Up and Running

OCTOBER 16, 2019

You don’t need to write a 200-page document, but you will need something to hand to your banker or investor that shows that there’s a market for the problem your business solves and includes your key financial statements and forecasts. . Having a solid business plan is going to help you make the case for a higher valuation.

Business Plan 108

Business Plan Small Business Forecast Balance Sheet 108

Startup Professionals Musings

SEPTEMBER 6, 2010

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 234

Valuation Pre-Money Valuation NPV Startup 234

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

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Steve Blank

MARCH 17, 2020

Next, take a look at your actual revenue each month – not forecast, but real revenue coming in each month. If so, whatever revenue forecast and sales cycle estimates you had are no longer valid. They triage their deals – first worrying about liquidity of their late stage deals which have the highest valuations.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

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. Thus, you are a step ahead in qualifying leads from taking an educated guess to more data-driven predictions.

B2B 128

B2B Forecast Entrepreneur Analytics 128

YoungUpstarts

OCTOBER 23, 2017

An early example occurred in 2010 when UBS Analyst Neil Currie accessed satellite imagery to monitor activity in Walmart parking lots, running the data thru a mathematical regression to translate it into customer activity for better earnings forecasts. Morgan Stanley predicts that Robo Advisors will manage $6.5

Technical Review 154

Technical Review Artificial Inteligence Software Review IPO 154

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

Up and Running

JULY 14, 2015

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. Let’s say the valuation an investor puts on your business is $2 million.

Technical Review 60

Technical Review Valuation Due Diligence Finder 60

Both Sides of the Table

MAY 19, 2010

Founded in November 2007 in New York City by Alexis Maybank and Kevin Ryan (co-founder of DoubleClick); CEO is Susan Lyne (ex-CEO Marta Stewart Living Omnimedia) Revenue estimates: $50mm in 2008; $170mm in 2009 (versus budget of $150mm); $450mm forecasted for 2010. Note that these are “gross” revenue numbers.

Partner 240

Partner New York City Cofounder Syndicate 240

YoungUpstarts

SEPTEMBER 15, 2018

Startup valuation, under no circumstances, can be described as a simple affair. The pre-money valuation of other startups is based on the following factors. It is important for businesses to be duly evaluated because it’s the valuation of businesses that actually go on to draw investors. Importance of Evaluating your Startup.

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. It felt like there was a wavelength with management and somebody wasn’t on it.

Portfolio 364

Portfolio Chicago Sales Incubator 364

Cracking the Code

FEBRUARY 23, 2011

In comparison, the overall technology sector growth was projected at 9-10% in early 2010 and this forecast did not change significantly today. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. Wednesday, February 23, 2011. SaaS Multiples: Recovery or Bubble? My Investments. CornerstoneOnDemand.

Software Review 101

Software Review Technical Review Valuation Europe 101

YoungUpstarts

MAY 17, 2019

The risk: You base your purchase price, valuation, loans, and cash forecast off historical financials, only to find out a few months into owning the business that the numbers were all wrong and you are losing cash. The opportunity: Negotiate a better price on your deal with findings in a due diligence report.

Due Diligence 185

Due Diligence Forecast Deal Structure Valuation 185

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. Eventually it becomes self healing, but I don’t believe consistent growth will happen too quickly. That said, the IMF (international monetary fund) is more bullish.

Technical Review 269

Technical Review Stock Hawaii Early Stage 269

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. We’re upping our offering from $200K to $400K and raising the valuation cap upon acceptance into the program. Why we started the program in the first place.

San Diego 156

San Diego San Francisco Alabama Valuation 156

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. multiple interested investors competing for the deal, and driving up your valuation in the process). Never have an investor think they are the only investor pursuing your business, as that will hurt your valuation.

Valuation 167

Valuation Forecast Seed Stage .Net 167

Agile VC

MAY 26, 2011

In another we decended into a debate about our 5 year forecasts (I built the models so fielded most of these questions), and it became clear they probably weren’t the best fit for our Series A round (this group is no longer in the early-stage VC business). It was a pretty good valuation for the time. It was a $4.7M

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

The Startup Magazine

FEBRUARY 8, 2024

billion by 2027, according to forecasts. Implementing a learning management system (LMS) is a significant task for organizations aiming to boost learning and development efforts, especially considering the projected growth of the worldwide LMS market from $18.7 billion in 2022 to $43.6

Forecast 140

Forecast Analytics Framework Employee 140

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

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

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. Deciphering Future Threats with Predictive Models Predicting the future is no magic, especially when equipped with the right tools.

