Startup Professionals Musings

FEBRUARY 1, 2015

In the old days, every entrepreneur dreamed of easily taking their startup public, and making it big. Today the rate of startups going public (IPO – Initial Public Offering) is up from the dead zone, but is still less than half the rate of 15 years ago. entrepreneur IPO m&a startup Stock Exchange'

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IPO SEC Prospectus Startup 120

Startup Professionals Musings

MAY 29, 2022

In the old days, every entrepreneur planned on taking their startup public, and making it big. Today the rate of startups going public (IPO – Initial Public Offering) is finally up from the dead zone of the last two decades, and is now double the rate back in 1999.

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IPO SEC Prospectus Startup 245

Startup Professionals Musings

DECEMBER 8, 2019

With the current strong economy, as an active startup mentor, I’m seeing a new surge of entrepreneurs and startups, with the commensurate scramble for funding. Thus I’m getting more questions on new mechanisms, like crowd funding, or going public through the side door as a reverse merger. Being a public company isn’t cheap or easy.

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YoungUpstarts

MAY 31, 2016

It requires that company size is factored into their understanding and that these guiding best practices can be appropriately scaled or right-sized to accommodate for start-ups and entrepreneurs. Develop and evolve your company’s product brands through your customer’s eyes. Think narrowly. Is a marketing plan important?

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Startup Professionals Musings

AUGUST 19, 2018

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

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Angel Investor Intellectual Property Investment Bankers Private Equity 184

Startup Professionals Musings

JANUARY 13, 2018

With the current strong economy, as an active startup mentor, I’m seeing a new surge of entrepreneurs and startups, with the commensurate scramble for funding. Thus I’m getting more questions on new mechanisms, like crowd funding, or going public through the side door as a reverse merger. Being a public company isn’t cheap or easy.

Merger 198

Merger OTC IPO Due Diligence 198

Startup Professionals Musings

JULY 4, 2014

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Angel Investor 232

Angel Investor Intellectual Property Investment Bankers Private Equity 232

VC Cafe

MARCH 11, 2010

T aking a company through an initial public offering (IPO) is not an easy task. It’s also an uncertain exit for the entrepreneurs, as they are typically restricted to sell any of their stock in the first 180 days following the IPO, and even then they can sell no more than 1% of stock a month. million in 2009.

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IPO SEC Initial Public Offering Stock 68

Startup Professionals Musings

MAY 3, 2014

With the uptick in the economy, as an active startup mentor, I’m seeing a new surge of entrepreneurs and startups, with the commensurate scramble for funding. This approach is not for entrepreneurs already out of money. Being a public company isn’t cheap or easy. Increased jeopardy and less fun for the entrepreneur.

Merger 246

Merger OTC IPO Stock 246

Startup Professionals Musings

SEPTEMBER 7, 2015

Entrepreneurs often ask me why investors expect financial projections for a new startup even before the product is built and while the market is still being defined. I recently saw a startup projecting $50 million in revenue for the first year. Revenue projections show penetration of target opportunity. Neither extreme is good.

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Liquidity Event Startup Initial Public Offering Equity 120

Startup Professionals Musings

FEBRUARY 19, 2012

Entrepreneurs love the art of the start. Assuming your startup takes off, you will probably find that the fun is gone by the time you reach 50 employees, or a few million in revenue. For bigger companies, it’s a more efficient and quicker way to grow their revenue than creating new products organically. Liquidation and close.

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Exit Strategy Initial Public Offering IPO Startup 241

Startup Professionals Musings

AUGUST 13, 2016

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

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Matching Angel Investor Intellectual Property Investment Bankers 120

Startup Professionals Musings

SEPTEMBER 11, 2013

In the old days, every entrepreneur dreamed of someday taking their startup public, and making it a multi-national powerhouse. In my view, the key reasons that IPOs have lost their luster from an entrepreneur and investor perspective include the following: The US IPO process seems broken. Marty Zwilling.

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IPO SEC Prospectus Startup 242

ReadWriteStart

FEBRUARY 13, 2020

For most startups, it’s no secret that a significant part of their long-term plans is to go public and become the next market darling for investors. If you use history as a guide, I’m afraid you’ll find no real consensus on the matter of when to go public with your startup.

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IPO Startup Stock Initial Public Offering 147

Startup Professionals Musings

JANUARY 5, 2011

Entrepreneurs love the art of the start. Assuming your startup takes off, you will probably find that the fun is gone by the time you reach 50 employees, or a few million in revenue. For bigger companies, it’s a more efficient and quicker way to grow their revenue than creating new products organically. Liquidation and close.

Exit Strategy 231

Exit Strategy Initial Public Offering Startup IPO 231

Startup Professionals Musings

JUNE 15, 2015

With the uptick in the economy, as an active startup mentor, I’m seeing a new surge of entrepreneurs and startups, with the commensurate scramble for funding. Thus I’m getting more questions on new mechanisms, like crowd funding, or going public through the backdoor as a reverse merger. Being a public company isn’t cheap or easy.

Merger 120

Merger OTC IPO Due Diligence 120

Steve Blank

MARCH 18, 2011

VC’s worked with entrepreneurs to build profitable and scalable businesses, with increasing revenue and consistent profitability – quarter after quarter. The reward for doing so was a liquidity event via an Initial Public Offering. For VC’s and entrepreneurs the gold rush to liquidity was on.

