Startup Revenue Milestones

K9 Ventures

At K9 we invest in companies which have a clear/direct revenue model and typically don’t invest in companies that follow the Ubiquity first Revenue Later (URL) revenue model made famous by Eric Schmidt in 2007. I call this Revenue Development and have written about it before.

SayAhh’s Revenue Projections

Feld Thoughts

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. Since this was addressed on the revenue side, we won’t go into details on the expense side.

For Equity Investors, A Startup Has To End To Win

Startup Professionals Musings

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. Find a private equity firm or friendly individual. entrepreneur equity investors IPO startup exit

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8 Secrets for Maximizing Startup Equity and Control

Startup Professionals Musings

Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. In most cases there is a direct correlation between the quality of your decisions and the size of your revenue stream.

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CTO Salary and Equity Trends 2009-2011

SoCal CTO

Todd Gitlin of Safire Partners - a go to resource here in LA for recruiting C-level positions at startups - was nice enough to compile some data again this year (see last year's Startup CTO Salary and Equity Data ). You can also enter salary and equity data to see where you stand.

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Equity-Only CTO and Equity-Only Developers

SoCal CTO

Understand where they were in terms of being able to pay or was this equity-only (sweat equity only). And he was still in the process of raising additional capital, so it was equity only. However, when I told him that the level of engagement required from me and the fact that equity-only development was required, he seemed to be a bit offended. There are cases where I will do equity-only deals.

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Startup CTO Salary and Equity Data

SoCal CTO

Todd Gitlin of Safire Partners was nice enough to compile some data on Start CTO Salary and Equity at Venture Backed Companies for the LA CTO Forum and present last year. You can find a public Google Spreadsheet with the data: CTO Equity Compensation Google Spreadsheet.

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Big data + science = B2B revenue

Lightspeed Venture Partners

CEO and co-founder Vincent Yang, a mathematician by training, had built a system while he was at Summit Partners, a private equity firm, to comb the Web looking for investment opportunities. We are excited to announce our new Series A investment in EverString ( www.everstring.com )!

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5 Proven Ways To Raise Funds For A Startup Idea In Pre-revenue Stage

YoungUpstarts

However, the sad reality is that entrepreneurs often find it hard to obtain funding for startup ideas when the idea has not been proven to generate revenue. This article provides insight into 5 proven ways through which you can raise funds for your startup idea even when it is in pre-revenue.

Can A Hoodie Increase Brand Equity?

crowdSPRING Blog

From a revenue perspective, the apparel was a drop in the bucket to Twitch (who was acquired by Amazon for $970 million that same year). From a brand equity perspective, the purple hoodie was a unique way to acquire 2,000 die-hard brand advocates. Image credit: Twitch.

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Startup Equity Crowdfunding Grows in Europe (NESTA Report)

VC Cafe

Amongst the different types of crowdfunding: Donation, Reward, Lending and Equity, the latter is on the rise as a fundraising mechanism for European startups. investors can then, through the platform, buy small parts of this equity stake. Decision on how much equity.

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How To Make Your Brand “Likable” and Win More Revenue

ConversionXL

There are various ways to measure the above outcomes, and there are varying levels of correlation with revenue, retention, and whatever, but they’re all generally good signs. If you’re not a hate-able company, I can’t see transparency doing much harm in terms of your brand equity.

How to Scale a Venture Capital (or Private Equity) Fund

David Teten

Sophisticated VC and private equity funds have a wide array of options for leveraging outside operating executives. If you’re thinking of hiring a Partner, I suggest see How to Negotiate a Partner Role at a Venture Capital or Private Equity Firm.

Second-Class Investor Citizens: Facebook’s IPO and Dual-Class Equity Structures

Gust

As a quick review, most startups begin life as corporations with a single class of equity securities, referred to as Common Stock , issued to founders, employees, and outside service providers.

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CTO Equity and Compensation at Venture Backed Companies

SoCal CTO

Todd Gitlin of Safire Partners was nice enough to compile some data on CTO Equity and Compensation at Venture Backed Companies for the LA CTO Forum and present last year. You can find a public Google Spreadsheet with the data: CTO Equity Compensation Google Spreadsheet.

