Both Sides of the Table

DECEMBER 11, 2022

We had nascent revenues, ridiculous cost structures and unrealistic valuations. Within 5 years I was on the board of real businesses with meaningful revenue, strong balance sheets, no debt and on the path to a few interesting exits. Until we weren’t. 2001–2007: THE BUILDING YEARS The dot com bubble had burst. The tide has gone out.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

Steve Blank

JANUARY 17, 2023

In exchange for attending an accelerator, startups give up 5% to 10% of their company’s equity. I don’t have a killer idea, or a technical team, but I do know how to build, grow, and manage teams.”. In return for the lower risk, a venture studio typically takes a larger percentage of equity. Carlos stirred his coffee.

Technical Cofounder 346

Technical Cofounder Intellectual Property Technical Review Incubator 346

Startup Professionals Musings

OCTOBER 16, 2022

Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold. Manage customer service. Personnel Manager. Every young entrepreneur needs an experienced partner for credibility with investors, and as a trusted cohort for strategy and growth discussions.

Advisory Board 368

Advisory Board Dividend Angel Investor Cofounder 368

David Teten

AUGUST 19, 2019

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. Rational burn profile, up to 50% of revenue at close, scaling down.

Revenue 60

Revenue Technical Review Software Review Equity 60

ReadWriteStart

DECEMBER 15, 2022

Client work serves as an additional source of revenue to form new startups. This outside work provides a valuable source of revenue able to be used to fund operations. Over time, this revenue reduces the dependency on outside venture capital sources. It also provides critical domain experience in a variety of business sectors.

Incubator 188

Incubator Startup Software Developers Software Development 188

Startup Professionals Musings

JUNE 30, 2019

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Set expectations accordingly.

Intellectual Property 219

Intellectual Property Technical Review Startup Incubator 219

The Startup Magazine

MARCH 8, 2024

Poorly managed debt can lead to financial strain, decreased creditworthiness, and even bankruptcy. Businesses can improve their creditworthiness by making timely payments, reducing outstanding debt, and managing their finances and credit reports responsibly.

Finance 122

Finance Technical Review Metrics .Net 122

David Teten

AUGUST 20, 2019

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital.

Revenue 60

Revenue Cofounder Founder Venture Capital 60

David Teten

MARCH 14, 2018

Managers of VC funds typically want to grow their business aggressively, just like the founders we back. Sophisticated VC and private equity funds have a wide array of options for leveraging outside operating executives. First Round Capital’s forum for portfolio executives is a powerful example of a scaleable resource.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

David Teten

AUGUST 19, 2019

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. So what is Revenue Based Investing?

Revenue 60

Revenue Term Sheet Founder Technical Review 60

A Smart Bear: Startups and Marketing for Geeks

JANUARY 4, 2018

Late last year we passed $100M in annual recurring revenue. That revenue is in on 75,000 customers, earned through the hard work of 500 employees across six offices on three continents. This week we closed $250M in financing from Silver Lake , the premier technology private equity firm. We just announced a few more things.

Engineer 152

Engineer Revenue San Francisco Security 152

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Our categorization is not a technical one. Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Startup Professionals Musings

MAY 22, 2020

The allocation of shares among the founders, and the number and size of outside investments, will tells volumes about the health, stability, and management of the business. Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment.

Technical Review 436

Technical Review Due Diligence Sweat Equity Burn Rate 436

Startup Professionals Musings

SEPTEMBER 29, 2018

Don’t wait until you are almost out of cash before managing every dollar spent, or looking for the next refueling from investors. As a mentor to many entrepreneurs and startups, here are my best recommendations for keeping the burn rate low, planning ahead and maintaining credibility with investors: Manage cash flow personally every day.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

VC Cafe

MARCH 1, 2024

Personal Finance Cross-account visibility and management – Today’s AI products can analyze and move money between accounts – as agents improve, they will make trades across accounts. AI – tax planning or wealth management augmented and in some cases replaced with AI. Complex transactions move from services ?

Artificial Inteligence 176

Artificial Inteligence Technical Review Software Review Generative AI 176

Startup Professionals Musings

FEBRUARY 18, 2023

The allocation of shares among the founders, and the number and size of outside investments, will tells volumes about the health, stability, and management of the business. Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment.

Sweat Equity 207

Sweat Equity Burn Rate Technical Review Intellectual Property 207

YoungUpstarts

JANUARY 10, 2020

When it occurs, the consequences can be swift and devastating, wreaking potential havoc on a once steady stream of revenue. Once a client has made this decision, it is important for company managers and staff to perform an analysis of what went wrong, and why. In many cases, this scenario is inevitable and difficult to prevent.

Customer 334

Customer Development Team Review Advisory Board Private Equity 334

Startup Professionals Musings

JANUARY 18, 2020

Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold. Manage customer service. Personnel Manager. Every young entrepreneur needs an experienced partner for credibility with investors, and as a trusted cohort for strategy and growth discussions.

Advisory Board 312

Advisory Board Startup Dividend Angel Investor 312

Startup Professionals Musings

JULY 14, 2014

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Set expectations accordingly.

Entrepreneur 283

Entrepreneur Intellectual Property Technical Review Incubator 283

Startup Professionals Musings

JULY 1, 2017

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Set expectations accordingly.

