Startup Professionals Musings

JANUARY 4, 2015

Most aspiring entrepreneurs understand that you can’t build a business if you won’t commit to delivering a product or service, but many are hesitant or refuse to commit to any financial forecasts. Yet every business requires revenue and volumes, as certainly as it requires a product to sell. Forecast sales-volume expectations.

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Forecast Entrepreneur Burn Rate Widget 120

YoungUpstarts

OCTOBER 12, 2017

Many of these companies are pre-revenue and in the cash burn stage as they try to establish their technology and market. No entrepreneur wants to think that their business won’t last, but as they burn cash in the developing years they need to consider future implications — particularly funding.

San Francisco 133

San Francisco Forecast Early Stage Term Sheet 133

ReadWriteStart

APRIL 8, 2023

million people and generate monthly revenue. In my experience, I follow different resources, for instance, the Andreessen Horowitz blog , one of the top venture capital funds reporting trends in their newsletters, and INC.5000 TikTok and Influencers One viral video on TikTok can reach 1.5

eCommerce 185

eCommerce Technical Review Software Review Analytics 185

Up and Running

MAY 3, 2012

After all, entrepreneurs can do many good things, not least to create wealth and employment, pay taxes and help the balance of trade through exports. Sean Seton-Rogers of PROfounders Capital recently claimed that of the more than 3,500 business plans they had received, his London, U.K. Surely we can do better?

Entrepreneur 82

Entrepreneur Technical Review Silicon Valley Lean 82

Both Sides of the Table

JANUARY 6, 2014

When you first start your company and raise initial venture capital your board probably consists of 1-3 founders and 1-2 VCs. And here’s an important point that I think modern entrepreneurs often forget: Investors are “co-owners” of your business. There are just as many bad entrepreneurs who do bad things.

Technical Review 325

Technical Review Early Stage Software Review Los Angeles 325

Both Sides of the Table

OCTOBER 1, 2009

Consumer spending is 70% of the economy and will continue to be stretched – We can look all we want at tech innovation, VC funding cycles and hot M&A deals, but ultimately growth and therefore investment must be underpinned by revenue. The IMF just raised its global growth forecast from 2.5%

Technical Review 269

Technical Review Stock Hawaii Early Stage 269

David Teten

AUGUST 7, 2019

You identify the “hot” companies; network into them; and sell them on the value of accepting your capital. Likely signs of a Momentum investment: the round is oversubscribed and the entrepreneur has more negotiating leverage than VCs during the closing process. . LTV / CAC, revenue growth, etc.)

Venture Capital 60

Venture Capital Valuation Stock NDA 60

Steve Blank

NOVEMBER 16, 2009

In it, I got asked a question I often hear: “What if we have a web-based business that doesn’t have revenue or paying customers? And without revenue how do we know if we achieved product/market fit to exit Customer Validation?” They’re putting money into web services/business – most without early revenue. End of theory.&#

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Customer Development Web Developer Customer 219

David Teten

AUGUST 6, 2015

My colleague Paul Bianco serves as interim CFO for a number of ff Venture Capital ’s portfolio companies, and has built and reviewed hundreds of financial models. 6) Title your file in a format like [Company Name] [Forecast] [yyyymmdd], e.g., “[Company Name] Forecast 20150524″. HOW TO MAKE YOUR CELLS READABLE.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

Cracking the Code

FEBRUARY 23, 2011

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. It would have been easy to explain the difference by changes in the 2010/2011 revenue growth projections but unfortunately that is not the case. revenues while large caps are trading at 6.4x. Venture Capital. (3).

Software Review 101

Software Review Technical Review Valuation Europe 101

Startup Professionals Musings

DECEMBER 11, 2017

As an angel investor and business advisor on new ventures, I expect to see five-year financial projections from every entrepreneur. Does this entrepreneur understand the basics of business costs in the selected business domain, growth dynamics, and the competitive environment? Quantify overhead and growth costs.

Burn Rate 144

Burn Rate Forecast Angel Investor Revenue 144

The Next Web

FEBRUARY 27, 2014

As an example, a new restaurant may get valued at 3-4x EBITDA (earnings before interest, taxes, depreciation, and amortization) and a hot dot com business with meteoric traffic growth could get valued at 5-10x revenues. revenue, cash flow or net income multiples from recent M&A transactions in your industry.

