Startup Professionals Musings

AUGUST 19, 2017

Most entrepreneurs struggle with many startup founders dilemmas in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. Not facing these dilemmas squarely and honestly is one of the biggest pitfalls facing every entrepreneur. Marty Zwilling.

Hockey Stick 144

Hockey Stick Cofounder Entrepreneur Liquidity Event 144

Berkonomics

JANUARY 7, 2021

Think of startups and early stage businesses whose entrepreneurs you know. One: The entrepreneur. First, there is the entrepreneur , the visionary, and force behind the venture from start to finish. So, co-management is the second group to share in the bounty upon a liquidity event. Two: Co-management.

Liquidity Event 96

Liquidity Event Pre-Money Valuation Cofounder Initial Public Offering 96

Berkonomics

AUGUST 17, 2023

A personal story as an investor … [Email readers, continue here…] My very first investment as a professional angel was in a small startup where the entrepreneur’s vision fueled my imagination in the audio market niche where I had run a business in an earlier life. Trust works both ways.

Liquidity Event 118

Liquidity Event Stock Options Stock Audio 118

Steve Blank

JULY 15, 2010

The Golden Age for Entrepreneurs and VC’s. The two decades from 1979 when pension funds fueled the expansion of venture capital to 2000 when the dot-com bubble burst were the Golden Age for entrepreneurs and venture capital firms. Number of Venture Backed Liquidity Events 1991-2000. What Does it Mean to an Entrepreneur?

Venture Capital 297

Venture Capital IPO Liquidity Event Entrepreneur 297

Startup Professionals Musings

AUGUST 10, 2019

Most entrepreneurs struggle with many startup founders quandaries in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. Not facing these dilemmas squarely and honestly is one of the biggest pitfalls facing every entrepreneur. Marty Zwilling.

Hockey Stick 243

Hockey Stick Cofounder Liquidity Event Startup 243

Gust

DECEMBER 1, 2011

When meeting with early stage entrepreneurs for the first time, after reviewing a demo or hearing their pitch, I often ask them to articulate what they’re most focused on building. I don’t fault entrepreneurs for relegating startup legal work to the bottom of their daily triage list; founders are spread incredibly thin.

IP 114

IP Intellectual Property Equity Liquidity Event 114

David Teten

MARCH 14, 2018

– Build out low-cost force multipliers such as scouts , Advisors, Entrepreneurs in Residence, Venture Partners, and so on. VC is a “get rich slow” business, because most VC Partners will not see a carry check for 5-10 years, after waiting for both liquidity events and for LPs to be paid first.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

Startup Professionals Musings

JULY 27, 2018

I’m still amazed at how many technical entrepreneurs don’t have a business pitch, and offer me their product pitch or product spec instead. Solo entrepreneurs have a hard time finding an investor. Discussion of likely liquidity events and exit strategy. Intellectual property and sustainable competitive advantage.

Product 145

Product Intellectual Property Liquidity Event Valuation 145

Berkonomics

AUGUST 3, 2023

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). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Berkonomics

APRIL 20, 2023

We have years of real data to call upon: data that impacts both investors and entrepreneurs. years before a liquidity event (positive or negative.) Entrepreneurs will always start new enterprises. Restaurant startups would not top my list. Data does not lie. How about the early-stage investors?

SBA 62

SBA Angel Investor Early Stage Liquidity Event 62

Berkonomics

FEBRUARY 20, 2020

More than ever, the banks and lenders today require personal guarantees from entrepreneurs, and even from CEO’s of angel or some VC funded businesses. Starting and running a small or growing business can be a challenge to the most confident and optimistic entrepreneur. A novel reward for the entrepreneur from the board.

Warrant 62

Warrant Liquidity Event Stock Finance 62

Berkonomics

FEBRUARY 3, 2022

First, the implied promise: Taking money from professional investors such as angels or VCs usually requires that you agree to seek an exit for those investors in your plan, often targeting five to seven years as the ideal period for growth before a liquidity event. What if you later decide to just keep control? (You

Liquidity Event 62

Liquidity Event Preferred Stock Dividend Equity 62

Startup Professionals Musings

JUNE 6, 2016

The challenge for these entrepreneurs is to know when to exit, and how to do it smoothly in a win-win fashion for themselves and the business. Some entrepreneurs are leaders, others are good managers and still more are happy to be the do-ers. The best entrepreneurs enjoy the challenges of the journey, more than the destination.

