Gust

NOVEMBER 18, 2012

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success. Term-sheets and Valuations: Thinking about Negotiations. The Valuation Question. When companies seeking their first round of serious funding are good enough to receive a term-sheet from an investor, the first issue that always arises is valuation. Let’s start at the end.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Both Sides of the Table

OCTOBER 1, 2009

The IMF just raised its global growth forecast from 2.5% This has a tangible impact on the valuation of start-ups and the pace of investment. If you’re a startup, in bad times there is less over-funding of your competitors and therefore less pressure to give everything away for free.

Technical Review 269

Technical Review Stock Hawaii Early Stage 269

The Startup Magazine

MARCH 24, 2024

Here are some key tips to refine lead qualification — Leverage predictive analytics for pipeline forecasting Predictive analytics offers real-time data and forecasts that help in accurate pipeline forecasting. A good starting point would be to follow the SEO guide for a startup that provides tips and tricks to optimize content.

B2B 148

B2B Forecast Entrepreneur Analytics 148

YoungUpstarts

SEPTEMBER 15, 2018

Startup valuation, under no circumstances, can be described as a simple affair. While valuing a publicly traded company is more or less straightforward, the case with a rarely profit making startup is not quite the same. Here are several factors that are taken into account while these startups are evaluated.

Pre-Money Valuation 124

Pre-Money Valuation Valuation Sweat Equity Startup 124

Both Sides of the Table

JANUARY 22, 2014

I’ve been involved with SaaS companies with VCs who don’t understand demand generation, lead qualification, sales coverage ratios, sales forecasting or frankly when deals should be inside sales vs. outside sales. Politics are a part of human nature and thus a part of all startups. Startups are hard. FourSquare.

Portfolio 364

Portfolio Chicago Sales Incubator 364

The Next Web

FEBRUARY 27, 2014

George Deeb is the Managing Partner at Chicago-based Red Rocket Ventures , a startup consulting and financial advisory firm based in Chicago. One of the questions I get, more often than not, is what is the appropriate valuation of my business. Each industry typically has its unique valuation methodologies. Your industry.

Valuation 167

Valuation Forecast Seed Stage .Net 167

Both Sides of the Table

MAY 19, 2010

Another topic we debated early in the program was “lean startup” vs. “ fat startup ” where we both took the obvious hedge and said “it depends.” But truthfully both Dana and I are more aligned with the lean startup principles and believe you only go FAT when you’ve really proved out your product / market fit.

Partner 240

Partner New York City Cofounder Syndicate 240

The Equity Kicker

DECEMBER 2, 2015

Mahesh Vellanki from Redpoint put up an interesting post yesterday about ecommerce valuations. revenues because growth is much lower – forecast at 5-7% next year, and their EBITDA margin is 8%. As you can see from the chart above, in Mahesh’s sample most of the companies have revenue multiples in the 1-2x range.

Forecast 60

Forecast eCommerce Net Present Value Revenue 60

View from Seed

JANUARY 10, 2022

We’re running our new and improved accelerator program back, we’re doubling our offering and raising the valuation cap (hello $400K) , and we’d love for you and your team to apply. The journey of every startup is so different. Startups pioneering the future of remote work. There will be 6-8 startup teams in this cohort.

San Diego 156

San Diego San Francisco Alabama Valuation 156

Up and Running

JULY 14, 2015

An early stage startup will want to access funds to help further validate its business proposition. Any investor will put their valuation on your business based on a number of factors, including looking at important metrics for your business, patents, or assets. But raising too much money will cause the valuation to increase.

Technical Review 60

Technical Review Valuation Due Diligence Finder 60

Agile VC

MAY 26, 2011

AGILEVC My idle thoughts on tech startups. Salesforce.com is a startup with 76,000 subscribers (over 2.1M I also joke with Reid Hoffman that this was back in the days before he was “Reid” Reid’s an incredible entrepreneur, startup investor, and human being. How to Evaluate Firms for a Seed VC. May 26, 2011.

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

YoungUpstarts

MAY 17, 2019

In today’s sexy startup culture, buying an existing business has lost its vogue. But every year thousands of entrepreneurs become millionaires by buying and growing businesses without the startup headaches of venture capitalists, zero revenue, and no business processes.