Valuation 167

Valuation Forecast Seed Stage .Net 167

Up and Running

MAY 30, 2022

Actually writing a business plan is often a daunting task for potential entrepreneurs. This includes financial statements such as your profit and loss, cash flow, balance sheet, and sales forecast. Determines financial needs and revenue models. A business plan is essential for any entrepreneur or small business.

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Business Plan Balance Sheet Revenue Metrics 150

Up and Running

FEBRUARY 14, 2018

Entrepreneurs pitch their startup idea in hopes that one of the extremely wealthy and successful investors, or “sharks,” will invest in them. According to one Observer article , of the 40,000 applications the show received in 2016, only 180 entrepreneurs were able to pitch in front of the sharks. ” The premise?

Balance Sheet 90

Balance Sheet Business Plan Security Forecast 90

Up and Running

JULY 28, 2020

These loans and funds are set aside specifically for small businesses and entrepreneurs. Venture Capital and Angel Investment. Venture capital or angel investments are individuals or firms that are willing to pump funds into startups.

Small Business 118

Small Business SBA Bootstrapping Venture Capital 118

Cracking the Code

MARCH 12, 2010

So, here is the first edition, including the recent Q4 2009 earnings and the updated 2010 forecast. Given the predictability of SaaS GAAP revenues on a quarterly basis, the fact that the 08/09 projections were unchanged is not a surprise. Venture Capital. (3). Favorite VC and Entrepreneur blogs. internet. (6).

Software Review 63

Software Review Technical Review Cloud Forecast 63

Up and Running

MAY 28, 2015

He is the known guru in business planning, particularly for small businesses, startups and entrepreneurs, although he’s worked with Fortune 100 and Fortune 500 companies as well. That’s the sales forecast, the spending forecast and the cash flow. They’re going to look first at the sales forecast.

Lean 60

Lean Business Plan Video Software Review 60

Growthink Blog

APRIL 3, 2012

For example, having a financial model that shows you are going to grow from $0 to $100 million in revenues in 3 years is generally going to be frowned upon. But many do develop a natural pessimism against new entrepreneurs and ventures they meet. Since achieving such a feat is extremely rare.

Private Equity 97

Private Equity Venture Capital Equity Forecast 97

Steve Blank

JULY 28, 2011

The combination of Venture Capital and technology entrepreneurship is one of the great business inventions of the last 50 years. It provides private funds for untested and unproven technology and entrepreneurs. Filed under: Lean LaunchPad , Teaching , Venture Capital. – seems like another planet.

Engineer 278

Engineer Silicon Valley United States Intellectual Property 278

Growthink Blog

SEPTEMBER 13, 2017

The dream of every entrepreneur is to build a company successful enough so as to one day be able to attract a buyer to and for it. Company Scenario #2: A company with a solid revenue base - say more than $5 million in sales - but competes in an industry not one of great, current interest to buyers / investors.

Harvest 48

Harvest IP Software Review Forecast 48

Steve Blank

JULY 11, 2016

And world-class entrepreneurs never quit. How founders cope with startup challenges was the focus of today’s Entrepreneurs are Everywhere radio show. Jessica Mah started InDinero in 2010 to help entrepreneurs with their accounting and tax needs after going through the same challenges with her own businesses. Jessica Mah.

Silicon Valley 120

Silicon Valley Entrepreneur Cofounder Customer Development 120

Seeing Both Sides

JULY 21, 2014

As a result, the full revenue for each deal was recognized in that quarter as soon as the software was shipped. This allowed our revenue to skyrocket from $1.8 But the downside to our business model was that we did not have hardly any recurring revenue. . I later came to realize that r ecurring revenue is magic.

Revenue 54

Revenue Valuation Churn Rate Portfolio 54

www.forentrepreneurs.com

FEBRUARY 2, 2010

The company has just missed its quarterly revenue forecast. Lets take an example, and look at how they might do this: They will be able to tell you that revenue is composed of deals. To compute revenue, you multiply average deal size by number of deals. Bookings is the pre-cursor to Revenue. Obvious, isn’t it?

Metrics 55

Metrics Design Entrepreneur Startup 55

Up and Running

MAY 23, 2016

In fact, SaaS industry revenue is projected to grow from $49 billion in 2015 to $67 billion in 2018, a compound annual growth rate of approximately eight percent. While it’s useful to be able to have a sales forecast and expense budget early on, it’s not something you need until you’ve validated your idea. How to Do Market Research.