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How to think about cash vs. equity compensation

A Smart Bear: Startups and Marketing for Geeks

It’s among the most-asked questions on startup forums, and an issue we’re dealing with right now at WPEngine as we bring on new employees: How do you decide how much equity (shares) to give a new employee or partner?

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Viola Private Equity Pumps $7 Million into Zend

VC Cafe

V iola Private Equity , an Israeli PE fund with $164 million under management for technology buyouts, has announced a $7 million investment in Zend , the leading provider of open-source and commercial solutions based on PHP web applications.

Equity financing: great for rapid growth startups

Berkonomics

There are three classes of equity investors for early stage businesses that we have not yet considered. They look for businesses that are in large markets, that can grow fast, and that can achieve revenues in excess of $40 million within five years of founding.

Equity 101

Can A Hoodie Increase Brand Equity?

crowdSPRING Blog

From a revenue perspective, the apparel was a drop in the bucket to Twitch (who was acquired by Amazon for $970 million that same year). From a brand equity perspective, the purple hoodie was a unique way to acquire 2,000 die-hard brand advocates. Image credit: Twitch.

What are the regulatory barriers preventing the emergence of a liquid market for equity in seed stage startups?

Gust

And there are others that people think are teeny little wannabes with a dozen or so employees…that have $25 million in highly profitable revenues with hockey stick growth and zero debt! Uncategorized equity markets government regulation regulatory barriers Secondary marketsParts of the answer are that (a) there are enormous regulatory requirements relating to secondary markets, and (b) there are no analysts tracking private company stocks.

WP Engine passes $100M in revenue and secures $250M investment from Silver Lake

A Smart Bear: Startups and Marketing for Geeks

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.

Can’t attract VC money? Buy a business with private equity

The Next Web

Venture capital investors are looking for different things than private equity investors. So, as an early-stage startup, why on earth should you consider reaching out to private equity investors, if you are not making progress with venture capital investors?

Big Revenues vs. little revenues

Scalable Startup

Big Revenues vs. little revenues – a strategy question that startups often struggle with. There are strong arguments for both types of incoming dollars for a startup, but the correct answer is have both coming in simultaneously; it will balance your cash flow get you through valleys and help you avoid raising expensive equity capital. Almost every company with long term success has used this dual revenue plan, throughout history. little revenues.

The Skinny on Equity-Based Crowdfunding Opportunities

Growthink Blog

In this article, I will give you an overview of the JOBS Act and most specifically its potential for equity-based crowdfunding, and give you an update on what's occurred since April.

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How Private Equity and Venture Capital Investors Are Eating Their Own Dogfood

David Teten

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. . DealSheet and Sutton Place Strategies help private equity funds identify the best-positioned intermediaries (investment banks) for their sector. Private Equity Software and Services Directory.

Equity basics: vesting, cliffs, acceleration, and exits

The Startup Toolkit

false As a cheatsheet, the “normal” equity structure is: Founder terms: 4 year vesting, 1 year cliff, for everyone, including you. Getting equity structures right. When it comes to equity terms, there are only 3 things to understand: vesting, cliffs, and acceleration.

The 5 Key Stages of Equity Funding

Growthink Blog

When seeking equity investments, the source of capital is, for the most part, tied to the stage of capital being raised. You see, equity capital is raised in stages or rounds. Put everything else on your "wish list" to buy with revenues from sales or additional financing.

Strategy Roundtable For Entrepreneurs: Non-dilutive Financing Through Revenue Sharing

ReadWriteStart

And, oh by the way, we also really like the idea of the 1M/1M entrepreneurs building valuation and negotiating leverage through these business development efforts, instead of signing off large chunks of their company in form of equity early on. million in revenue.

A VC: Employee Equity: How Much?

www.avc.com

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. However, a rule of thumb for those first few hires is that you will be granting them in terms of points of equity (ie 1%, 2%, 5%, 10%).

Create equity value with every step.

Berkonomics

Even small community service-providers can be sold to buyers hungry to get into a business already in revenue with a steady customer base. You may be an architect or doctor or other professional managing your business, knowing that the end game value of your client or patient list is small and not easily transferred to any buyer without attrition.

