The Startup Magazine

AUGUST 11, 2023

The fundamental objective and aim of seed investment is to assist a company in launching its operations successfully. Seed money can range from a relatively modest sum to a sizeable one, depending not only on the nature of the startup, the sector in which it will operate, and any other pertinent business aspects.

Seed Stage 148

Seed Stage Technical Review Early Stage Due Diligence 148

Startup Professionals Musings

MAY 1, 2023

Cofounders only able to work part-time, with responsibility and major income sources elsewhere, don’t carry the same risk as others with more operational responsibility. Investors may not be called cofounders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation.

Technical Cofounder 247

Technical Cofounder Equity Distribution Cofounder 247

Startup Professionals Musings

AUGUST 19, 2020

Waiting until you have something to sell before bringing on a sales and operations staff. For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month. This could equate to two technical founders (with a minimal salary), funding two developers for a year.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

The Startup Magazine

FEBRUARY 21, 2024

Arif Bhalwani is the co-founder and CEO of Third Eye Capital (TEC) in Toronto, Canada. We engage intimately with businesses and their assets, understanding their operations, aspirations, and the hurdles they face. Simultaneously, we conducted a thorough operational review to identify inefficiencies and areas for cost reduction.

Technical Review 158

Technical Review Due Diligence Bankruptcy Intellectual Property 158

Both Sides of the Table

JUNE 30, 2016

Amongst the most often asked questions I get from founders is, “How much money should I raise?” Reflexively founders want to raise as much money as they can because they figure it will give them more resources, better chances of competing and a longer runways before they have to do the often painful job of asking, yet again, for money.

Pre-Money Valuation 292

Pre-Money Valuation Valuation Early Stage Startup 292

Startup Professionals Musings

SEPTEMBER 10, 2018

I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a co-founder or two. Giving a co-founder a salary won’t get you the “fire in the belly” you want. Each co-founder should get equity for value, based on these key variables: Lived a key role in a previous startup.

Equity 238

Equity Cofounder Technical Cofounder Intellectual Property 238

YoungUpstarts

NOVEMBER 19, 2020

They want to see that a business is operating on all six cylinders. Processes refers to operating procedures and employee handbooks. EBITDA is the most important profitability metric to consider as many valuations are based on a multiple of this metric. At Seiler Tucker, we call these cylinders the ST 6 P’s®.

Exit Strategy 246

Exit Strategy Intellectual Property Valuation Metrics 246

View from Seed

NOVEMBER 18, 2020

Airbnb’s bookings have rebounded to roughly 70-80% of what they were in 2019 pre-COVID whereas global hotel companies like Marriott and Hilton are operating at roughly 35-40% of where they were in fall 2019. Source: Airbnb S-1. Airbnb’s Secret Sauce. Expedia 8%. Booking Holdings 35%. Hilton 17%. Marriott 9%.

North America 401

North America IPO Prospectus Europe 401

Both Sides of the Table

OCTOBER 15, 2009

He was to head up UK operations. Back to BuildOnline, following the staggering decline in public market valuations throughout 2000 we were forced to cut our staff dramatically going from 92 employees to 38 in just one day (and down to 33 a month later). We hired people to run the UK and Germany.

Founder 299

Founder Technical Review Startup Venture Capital 299

The Startup Magazine

MARCH 14, 2022

5) Managing the operations. As the seed funding has been raised by this time, the company starts its operations and gradually expands. At this stage, the founder mainly raises funding from their sources or family and friends. Here, the company’s valuation benchmark is set, and funding is solicited accordingly.

Technical Review 167

Technical Review Due Diligence India Startup 167

View from Seed

APRIL 5, 2016

Founders’ stories can be truly heroic, but inspiring stories don’t start and end with them. Likewise, true grit is defined by so much more than company growth and valuations. The post True Grit: It’s Not Just Founders We Should Celebrate appeared first on NextView Ventures.

Founder 120

Founder Web Development Web Community 120

Both Sides of the Table

SEPTEMBER 28, 2014

by Michael Woolf that is worth any startup founder reading to get a sense of perspective on the reality warp that is startup world during a frothy market such as 1997-1999, 2005-2007 or 2012-2014. Valuation. I wanted to call out special attention to valuation in this debate.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

ReadWriteStart

JUNE 1, 2020

Reasons for funding. ? Scale up your operations. One of the most prominent reasons for funding is to scale up your operations, for expansion and achieve economies of scale. Now you may want to scale up your operations or expand your presence. The third reason is to fund your short term operational expenses or working capital.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

ReadWriteStart

JANUARY 28, 2022

This article will assist you in gaining a fundamental understanding of equity valuation, kinds of equity, and other related topics. Equity for Co-founders. Founders can compensate them in either equity or salary as per their preference. This range decreases if there are more founders. Importance of equity valuation.

