Startup Professionals Musings

DECEMBER 14, 2014

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. Startups are usually founded by product or service experts who don’t enjoy the various growth phases. Marty Zwilling.

Hockey Stick 268

Hockey Stick Cofounder Entrepreneur Liquidity Event 268

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. Startups are usually founded by product or service experts who don’t enjoy the various growth phases. 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

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. Startups are usually founded by product or service experts who don’t enjoy the various growth phases. Marty Zwilling.

Founder 245

Founder Hockey Stick Cofounder Liquidity Event 245

Gust

DECEMBER 1, 2011

What is a startup really? 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. Serial entrepreneurs or those with close ties to the investment community would usually go straight to the big firm.

IP 114

IP Intellectual Property Equity Liquidity Event 114

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. However, making no projections, or non-credible projections will get your startup marked as unfundable. entrepreneur startup investor financial projections business'

Liquidity Event 243

Liquidity Event Startup Equity Venture Capital 243

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. Startup lifecycle in an IPO Market. Number of Venture Backed Liquidity Events 1991-2000.

Venture Capital 303

Venture Capital IPO Liquidity Event Entrepreneur 303

Startup Professionals Musings

JUNE 6, 2016

Startups don’t last forever -- they either mature into sustainable businesses, get merged into another business or acquired, or sadly join the 50 percent or more that fail in the first five years. 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.

Liquidity Event 120

Liquidity Event Startup Angel Investor Entrepreneur 120

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

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. Show a liquidity event and investor return at the end of the period.

Liquidity Event 120

Liquidity Event Startup Initial Public Offering Equity 120

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

View from Seed

MAY 19, 2015

Over the past few years, I have been involved with and close to a number of both successful and unsuccessful startups. 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. A startup is just that – a startup.

Seed Stage 120

Seed Stage Liquidity Event Cofounder Startup 120

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. Name the three top ones, and present your sustainable advantage as well as barriers to entry for new startups.

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

David Teten

MARCH 14, 2018

– Build out low-cost force multipliers such as scouts , Advisors, Entrepreneurs in Residence, Venture Partners, and so on. I’ve listed a few more below which require meaningful startup and ongoing costs. For more, see the Startup Studio Playbook. All of the strategies above have very modest fixed cost.

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. First to market” is not sustainable with normal startup resources. Discussion of likely liquidity events and exit strategy.

Product 145

Product Intellectual Property Liquidity Event Exit Strategy 145

Berkonomics

MARCH 9, 2017

I read several years ago, that the average startup restaurant lasts only about a year. Restaurant startups would not top my list. We have years of real data to call upon: data that impacts both investors and entrepreneurs. And this includes all businesses, not just startups. What does THAT mean? And, the U.S.

Angel Investor 106

Angel Investor Angel Groups Liquidity Event Early Stage 106

Berkonomics

APRIL 20, 2023

But… I read several years ago that the average startup restaurant lasts only about a year. Restaurant startups would not top my list. We have years of real data to call upon: data that impacts both investors and entrepreneurs. We have years of real data to call upon: data that impacts both investors and entrepreneurs.

SBA 62

SBA Angel Investor Early Stage Liquidity Event 62

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. However, making no projections, or non-credible projections will get your startup marked as unfundable. business financial projections investor startup'

Liquidity Event 249

Liquidity Event Equity Venture Capital Merger 249

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

Startup Professionals Musings

FEBRUARY 3, 2010

By Bob Arciniaga In developing the content for this article, it was very apparent this advice is not only critical for startups but for most companies. The suggestions are even more vital in a startup environment with constrained resources. Most quality advisors know that chances of a liquidity event are rare.

Advisory Board 225

Advisory Board Startup Liquidity Event Stock 225

Women Entrepreneurs Can

NOVEMBER 19, 2022

A Venture Capital Firm is a firm that invests in startups and early-stage companies. Investing in a startup company carries a high degree of risk, particularly at the early stage. One of the most common ways of investing in a startup is by leveraging the expertise of a venture capital firm. Pre-Seed Investments. Seed Rounds.

Venture Capital 52

Venture Capital Early Stage Liquidity Event SEC 52

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. Large and growing markets imply a high startup growth potential, with high odds of scaling and success.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

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. When does a startup company need a business valuation? The timing will vary depending on the purpose.

Valuation 100

Valuation Stock Options CPA Merger 100

Steve Blank

JULY 19, 2010

I’ll offer that both entrepreneurs and VC’s have the wrong model for founding CEO equity compensation. Every VC knows that the founding CEO is the individual you throw into the chaotic battle of a startup. Some founding CEOs believe the value they bring to their startup is their idea and the time and energy they put into their company.

Vesting 262

Vesting Liquidity Event Venture Capital Founder Vesting 262

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. However, making no projections, or non-credible projections will get your startup marked as unfundable. Image via pixabay.com. Gross margins greater than 50%.

Liquidity Event 176

Liquidity Event Equity Venture Capital Merger 176

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 Email Entrepreneur 81

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

MARCH 18, 2011

What are they, how do they differ and what can startup do to take advantage of them? Paths to Liquidity: a quick history of the four waves of startup investing. If you “saw the movie” or know your startup history, and want to skip ahead click here. A hardware startup had to equip a factory to manufacture the product.

Internet 335

Internet IPO Silicon Valley Agile 335

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

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

Early Growth Financial Services

JULY 10, 2014

Too often, entrepreneurs neglect planning for and managing personal finances as they focus on building their business, lining up financing, and steering toward an eventual liquidity event. One thing that’s probably not occupying much mind space as you’re building your company is managing your personal assets.

Liquidity Event 41

Liquidity Event Management Stock Options Founder 41

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

Gust

OCTOBER 21, 2011

This week we move on to something near and dear to the hearts of entrepreneurs and investors alike: The exit, more formally known as a “ liquidity event.” Entrepreneurs generally don’t ask for this kind of language, but most sophisticated investors will insist on it in one form or another.

Finance 79

Finance Pre-Money Valuation Term Sheet Liquidity Event 79

Both Sides of the Table

SEPTEMBER 27, 2010

Industry change allows the entry of newer players at earlier stages – It doesn’t take as much money to launch a startup anymore. So in the past we needed VC to really get a startup going. These days that’s not the case and it’s a great outcome for entrepreneurs and for innovation. We all know that.

Silicon Valley 308

Silicon Valley Liquidity Event Seed Stage Finance 308

The Next Web

OCTOBER 7, 2013

That’s what a couple of my friends – engineers at Google and Bloomberg who have been following the rise of startup culture with intrigue – told me recently. Startup employees are granted common shares out of something called an option pool. Every time a startup raises capital, all common shareholders are diluted.

Engineer 129

Engineer Dilution Option Pool Vesting 129

Berkonomics

JUNE 8, 2017

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 106

Private Equity Valuation Cap Table Accredited Investor 106

Pascal's View

AUGUST 28, 2010

The evidence: (i) Startups are responsible for virtually all the new jobs created in the United States since 1977 (Source: Kauffman Foundation). The Importance of Startups in Job Creation and Job Destruction bases its findings on the Business Dynamics Statistics (BDS), a U.S. GDP growth, the U.S. government dataset compiled by the U.S.

Venture Capital 56

Venture Capital America Initial Public Offering IPO 56