Liquidity Event 120

Liquidity Event Startup Angel Investor Entrepreneur 120

Up and Running

SEPTEMBER 19, 2017

Background: Adam Carlson is a serial entrepreneur who has successfully raised private capital at three different technology startups. Private equity investments are an important part of many startup business’s plans for accelerating growth or providing founders with a liquidity event. Consequently, he passed. Conclusion.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Startup Professionals Musings

JULY 19, 2013

Most entrepreneurs struggle with many startup Founders dilemmas in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. Not facing these dilemmas squarely and honestly is one of the biggest pitfalls facing every entrepreneur. Marty Zwilling.

Founder 245

Founder Hockey Stick Cofounder Liquidity Event 245

Berkonomics

JUNE 12, 2014

First, there is the entrepreneur , the visionary, and force behind the venture from start to finish. Few entrepreneurs can do it alone, with subordinate hired help and no expert management to share the burdens, skill sets and efforts involved in growing the enterprise. Email readers, continue here.]

Liquidity Event 85

Liquidity Event Pre-Money Valuation Cofounder Initial Public Offering 85

Startup Professionals Musings

AUGUST 17, 2014

Most entrepreneurs struggle with financial projections, not wanting to commit to numbers they can’t deliver, and having no clue what investors might consider reasonable. Most entrepreneurs, with no experience, believe that they can make good money with lower margins than competitors. Gross margins greater than 50%. Marty Zwilling.

Liquidity Event 249

Liquidity Event Equity Venture Capital Merger 249

Startup Professionals Musings

MAY 28, 2013

Most entrepreneurs struggle with financial projections, not wanting to commit to numbers they can’t deliver, and having no clue what investors might consider reasonable. Most entrepreneurs, with no experience, believe that they can make good money with lower margins than competitors. Gross margins greater than 50%. Marty Zwilling.

Liquidity Event 243

Liquidity Event Startup Equity Venture Capital 243

Berkonomics

OCTOBER 28, 2021

The biggest mistake many corporate marketers, entrepreneurs and even investors make in the initial stages of planning – overstating the size of the (SOM) serviceable obtainable market. Yet, there are wonderful cases where entrepreneurs created and grew vast enterprises in new markets which could not be measured when their journey began.

Liquidity Event 62

Liquidity Event .Net Differentiation Entrepreneur 62

Women Entrepreneurs Can

NOVEMBER 19, 2022

Investors receive a healthy return on investment when the company reaches a liquidity event. The entrepreneur needs to have a functioning business model and a working product to get seed funding. Using a venture capital firm can help entrepreneurs make strategic decisions that are best for their business.

Venture Capital 52

Venture Capital Early Stage Liquidity Event SEC 52

Startup Professionals Musings

MAY 18, 2015

When an entrepreneur first incorporates his or her business, he or she may find him or herself the proud owner of 10 million shares of common stock, commonly called founder’s shares. Startup owners need to assume a three to five year wait for a liquidity event, such as acquisition or going public, before they can cash out.

Stock 120

Stock Vesting Common Stock Founder Vesting 120

Berkonomics

SEPTEMBER 20, 2018

Most entrepreneurs and certainly all investors would like to see “a positive liquidity event” (a good sale of the business) someday. Not only will group focus upon the possibility of a liquidity event, it will begin to focus upon a number of possible buyers. So, that’s the reason for this insight.

Liquidity Event 48

Liquidity Event Intellectual Property Naming Acquisition 48

Berkonomics

NOVEMBER 15, 2018

Looking back over an entrepreneur’s journey. As I look back over more than fifty years as an entrepreneur, I can think of the financial focus of my three entrepreneurial businesses as a prime driver in my life during the early stage of each. But, for this short moment…. The rewards of angel investing.

Liquidity Event 48

Liquidity Event Early Stage Government Leadership 48

View from Seed

MAY 19, 2015

Below, I’ve compiled what I’ve learned to be the seven “Founding Sins” – common mistakes which often divert entrepreneurs off the path towards success. Great ideas search for a great entrepreneur; great entrepreneurs don’t search for a great idea. Inauthenticity. It’s a full-time life. And then some. Taciturnity.

