Both Sides of the Table

SEPTEMBER 10, 2021

And the loosening of federal monetary policies, particularly in the US, has pushed more dollars into the venture ecosystems at every stage of financing. What Has Changed in Financing? On the one hand, you’re over paying for every investment and valuations aren’t rational. even before the pandemic itself has been fully tamed.

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

Steve Blank

OCTOBER 24, 2017

Replacing the founder when the company needed to scale was almost standard operating procedure. While 20th century metrics were revenue and profit, today it’s common for companies to get acquired for their user base. A 20th century VC was likely to have an MBA or finance background. The founders. The founders.

Founder 252

Founder Technical Review CTO Hire IPO 252

Steve Blank

MARCH 31, 2014

In fact, it was only 7 years ago that Apple shipped its first iPhone and Google introduced its Android operating system. Metrics like Return on Net Assets, Return on Capital and Internal Rate of Return are the guiding stars of the board and CEO. Look at the valuations of companies like Tesla, Illumina, and Twitter.

Private Equity 326

Private Equity Metrics China Intellectual Property 326

Startup Professionals Musings

SEPTEMBER 22, 2021

They need to believe your valuation, based on current revenue and intellectual property, and feel the equity offered gives them a real return for the risk. These show a focus on the business elements required for success, and metrics for ensuring accountability, management control, and feedback along the way.

Intellectual Property 352

Intellectual Property Equity Bootstrapping Valuation 352

Steve Blank

FEBRUARY 26, 2020

What most founders don’t realize is: Every stage of a startup requires a different set of metrics and milestones and founder skills. Btw, the definition of each startup financing stage has changed in the last decade. What is some of the critical metrics that matter? Not all startups need outside investment to grow.

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

David Teten

JANUARY 19, 2021

This structure allows for alignment on the front end, and real-time flexibility for performance metrics,” says Samira Salman , a family office investor and advisor. . Flexible VCs have created structures based on other company performance metrics than revenues, such as profits or founder salaries. Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

David Teten

DECEMBER 3, 2019

I walk through below how progressive investors are using technology and analytics throughout all of their operations. We are also seeing technology evaluation as an increasingly important part of LP operational due diligence. To learn more about this space, I suggest join an online community I co-founded, PEVCTech. . 7) Negotiate .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Feld Thoughts

NOVEMBER 18, 2013

Here’s the punchline: if you run your company as if you have closed a VC equity financing round even though you actually closed a convertible debt round, you’ll be in much better shape when it comes time to raise your Series A financing. No updates, screen comps, or metrics have been publicly shared yet.

Burn Rate 152

Burn Rate Equity Software Review Early Stage 152

View from Seed

JUNE 10, 2020

The NextView Accelerator Doesn’t Operate in Strict Cohorts. . Most accelerators operate in class cohort “batches.” When the culmination of an accelerator is a Demo Day show, then that is what teams prepare for and the resulting metrics by which they’re measured.

Cofounder 177

Cofounder Syndicate Syndication Alabama 177

The Startup Magazine

APRIL 24, 2020

Whether you’re interested in selling a website you built from scratch, or want to sell your Amazon-based B2C brand, there are many different baseline factors that go into determining an appropriate website valuation number. While it’s true that valuations can get quite technical, the basics are relatively easy to understand.

eCommerce 91

eCommerce Valuation B2C Revenue 91

Genuine VC

JULY 19, 2010

The difference now is that given the structural changes in the market, seed-stage investors are more likely to be rewarded in valuation given the value which is created during this segment of the company’s life cycle. During an initial seed round, companies are able to test and validate live product/market theses.

Seed Stage 175

Seed Stage Technical Review Dilution Offshore 175

The Next Web

FEBRUARY 27, 2014

One of the questions I get, more often than not, is what is the appropriate valuation of my business. This is typically in conjunction with an upcoming financing or pending takeover offer. multiple interested investors competing for the deal, and driving up your valuation in the process). The more scarce a supply (e.g.,

Valuation 167

Valuation Forecast Seed Stage .Net 167

500hats.com

AUGUST 2, 2012

Other angel investors and smaller funds also copied this innovation, and many of these new Micro-VC fund managers (like me) came from operational backgrounds at companies like PayPal/eBay, Yahoo, Amazon, or Google, rather than finance backgrounds from investment banking or Wall Street. They are operators, through and through.

