Startup Professionals Musings

NOVEMBER 19, 2017

The best entrepreneurs, and the best executives in mature businesses, have learned how to foster both high efficiency and high creativity, in a balance that keeps their business ahead of the pack on both sides of the equation. Typical incentives give percentages of quarterly revenues and contribution as rewards for success.

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Stock Options Incubator Framework Stock 141

Startup Professionals Musings

SEPTEMBER 14, 2022

With the current volatile 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 thus not viable for entrepreneurs already out of money. Increased jeopardy and less fun for the entrepreneur. Marty Zwilling.

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Merger OTC IPO Due Diligence 261

Both Sides of the Table

JULY 29, 2010

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. on the entrepreneur side of the table) when I raised at too high of a price. This is wrong.

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Venture Capital Term Sheet Valuation Stock Options 282

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. Look for examples of similar companies and revenue multiples achieved from acquirers. Calculate employee stock option values and vesting times, as well as salary.

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Burn Rate Sweat Equity Technical Review Intellectual Property 120

Feld Thoughts

JANUARY 7, 2015

Companies were being bought (and valued) at 10x forward revenue only to be valued at between 0.5x revenue several years later. We were bought for a more reasonable 1x revenue (and about 4x pre-tax income) when the value of the AmeriData stock, options, and cash we took out were factored in. Or the ASP rollup?

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Stock Options Cofounder Hosting Revenue 70

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?

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Liquidity Event Founder Liquidation Preference Venture Capital 120

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. This approach is thus not viable for entrepreneurs already out of money. Increased jeopardy and less fun for the entrepreneur. Being a public company isn’t cheap or easy.

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Merger OTC IPO Due Diligence 303

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. I often ask entrepreneurs to consider, “What’s your objective? Revenue When I look at an income statement I start by focusing on the revenue line.

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Stock Options Startup Dilution Venture Capital 227

Hearpreneur

DECEMBER 31, 2017

So that’s why we are excited about 2018 because there will be more and more entrepreneurs and businesses. Here’s something other entrepreneurs look forward to:: #1- Bring in a new team. I have spent a great deal of time studying the fundamentals of stocks, option trades, goal-setting, and public speaking. 10- Team growth.

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Entrepreneur Stock Options Programming Washington 61

crowdSPRING Blog

OCTOBER 10, 2014

Why entrepreneurs should learn to say “I don’t know” more often – crowdspring.co/1pGXXeF. 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.

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crowdSPRING Blog

NOVEMBER 7, 2014

10 Psychological Triggers To Boost Revenues – crowdspring.co/1rXsiql. 7 Habits of Highly Successful Entrepreneurs | – crowdspring.co/1q9cIqW. Startup Equity and Stock Options: What’s It Worth to You? Why More Entrepreneurs Need To Make Health and Wellness A Priority | by @sujanpatel - crowdspring.co/1Gmyl1h.

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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. This approach is not for entrepreneurs already out of money. Increased jeopardy and less fun for the entrepreneur. Being a public company isn’t cheap or easy.

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Merger OTC IPO Due Diligence 198

The Startup Magazine

JUNE 1, 2023

We’re hitting record revenue months, weeks, and margins. 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. So instead of throwing dollars and time at a revamp, we’re doubling down on what we already know is the best value and revenue generator.

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Scalable Startup

OCTOBER 26, 2014

The Greenshoe is an over-allotment of stock options, up to 15% of the total offering at time of IPO. You can offer these options to virtually anyone, friends, family, people who helped your company. Since they’re options, acquirers only exercise if the stock goes up, and have no downside risk or capital outlay. #Web

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Silicon Valley Hawaii Angel Investor IPO 25

YoungUpstarts

OCTOBER 26, 2018

But before it can happen, entrepreneurs need to be aware that the benefits of investment involve assurances, sound business planning and scalability. Secondly, it needs to explain and convince its revenue potential. When others see this, it prompts them to buy options on that stock too and the stock price rises.

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Both Sides of the Table

SEPTEMBER 18, 2014

At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. Your A round?

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Venture Capital Liquidation Preference Valuation Term Sheet 417

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. Increased jeopardy and less fun for the entrepreneur. Being a public company isn’t cheap or easy.

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Merger OTC IPO Stock 246

The Next Web

AUGUST 12, 2013

It’s part three of a series, cross-posted from his own blog , in which he draws on his experience to offer advice for aspiring entrepreneurs in Europe and beyond. If you want to be an entrepreneur, think like an athlete and define your own mission. Entrepreneur Insider Analysis and Opinion' Why do you want to build a business?

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Cofounder CTO Hire Startup Europe 119

The Startup Magazine

AUGUST 6, 2021

The question for many entrepreneurs is, how do you start a business the right way with the right startup business structure? . Without them, you cannot earn any revenue. A common mistake made by entrepreneurs as they assess their startup business structure is to try and do everything themselves. Find Your Passion.