Product Development 177

Product Development Cost Developer Product 177

The Startup Magazine

MAY 11, 2020

However, if not well managed, debts can ruin your venture. However, this will depend on whether you have enough equity or collateral to meet the lender’s requirements. This move will help you set realistic goals, improve how you handle finances, and develop a debt management plan for your business. Boost Sales and Revenue.

Software Review 105

Software Review Small Business Management Bankruptcy 105

David Teten

SEPTEMBER 23, 2017

Private equity and venture capital investors are copying our sisters in the hedge fund and mutual fund world: we’re trying to automate more of our job. High-frequency trading, algorithmic by its nature, is estimated to account for at least 50% of US equity markets trading volume. . 4) Manage deal flow. Pitchbot.vc

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

The Startup Magazine

AUGUST 11, 2023

This could be a proportion of the company’s equity or investment; in other instances, it could be a portion of its later-stage profits. Seed venture capital firms can make more significant follow-on investments to keep or increase their equity stake in the company. How does the funding for the seed stage work?

Seed Stage 125

Seed Stage Technical Review Early Stage Due Diligence 125

Startup Professionals Musings

FEBRUARY 19, 2013

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Set expectations accordingly.

Intellectual Property 309

Intellectual Property Technical Review Venture Capital Startup 309

Startup Professionals Musings

JANUARY 12, 2018

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Set expectations accordingly.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

ReadWriteStart

JUNE 1, 2020

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. Forms of funding. ? Equity investment. Equity investment is the most popular and most talked-about avenue for startup funding. Equity investors.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

OCTOBER 5, 2014

Don’t wait until you are almost out of cash before managing every dollar spent, or looking for the next refueling from investors. As a mentor to many entrepreneurs and startups, here are my best recommendations for keeping the burn rate low, planning ahead and maintaining credibility with investors: Manage cashflow personally every day.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

Startup Professionals Musings

MARCH 22, 2020

Cohen and John Kador, in their classic book “ What Every Angel Investor Wants You to Know ,” includes these great points of practical advice on this subject: Manage expectations before the fact. Tie payments to your product or service revenue. Loans are a safer option than equity.

Management 308

Management Cram Down Angel Investor Equity 308

Startup Professionals Musings

FEBRUARY 21, 2012

Here are some recommendations on how to keep the rate low, and help your startup to prosper at the same time: Measure it and manage it. As a rule, you need to review your burn rate every month, and manage it every day. Pay people with equity or future revenue. The components are simple - expenses and income.

Burn Rate 232

Burn Rate Startup Salary Equity 232

YoungUpstarts

AUGUST 17, 2020

What kinds of habits should an entrepreneur cultivate so that financial management is done in an ongoing manner? Michael Majeed: Financial management is crucial to the success of the business. For starters, rising debt-to-equity ratio. Michael Majeed is a longtime financial services executive and consultant based in Toronto.

Finance 193

Finance Forecast Balance Sheet Angel Investor 193

The Startup Magazine

JULY 13, 2021

Using that home equity for a startup certainly looks enticing right now, doesn’t it? The Amount of Equity. Do you have significant home equity for a startup? It’s tempting to look at $20,000 or so in equity and think every little bit counts. Every shiny new startup has a chance to succeed and win big.

Equity 156

Equity Startup Stock Business Plan 156

Startup Professionals Musings

JANUARY 28, 2011

Here are some principles on how to do that, and help your startup to prosper and live another day: Measure it and manage it. As a rule, you need to review your burn rate every month, and manage it every day. The cost of giving up more equity early is often more than offset by the increased flexibility to recover from mistakes.

Burn Rate 231

Burn Rate Startup Salary Equity 231

Startup Professionals Musings

JULY 8, 2015

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. Nevertheless, it’s an option that doesn’t cost you equity. Set expectations accordingly.

Entrepreneur 120

Entrepreneur Intellectual Property Technical Review Incubator 120

Both Sides of the Table

MAY 27, 2013

He wrote a post this long weekend on how he manages the board of DataSift. In his tenure as CEO of DataSift we have never missed a monthly revenue figure. In this period (less than 2 years) he has brought on incredibly talented senior execs is sales, marketing, product management, client services, finance, vp engineering and more.

Advisory Board 365

Advisory Board CTO Hire Fractional CTO Los Angeles 365

Startup Professionals Musings

SEPTEMBER 14, 2016

Don’t wait until you are almost out of cash before managing every dollar spent, or looking for the next refueling from investors. As a mentor to many entrepreneurs and startups, here are my best recommendations for keeping the burn rate low, planning ahead and maintaining credibility with investors: Manage cash flow personally every day.

Burn Rate 120

Burn Rate Hockey Stick Startup Salary 120

www.avc.com

SEPTEMBER 22, 2011

Employee Equity: How Much? The most common comment in this long and complicated MBA Mondays series on Employee Equity is the question of how much equity should you grant when you make a hire. And the amount of equity you need to grant to accomplish these hires is also an art and most certainly not a science.

Equity 64

Equity Employee CTO Hire Fractional CTO 64

Startup Professionals Musings

NOVEMBER 1, 2014

Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold. Manage customer service. Personnel Manager. Every young entrepreneur needs an experienced partner for credibility with investors, and as a trusted cohort for strategy and growth discussions.

Entrepreneur 266

Entrepreneur Advisory Board Dividend Angel Investor 266