Silicon Valley 74

Silicon Valley Early Stage Venture Capital Valuation 74

Up and Running

OCTOBER 3, 2018

Your operations plan. Milestones and metrics that you’ll need to hit to be viable. Operations. The operations section covers how your business works, from the logistics to the technology. Milestones and metrics. For metrics , decide which numbers to check regularly to track your company’s health.

El Paso 61

El Paso Business Plan Technical Review Forecast 61

Up and Running

FEBRUARY 17, 2016

In this two-part guide to starting a brewery, we’re going to talk with brewers who’ve been there-done-that, and we’ll get insights from experts in supporting industries such as insurance and finance, as well as discuss regulatory issues. In part two, we’ll discuss finances, insurance, and regulations for breweries.

Oregon 60

Oregon Jordan SBA Cofounder 60

Gust

NOVEMBER 4, 2011

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. Valuation caps can come into play in settings other than seed-stage convertible note financing rounds. Read on for a fuller explanation.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

K9 Ventures

JUNE 5, 2015

Low supply of companies with traction drove the valuations and deal sizes up. So while the infrastructure cost and startup costs may have declined, the operating costs have increased. In that presentation, I said that Seed is not the first round of financing any more and that K9’s investments were mostly “pre-seed”.

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

Cracking the Code

NOVEMBER 13, 2008

The fact that SaaS valuations are being more affected by the downturn than the Nasdaq can be surprising given the supposed resiliency of the SaaS model (recurring revenues) but it translates the public investors belief that SMB software spend is going to be hit very hard by this recession. With this decline, the average EV/08 rev.

Software Review 48

Software Review Technical Review Valuation Portfolio 48

reidhoffman.org

NOVEMBER 12, 2013

Friendster’s valuation set the tone for the entire social networking space. You may happen to emphasize the right points that pique an investor’s interest, but you shouldn’t leave your financing up to chance. Second, understand the broader financing climate. In fact, the most fundamental strategy is the financing strategy.

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111

YoungUpstarts

JANUARY 12, 2017

Securing adequate financing for any new venture nowadays is an exceptionally difficult proposition, which is why angel investors are considered so valuable to the startup ecosystem. These individuals don’t even have to be operational, and angel investors have been known to find them being advisors to the business as acceptable.

Angel Investor 100

Angel Investor South America Early Stage Africa 100

Steve Blank

SEPTEMBER 14, 2009

Underwriters realized that as long as the public was happy snapping up shares, they could make huge profits on the inflated valuations (regardless of whether or not the company should have ever been public.) The valuations for acquisitions were nothing like the Internet bubble, but there was a path to liquidity, difficult as it was.

Silicon Valley 223

Silicon Valley IPO Technical Review Venture Capital 223

Austin Startup

MAY 19, 2018

It drives up valuations, creates interest in the category among other investors, and in a new space a well funded competitor is usually out there educating audiences about the very problem the startup solves. Don’t boomerang founders If you have specific metrics you look for in early stage companies. We work 7 days a week.

Founder 75

Founder Early Stage Software Review Deal Flow 75

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

Cracking the Code

FEBRUARY 27, 2009

Great companies have been founded during downturns and Bessemer sees a lot of investment opportunity in the current market environment," said Ed Colloton, Chief Operating Officer of Bessemer Venture Partners. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. Yahoo Finance. My Investments.

Software Review 48

Software Review Partner United States Venture Capital 48

Growthink Blog

MARCH 18, 2015

Business Planning Entrepreneurship Financing Investing Jay Turo Management Venture Capital' When they are corrected, immediately an enormous amount of latent business value is untapped and unleashed. Sign up here: ? https://attendee.gotowebinar.com/register/1136193899767328770 read more.

Valuation 48

Valuation Venture Capital Metrics Analytics 48

David Teten

AUGUST 7, 2019

Likely signs of a Value investment: the company has challenges in filling out the round; the investors have more negotiating leverage than the founders during the closing process; the company has significantly better metrics (e.g. than comparable companies in the same sector that raised at a higher valuation. Why, yes, they are.

