Steve Blank

JANUARY 17, 2023

Three types of organizations – Incubators, Accelerators and Venture Studios – have emerged to reduce the risk of early-stage startup failure by helping teams find product/market fit and raise initial capital. He had a track record of taking small teams and growing them into successful product lines.

Technical Cofounder 346

Technical Cofounder Intellectual Property Technical Review Incubator 346

SoCal CTO

NOVEMBER 1, 2010

Understand where they were in terms of being able to pay or was this equity-only (sweat equity only). He had a partially built product. And he was still in the process of raising additional capital, so it was equity only. There are cases where I will do equity-only deals.

Technical Cofounder 241

Technical Cofounder CTO Hire Equity Sweat Equity 241

Startup Professionals Musings

DECEMBER 6, 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. Join a startup incubator.

Finance 320

Finance Intellectual Property Technical Review Incubator 320

Startup Professionals Musings

APRIL 22, 2023

Many entrepreneurs are convinced that banks are not worth the effort for startups, especially early-stage ones that still don’t have a revenue stream, or collateral to back up their financing needs. A winning product or service. Provide a simple yet complete description of your product or service and its competitive marketplace.

Equity 303

Equity Silicon Valley Finance Early Stage 303

Startup Professionals Musings

FEBRUARY 15, 2023

With one of the many new tools , and a dose of sweat equity, you can create a website for almost nothing -- and you are on your way to success with ecommerce, your latest invention or personal services. Favor profitability over revenue and user growth. Use your equity for key executives and business partners.

Equity 349

Equity Hockey Stick Bootstrapping Sweat Equity 349

ConversionXL

JANUARY 18, 2022

To succeed in today’s crowded market, you need to harmonize product marketing and brand marketing. In this article, you’ll learn the difference between brand marketing and product marketing, and how to balance both to stand out above the crowd. Brand vs product marketing: Friends or foe? They rely on each other for success.

Marketing 110

Marketing Product Audience Equity 110

ConversionXL

OCTOBER 7, 2021

The classic lifespan of successful products is a story in four parts: Introduction Growth Maturity Decline. How this story plays out has a lot to do with the type of product and how it’s improved over time, if at all. In this article, we’ll look at the different stages of the product lifecycle through the lens of marketing.

Product 142

Product Marketing Software Review Social Media 142

VC Cafe

FEBRUARY 27, 2024

especially if the startup already has a product and revenue? Seed is about showing initial product market fit. In smaller funds, ticket sizes tend to be lower, so pre-seed is the only stage where micro funds are able to secure their minimum equity targets. A founder asked me what makes a $2M round “pre-seed”?

Valuation 186

Valuation Software Review Generative AI Technical Review 186

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. We have a special program if you are pre-seed and need product development.

Revenue 60

Revenue Technical Review Software Review Equity 60

Startup Professionals Musings

AUGUST 19, 2020

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Startup Professionals Musings

FEBRUARY 25, 2023

Yet one of the first things a potential equity investor asks about is your exit strategy. Equity investments are not loans, so there is no loan payback period or interest payments. Equity investments are not loans, so there is no loan payback period or interest payments. Find a private equity firm or friendly individual.

Exit Strategy 264

Exit Strategy Private Equity Equity Technical Review 264

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. Use crowd funding.

Intellectual Property 219

Intellectual Property Technical Review Startup Incubator 219

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

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

MAY 25, 2020

Yet one of the first things a potential equity investor asks about is your exit strategy. Equity investments are not loans, so there is no loan payback period or interest payments. Equity investments are not loans, so there is no loan payback period or interest payments. Find a private equity firm or friendly individual.

Exit Strategy 376

Exit Strategy Startup Private Equity Equity 376

Startup Professionals Musings

APRIL 27, 2016

Yet one of the first things a potential equity investor asks about is your exit strategy. Equity investments are not loans, so there is no loan payback period or interest payments. Equity investments are not loans, so there is no loan payback period or interest payments. Find a private equity firm or friendly individual.

Equity 120

Equity Exit Strategy Private Equity Startup 120

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

Startup Professionals Musings

MAY 22, 2020

Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment. 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. When did this effort really start, including pivots?