Software Review 74

Software Review Software Delaware Forecast 74

Tim Keane

JANUARY 12, 2010

Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react. Term-sheets and Valuations: Thinking about Negotiations.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Cracking the Code

JANUARY 22, 2009

While it may make sense to offer very slight adjustments for favorable payment terms and one time revenue, net additions to MRR should dominate the sales rep’s thoughts. 1 of MRR generates $12 of annual revenue, so $1 commission equals 1/12=8.3% of Year One Revenue Sounds high, but is that considered a reasonable package?

Software Review 91

Software Review Clawback Sales Salary 91

Up and Running

AUGUST 19, 2014

With this history, you can accurately forecast business decisions and needs that will eventually drive growth going forward—which will, eventually, lead to a situation where you can potentially give yourself a raise. Do you have any advice for other entrepreneurs? ” – Peter Thiel. Share it in the comments below. .

Salary 119

Salary Sweat Equity Silicon Valley Sales Cycle 119

Up and Running

MAY 15, 2018

As an entrepreneur, you will face several challenges while seeking the funds, in part because you’ll have to convince others that your idea is a solid investment. Whether you are hoping to expand a small business with a loan or going for a round of venture capital, you will need a scalable business model. Family and friends.

SBA 84

SBA Angel Investor Technical Review Startup 84

Steve Blank

DECEMBER 7, 2010

Jon Feiber of Mohr Davidow Ventures and Ann Miura-Ko of Floodgate are co-teaching the class with me (and Alexander Osterwalder is a guest lecturer.) We have two great teaching assistants , plus we’ve rounded up a team of 25 mentors (VC’s and entrepreneurs) to help coach the teams. If non-web, build demand creation budget and forecast.

Wiki 311

Wiki Lean Management Business Model 311

VC Cafe

MARCH 4, 2024

credit rating forecast dropped in November, and since then the S&P 500 index has jumped by 15%. credit rating forecast dropped in November, and since then the S&P 500 index has jumped by 15%. Investors do not give the credit rating the same attention as before. Wiz is valued at over $10 billion.

Technical Review 78

Technical Review Cofounder Venture Capital 78

Steve Blank

SEPTEMBER 3, 2009

Once the product begins to ship, startup sales execs use orders and revenue as its marker of progress in understanding customers. Well, because the revenue plan we promised the investors shows us generating customer revenue from the day of first customer ship.” Freemium models have their own scorekeeping.)

Customer Development 215

Customer Development Developer Customer Silicon Valley 215

Growthink Blog

JULY 19, 2017

I regularly speak with entrepreneurs and executives grappling with these "the world is passing me by" kind of forces and challenges, and I am both impressed and dismayed by the leadership and strategic choices that they try to make to save their businesses from them.

North Carolina 54

North Carolina Texas Forecast Leadership 54

VC Cafe

SEPTEMBER 26, 2022

The past year was a wild ride for startups and founders, giving a whole new meaning to the ”rollercoaster” aspect of being an entrepreneur. For more about forecasting growth in these uncertain times, check out Sequoia’s “ Adapting to Endure ” presentations published in May 2022.

Founder 187

Founder Startup Valuation Pre-Money Valuation 187

Steve Blank

OCTOBER 1, 2009

Sloan put in place GM’s management accounting system (borrowed from DuPont) that for the first time allowed the company to: 1) produce an annual operating forecast that compared each division’s forecast (revenue, costs, capital requirements and return on investment) with the company’s financial goals.

Silicon Valley 156

Silicon Valley United States RSS Customer Development 156

Tim Keane

JUNE 13, 2006

« How do you present your venture to an investor? A budget discussion with an entrepreneur. In other words, if you are forecasting 100 orders in the next quarter, at $10,000 each, I’d ask how many potential orders there are in the market, whether there is any existing competitive experience, and how you derived your timing.

Wisconsin 60

Wisconsin Entrepreneur Startup Angel Investor 60

BeyondVC

APRIL 2, 2009

.  And sure enough, it didn't take long for my friend to be questioned on the revenue model, potential market size and opportunity, and how long the cash would last.    We all know that coming up with market sizing and revenue forecasts for a startup is as accurate as the weatherman predicting the weather. 

Revenue 79

Revenue Forecast Lead Generation Analytics 79

BeyondVC

MAY 28, 2008

One area that I would like to caution entrepreneurs is being too aggressive on the milestones and revenue forecast, particularly in the near term. Like any other VC, I love to invest in companies going after big markets with huge revenue potential. When this happens the rest of your forecasts become more believable.

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Due Diligence Forecast Portfolio Revenue 60