Both Sides of the Table

DECEMBER 11, 2022

Something happened in the past 7 years in the startup and venture capital world that I hadn’t experienced since the late 90’s — we all began praying to the God of Valuation. How might our next phase of the journey seem brighter, even with more uncertain days for startups and capital markets? What happened? Until we weren’t.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

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

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. Bigfoot Capital. Capital need of up to $1.5M

Revenue 60

Revenue Technical Review Software Review Equity 60

Startup Professionals Musings

JUNE 2, 2021

Short-term earnings per share may be low, even as revenues and cash burned are high. That means that many companies are now forgoing the rush to go public (IPO), in favor of major equity investments from specialized venture capital funds, such as Japan’s SoftBank. These tolerate negative cash flows for growth.

Software Review 355

Software Review Algorithm Global IPO 355

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

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 127

Seed Stage Technical Review Early Stage Due Diligence 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. We detail below the major categories of VC: VENTURE CAPITAL TYPOLOGY.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

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.

Revenue 60

Revenue Term Sheet Founder Technical Review 60

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

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

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. The Advantages of the Digital Agency Model for a Startup Studio.

Incubator 188

Incubator Startup Software Developers Software Development 188

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. Solicit funds from friends and family.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

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. Use crowd funding.

Product Development 177

Product Development Cost Developer Product 177

Startup Professionals Musings

SEPTEMBER 25, 2023

Many first-time entrepreneurs find themselves unable to bootstrap their startups, and also unable to find early funding at the venture capital level or even with angel investors. The average amount per startup has been $23,000, usually in the form of a convertible loan, rather than an equity investment.

Sweat Equity 274

Sweat Equity Elevator Pitch Startup Equity 274

The Startup Magazine

JUNE 4, 2023

In a perfect world, small businesses would have an endless stream of revenue coming in and there wouldn’t be need to worry about financing. Sometimes businesses have to get creative when it comes to their small business financing, especially when revenue is low. However, we all know that’s not the case.

Finance 111

Finance Revenue Small Business Bootstrapping 111

Startup Professionals Musings

OCTOBER 8, 2023

Most entrepreneurs have found by now one or more of the many popular crowdfunding sites , and have the name and contact information for at least one of the big venture capital firms. Here are eight key insights that will help you find a productive match: Angels want equity ownership, not causes.

Venture Capital 265

Venture Capital Accredited Investor Syndicate Syndication 265

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

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. Solicit funds from friends and family.

Entrepreneur 120

Entrepreneur Intellectual Property Technical Review Incubator 120

Both Sides of the Table

SEPTEMBER 18, 2014

On the phone … Me: So, you raised venture capital? Revenue multiple? “But lawyers will charge much more for equity.” Try doing THAT with equity. We raised a seed round. About $1 million. Me: At what price? Him: It wasn’t priced. We raised a convertible note. Me: With a cap? Your A round?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

YoungUpstarts

AUGUST 17, 2020

Many companies seek angel investors, venture capital and even family and friends’ money when they’re planning to start a company. For starters, rising debt-to-equity ratio. Michael Majeed: When projecting profits and losses, an entrepreneur needs to start with expenses, not revenues. What are some things to look out for?

Finance 217

Finance Forecast Balance Sheet Angel Investor 217

Startup Professionals Musings

JUNE 25, 2012

Just don’t quit your day job before your new company is producing revenue. A startup incubator is a company, university, or other organization which provides resources for equity to nurture young companies, helping them to survive and grow during the startup period when they are most vulnerable. Venture capital.

Technical Review 257

Technical Review Bootstrapping Venture Capital Incubator 257

Startup Professionals Musings

JANUARY 11, 2021

Many first-time entrepreneurs find themselves unable to bootstrap their startups, and also unable to find early funding at the venture capital level or even with angel investors. The average amount per startup has been $23,000, usually in the form of a convertible loan, rather than an equity investment.

Sweat Equity 346

Sweat Equity Elevator Pitch Equity Venture Capital 346

Startup Professionals Musings

OCTOBER 16, 2023

Yet every business requires revenue and volumes, as certainly as it requires a product to sell. Doubling revenue each year is a good target. You need 5 percent or more of revenue for marketing, maybe more for ongoing development, and people costs will double as you add benefits, insurance, training, IT and new processes.

