ownership is the sum of the common stock, stock options, preferred stock, and any other stock category for a single individual. Total share ownership.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

crowdSPRING Blog

OCTOBER 10, 2014

Stock option questions startup employees should ask | Business Insider – crowdspring.co/1n8lUje. 5 Things I Learned Analyzing Buffer’s Revenue Dashboard | Ivan Kreimer – crowdspring.co/1xfTwMG. The One, Life-Saving Change Workplaces Can Make For Their Employees – crowdspring.co/1r4ba0i.

Social Media 97

Social Media Small Business Design Media 97

Both Sides of the Table

APRIL 22, 2010

They make terrible employees. Why do job hoppers make such bad employees at startups? -. Your revenues are “just around the corner.&# Your angel investors are nervous because the VCs aren’t moving that fast to fund your next round. And he has already vested 75% of his stock options at your company.

Hiring 392

Hiring Employee Vesting Silicon Valley 392

Austin Startup

NOVEMBER 29, 2017

Namely, windfall revenue from oil means that the Texas taxman does not collect personal or corporate income taxes (on the state level). For the time being, you’ll spend 40–50% less on renting a home or office and 20–30% less on employee salaries, while not giving up that much in terms of the startup ecosystem.

Early Stage 48

Early Stage Austin Silicon Valley Texas 48

The Startup Magazine

AUGUST 6, 2021

Without them, you cannot earn any revenue. If your vision is powerful enough, you can make up for this by offering recruits stock options. Then, even if their salary is low, your employees would have the option of selling these options at a later date, if the company succeeds.

Limited Liability Company 163

Limited Liability Company Silicon Valley Business Model Stock Options 163

Startup Professionals Musings

JANUARY 13, 2018

It better be an established company, with millions of dollars in annual revenue and profits, following generally accepted accounting, reporting, and audit procedures. Being a public company isn’t cheap or easy. Is your startup really ready to play in the corporate world? A PwC survey averages the burden of public companies at $1.5M

Merger 198

Merger OTC IPO Due Diligence 198

YoungUpstarts

FEBRUARY 11, 2020

Whenever I start a new job or join a board, I spend time understanding what is really important to the company, especially around strategy, revenue and capital allocation. Early in my climb I was hyper-focused on title and pay, realizing later that good health was like a stock option that pays off later.

Switzerland 264

Switzerland Private Equity Stock Options Equity 264

YoungUpstarts

MAY 7, 2015

Employee stock ownership plans (ESOPs) can be an attractive way for an owner to sell a company and for employees to gain an ownership stake. ESOPs are qualified retirement plans that buy, hold and sell company stock for the benefit of employees. by Timothy L. Stewart and Bryan Browning .

Stock 100

Stock Employee Private Equity Valuation 100

ReadWriteStart

JANUARY 28, 2022

The market regards equity as an ownership “share” in a corporation’s income revenue stream. Also, equity is utilized to incentivize employees to work together toward a similar goal, whether that objective is to become the next unicorn or to be acquired by a major corporation. Equity for Employees.

Valuation 108

Valuation Equity Warrant Common Stock 108

VC Cafe

SEPTEMBER 16, 2021

She makes money for the platform that hosts her without receiving the legal and financial protections of employee status, or the stock options typically given to the platform’s engineers, designers, and managers. “What the creator economy promises, and what it actually does”, The New Yorker.

Startup 207

Startup Social Media Venture Capital Audio 207

Both Sides of the Table

MARCH 21, 2010

Plus, we’re all allured by the false sense that our contract with BigCo is going to “make us&# because once they start using us it will spread like wildfire and the revenue will flow in. They negotiate a “master agreement&# to work with your company with some maybe minimum guarantees in terms of revenue.

Warrant 298

Warrant Dilution Startup Stock Options 298

The Next Web

AUGUST 12, 2013

Define how you want to motivate your employees every day to produce high-quality and industry-leading results. Starting a global tech business with international, well-educated and highly-skilled people, generating millions of revenue per month, is incredibly hard. Prepare to fail, 95% do. That’s a tough one, but it’s so important.

Cofounder 119

Cofounder CTO Hire Startup Europe 119

Both Sides of the Table

SEPTEMBER 28, 2013

So the tech team departed en masse to find the next great stock option scheme to make their big bucks. An employee walks up to me and says, “Mark, I’m thinking about buying a house. Sure, our revenue is growing, but is that enough to raise an internal round? But we departed on good terms. Runway of cash.

Startup 417

Startup Dilution San Diego Stock Options 417

Startup Professionals Musings

MAY 3, 2014

It better be an established company, with millions of dollars in annual revenue and profits, following generally accepted accounting, reporting, and audit procedures. Being a public company isn’t cheap or easy. Is your startup really ready to play in the corporate world? Experts estimate the burden of public companies at up to $1M a year.

Merger 246

Merger OTC IPO Stock 246

YoungUpstarts

MARCH 11, 2015

But it’s an important consideration, especially for companies that plan to offer alternative compensation such as employee stock options, which will usually require a 409A valuation. Startup companies are often cash poor and have little in the form of current monetary compensation to offer their employees.

Valuation 100

Valuation Stock Options CPA Merger 100

Both Sides of the Table

SEPTEMBER 18, 2014

Revenue multiple? Less than you’ll probably grant your most junior employees in stock options? Stock Option plans. How will you price the next round? Your A round? Him: On metrics. We’ll have some proof points by then. What proof points? How will the lead determine a value? EBITDA multiple?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

The Next Web

SEPTEMBER 16, 2012

Do you get along with the employees? The best general rule of thumb is that if your role is to generate revenue for the company, then you are in Bucket X. If your role is not actively creating revenue, then you are in Bucket Y. What about company stock options? Long term goals? What will you be doing Day 1?

Stock Options 141

Stock Options Startup Stock Salary 141

Hearpreneur

DECEMBER 31, 2017

I have spent a great deal of time studying the fundamentals of stocks, option trades, goal-setting, and public speaking. But also I am excited to bring out my book and work with small businesses to focus on engaging more succesfully with their employees. All my studying and hard work has resulted in a breakthrough.

Entrepreneur 62

Entrepreneur Stock Options Programming Washington 62

Berkonomics

JULY 5, 2018

Or if you’re an employee with stock options, are you aware of the increases in value you can make with your efforts? Even small community service-providers can be sold to buyers hungry to get into a business already in revenue with a steady customer base. Dave’s book on exits.

Intellectual Property 90

Intellectual Property Management Stock Options Stock 90

Scalable Startup

AUGUST 9, 2018

Option Two: Once your product or service is up and running and gaining traction. If you’ve already soft launched, have a product available, are telling the world about your awesome company but don’t have revenue/user growth, you’re probably in the red zone. Option Three: Or don’t raise funding. They’re betting on you.

Technical Cofounder 20

Technical Cofounder Silicon Valley Early Stage Cofounder 20

Berkonomics

APRIL 4, 2019

These include election or re-election of board members if required by the bylaws of the corporation, approval of any increases to stock option plans (which would dilute the worth of shares outstanding,) and approve any additions to the capital stock authorized to be issued.

Stock Options 48

Stock Options Balance Sheet Stock Common Stock 48

Both Sides of the Table

NOVEMBER 4, 2009

Now … these are stock options and not restricted stock so you’ll likely be taxed at a long-term capital gains rate. When I was CEO of my first company (where I admittedly F’d up everything before I figured it all out) we initially calculated for people how much there options were going to be worth some day.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418