VC Adventure

MARCH 17, 2022

With the markets down significantly, financings (at least at the later stages) slowing down, and inflation and interest rates on the rise, perhaps now is a good time to talk about your burn rate. Hopefully, you took advantage of the robust financing markets of the past few years to put some money on your balance sheet.

Balance Sheet 121

Balance Sheet Burn Rate Valuation Metrics 121

View from Seed

FEBRUARY 27, 2019

As the former Head of Product at Blue Apron where I also built and led our Analytics & Data Science team (I know enough SQL to be dangerous), I have an intuitive sense for the “when” and “what” of this role. Analytics vs. Finance?—?what’s In reality, these two domains require quite different skill sets (more on this later).

Analytics 149

Analytics Hiring SQL Forecast 149

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Reid Hoffman

MARCH 9, 2021

Far too often, people think that innovation is limited to the product, service, and technology. Over and over, he has gambled on products and product areas where no current market existed. Products like the Kindle and Amazon Web Services created entirely new markets, which Amazon now dominates or leads.

Leadership 42

Leadership Technical Review Cofounder Later Stage 42

Feld Thoughts

MARCH 24, 2017

We want to work with people who bring a focused and complementary perspective to investing and were interested in the Founder Collective mantra of being “stage-focused and sector agnostic.”. This means FC avoids trends and relentlessly questions entrepreneurs about how their product enables specific use cases and market opportunities.

Founder 75

Founder LP Technical Review Seed Stage 75

View from Seed

DECEMBER 6, 2018

It seemed like every other TechCrunch post was announcing a startups’s new seed financing round. Seed stage companies just aren’t announcing their rounds anymore. by tying it to a strategic event: a product launch, and partnership announcement, or some other key milestone which the industry landscape should care about.

Seed Stage 201

Seed Stage Stealth Seed Capital Later Stage 201

Gust

SEPTEMBER 5, 2012

How to finance a new seed-stage startup? ” Ressi in particular seems to be passionate about removing the “debt” component from convertible debt seed financing transactions. .” I won’t rehash all of the customary convertible note financing deal terms and points of negotiation here. (For

Finance 134

Finance Convertible Security Equity Seed Stage 134

Both Sides of the Table

JUNE 5, 2011

The earlier you invest the higher the chances the company won’t work out and thus you pay a lower price than later-stage investors. You’re unlikely to want to make this sort of investment with the product or the market not yet validated. So how exactly are prices determined? There is no great science to it.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

YoungUpstarts

JANUARY 9, 2017

by Tina Hay, founder and CEO of Napkin Finance. One of the most important factors in becoming a successful entrepreneur is managing finances. Whether early or later-stage, the growth of every company most often depends on how much capital is available to fund its growth. Make Sure You’re Insured. Keep Detailed Records.

Burn Rate 100

Burn Rate B2C Finance Later Stage 100

Feld Thoughts

JULY 13, 2014

But I’ve also invested in a number of companies that have had exits between $100m and $1b that resulted in much larger returns for me, both on an absolute basis as well as a relative basis, than unicorns have for their later stage investors. Nor do we care – we are much more focused on the product and the founders.

Later Stage 195

Later Stage Early Stage Valuation Seed Stage 195

Both Sides of the Table

MAY 27, 2016

I spend hours thinking about the products, competitors, market opportunities, recruiting and financing of these businesses. I am much more attracted to technical product teams than to new business concepts or commerce types. Early stage. How else can I begin this multi-year journey if I’m not in love?

Early Stage 254

Early Stage Non-Compete LP Later Stage 254

David Teten

SEPTEMBER 5, 2014

Like many established finance & media companies, GLG knows that the tech startup sector is a growing part of the economy. For example, if you’re an early stage company dealing with complex regulation (think Uber in transportation, Oscar in healthcare, LendingClub in finance), we have people who can help. Who are they?

New York 114

New York Technical Review Networking Advisory Board 114

This is going to be BIG.