Due Diligence 185

Due Diligence Forecast Deal Structure Valuation 185

The Startup Magazine

FEBRUARY 8, 2024

billion by 2027, according to forecasts. The post Strategies for Success: Planning Your LMS Implementation Project appeared first on The Startup Magazine. billion in 2022 to $43.6 Success hinges on meticulous planning and smart execution. Pexels In this blog, we dissect the vital steps and factors for a smooth implementation process.

Forecast 158

Forecast Analytics Framework Employee 158

Startup Professionals Musings

FEBRUARY 13, 2016

Entrepreneurs who are looking to attract investors need to develop and pitch a plan -- preferably written -- that answers every potential investor question about your startup before it is asked. Name the three top ones, and present your sustainable advantage as well as barriers to entry for new startups.

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

crowdSPRING Blog

JANUARY 5, 2011

These posts and videos are about logo design , web design , startups, entrepreneurship, small business, leadership, social media, marketing, and more! Five Designs Small Businesses and Startups Should Crowdsource – [link]. Three economic trends for 2011 (fueled by startup goodness) – [link]. Need a Logo?

Social Media 93

Social Media Small Business Design Media 93

The Startup Magazine

DECEMBER 7, 2023

The use of cutting-edge algorithms and analytics allows these consultants to make educated forecasts about market dynamics and potential adverse events. The post 4 Ways How Risk Management Companies Ensure Financial Security appeared first on The Startup Magazine. This is where risk management consulting becomes invaluable.

Security 148

Security Management Forecast Finance 148

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. In all these cases, capital is provided to fuel forecasted growth without creating a commitment to a particular vision for future funding rounds, exit goals, and associated blitzscaling. Yes, via conversion rights at a valuation cap.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Startup Professionals Musings

SEPTEMBER 30, 2011

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

Tim Keane

MARCH 9, 2011

Startups and angels: Along the way to success. How to prepare a sales forecast for a business plan » March 09, 2011. It’s a deceptively simple question:  what is the optimal way to finance a new startup? It’s a deceptively simple question:  what is the optimal way to finance a new startup? Startup ideas.

Finance 83

Finance Bootstrapping Startup Equity 83

David Teten

AUGUST 6, 2015

So often I speak with companies that have charged ahead building an ultra-complex daily or weekly model with thousands of assumptions and complex dashboard outputs, when their potential investors simply want a high-level 24 month forecast with 12 months of reconciling historical data.”. HOW TO MAKE YOUR CELLS READABLE.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

www.entrepreneur.com

SEPTEMBER 22, 2011

Entrepreneur Homepage Startups Starting a Business Home How-To Guides Startup Basics Business Ideas Business Planning Startup Financing Success Stories Home-Based Business Starting a Business Play Video How to Take a New Product from Just an Idea to a Business (Video). Startup Basics Does College Matter for Entrepreneurs?

Sweat Equity 55

Sweat Equity Equity Fractional CTO CTO 55

ReadWriteStart

JANUARY 28, 2022

With the rise of startups and growing businesses , it has become more critical for investors to have a thorough understanding of equity to be aware of all of the advantages they are receiving from the companies they have invested in. Why do startups issue company equity? You have a financial stake in a startup if you have equity.

Valuation 108

Valuation Equity Warrant Common Stock 108

VC Cafe

SEPTEMBER 26, 2022

The past year was a wild ride for startups and founders, giving a whole new meaning to the ”rollercoaster” aspect of being an entrepreneur. A combination of competition for top talent and an effort to bring employees back to the office drove startups in Israel to throw extravagant parties and all-inclusive retreats abroad.

Founder 187

Founder Startup Valuation Pre-Money Valuation 187

SoCal CTO

MAY 19, 2010

I’m planning on going to a Tech Coast Angels mixer tomorrow and the topic for me is whether there is angel funding out there for startups that don’t meet classic VC models. By way of background for the question, there’s a great post by Bob Aholt, a Pasadena Angel: An Angel Investor’s Thoughts on Valuation. So get real.