Seed Stage 120

Seed Stage Liquidity Event Cofounder Startup 120

Startup Professionals Musings

AUGUST 7, 2015

When pitching to investors, entrepreneurs always seem to start with a customer pitch, then add a slide or two about the business. Investors are business experts, while the entrepreneur is more likely the product expert. The entrepreneur needs to show a strategy for such an event, and a projected value and return to the investor.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

Startup Professionals Musings

DECEMBER 11, 2015

As an angel investor, I hear many entrepreneurs making negative comments about competitors or asserting they don’t have any competitors. Investors need a liquidity event to get their money out. The smart approach is to find competitors to highlight your strengths. Highlight opportunities for 'coopetition' and strategic partners.

Intellectual Property 120

Intellectual Property Liquidity Event Exit Strategy Angel Investor 120

Steve Blank

JULY 19, 2010

I’ll offer that both entrepreneurs and VC’s have the wrong model for founding CEO equity compensation. Where’s My Liquidity Event. As a board member I negotiated with founding CEO’s over vesting when I thought it was their time to go. At best this is an argument where no one wins, at worst it’s like a nasty divorce.

Vesting 251

Vesting Liquidity Event Venture Capital Founder Vesting 251

Berkonomics

SEPTEMBER 19, 2013

In fact, many angel investors or venture capitalists look for and respect the lessons learned by entrepreneurs that have survived a failed business. The key question is how did the entrepreneur fail? A successful entrepreneur who has seen the movie before is even more valued. The liquidity event and beyond'

Liquidity Event 81

Liquidity Event Angel Investor Entrepreneur Email 81

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. Show a liquidity event and investor return at the end of the period. You shouldn’t invest in an undefined business.

Liquidity Event 120

Liquidity Event Startup Initial Public Offering Acquisition 120

Gust

AUGUST 10, 2014

Most entrepreneurs struggle with financial projections, not wanting to commit to numbers they cant deliver, and having no clue what investors might consider reasonable. Most entrepreneurs, with no experience, believe that they can make good money with lower margins than competitors. Image via pixabay.com. Build a path to 10x return.

Liquidity Event 176

Liquidity Event Equity Venture Capital Exit Strategy 176

Startup Professionals Musings

AUGUST 13, 2012

Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” It always amazes me how an entrepreneur can define his market opportunity so broadly, and then assess his competition so narrowly in the next breath. Exit strategy. For a family business, don’t project an exit.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Startup Professionals Musings

FEBRUARY 13, 2016

Entrepreneurs who are looking to attract investors need to develop and pitch a plan -- preferably written -- that answers every potential investor question about your startup before it is asked. If you don’t plan a liquidity event, you won’t find many investors interested.

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Berkonomics

MARCH 9, 2017

We have years of real data to call upon: data that impacts both investors and entrepreneurs. years before a liquidity event (positive or negative.) Entrepreneurs will always start new enterprises. Restaurant startups would not top my list. For 2016 alone, there are two reliable sources of recent data for us to examine.

Angel Investor 106

Angel Investor Angel Groups Liquidity Event Early Stage 106

Pascal's View

DECEMBER 17, 2012

Recent reports reveal that mergers and acquisitions still account for over 90% of liquidity events for venture-backed companies in 2012, a lamentable condition that has plagued the US innovation ecosystem for close to a decade.

Acquisition 38

Acquisition Merger Covenant Liquidity Event 38

Berkonomics

FEBRUARY 28, 2019

It’s a fact of life that a banker, lender or lessor will ask for a personal guarantee from the founder or entrepreneur most every time. To most lenders, the guarantee is still a requirement, putting the entrepreneur in a position of additional risk that is not spread among the shareholders. The short answer is “yes.”

Warrant 48

Warrant Liquidity Event Dilution Cofounder 48

Startup Professionals Musings

MAY 13, 2011

Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” It always amazes me how an entrepreneur can define his market opportunity so broadly, and then assess his competition so narrowly in the next breath. Exit strategy. For a family business, don’t project an exit.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Berkonomics

DECEMBER 17, 2020

Each has a process in place to accept applications or recommendations for investment into new companies, and to review these and make decisions based upon their exploration, previous experience in the field, knowledge of the company or industry, or about individual entrepreneurs. Some can supply more when syndicating with other such groups.

Equity 62

Equity Finance Liquidity Event Angel Groups 62