David Teten

AUGUST 19, 2019

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. So what is Revenue Based Investing?

Revenue 60

Revenue Term Sheet Founder Technical Review 60

David Teten

MARCH 14, 2018

Managers of VC funds typically want to grow their business aggressively, just like the founders we back. But, we normally have a clear ceiling on how high we can grow AUM, before hitting practical limits to deploying capital within the traditional VC model. . – Launch a “ venture studio ” or “ foundry ”. (I’m

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

David Teten

AUGUST 19, 2019

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. Bigfoot Capital. Capital need of up to $1.5M

Revenue 60

Revenue Technical Review Software Review Equity 60

Steve Blank

APRIL 26, 2022

Except, that is, for the bottom feeders of the Venture Capital business – investors who “ cram down ” their companies. They offered desperate founders more cash but insisted on new terms, rewriting all the old stock agreements that previous investors and employees had. W hy would any founder agree to this?

Cram Down 404

Cram Down Founder Venture Capital Recapitalization 404

Both Sides of the Table

SEPTEMBER 15, 2022

At our mid-year offsite our partnership at Upfront Ventures was discussing what the future of venture capital and the startup ecosystem looked like. Should SaaS companies trade at a 24x Enterprise Value (EV) to Next Twelve Month (NTM) Revenue multiple as they did in November 2021? What is a VC To Do?

Technical Review 416

Technical Review Pre-Money Valuation San Francisco Valuation 416

Feld Thoughts

AUGUST 25, 2015

In January, Jerry Neumann wrote a long and detailed analysis of his view of the VC industry in the 1980’s titled Heat Death: Venture Capital in the 1980’s. Jack Tankersley, a long time mentor of mine, co-founder of Centennial Funds, and co-founder of Meritage Funds, wrote me a very long response.

Venture Capital 70

Venture Capital SBIC Technical Review Silicon Valley 70

SoCal CTO

MARCH 20, 2007

► February (2) CTO Founders / Cofounders Part-Time Startup CTO? Kevin Federline Search Engine Realistic Entrprenuer's Guide to Venture Capital Time Rich, Time Poor and Apple F2F Still Matters 8 Ways the Internet has Changed Software Marketing.

Venture Capital 150

Venture Capital Technical Cofounder Southern California Los Angeles 150

The Startup Magazine

AUGUST 11, 2023

Seed venture capital firms can make more significant follow-on investments to keep or increase their equity stake in the company. How to evaluate New Businesses at Their Infancy, Their Early Stages, and Their Growth Stages Evaluating a new business venture involves elements of both art and science.

Seed Stage 126

Seed Stage Technical Review Early Stage Due Diligence 126

Both Sides of the Table

OCTOBER 15, 2014

Much has been written about when it is time to hire a “professional CEO” to run a startup company and of course that has long been a norm in Silicon Valley when founders find that their inexperience may be a limiting factor in company growth ( know as the Peter Principle ). I like technical founders so this wasn’t an issue.

Founder 309

Founder CTO Hire Silicon Valley Leadership 309

VC Cafe

MAY 29, 2022

Building on my post on ‘ Advice for startups in a downturn (May 2022 edition) ‘, this week I continued to follow with interest the impact of the current correction on startups and venture capital, particularly in early stage. How much of the slowdown in venture capital is real vs. ‘doom and gloom’ headlines.

Venture Capital 183

Venture Capital Early Stage Valuation Startup 183

Steve Blank

SEPTEMBER 5, 2018

And while the “first mover advantage” was the rallying cry of the last bubble, today’s is: “Massive capital infusion can own the entire market.” 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 335

Lean Burn Rate Startup IPO 335

The Startup Magazine

MARCH 30, 2022

Of course this is why a lot of investors choose to hedge their bets and avoid having to make the tricky decisions regarding which startups to back themselves by putting their money into angel investment or venture capital (VC) funds. A degree of diversification can go a long way to protecting you from startup failures.

Technical Review 136

Technical Review Due Diligence Angel Investor Startup 136

David Teten

SEPTEMBER 23, 2017

Private equity and venture capital investors are copying our sisters in the hedge fund and mutual fund world: we’re trying to automate more of our job. Signal is a fundraising tool for founders run by NFX Guild, which identifies the most relevant VCs for you. . But we’re doing it slowly. Pitchbot.vc 3) Originate investments.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Flexible VC 101: Equity Meets Revenue Share. Where else can fast-growing companies get funding?

