Financing Your Startup

YoungUpstarts

Determining how to finance your business is an important decision with big consequences. There are several ways to approach funding, but there are two main sources of financing: debt and equity. Debt Financing. There are a few cons to debt financing. Equity Financing.

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.

Revenue Recognition’s Effect On M&A

YoungUpstarts

There has been a lot of chatter regarding changes in revenue recognition criteria lately, but the effects it will have on the evaluation of companies planning an exit is just beginning to emerge. Recognize revenue when performance obligations are met (good(s) or service(s) have been provided).

Should Entrepreneurs Grow Revenue Or User Count?

Startup Professionals Musings

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Both have worked.Google reached $1 billion in revenue within five years of incorporation, and now has a market capitalization of over $400 billion.

SayAhh’s Revenue Projections

Feld Thoughts

The co-founders decided to divide-and-conquer, with Dick tackling expense projections and Jane tackling revenue projections. Jane asked Josh, who provided SayAhh with solid advice on setting up their accounting systems , for help in creating the revenue side of their financial forecast. I am glad to see that you are forecasting revenues based on business drivers. In this case, the # of users and the average monthly revenue per user.

5 Reasons Startups Need Revenue As Well As Users

Startup Professionals Musings

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $400B. Long-term stability requires revenue growth and profit.

4 Brilliant Ways To Create And Manage Multiple Revenue Streams

YFS Magazine

Management of revenue streams is just as important as the creation of them. Finance Grow cash flow money raising money revenue channels revenue model

Cash Advance Startup Financing: Launching with Radium2 Capital

The Startup Magazine

Radium2 Capital offers their customers two main funding types: Merchant Account Based Advances and Revenue Based Advances. Entrepreneurs needing access to future revenue to jumpstart their business growth enjoy and value the leverage this loan option provides. Revenue Based Advances.

We Will Never Need Another Financing

Feld Thoughts

“We will never need another financing.” ” “This financing will get us to cash flow breakeven.” ” “This is our last financing before we become profitable.” Imagine being an investor and being approached by a business SaaS company that has raised $5 million, has $100k / month of revenue, has been growing at about 5% per month, and is doing a $10 million round. Entrepreneurship Financing fundraising

Multiple Revenue Streams – The Benefits, And How To Build Them Successfully

YoungUpstarts

You can do that through working hard and saving every penny or you can think outside of the box, ask questions and create the multiple revenue streams that would allow you to increase your money with less effort and more ease. Or, “What are the assets that create revenue?”

New Early Stage Financing Options for Entrepreneurs

Startup Professionals Musings

Seed-stage means promising companies that don’t yet have a revenue stream, and may not yet have a proof of concept. Since the economic downturn started, neither angels nor VCs have given much attention to startups without a product and a revenue stream.

9 Online Funding And Financing Resources For Struggling SMEs

YoungUpstarts

However, the following funding and financing tools are eager to help entrepreneurs looking for money – and they are just a few convenient clicks away. QuickBooks Financing. Opportunity Finance Network. Others business finance Funding raising funds

Strategies to Increase Your Construction Business Revenue

Up and Running

managing the finances for the Virginia utility contractor. If your firm is in a stretch of good years, she recommends you improve the company’s financial foundation—especially when, as is the case with many firms, you may have assets financed on credit. “I

Understanding The Different Types Of Finance Documentation And How To Use Them

YoungUpstarts

Official’ finance record keeping has to be carried out using specific financial documents, and supporting paperwork has to be undertaken so that an accountant can calculate the company’s tax liability and submit accounts to the IRS (Internal Revenue Service). Others business finance

10 More Creative Ways to Finance Your Startup

Startup Professionals Musings

Thus “creative” really means maximizing non-bank financing. While sizing up the alternatives, I couldn’t help but pick up a new book by Karlene Sinclair-Robinson with the creative title of “ Spank the Bank: The Guide to Alternative Business Financing.” Vendor financing.