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Limited Liability Company Silicon Valley Business Model Stock Options 160

Agile VC

JUNE 5, 2011

They’ve grown from nothing to >$2B in revenue in 30 months time, making the company among the fastest growing businesses in the histroy of the world. How They Make Money: Groupon keeps a share of the coupon value (typically 40-50%) as its net revenue (1). Financial Snapshot: 2010 Revenue: $713M. to the merchant.

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Scalable Startup

OCTOBER 26, 2014

The Greenshoe is an over-allotment of stock options, up to 15% of the total offering at time of IPO. You can offer these options to virtually anyone, friends, family, people who helped your company. Since they’re options, acquirers only exercise if the stock goes up, and have no downside risk or capital outlay.

Silicon Valley 20

Silicon Valley Hawaii Angel Investor IPO 20

Up and Running

MAY 17, 2012

Every year, the folks at Entrepreneur Magazine name an Entrepreneur of the Year. Let’s take a look at some quick lessons you can learn from some past winners: Don’t give up: 2011 Entrepreneur of the Year Lee Rhodes was a mother of three fighting lung cancer when she was inspired to start glassybaby.

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ReadWriteStart

JANUARY 28, 2022

The market regards equity as an ownership “share” in a corporation’s income revenue stream. Therefore, CEOs have strong reasons to issue stock options. It is not possible to shift costs and revenues in a linear manner. What is Company Equity? Now, let’s see for whom and how the equities are issued.

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Both Sides of the Table

MARCH 21, 2010

As startup entrepreneurs we all want to work with them because having their name as reference clients makes it so much easier for marketing, PR, selling to other customers, fund raising and even recruiting. They negotiate a “master agreement&# to work with your company with some maybe minimum guarantees in terms of revenue.

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Both Sides of the Table

NOVEMBER 4, 2009

I often have career discussions with entrepreneurs – both young and more mature – whether they should join company “X&# or not. Now … these are stock options and not restricted stock so you’ll likely be taxed at a long-term capital gains rate. Stock options are the icing on the cake.

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Stock Options Stock Liquidation Preference Option Pool 418

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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Both Sides of the Table

MAY 19, 2018

A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. Most entrepreneurs (and VCs raising from LPs) think this means progress. Entrepreneur : “Sure. Some people find this elitist?—?I It doesn’t. No problem. We have all of that.

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Cap Table Due Diligence Forecast Churn Rate 336

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.

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Intellectual Property Management Stock Options Stock 90

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. This approach is not for entrepreneurs already out of money. Increased jeopardy and less fun for the entrepreneur. Being a public company isn’t cheap or easy.

Merger 120

Merger OTC IPO Due Diligence 120

Berkonomics

APRIL 4, 2019

On the other side, entrepreneurs and CEO’s usually have a natural fear of giving too much information to us investors after the initial investment is received. Shareholders may vote on other issues during the year by written consent, including acquisitions, stock issuance, changes to the articles of incorporation and bylaws, and more.

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Stock Options Balance Sheet Stock Common Stock 48

Both Sides of the Table

SEPTEMBER 28, 2013

You know this isn’t likely to lead anywhere and frankly you didn’t quit your job to pursue your life dream of being an entrepreneur to sell 12 months later in an acquihire. So the tech team departed en masse to find the next great stock option scheme to make their big bucks. They see the dollar signs and the victory.

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Startup Dilution San Diego Stock Options 417

The Next Web

SEPTEMBER 16, 2012

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? Some companies grant stock options, while others grant restricted stock units.

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Stock Options Startup Stock Salary 141

Gust

SEPTEMBER 17, 2014

Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. It’s like we need a finance 101 course for entrepreneurs.

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Liquidation Preference Valuation Term Sheet Stock 153

Feld Thoughts

JULY 13, 2011

And more and more entrepreneurs who I’m exposed to who are presenting their companies for financing have a complete lack of understanding of their financials – both current and projected. The Balance Sheet. Analyzing Financial Statements. In my experience there are four specific things that people struggle with.

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Balance Sheet Stock Options .Net Equity 147

Gust

DECEMBER 8, 2011

I urge all entrepreneurs to consult and develop a good working relationship with a qualified startup lawyer. Sales contracts accounting for significant revenue. In the case of revenue contracts, they help pay for the related legal work. Caveat entrepreneur ! Employment handbooks and policies. Office and equipment leases.

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

Startup Professionals Musings

JANUARY 16, 2011

He says that you should never consider a public offering unless you are confident that the company will deliver increasing profits and revenue after the offering, so that the public buyer can anticipate a gain. Of course, you’re going to have to perform well to make that stock useful in the acquisitions process.

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IPO Social Media Media Exit Strategy 223

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.

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Term Sheet Valuation Dividend Liquidation Preference 68