Professor VC

MARCH 10, 2009

In other parts of the country, this is business as usual: Identify a customer need Build a product Sell the product In the valley, the knee jerk reaction is to start with the powerpoint deck and look for the venture capital drug. I also teach Entrepreneurial Finance at San Jose State.

Bootstrapping 28

Bootstrapping San Jose Silicon Valley Software Review 28

David Teten

AUGUST 21, 2019

Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. The RBI investor is motivated to help the company grow because that speeds up the pace of revenue payback, and therefore IRR. Most founders who are raising capital look first to traditional equity VCs.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Up and Running

DECEMBER 22, 2015

My personal favorite in the “pure nonsense category” is the IRR, the Internal Rate of Return , something that was interesting for about one hour as part of the MBA curriculum, but which has no relevance in the real world. Read more of my articles related to this topic: You Can Take That IRR and Shove It.

Angel Investor 60

Angel Investor IRR Software Review Startup 60

Both Sides of the Table

MAY 24, 2021

This “overnight success” was first financed in 2004. It’s a virtue of the laws of large numbers ($100 million in ARR ) plus strong growth compounding off of large numbers plus large customers relying on our products for 7+ years or longer. This is true in consumer but it’s also true in enterprise software. The virtue of going long.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

Ben's Blog

AUGUST 17, 2020

The conventional wisdom finance professionals are often taught is that you should not pay a higher multiple today than what you’d expect to be paid upon exit — that is, your entry multiple should equal your exit multiple. Not too shabby!

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

Startup Professionals Musings

MAY 9, 2011

I also spend close to half my time teaching, and in addition to serving on the entrepreneurship advisory boards at Columbia, Yale and NYU, I am Chair of the Finance, Entrepreneurship and Economics program at Singularity University in Silicon Valley. Marty: Were your own first investment ventures a positive and learning experience?

New York 221

New York Accredited Investor Advisory Board IRR 221

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. By the first quarter of 2016, the late-stage financing market had changed materially. Investors were becoming nervous and were no longer willing to underwrite new Unicorn-level financings at the drop of a hat. This is uncharted territory.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

David Teten

NOVEMBER 23, 2020

. – Indiegogo.com is a crowd-funding platform allowing contributors to empower hundreds of thousands of inventors, musicians, do-gooders, filmmakers – and many more – to bring their dreams to life. – Clarity.com proactively advises you on managing your personal finances efficiently. Goldman Sachs bought Clarity for ~$100m. .

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60