Cofounder 78

Cofounder Technical Review Equity Dividend 78

VC Cafe

FEBRUARY 21, 2023

This is a question startup founders ask themselves multiple times a week. It’s not just the competition against the incumbents and the large tech platforms that founders has to worry about, but most importantly is the company’s performance and product market fit. How are we doing?

Retention 109

Retention Conversion Churn Rate B2C 109

This is going to be BIG.

AUGUST 21, 2014

No one wants to be *that* founder--the non-technical founder poking around developer meetups asking for a unicorn with a Github account. What may wind up happening is that they can help get that first developer in, potentially mentor them a bit and join your company when you get enough revenue or funding to be a little more de-risked.

Founder 120

Founder Software Developers Software Development Venture Capital 120

Steve Blank

MARCH 16, 2016

To most founders a startup is not a job, but a calling. Risk capital takes equity (stock ownership) in your company instead of debt (loans) in exchange for cash. At its core Venture Capital is nothing more than a small portion of the Private Equity financial asset class. What does this mean for startup founders?

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Venture Capital 120

David Teten

APRIL 6, 2015

Both founders and researchers in healthcare are spending far too much of their energy in areas where they’re not going to make maximum impact. All venture capital and NIH funding data for CY 2010 – 2014 in USA. Healthcare founders are being rational in an irrational system. Source: NIH, CB Insights.

Venture Capital 60

Venture Capital Technical Review Non-Compete Philadelphia 60

This is going to be BIG.

MAY 27, 2014

It was a company whose product I believed in and whose founder I liked, but a firm lobbed in a term sheet at a price 33% higher than what I had offered using a very light agreement meant for a much earlier stage company. Then, I read about the idiotic comments made by a co-founder of Rap Genius. Perhaps we all should. No, probably not.

Term Sheet 143

Term Sheet Founder Cofounder Software Review 143

ReadWriteStart

DECEMBER 15, 2022

Client work serves as an additional source of revenue to form new startups. This outside work provides a valuable source of revenue able to be used to fund operations. Over time, this revenue reduces the dependency on outside venture capital sources. The Advantages of the Digital Agency Model for a Startup Studio.

Incubator 188

Incubator Startup Software Developers Software Development 188

Startup Professionals Musings

APRIL 24, 2011

I just read the Q1 2011 report from CB Insights , which shows venture capital is back. Your friends and family are really the only answer until you have a significant revenue stream. Back to VCs, Silicon Valley venture capital firms are still the most active. Overall, investors put $7.5 That represents a $1.5

Venture Capital 233

Venture Capital Revenue Elevator Pitch Silicon Valley 233

Both Sides of the Table

SEPTEMBER 18, 2014

On the phone … Me: So, you raised venture capital? Revenue multiple? I know how to structure around that to protect the founders from getting screwed on a multiple liquidation preference. But most VCs don’t bother so many convertible note founders get screwed and never know it until they sell their companies.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Both Sides of the Table

SEPTEMBER 22, 2012

He also nails the reason why venture capital is still necessary to grow large businesses quickly in a world where the costs of running startups have fallen dramatically. “Why do founders want to take the VCs’ money? After all, growth equals high valuations and loads of venture capital! Growth, again.

Silicon Valley 390

Silicon Valley Venture Capital Startup Technical Review 390

Steve Blank

JANUARY 22, 2014

Today it’s dominated by capital efficient software, web and mobile startups whereas 10 years ago it was dominated by semiconductor and hardware startups that consumed huge amounts of capital before their first dollar in revenue. This is true whether the company is concept stage or ramping revenue. The Bend Experience.

Early Stage 286

Early Stage Silicon Valley Oregon Technical Review 286

Feld Thoughts

AUGUST 25, 2020

Several people pointed me at Hadiyah Mujhid , the Founder and CEO of HBCUvc. Fellows originate and execute startup investments under the supervision of HBCUvc’s investment committee, a team of experienced venture capital investors. Amy and I, through our Anchor Point Foundation , are supporting HBCUvc’s VC Lab and Fund.