Valuation 108

Valuation Equity Warrant Common Stock 108

Startup Professionals Musings

SEPTEMBER 29, 2018

Waiting until you have something to sell before bringing on a sales and operations staff. For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month. This could equate to two technical founders (with a minimal salary), funding two developers for a year.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

The Startup Magazine

NOVEMBER 28, 2022

Each engagement is personally undertaken by their founder and principal, Mitul. Prior to working with Citius, he helped global businesses generate up to $200M in annual recurring revenue and realise valuations of $1Bn+. Mitul Ruparelia – Founder, Citius Partners. During that time, he had key successes.

Founder 158

Founder B2B Private Equity India 158

YoungUpstarts

JANUARY 10, 2018

How do you find the balance between not too small to prove itself but not too big to have an off-putting valuation? Few buyers will get excited about a company currently operating at a loss. Minimizing losses in the year before you begin shopping around for buyers will increase profit and help you get that higher valuation.

Valuation 145

Valuation Technical Review Exit Strategy Metrics 145

Steve Blank

SEPTEMBER 5, 2018

Jeff Katzenberg has a great track record – head of the studio at Paramount, chairman of Disney Studios, co-founder of DreamWorks and now chairman of NewTV. Lean was designed to inform the founders’ vision while they operated frugally at speed. ” Fire, Ready, Aim. He just hired Meg Whitman. The result?

Lean 335

Lean Burn Rate Startup IPO 335

VC Cafe

AUGUST 2, 2022

Tim Sweeney, the founder and CEO of Epic is a long term visionary of our online future and the Metaverse. Tim Sweeney, Epic Games’ founder and CEO. monthly active end-users who are engaging with content created or operated by Unity solutions in 2020. In April 2022, the company announced it has raised $2 billion (at $31.5

IP 206

IP Cofounder Valuation Acquisition 206

ReadWriteStart

JULY 15, 2020

Startup founders are trying to figure out how to fundraise through a pandemic and economic crash. New talk of capital efficiency is gratifying, but there was another lesson from pre-COVID-19 valuation struggles. Venture capitalists and early-stage investors have told all of us, founders are critical to a startup’s valuation.

Valuation 91

Valuation South Carolina San Jose Balance Sheet 91

Startup Professionals Musings

OCTOBER 18, 2023

Most startup founders don’t relish the thought of managing repeatable processes, greedy stockholders, and endless regulation reports. New startup founders keep all the operating metrics they need in their head. Your valuation and salability depends on the credibility of this effort. Listen carefully and act accordingly.

Exit Strategy 248

Exit Strategy Valuation Acquisition Metrics 248

The Startup Magazine

SEPTEMBER 10, 2019

There is a myth among first time tech founders that product is everything. Here are five financial concepts that every startup founder should know to build an everlasting company. Asset valuation. The concept of asset valuation may seem counterintuitive, but it is an important idea. By Venkat Ramasamy, COO, FileCloud.

Founder 148

Founder Valuation Dividend Startup 148

VC Adventure

JUNE 14, 2022

Most founders don’t feel they are getting value from their investors, even in areas like follow on rounds where they would hope to see specialized experience. Do they want to be involved in operations of the business, recruitment of executives, etc? The answer may surprise you. Creandum’s recent article, Do VCs add value?

Technical Review 150

Technical Review Due Diligence Portfolio Venture Capital 150

Startup Professionals Musings

OCTOBER 5, 2014

Waiting until you have something to sell before bringing on a sales and operations staff. For example, a software development startup raising $250,000 from angel investors better be able to operate on $25,000 per month. This could equate to two technical founders (with a minimal salary), funding two developers for a year.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

View from Seed

SEPTEMBER 13, 2018

One of the results of this change is that Founders now approach Series A funds with increasingly varied histories. Effective) post-money valuation. Easy” items include avoiding a messy string of notes/SAFEs with varied valuations over time, reducing valuation overhang, and even rounding down total capital raised for optics (ie.