Technical Review 436

Technical Review Due Diligence Sweat Equity Burn Rate 436

The Startup Magazine

MARCH 8, 2024

Utilize Debt for Strategic Investments Use debt to invest in revenue-generating assets that generate a positive return on investment for your business. Investing in technology can help businesses streamline operations, improve productivity, and gain a competitive edge in the marketplace.

Finance 123

Finance Technical Review Metrics .Net 123

VC Cafe

MARCH 1, 2024

Alow users to generate, refine, and stitch different content types in one workspace Enabling in-platform refinement – AI products can help users identify what can be improved, and then automatically make these changes. Iterating with intelligent editors – products that enable users to take an existing output and refine it (ex.

Artificial Inteligence 176

Artificial Inteligence Technical Review Software Review Generative AI 176

Startup Professionals Musings

FEBRUARY 18, 2023

Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment. 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. When did this effort really start, including pivots?

Sweat Equity 207

Sweat Equity Burn Rate Technical Review Intellectual Property 207

Startup Professionals Musings

JUNE 2, 2021

As a simple example, the Wal-Mart website now shows shoppers more products that they may like, based on previous purchases. Short-term earnings per share may be low, even as revenues and cash burned are high. Look for investors and organizations who practice 10x or 100x thinking, rather than earnings-per-share (EPS) every quarter.

Software Review 355

Software Review Algorithm Global IPO 355

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. Use crowd funding.

Entrepreneur 283

Entrepreneur Intellectual Property Technical Review Incubator 283

Startup Professionals Musings

SEPTEMBER 29, 2018

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

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. Use crowd funding.

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. Join a startup incubator.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

The Startup Magazine

AUGUST 11, 2023

It is necessary to cover the early stages of product development, thorough market research, and other processes during the initial step. 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. How does the funding for the seed stage work?

Seed Stage 126

Seed Stage Technical Review Early Stage Due Diligence 126

Feld Thoughts

OCTOBER 28, 2011

While Jane was building SayAhh’s revenue projections , Dick focused his attention on building the expense side of the projections. It is simple in that it forecasts how much cash will be coming in the door (revenues + equity financing + debt financing) and then subtracts from that amount how much cash is expected to be going out the door.

Revenue 127

Revenue Balance Sheet Forecast Software Review 127

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. Equity Ownership. Yes, typically preferred equity. Example VC.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

ReadWriteStart

JUNE 1, 2020

You must have a prototype or a minimum viable product (MVP). 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. To fund the sudden spike in production, funds will be required for additional inventory and wages.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

YoungUpstarts

JANUARY 10, 2020

When it occurs, the consequences can be swift and devastating, wreaking potential havoc on a once steady stream of revenue. sales to product development), the problems will continue to exist. Clients should be made aware of product improvements or new solutions that are in the works. Work to win them back.

Customer 347

Customer Development Team Review Advisory Board Private Equity 347

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. . But we’re doing it slowly. 4) Manage deal flow.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

ReadWriteStart

JANUARY 28, 2022

With the rise of startups and growing businesses , it has become more critical for investors to have a thorough understanding of equity to be aware of all of the advantages they are receiving from the companies they have invested in. What is Company Equity? Types of equity. Common stock. Preferred shares.

Valuation 108

Valuation Equity Warrant Common Stock 108

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

Revenue multiples, profit multiples, premium over the previous financing — these are metrics used by sellers to help determine a minimum acceptable price. In terms of acquisition, they ask more specifically: “How can we trade balance sheet assets (cash, equity) in exchange for executing our strategy better?”.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

Startup Professionals Musings

SEPTEMBER 25, 2023

These are the only people likely to believe in newbies, with only minimal product evidence or business experience. The average amount per startup has been $23,000, usually in the form of a convertible loan, rather than an equity investment. This is confirmation that the right people are always more important than the right product.

Sweat Equity 274

Sweat Equity Elevator Pitch Startup Equity 274

Startup Professionals Musings

OCTOBER 5, 2014

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

Startup Professionals Musings

FEBRUARY 21, 2012

The cost of giving up more equity early is often more than offset by the increased flexibility to recover from mistakes. Pay people with equity or future revenue. Another one to avoid cash burn for software development is a contract for percent of future revenue. Great strategy. Do it yourself and barter for services.

Burn Rate 232

Burn Rate Startup Salary Equity 232