It’s all about Revenue – Continuously Scaling Revenue

Scalable Startup

The purpose of a for profit business is to generate revenue, period. Avoiding this fact and/or not planning on it, focusing on it In most cases, the goal is to increase revenues continuously over time, i.e. scalability. It’s even more desirable to never have a dip in revenues, but this rarely happens. Equity discussions, how to pitch, what’s hot, success and failure stories, etc. Most of all, Revenue has to be nurtured and protected priority #1.

Update on the JOBS Act and Raising Equity from Crowdfunding

Growthink Blog

The JOBS Act makes equity-based crowdfunding much easier The JOBS Act makes it possible to raise funds from investors and donors through certain crowdfunding sites in exchange for equity in your company.

Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

Piercing the Corporate Veil – Sweat Equity Consulting. But much like becoming a co-founder, getting paid sweat equity is essentially becoming an investor in the company. I think it’s difficult, if not impossible, to value a pre-revenue company with any reasonable accuracy.

How much equity for investors and employees?

dondodge.typepad.com

Community is more powerful than money or technology » August 11, 2007 How much equity for investors and employees? How much equity should I give up? How much equity should I grant to early employees? No loss of equity, at least until they convert at Series A.

Building a sweat equity team

discuss.joelonsoftware.com

Part 1: Recruiting Part 2: Team Members Part 3: Environment Part 4: Schedules Part 5: Lifecycle Part 6: Design Moderators: Eric Sink SourceGear Bob Walsh Founder, StartupToDo.com Author of The Web Startup Success Guide and Micro-ISV: From Vision To Reality Patrick McKenzie Bingo Card Creator Andy Brice Successful Software Building a sweat equity team This post ends with this question: What are some good sources of information (books, forums, etc.)

FIRST REVENUES – THAT CRITICAL STEP

Scalable Startup

First revenue are a major validation milestone for a startup after much sweat and tears. But it’s still quite a nice feeling to see revenues coming into your enterprise, and makes you want to figure out how to build upon it. Revenue can change many things for you and your company – valuation, respect, confidence, negotiating position, attraction of other revenue and cash, retention of your equity, and the ability to attract key people and partners.

Financing Your Startup

YoungUpstarts

There are several ways to approach funding, but there are two main sources of financing: debt and equity. Equity Financing. Equity is especially important for companies with global aspirations or technology startups. But, equity financing can take a long time to obtain.

Getting Paid in Equity: A What to Do Guide

grasshopper.com

Getting Paid in Equity: A What to Do Guide. Equity-based pay is often used by the founders of young start-ups who want to grow their businesses but cannot offer big salaries to qualified professionals. Sweat Equity Or Equity With Compensation? Vested Equity.

JOBS Act Opens Up Crowd Funding From Equity Investors

Growthink Blog

The JOBS Act makes equity-based crowdfunding much easier What the JOBS Act does is make it possible to raise funds from investors and donors through certain crowdfunding sites in exchange for equity in your company, starting January 1st, 2013.

How to Fund Your Startup Without Losing Control

Up and Running

When you accept outside money, particularly a private equity (PE) investment, however, that changes. In this article, I’ll provide some personal stories of how investors have navigated the balance between raising private equity capital and not losing control of their startup.

Raising Capital For an E-Commerce Startup

The Startup Magazine

Today, Tuft & Needle profits over $125 million in revenue and over 100 employees. Home Equity Loan: If you are a homeowner with over 50% of property value as equity, you may apply for a loan at a low-interest rate, using your home as collateral.

Deciding How Much Equity to Give - How Much is Less Important Than What It's Worth!

Small Business Force

Equity and percentage ownership has always been a lightning rod for discussion and controversy with startups and entrepreneurs. The point of it was that with any kind of equity distribution, dilution will always occur. Often you use that very equity to do that.

Private Equity And Venture Capital Investors: How to Leverage Their Pessimistic Thinking

Growthink Blog

For example, having a financial model that shows you are going to grow from $0 to $100 million in revenues in 3 years is generally going to be frowned upon. I speak to my friend Steve about once a month. And every few times we speak, he hits me with his latest new business idea.