Hockey Stick 205

Hockey Stick NPV IRR Valuation 205

The Equity Kicker

SEPTEMBER 8, 2015

We can draw lessons for this for new startups. For very young companies the forecasts should show this level of growth, whilst companies at Series A or later will have to have shown this level of growth in the past as well as in their forecasts. They’ve lived the dream. per year, compounded. in their early years.

Hockey Stick 60

Hockey Stick Forecast Startup Valuation 60

www.mint.com

MARCH 9, 2010

If you are considering working at a startup, you should ask these questions. 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.”

Software Review 68

Software Review Startup Post-Money Valuation Technical Review 68

Startup Professionals Musings

AUGUST 8, 2016

As a startup advisor and investor, I find that more and more entrepreneurs avoid using the term “profit” in pitching their new venture. Generate a 5-year financial forecast from opportunity data. Investors look for key leaders who have domain expertise and prior startup experience. Without profit there is no business.

Intellectual Property 120

Intellectual Property Entrepreneur Elevator Pitch Exit Strategy 120

David Teten

SEPTEMBER 23, 2017

The only problem that faces startup investors now is how to mine this new data layer efficiently to increase returns.”. For the broader use case of helping startups execute their legal paperwork, Clerky is a focused solution. to motivate their angel community to support their startups. 7) Monitor and report investments.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Ben's Blog

AUGUST 17, 2020

OH in South Park, San Francisco (or on Zoom from Big Sky, Montana): “OMG, crazy – that firm just paid 100x revenue to invest in [insert hot startup here] – what could they be thinking?” 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

The Equity Kicker

APRIL 11, 2012

The question on everyone’s lips is, of course, ‘how come a two year old startup with no revenues is worth $1bn?’. I think that high priced acquisitions of startups are often valued with half an eye to the acquirers share price. I think the answer is pretty clear – it’s all about Facebook’s IPO price.

IPO 110

IPO Valuation Forecast Acquisition 110

Startup Professionals Musings

AUGUST 7, 2015

Large and growing markets imply a high startup growth potential, with high odds of scaling and success. First to market” is not sustainable by a startup. Startup team strengths and domain experience. This allows them to calculate burn rates, break-even points and forecast the company valuation over time.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

Berkonomics

MARCH 21, 2019

If the business is not a startup, expect to supply income statements for the past several years as well, to emphasize trends in revenue and costs. Careful about “hockey stick” forecasts. Here’s a valuation example for you based on amount to be raised. It is a fact that very few businesses reach the $40,000,000 valuation hurdle.

Hockey Stick 63

Hockey Stick Liquidity Event Valuation Balance Sheet 63

genylabs.typepad.com

SEPTEMBER 24, 2011

Tracking and Forecasting the Trends Impacting the Future of Small Business. Planning, Startups, Stories. I wont bother going into details on start-up financing terms ( see this post for an overview of typical VC terms) except to say if you dont know and understand: the firms cap table and valuation. Small Business Labs.

Equity 40

Equity Technical Review San Jose Stock 40

Steve Blank

APRIL 1, 2020

So here’s a five-day playbook to help CEOs of cash-flow negative startups, or ones about to go negative, assess the new normal and respond with speed and urgency. For companies burning cash, such as startups, how much cash do you have? Forecasted recovery date. Sales pipeline/forecast. For startups: source of VC money?

South Korea 333

South Korea Salary Business Model China 333

Up and Running

AUGUST 21, 2017

It’s understandable, then, that the term “unicorn” has come to be used routinely in the world of business funding to refer to those rare and beautiful privately funded startups—especially in the tech space—that have reached the upper echelon of valuation, being valued at over $1 billion. at around 27 million. Reasons for pessimism.

Silicon Valley 86

Silicon Valley Venture Capital Valuation Later Stage 86

Startup Professionals Musings

AUGUST 13, 2012

Include a current valuation estimate. Financial forecast and metrics. Quantify existing skin-in-the-game, by insiders and outsiders, including sweat equity and capital. The most credible sizing approach is to do your financial model first with the volume, cost, and pricing parameters you want. See where your cashflow bottoms out.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283