Venture Capital 60

Venture Capital Valuation Stock NDA 60

Agile VC

NOVEMBER 9, 2015

This past Friday Square also filed an initial pricing range of $11-13/sh which would give them an enterprise value less than their last round of financing ($6B post-money). I’ll address potential valuation further down the post here. Square is very nearly breakeven on an adjusted EBITDA and operating cashflow basis.

IPO 165

IPO .Net Revenue Acquisition 165

Ben's Blog

AUGUST 17, 2020

When speaking with founders and private growth investors, we hear countless references to “multiples paid” on current or near-term revenue; both obsess over this because a higher multiple translates to a higher valuation. How valuation multiples work Why did multiples become a shortcut-heuristic for estimating valuations in the first place?

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

K9 Ventures

OCTOBER 12, 2015

That is because the venture capital industry operates in cycles. That increases the competition for deals and drives up the prices (valuation) of these deals. Well the difference is that by doubling the entry valuation you half your return multiple. As valuations increase, VC returns go down. Yup, it was a loaded tweet.

Venture Capital 48

Venture Capital Seed Stage LP Valuation 48

Austin Startup

SEPTEMBER 17, 2017

Further, you demonstrate on your spreadsheet that a venture return to early investors is plausible at a valuation that gives you enough equity to get the job done and to take care of you and your team at exit time. You also need to look at your operating history to date and get comfortable that your machine is humming along as planned.

Valuation 48

Valuation Forecast Seed Money Business Model 48

Up and Running

MAY 15, 2019

In this guide to starting a brewery, we’re going to talk with brewers who’ve been-there-done-that, and we’ll get insights from experts in supporting industries such as insurance and finance, as well as discuss regulatory issues. Watch your finances. The ColdFire Brewing team meets to plan marketing. But they all take so much time.

Oregon 24

Oregon Jordan Software Review Distribution 24

Cracking the Code

SEPTEMBER 2, 2008

Salesforce.com just has average to below-average profitability" Everyone would agree that the value of an operating asset is defined by the sum of its discounted future cash flows. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. SaaS business metrics: why are they different? anecdotes. (13).

Software Review 48

Software Review Software Technical Review Cloud 48

Cracking the Code

OCTOBER 10, 2008

Effectively measuring and understanding your CAC and CLTV metrics are key to future success. Bessemer SaaS Law #1: Your key monthly business metrics are: CMRR (Committed Monthly Recurring Revenue), Churn, and Cash flow - “Bookings” is for suckers. Brian, Paglo www.paglo.com. Great list! Great list! Philippe Botteri.

Software Review 48

Software Review North America Europe Metrics 48

David Teten

FEBRUARY 9, 2015

The cover note should include: name, website, location, revenues (if any), detailed financing history (if any), and precise terms on which you are seeking to raise capital. If you are testing the market to see what terms you can get, just say, “We are targeting to raise $X at pre-money valuation of $Y.”

Venture Capital 60

Venture Capital Pre-Money Valuation Prospectus Early Stage 60

Up and Running

OCTOBER 29, 2015

While some entrepreneurs think it’s unnecessary to write a business plan—especially if outside financing is not needed—I highly disagree. Understanding business valuations, including typical company multiples, can help keep valuation expectations in check—especially when the market begins to froth.

Business Plan 60

Business Plan Due Diligence Intellectual Property Valuation 60

www.vccafe.com

MARCH 11, 2013

Startup Metrics for Pirates â?? SaaS Metrics Tutorial â?? easy business finance software. YCombinator Series AA Equity Financing Documents. Seed Stage Valuation Guide. Startup Threads. Videos/presentations. SlideShare. Haiku Deck. GoAnimate *. Customer service. Get Satisfaction. Event platforms. Eventbrite.

Software Review 53

Software Review Technical Review Startup 53

Cracking the Code

DECEMBER 9, 2006

TOP or Total Operational Performance, is a cost cutting approach, where your objective is to cut 40% of all the "not-strictly-necessary costs" by doing things differently. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. SaaS business metrics: why are they different? Yahoo Finance.

Software Review 48

Software Review Technical Review Europe Venture Capital 48