Security 136

Security Management Forecast Finance 136

crowdSPRING Blog

JANUARY 5, 2011

Forrester Forecasts One Third Of U.S. Goldman Invests in Facebook at $50 Billion Valuation – [link]. Mobile carriers are calling everything 4G these days – [link]. Online Consumers Will Own A Tablet By 2015 [link]. Best of 2010 Tech, Year In Review (by @FrankGruber ) – [link].

Social Media 93

Social Media Small Business Design Media 93

David Teten

JANUARY 19, 2021

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. Yes, via conversion rights at a valuation cap. The State of Flexible VC.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

SoCal CTO

MAY 19, 2010

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. In his recent post, Top 10 Ways to Win a Business Plan Competition , he says: #4 I wanted to push this further down the list, but I just bristle at this: the revenue forecast. So get real.

Hockey Stick 205

Hockey Stick NPV IRR Valuation 205

www.entrepreneur.com

SEPTEMBER 22, 2011

Franchises Franchises Home Franchise 500 Home-Based Low Cost Top New Fast Growing Top Global Biz Opportunities Franchises for Sale Franchises A Bright Forecast for a Solar Panel Installation Franchise. Sweat equity is just one component of early-stage valuation. Franchises Beware of Song Birds When Doing Homework on a Franchise.

Sweat Equity 55

Sweat Equity Equity Fractional CTO CTO 55

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

ReadWriteStart

JANUARY 28, 2022

This article will assist you in gaining a fundamental understanding of equity valuation, kinds of equity, and other related topics. Of course, the higher the company’s valuation, the lower the scale of equity and advisor should expect. Importance of equity valuation. Make forecasts about the company’s performance.

Valuation 108

Valuation Equity Warrant Common Stock 108

Start Up Blog

MAY 26, 2022

It really is astonishing: Forecast VOD streaming content spend = $US230 billion Forecast VOD streaming revenue = $US83.4 Tech companies have been getting a free pass for a long time on their valuations. Imagine if an industry spent $4 to generate $1 in revenue. Don’t forget – this is before profit.

Forecast 62

Forecast Viral Stock Curation 62

Startup Professionals Musings

FEBRUARY 13, 2016

Justify funding requirements, use of funds and specify a current valuation estimate. What are your forecasts for revenue, expenses and cash flow? Forecasts are evaluated as a level of commitment and a measure of your business savvy. Quantify founder investments, both cash and sweat-equity.

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Berkonomics

MARCH 21, 2019

Careful about “hockey stick” forecasts. Email readers, continue here…] Most VC’s look for a 10x opportunity – that is – a ten times increase in the valuation from investment to liquidity event. Here’s a valuation example for you based on amount to be raised. How much money can you get? .

Hockey Stick 63

Hockey Stick Liquidity Event Valuation Balance Sheet 63

Cracking the Code

MARCH 12, 2010

So, here is the first edition, including the recent Q4 2009 earnings and the updated 2010 forecast. If we consider that 2009 was probably the worst year in the past 5 years, forecasting the same growth for 2010 is not very encouraging. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation.

Software Review 63

Software Review Technical Review Cloud Forecast 63

The Equity Kicker

APRIL 11, 2012

Valuation has been increasing rapidly and the deal likely won’t get any cheaper (Sequoia and other VCs who invested last week at a $500m valuation would likely want more than 2x if they stayed in for any length of time). 1bn values Instagram at $33 per user, which compares with $118 on Facebook (assuming a $100bn IPO).

IPO 110

IPO Valuation Forecast Acquisition 110

The Equity Kicker

OCTOBER 9, 2014

I knew that Zulily , which Crunchbase describes as ‘A daily deal site for mums, babies and kids’ is an amazing ecommerce success story which IPO’d last year with a valuation in the billions. As you can see from the chart below they went from a standing start in Q4 2010 to a forecast $1.1bn in net sales last quarter.

eCommerce 98

eCommerce Flash Forecast IPO 98

Hunter Walker

AUGUST 7, 2017

Since Homebrew typically leads/co-leads seed rounds, we assist in helping founders design and manage their pool against their hiring forecast. What if we split the pain [ie increase pre-money valuation slightly on our end and founders take slightly more dilution off their end]?”

Equity 94

Equity Pre-Money Valuation Option Pool Founder 94

David Teten

SEPTEMBER 23, 2017

Close to 80% responded that manual processes, such as tracking down support, preparing reports and pulling data from different sources, are the biggest pain points they face in the valuation process. Kushim , Totem , and VisibleVC focus on serving this need among VCs.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

The Equity Kicker

MARCH 7, 2016

But as deals get bigger analysis of forecasts and the financial impact on the acquirer become much more important. Also very important to note is that the number of acquisitions declines precipitously as the valuation rises. Moreover, much is driven by luck in this industry and individual counter-examples abound.

Acquisition 60

Acquisition Intellectual Property Investment Bankers Valuation 60