7 Seed-Stage Funding Sources To Finance Your Startup

Startup Professionals Musings

I challenge any entrepreneur, for example, to define the difference between "seed-stage" and "early-stage" financing. Asking for early-stage money before you have customers and revenue will likely kill your credibility with real investors.

Startups With Real Revenue Can Get Venture Capital

Startup Professionals Musings

billion to work across 738 financing deals with U.S. Your friends and family are really the only answer until you have a significant revenue stream. Use friends, family, and angels, if possible, to get a product, revenue, and customers first before the VC connection.

From Zero To $1 Million In Revenue: 16 Startup Lessons We Learned

YFS Magazine

Here's a look at key lessons we learned growing from zero to $1 million in revenue. Launch Finance money starting a business startup lessons

Financing Acquisitions: Keys to Structuring the Deal And Obtaining The Funding

YoungUpstarts

Think of financing an acquisition as an exercise with two parts that work in concert: 1) structuring a desired deal with a suitable target and 2) obtaining the funding. Think about the whole capital structure and the impact to the various layers of financing. by Kenneth H.

Hire a VP Finance Sooner Rather Than Later

Feld Thoughts

If you don’t have a VP Finance on your team reporting to you, do yourself, your team, and your investors a favor and go hire one right now. The tone of the advice is fine, but it creates a total mess if you follow it without pondering the implications as you actually start to scale up revenue and expenses. I don’t care whether you call the person a VP Finance or VP Accounting. The post Hire a VP Finance Sooner Rather Than Later appeared first on Feld Thoughts.

Personal Finance Tracking Apps

Eric Friedman

I recently read the NYTimes writeup of a ton of personal finance tracking apps and wanted to share my own thoughts. Looking at my “Finance” apps folder it seems I use a hybrid combination today of Level, Mint, BillGuard, Venmo, PayPal, and SplitWise. Eric Friedman Finance

From Finder’s Fees To Financing: Where To Start When You Want To Buy A Hotel

YoungUpstarts

Total revenue of the hotel industry in the United States will surpass $200 billion this year. You need to have a deep understanding of the local hotel market before you consider hotel financing or anything else.

Finder 153

5 tips to getting small business financing

Up and Running

It’s no secret that small businesses can have a hard time getting financing. By being able to demonstrate you have ample and/or steady cash flow, you are ensuring to potential financers that you have plenty of money to pay creditors, employees and others on time.

AppDirect Is Hiring After Closing a $50 Million Financing

Feld Thoughts

Many of our portfolio companies are those types of cloud services and the ecosystems that AppDirect powers can help them get to market faster, reach more users, and drive more revenue. The post AppDirect Is Hiring After Closing a $50 Million Financing appeared first on Feld Thoughts. Earlier this year, we took part in a $50 million Series D investment round in AppDirect.

New Early Stage Financing Options for Entrepreneurs

Gust

Seed-stage means promising companies that don’t yet have a revenue stream, and may not yet have a proof of concept. Since the economic downturn started, neither angels nor VCs have given much attention to startups without a product and a revenue stream.

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

ReadWriteStart

For a more elaborate explanation of the deal, please read my blog post 1M/1M: Alternative Financing For Startups Using A Sales Channel Partner. million in revenue. Clearly, it can go much further, and Hicham is trying to decide whether he grows organically, or raises outside financing.

Revenue Compression

Start Up Blog

When chasing new business in startup land or any business for that matter, the time to revenue is more important than the amount or revenue. But before I choose, the questions I usually ask myself include: How long will it take to get the revenue? And the reason that they are better is that the revenue is compressed. entrepreneurship Cashflow Finance New business pitching revenue services startups supply management

Reblog – Finance Fridays (Sayahh’s Revenue Projections)

ithacaVC

Here is the next post in Brad Feld’s Finance Fridays. This time he talks about Sayahh’s revenue projections. It is critical to breakdown your revenue components into “digestible” segments. For example, if you are working on a medical device company, the revenue breakdown might show revenue coming from different channels (like hospitals, clinics, direct to patient, licensing). Post is here. Some interesting points: 1.

