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).

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.

Trending Sources

What Seed Financing Is For

A VC : Venture Capital and Technology

Marc Andreessen posted a tweetstorm last week and he talked about how to think about seed financings and how they lead into Series A and Series B rounds. I think that’s what seed financing should be used for. The third step you need to climb is to scale that team and ramp revenues and take the market. Feature request for Twitter: Please make it possible to permalink to and embed a tweetstorm. You can call this the @pmarca feature.

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.

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

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

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.

Mentors, Revenue Based Financing, and Misperceptions About Venture Capital

Ask The VC

Fred Wilson (USV) has his normal MBA Mondays series with a guest post from Andy Sack titled Revenue Based Financing. It’s an advertorial for Andy’s firm Lighter Capital but is a really good explanation of how revenue based financing works. VC Post of the Day ehrenberg mentors o'donnell revenue based financing vc post of the day wilson

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

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.

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

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 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.

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.

Sizing Option Pools In Connection With Financings

A VC : Venture Capital and Technology

What I like to do, as I mentioned in the post I linked to, is agree with the entrepreneur that the option pool will have enough unissued options to fund all the hiring and retention grants that need to happen between the current financing and the next one. Then we'll do the same thing at the time of the next financing. If the financing is $1mm, it's not going to be that many. We've talked about this issue before here at AVC.

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.

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.

Revenue exceptionalism vs margin exceptionalism

Chris Dixon

Three years ago, Fred Wilson wrote a great blog post called When Talking About Business Models, Remember that Profits Equal Revenues Minus Costs. The profound part is that high growth, early-stage tech companies often have a choice about how to become exceptionally valuable businesses: they can focus on growing revenues at the expense of margins, or margins at the expense of revenues. For example, do you invest heavily in sales and marketing to grow your revenue faster?

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.

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.

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.

Uber Reports $708 Million Loss in First Quarter as Finance Chief Leaves the Company

Inc Startups

But its revenue grew 18 percent. Technology

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

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.

Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

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. A convertible note financing is not a loan in the conventional sense.

Your Blog as a Startup: Tips to Manage Your Finances and Make Money Blogging

Blogtrepreneur | Entrepreneur Blog

Just as important, they need to manage their finances in order to thrive in the long term. Tips to Help Bloggers Manage Their Finances. Managing your blog-related finances is easier when it’s all in one place. Keep a Simple Monthly Revenue and Expense Spreadsheet.

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5 Critical Things Entrepreneurs Need to Know about Managing Their Company's Finances.

Small Business Force

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.

SayAhh’s Revenue Projections

Feld Thoughts

While Jane was building SayAhh’s revenue projections , Dick focused his attention on building the expense side of the projections. It is simple in that it forecasts how much cash will be coming in the door (revenues + equity financing + debt financing) and then subtracts from that amount how much cash is expected to be going out the door. Since this was addressed on the revenue side, we won’t go into details on the expense side.

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.

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?

What is the Appropriate Time Horizon of a Financial Model for VC’s

Ask The VC

Early and pre-revenue: Investors are going to be most interested in your near term burn rate and how long their money is going to last. Recognize that your revenue is totally speculative so the “base case” is going to be zero revenue. First product in the market, < $100k / month of revenue : Revenue matters here and the projections out into the second and third year will give a good indication of how you are thinking about the ramp of your business.

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.

Your Startup's Revenue Projections Are Wrong

VC Whisperer

People often ask me:"Paul, what should our revenue projections look like to attract venture capital?"I entrepreneur startup money finance VC venture capital revenueI believe there is no good answer to that question. There’s no “right” projected number that makes us all want to throw money at a startup. Most VCs are savvy enough to ignore the number itself because frankly, most of the time, it's wrong. Not through any fault of the entrepreneur, but simply.

Some thoughts on when to raise money, and the current financing environment

Chris Dixon

Here are some thoughts on this question generally along with some thoughts on today’s venture financing market. - In finance speak, venture tends to be high beta, moving as a multiple of the public markets, which themselves tend to move more dramatically than economic fundamentals. In Facebook’s case, Wall Street types look at revenue and margin growth and the trend toward mobile where monetization is considerably worse (for now).

Fun Fact of The Week: Path to Revenues

Redeye VC

Last week I posted some data from our portfolio about the pace of seed-stage financings. This week, I thought we'd take a look at the speed at which our companies generate revenue. I was surprised to see how long it took those companies to generate revenue.

Money Doesn’t Talk. Why Most Startups Aren’t Announcing Their Seed Financings

Hunter Walker

Not because they’re all operating in stealth or pre-product – in fact some already are earning $1m+ in revenue per annum. Most of the startups we’ve backed at Homebrew don’t rush to announce their funding. They just don’t feel the need to draw attention to themselves or alert possible competitors. And my sense is the trend carries outside of our portfolio these days.

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What Didn’t Happen

A VC : Venture Capital and Technology

to 5x revenues, a far cry from what companies get financed at in the late stage private markets. VC & Technology Politics hacking finance entrepreneurship hacking healthcare health care stocks enterprise economics

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Three Things That Matter When Seeking Finance For Internationalization

ArcticStartup

At the point of having screened 100+ companies and spent more time with over 15 of them, I wanted to share my view on the most critical success factors in seeking finance for internationalization. Below are the three things that typically make or break a financing deal.

Fundraising 2016 – Control Your Destiny

Feld Thoughts

We’ve already heard lots of predictions about the late stage financing market, tech IPOs, and what is going to happen to unicorns this year. Here’s an example from an email exchange I had this morning with the CEO of an early stage company that has growing revenue and a small team. Founder : “So far we’ve raised $1.2mm and our revenues for 2016 will eclipse that. Entrepreneurship FinancingWelcome to 2016.

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$1 Billion in Revenue, 10,000 Clients and 1 Attribute The Drove It All

Inc Startups

Matt Manero, CEO of Commercial Fleet Financing, shares the one attribute that has consistently driven his past 22 years of growth and success