MAY 9, 2022

2) Do you sell something that isn’t truly a must-have product to startups or other tech companies? It’s never a good thing to be selling a product for a loss on every sale before you even pay your overhead, or selling something that’s a vitamin, and not medicine. 3) Do you need to raise a large amount of growth capital in 2022?

Stock 97

Stock Marketing Valuation Later Stage 97

Seeing Both Sides

AUGUST 28, 2017

Perhaps, when things settle down a bit more, those companies will even raise series A capital from traditional institutional sources to expand the product features, beef up the operations team more fully and make progress in finding initial product-market fit. Shift of value from equity holders to token holders. Fuzzy Governance.

Early Stage 20

Early Stage Equity Venture Capital Government 20

Seeing Both Sides

AUGUST 28, 2017

Perhaps, when things settle down a bit more, those companies will even raise series A capital from traditional institutional sources to expand the product features, beef up the operations team more fully and make progress in finding initial product-market fit. Shift of value from equity holders to token holders. Fuzzy Governance.

Early Stage 20

Early Stage Equity Venture Capital Government 20

K9 Ventures

OCTOBER 10, 2017

This post is intended to be a dynamic document, and I will attempt to update it from time to time with new questions that may arise or as financing trends evolve. Q: What amount of financing is considered Pre-Seed? It’s a legitimate stage of financing in the venture eco-system as of this writing (October 2017).

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

Both Sides of the Table

FEBRUARY 23, 2015

” If the “nut” is too high I usually veer them towards later-stage opportunities (post B or C round) where the comp is higher, the exit is more likely / nearer, the upside is still nice but obviously not the same as if you joined early). There is often money to be made in finding places with under-valued IP.

Technical Review 150

Technical Review Liquidation Preference Silicon Valley IP 150

Both Sides of the Table

APRIL 28, 2010

VC Financings: 1. Remember the whole controversy over Facebook’s Beacon product where a guy bought an engagement ring for his wife and it was published to a stream and ruined the surprise ? So my gut says this will be a youth-oriented product. The investment will be used for product development initiatives.

Venture Capital 270

Venture Capital Cofounder Spain San Diego 270

Gust

SEPTEMBER 27, 2014

To begin with, it is important to understand some basic facts about the world of entrepreneurial finance: There are many more entrepreneurs than there are investors, with the result that only one company out of every 400 that seeks venture funding actually receives it.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

View from Seed

JANUARY 26, 2016

For now, it’s fine to think about pre-seed rounds as relatively small ($750K or less), early (pre-product), and typically followed by a larger round within 12 months ($1M – $3M). Series A investors invested quite early, often before product/market fit. The reasons for the shift are: Late-stage financing froth.

Seed Stage 120

Seed Stage Early Stage Cofounder Finance 120

Steve Blank

JUNE 15, 2010

Certain VC’s like the new class of Super-Angels and small VC funds specialize in the early stage of a startup where you are searching for a business model. And some larger funds that specialize in later stage deals may have a partner or two who likes to invest at this stage. Is it for your technology?

Founder 231

Founder Vesting Later Stage Early Stage 231

Growthink Blog

MAY 10, 2012

Early Stage Investment (Series A & B) 4. Later Stage Investment (Series C, D, and so on) 5. Mezzanine Financing Most companies that raise equity capital and are eventually acquired or go public receive multiple rounds of financing first. Series B is the round that follows series A in early stage financing.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

Up and Running

AUGUST 17, 2015

Between my experiences as a management consultant, as well as my product and marketing roles at multiple tech companies, I felt that I had enough operational experience to make that leap sooner than later. Business school students are very open to completing consumer surveys, trying out new products, and providing feedback on ideas.

Entrepreneur 60

Entrepreneur Cofounder Angel Investor eCommerce 60

Genuine VC

FEBRUARY 3, 2011

Much of the VC blogosphere commentary about startups covers venture and angel financing with advice focused on company founders. The first decision, and the most critical decision, of what type of startup to join is based on the current stage of the company. And that derisking is only for 12 +/- 6 months.