How Finance Can Usher In Digital Transformation With One Key Resource

YoungUpstarts

If the entire business isn’t caught up on digital transformation, it makes it difficult (impossible, even) for finance leaders to engage in strategic leadership and optimize revenue opportunities by driving ROI from tech investments.

Enhancing SaaS Business Growth via Incremental Improvements

The Startup Magazine

In most cases, entrepreneurs hope to grow revenue by substantial margins so as to achieve this. SaaS business models differ from all others in that they get revenues over an extended period of time. For as long as customers are happy, they stay and keep the revenue stream going.

SQL 100

9 Creative Ways to Finance a New Product-Based Business

Up and Running

We asked nine company founders the following question: What is one creative way to quickly finance a new product-based business OTHER than crowdfunding? Have Your First 10 Customers Finance Development. One way to finance a new product-based business is to partner with your supplier.

Alternative Financing for International Sales

The Entrepreneurial Mind

This insurance gives lenders the confidence to provide working capital financing. Growth in international sales created more than 30 new jobs at Auburn Leather and increased its annual revenues from $7.4 ENTREPRENEURIAL PROFILE : Lisa Howlett: Auburn Leather Company.

Non Recurring Revenue Businesses

Rob Go

I’ve been thinking a little about non-recurring revenue businesses. I’m coming to the belief that these are under-appreciated categories of investment, especially since the gospel of recurring revenue, subscription commerce, and SaaS has been preached in recent years.

How to Fine-tune Your Small Business Finances—from Funding to Growth [Webinar Recap]

Up and Running

Bates: Good morning and welcome to our CEO panel, “How to Fine-Tune Your Small Business Finances From Funding to Growth” which I think is the direction that we would all like to be going. Two, revenue. What is the hardest part of managing your finances?

Finance Expert Helping Many Shape their New Year’s Resolutions

Hearpreneur

I started this particular business to help and empower people to create revenue streams and build wealth using the tools of Access Consciousness and my experience of building businesses. Many people working in salaried employment every day feel dissatisfied with their rate of pay; but as we get older and our lives get busier, the prospect of changing jobs or retraining seems less and less appealing.

Reblog – Finance Fridays (Sayahh’s Revenue Projections – Part 2)

ithacaVC

Here is the next iteration of Brad Feld’s Finance Friday’s. As Brad points out, most startups start with a cash forecast to track expenses because it takes a bit of time to figure out how to best project revenues (the top line of the financial projections). This post covers cash forecasts and financial projections.

What every entrepreneur should know about financing right now

Version One Ventures

Any entrepreneur trying to navigate the financing landscape should be aware of the over-abundance of angel money compared with subsequent rounds. If not, revenue from your customers will be your best source of financing. The post What every entrepreneur should know about financing right now appeared first on Version One Ventures. Over the past few years, we have seen an explosion of start-up activity as the traditional barriers to entry have come down.

Equity financing: great for rapid growth startups

Berkonomics

We’ve spoken of financing a young company through friends and family, known as “inside angels.” 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

Investors shouldn’t finance races to the bottom

The Equity Kicker

We have become very efficient at creating super fast growth companies with low or non-existent potential profitability from their existing revenue models. As Bill Gurley wrote recently : it is materially easier to take a company to substantial revenue if you generously relax the constraint of profitability. The dangerous dynamic we should be avoiding is financing businesses to substantial revenues that won’t eventually generate significant profits.

Non-Profit Revenue Sources: Fundraising

Business Plan Blog

But you must somehow involve your members for them to feel connected to the organization and continue to provide membership dues, which are a source of revenue. Business Funding Non-Profit finance Funding Importance of Relationships.

Non-Profit Revenue Sources: Grants

Business Plan Blog

Approaching local businesses, banks or institutions for corporate sponsorship can also generate a large amount of revenue for the non-profit. Business Funding Non-Profit finance Funding Sources of Grants.

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.

Little Data – Insurance, finance and digital footprints

Start Up Blog

This means that in a data driven economy, areas that previously did not affect insurance and finance industries are starting to. Their biggest competitors in 5 years is more likely to come from outside their industry, as is of course any new revenue opportunities.