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Startup Professionals Musings

OCTOBER 13, 2010

At this stage, your startup better be selling a commercial offering, have price and cost validated, with significant customer sales and a real revenue stream. This normally means more then 30 employees, and more then $1 million in revenue. Tags: entrepreneurs founders startup stages investors business. Growth stage.

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Investment Bankers Venture Capital Startup Initial Public Offering 231

Startup Professionals Musings

FEBRUARY 5, 2012

At this stage, your startup better be selling a commercial offering, have price and cost validated, with significant customer sales and a real revenue stream. This normally means more then 30 employees, and more then $1 million in revenue. Lesser amounts remain in the angel realm. Growth stage. Exit stage.

Investment Bankers 241

Investment Bankers Venture Capital Startup Initial Public Offering 241

Austin Startup

FEBRUARY 12, 2019

Those were CEOs of public companies and founders or executives of some of the fastest-growing and most successful tech companies in Austin and tech. Those were teachers, accountants, consultants, entrepreneurs, and community leaders. Are there amazing Silicon Valley VCs out there with whom entrepreneurs should work to partner?

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Silicon Valley Technical Review Venture Capital San Francisco 48

Berkonomics

JULY 8, 2021

Years ago, a young entrepreneur joined one of the roundtables, and we followed his progress with his issues, many of them directly related to fundraising, as he grew his company from a raw start-up to an initial public offering on the NASDAQ exchange, followed by continued growth in revenues and stock price.

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Initial Public Offering Angel Investor Stock Email 62

Startup Professionals Musings

JANUARY 16, 2011

It has been at least a decade since going public via an Initial Public Offering (IPO) has been considered a credible exit strategy for startups. Draper III, in his new book titled “ The Startup Game.”

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IPO Social Media Media Exit Strategy 223

Gust

NOVEMBER 22, 2011

At this stage, your startup better be selling a commercial offering, have price and cost validated, with significant customer sales and a real revenue stream. This normally means more then 30 employees, and more then $1 million in revenue. Lesser amounts remain in the angel realm. Growth stage. Exit stage.

Venture Capital 171

Venture Capital Investment Bankers Angel Investor Initial Public Offering 171

YoungUpstarts

MARCH 11, 2015

With the daily demands of running a business along with the financial pressures and challenges inherent in early-stage companies, a business valuation may not be the first thing an entrepreneur thinks of when he awakes each morning. A company can have value, even if there is no current income or revenue.

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Startup Professionals Musings

NOVEMBER 2, 2018

Without profit, there is no longevity to any business, so I’m always surprised when sincere young entrepreneurs avoid using the term, as if “profit” is a bad word. Every entrepreneur, and every investor, needs targets and a conviction that your business will be sustainable, and will provide a return-on-investment (ROI) to all constituents.

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Intellectual Property Initial Public Offering Merger Acquisition 48

online.wsj.com

SEPTEMBER 23, 2012

An entrepreneur with a hot technology and venture-capital funding becomes a billionaire in his 20s. If failure is defined as failing to see the projected return on investment—say, a specific revenue growth rate or date to break even on cash flow—then more than 95% of start-ups fail, based on Mr. Ghoshs research.

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Venture Capital Software Review Rhode Island North Dakota 107

Growthink Blog

MAY 23, 2011

An entrepreneur starts a company in classic " bootstrap " fashion - with a combination of sweat equity and their own financial resources. The angel then introduces the entrepreneur to his or her wealthy friends and business connections who, based on the good reputation of the referring angel, also invest. All live happily ever after.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

Reid Hoffman

MARCH 19, 2019

Tim O’Reilly’s recent article, “ The fundamental problem with Silicon Valley’s favorite growth strategy ,” makes an impassioned argument that the ideas in our book, Blitzscaling , encourage entrepreneurs to behave in ways that are irresponsible or even dangerous in the pursuit of what he characterizes as “runaway growth.”

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Cofounder Business Model IPO Non-Compete 28

Berkonomics

DECEMBER 31, 2014

Ten years ago, a young entrepreneur joined one of the roundtables, and we followed his progress with his issues, many of them directly related to fundraising, as he grew his company from a raw start-up to an initial public offering on the NASDAQ exchange, followed by continued growth in revenues and stock price.

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Initial Public Offering Angel Investor Stock Email 70

Version One Ventures

JULY 20, 2015

Our rule of thumb is that marketplaces at scale are valued at roughly 1x annualized GMV (typically about 6-8x annual revenue). Consensus estimate of approximately $270M for 2015 revenue. Etsy had a market cap of about $2.22B as of July 20, with a revenue multiple of 8.2 Our assumptions for this valuation: Scale: > $1b GMV.

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Valuation Early Stage IPO eCommerce 60

ReadWriteStart

APRIL 2, 2012

The real truth is, since the "Internet bubble" burst in 2001, initial public offerings have not resumed the vitality levels of the late 1980s, let alone the boom years of the '90s. It refers to this specific, new group of young, low-revenue companies for whom some of the SOX reporting regulations will no longer apply.

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IPO Startup Florida Seed Capital 121

Growthink Blog

MAY 10, 2012

Necessary machinery, an initial website, your first batch of inventory-things you can't function without. Put everything else on your "wish list" to buy with revenues from sales or additional financing. Many entrepreneurs end up taking their company in a different direction after some time spent testing your initial business model.

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Equity Mezzanine Later Stage Venture Capital 88

Pascal's View

MARCH 9, 2010

To conclude on this question, I’d like to emphasize that, in my view, for early stage companies with little or no revenue, valuation models driven by public equity or option inspired equity models simply make no sense. Share and Enjoy:

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