Forecast 290

Forecast Burn Rate Widget Business Plan 290

Startup Professionals Musings

APRIL 17, 2023

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

Startup Professionals Musings

MARCH 16, 2011

Just don’t quit your day job before your new company is producing revenue. A startup incubator is a company, university, or other organization which provides resources for equity to nurture young companies, helping them to survive and grow during the startup period when they are most vulnerable. Venture capital.

Technical Review 233

Technical Review Bootstrapping Startup Venture Capital 233

Both Sides of the Table

MAY 28, 2018

There are many things a VC is looking for in reviewing your business plan but beyond things the like the quality of revenue, margins, OPEX and CAPEX there’s a really simple rule I call, “Cash In, Cash Out, Milestones Achieved.” This part of a series to help you raise venture capital ?—?the

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

Steve Blank

MARCH 16, 2016

Luckily in the last quarter of the 20 th century a new source of money called risk capital emerged. Risk capital takes equity (stock ownership) in your company instead of debt (loans) in exchange for cash. At its core Venture Capital is nothing more than a small portion of the Private Equity financial asset class.

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Venture Capital 120

This is going to be BIG.

AUGUST 21, 2014

What you can offer is interestingness, a thoughtful challenge, and a little bit of equity. Plus, from the advisor side, it might be a good way to build up a little portfolio of startup equity without having to put up angel cash. Venture Capital & Technology' Or, they just move on to the next company to sherpa a bit.

Founder 120

Founder Software Developers Software Development Venture Capital 120

Steve Blank

APRIL 26, 2022

Except, that is, for the bottom feeders of the Venture Capital business – investors who “ cram down ” their companies. Startups that can’t find product/market fit and/or generate sufficient revenue and/or lacked patient capital are scrambling for dollars – and the bottom feeders are happy to help. Why do VCs Do This?

Cram Down 404

Cram Down Founder Venture Capital Recapitalization 404

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78

Equity Revenue Cofounder Colorado 78

Startup Professionals Musings

OCTOBER 7, 2022

On the other hand, venture capital organizations typically look for needs that exceed $2 million. Angel investors will perk up if you have a prototype or a few real customers, while venture capitalists will likely choose to wait until you have achieved several million in revenue or customer count.

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

www.inc.com

SEPTEMBER 24, 2011

Will Work for Equity. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. Venture Capital Firms. Determined not to miss another opportunity, Graham has begun waiving fees and instead taking equity in clients he thinks have a good shot at success. Apply. ); Topics >.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Startup Professionals Musings

JULY 5, 2023

Sometimes these will ask for 5%-15% of your equity for their support services. Once you have some traction, you can approach venture capital organizations , with funding amounts of $1-10 million for the real rollout, often referred to as the “A-round,” or first institutional funding. Funding or rollout stage.

Incubator 305

Incubator Startup Exit Strategy Institutional Investors 305

Gust

JUNE 17, 2012

Just don’t quit your day job before your new company is producing revenue. A startup incubator is a company, university, or other organization which provides resources for equity to nurture young companies, helping them to survive and grow during the startup period when they are most vulnerable. Venture capital.

Technical Review 164

Technical Review Bootstrapping Venture Capital Incubator 164

Both Sides of the Table

SEPTEMBER 28, 2014

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. But those of us with longer memories remember that the revenue line can move south very quickly when the market overall turns south. Gross burn is the total amount of money you are spending per month.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

This is going to be BIG.

DECEMBER 9, 2014

Following up on my post from Monday that rang like "reasons not to take VC money" here are some reasons you should: 1) You really like the investor and believe they can add more value than you give up in equity. Might be time to let someone you want to work with buy your equity. Venture Capital & Technology'

Venture Capital 131

Venture Capital Equity Salary Acquisition 131

Startup Professionals Musings

NOVEMBER 13, 2021

Usually these are revenue-generating e-commerce sites, or have the potential to be revenue-generating. Even if the goods and services are changing hands as gifts, or the revenue motive exists only to make services sustainable, the economic value is evident. There is value in the “idling capacity” of all assets.

Cuba 316

Cuba Venture Capital Community Valuation 316