Seed Stage 136

Seed Stage Post-Money Valuation Valuation Startup 136

Austin Startup

MAY 19, 2018

As Bryan stated below, there are no shortage of “How to pitch” or “How to behave” articles by VCs but really very little advice for VCs by founders. Anyone notice there's a ton of VCs giving founder advice, and almost no founder advice for VCs? Lines Not Dots Raising money from a fund is a process, most founders get that.

Founder 75

Founder Early Stage Software Review Deal Flow 75

Both Sides of the Table

SEPTEMBER 10, 2021

I’m over-paying for every check I write into the VC ecosystem and valuations are being pushed up to absurd levels and many of these valuations and companies won’t hold in the long term. On the one hand, you’re over paying for every investment and valuations aren’t rational. two founders in a garage?—?(HP dot-com bonanza.

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

Steve Blank

APRIL 23, 2014

VCs like acquisitions as much as IPOs because the acquiring companies often can rationalize paying large multiples over the current valuation of the startup. However, these nosebleed valuations make it even more important in getting the acquired company integrated correctly. Predicting Success or Failure of an Acquisition.

Acquisition 333

Acquisition Intellectual Property Silicon Valley Startup 333

Startup Professionals Musings

JANUARY 9, 2021

Most startup founders don’t relish the thought of managing repeatable processes, greedy stockholders, and endless regulation reports. New startup founders keep all the operating metrics they need in their head. Your valuation and salability depends on the credibility of this effort. Listen carefully and act accordingly.

Exit Strategy 434

Exit Strategy Valuation Acquisition Metrics 434

Both Sides of the Table

AUGUST 14, 2017

I read commentary or Twitter or blogs and realize that there are also strongly held convictions that there are these evil VCs who do terrible things to mostly altruistic founders. But unlike the popular press reporting of this conflict — 80% of the time it is founder-to-founder conflict and not investor-to-founder conflict.

Cofounder 217

Cofounder Stock Options Equity Technical Review 217

Startup Professionals Musings

AUGUST 24, 2016

I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a co-founder or two. Giving a co-founder a salary won’t get you the “fire in the belly” you want. Each co-founder should get equity for value, based on these key variables: Lived a key role in a previous startup.

Equity 120

Equity Cofounder Technical Cofounder Intellectual Property 120

Both Sides of the Table

SEPTEMBER 22, 2012

“Why do founders want to take the VCs’ money? The constraint between good ideas and growth operates in both directions. Founders will continue to take the “growth at all options” path that leads to privacy & trust creep at places like Quora. Growth, again. Grow or die.

Silicon Valley 390

Silicon Valley Venture Capital Startup Technical Review 390

Startup Professionals Musings

FEBRUARY 21, 2012

For example, a web-based startup should be able to operate for a year if they raise $500,000 from the founders or angels. This will equate to 2 working founders (taking no salary), hiring a 5-person development team for a year. That will position the startup to raise a venture round at a favorable valuation.

Burn Rate 232

Burn Rate Startup Salary Equity 232

Up and Running

SEPTEMBER 19, 2017

Currently, most ecommerce businesses have IT staff constantly running manual tests to confirm that their site is operating properly, or they manually create expensive software to run these tests. Takeaway lesson: A shocking number of technology startups never even get their first product out the door. His first capital raise was a $2.75

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

View from Seed

MARCH 24, 2021

What Are Your Valuation Expectations? But mainly we did it because these corporate VCs were among the only groups willing to invest at PayPal’s somewhat inflated post-money valuation, during the middle of the dot-com crash when traditional VCs pulled back sharply and other sources of funding were constrained.” ” (Rob Go).

Seed Stage 177

Seed Stage Hiring IPO Analytics 177

Steve Blank

MAY 9, 2017

The founders were simply wrong about their assumptions about customer needs. It turns out the term “visionary founder” was usually a synonym for someone who was hallucinating. Founders Need to Run the Company Longer. So, almost like clockwork 20 th century startups fired the innovators/founders when they scaled.

Restful 238

Restful Silicon Valley Puerto Rico San Jose 238

Both Sides of the Table

JUNE 22, 2011

I recently spoke at the Founder Showcase at the request of Adeo Ressi. I said that at the Founder Showcase, too. In addition to FOMO it is partly driven by massive increase in valuations for earlier-stage companies who raised money at bit seed prices but who still have product risk. This post originally ran on TechCrunch.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309