Technical Review 100

Technical Review Due Diligence Syndicate Syndication 100

The Startup Magazine

NOVEMBER 28, 2022

They provide a hands-on transformation and revenue growth partner for B2B technology companies. 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+.

Founder 128

Founder B2B Private Equity India 128

Both Sides of the Table

MAY 28, 2018

There’s a quick litmus-test conversation any early-stage VC will have with the founder and it’s one that you should be as prepared for as your elevator pitch. Founder: “$8–10 million” VC: “What’s your current burn rate?” Founder: “$250k / month.” Founder: “Um. This part of a series to help you raise venture capital ?—?the

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

ReadWriteStart

OCTOBER 2, 2021

Why should a founder entertain this idea? And even though an LLC is legally required to report its revenues, profits, and losses, it does not have to pay corporate income taxes on profits. No founder wants to start a business that would only survive for one or two years. Most SaaS , AI, and IoT enterprises are corporations.

Technical Review 158

Technical Review LLC IPO Stock 158

VC Cafe

AUGUST 2, 2022

As an early stage investor in the world of gaming and metaverse technology at Remagine Ventures, I find these companies have the potential to set the agenda, become the potential platforms for developers building in this space and future acquirers/consolidators of startups building the next generation of the Internet. Here we go! Epic Games.

IP 206

IP Cofounder Valuation Acquisition 206

The Startup Magazine

MARCH 2, 2023

By Danielle Ofek Before I was a banker, I was a founder. My journey over the last decade founding and leading startups has been a successful one, but it has also come with challenges, many of which are shared by other women founders and entrepreneurs. The numbers begin to tell the story. 38, Columbia says.

Founder 114

Founder Affiliate Cofounder Boston 114

YoungUpstarts

JULY 31, 2019

by Anish Sebastian and Juan Pablo Segura, co-founders of Babyscripts. Of course, a certain amount of initial capital without financial performance is absolutely necessary to get a business off the ground, especially in regulated industries. betting on the future value of these young companies instead of their current traction. .

Cofounder 127

Cofounder Burn Rate Technical Cofounder Seed Capital 127

Entrepreneurs-Journey.com by Yaro Starak

AUGUST 19, 2021

Elizabeth Yin is the co-founder and General Partner of a venture capital firm that, and I quote from their website, invests in “hilariously early startups” Hustle Fund typically invests $25,000 as a starting point into startups that have yet to show any revenues.

Founder 98

Founder Partner Venture Capital Cofounder 98

Startup Professionals Musings

OCTOBER 16, 2023

Yet every business requires revenue and volumes, as certainly as it requires a product to sell. Doubling revenue each year is a good target. You need 5 percent or more of revenue for marketing, maybe more for ongoing development, and people costs will double as you add benefits, insurance, training, IT and new processes.

Forecast 290

Forecast Burn Rate Widget Business Plan 290

View from Seed

OCTOBER 24, 2019

As seed rounds have atomized, it’s not uncommon for founders to raise 3 or even 4 rounds prior to a series A. The reality is that if a founder raised every one of these rounds, and lead investors always got their “target” ownership, the level of dilution would be ridiculous. Founders with limited experience. should be avoided.

Dilution 149

Dilution B2B Burn Rate Early Stage 149

Steve Blank

APRIL 23, 2014

buy out an entire company for its revenue and profits. In response, venture capital firms like Sequoia and Andreessen/Horowitz are hiring new partners just to work with their portfolio companies and match them to corporations. The founding team is testing for the right combination of product, market, revenue, costs, etc.

Acquisition 332

Acquisition Intellectual Property Silicon Valley Startup 332

Startup Professionals Musings

JUNE 25, 2012

Yet, I find that startup founders often fixate on one or two sources, often to the detriment of their business. Just don’t quit your day job before your new company is producing revenue. Venture capital. An investment from a venture capital firm is usually expensive, in equity and control.

Technical Review 257

Technical Review Bootstrapping Venture Capital Incubator 257

Startup Professionals Musings

JUNE 26, 2013

It is no secret that the world of venture capital (VCs) was turned upside down by the recent Recession, and many other changes in the marketplace. I would conclude that the genesis of this trend comes from several forces, including the following: Less investment capital available.

Angel Investor 231

Angel Investor Entrepreneur Early Stage Silicon Valley 231