Startup 241

Startup Later Stage Angel Financing Seed Stage 241

View from Seed

JUNE 16, 2015

My conviction in investing in a company is a function of my belief in the team, the traction of the company, and how the product/opportunity resonates with me personally. My POV is that every VC has a core product. For NextView specifically, we say that we are a one-product company. Second, that you’re the team to do it.

Boston 120

Boston Syndicate Syndication eCommerce 120

Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Both Sides of the Table

MAY 13, 2018

If you truly believe that you, your company and your products are exceptional and your company will be valuable then you’re actually doing them a FAVOR by helping them invest in your startup. Like any sale you first need to plan your “prospects” and qualify whether or not they’d be a good fit for your product?—?an

Term Sheet 332

Term Sheet Due Diligence Campaign Sales 332

www.mint.com

MARCH 9, 2010

If the answer to the question centers around “We will achieve revenue soon so our net will improve and give us more runway,” it means the company is in trouble because no product ever ships on time nor achieves the company’s “conservative forecast.” Life is challenging for a company that has undistinguished products and services.

Software Review 68

Software Review Startup Post-Money Valuation Technical Review 68

A Smart Bear: Startups and Marketing for Geeks

SEPTEMBER 10, 2013

For example, an earlier-stage high-tech SaaS company will be spending much more in R&D as a percentage of revenue than a later-stage company. Or a mid-stage company (like WP Engine) might have higher G&A spend (office space, finance, legal, HR) as a percentage of revenue, until it grows into those services.

Metrics 238

Metrics Revenue Flash Later Stage 238

Small Business Force

FEBRUARY 21, 2014

In early stage companies (and even some later stage or mature ones), there is no one area where most entrepreneurs and small business owners are lacking in just basic fundamentals, than in dealing with their company's finances and financial management. Go spring for some basic accounting software, early.

Finance 37

Finance Management Forecast Entrepreneur 37

Up and Running

JANUARY 30, 2014

Marketing the site and creating a business behind the product proved much more challenging. Accelerators focus on early-stage startups, while incubators are geared toward later-stage startups. Some accelerators have themes or focus on certain business sectors such as education, healthcare, or finance. Accelators.

Incubator 105

Incubator New York City Venture Capital Startup 105

Startup Lessons Learned

MAY 31, 2019

Many very successful, non-technology companies have also been products of venture capital, including Home Depot, Starbucks, and Staples. Learning everything you can about VC first is important for that reason, but also to ensure it’s the right form of financing for your business.

Lean 108

Lean Venture Capital Conversion IPO 108

A Crowded Space

AUGUST 26, 2013

Buzz High quality startups usually stay quiet and focus on building killer product (at least in the early days). Later Stages. Let’s look more broadly at later-stage equity financing. Let’s look more broadly at later-stage equity financing. Fundraising Effort.

Later Stage 87

Later Stage Liquidity Event Equity Vertical 87

Genuine VC

FEBRUARY 3, 2011

For later-stage, it’s a high-priced financing round, tipping scales on widespread adoption, rapid hiring, or credible information on successive revenue-growth quarters. Look back at all of the companies which have announced financings (in your geography and target stage) with new outside investors in the past quarter.

Startup 148

Startup Portfolio Later Stage Hiring 148

Both Sides of the Table

MAY 24, 2021

But markets have changed and I think investors, founders and experienced executives who want to join later-stage startups can all benefit from playing the long game. This “overnight success” was first financed in 2004. It literally drove FOMO. Case in point, Procore just went public and is trading at an $11 billion valuation.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

K9 Ventures

JUNE 5, 2015

Together this means that Seed stage companies need to run longer and at a higher expense structure, meaning they need to raise a lot more capital. A re-jiggering of deal stages and sizes had begun in 2013. If it doesn’t have the product fully baked yet? As it happens almost every few years there was a new normal developing.

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

View from Seed

APRIL 7, 2015

The reason is that, for an early stage company with relatively few data points, every point of interaction gets placed on the positive or negative side of the ledger. Ironically, one way to get around this is to do a total judo move and be extremely minimalistic — or else offer a product that kind of speaks for itself.

Early Stage 120

Early Stage Founder Later Stage Engineer 120