Startup Professionals Musings

MARCH 22, 2020

Tie payments to your product or service revenue. With “cash flow” obligations, investors receive a percentage of your operating cash flow (if any) until they have been repaid in full, or have achieved a specified percentage return on their investment. Try to avoid obligations with fixed repayment schedules.

Management 308

Management Cram Down Angel Investor Equity 308

View from Seed

SEPTEMBER 4, 2018

In two cases, these businesses were doing significant early revenue ($500K/month+), so could be considered “post-seed”, although both of these companies had not raised significant institutional capital before we led their rounds. Of the last 15 investments we’ve made, we’ve been the lead or co-lead investor over 80% of the time. .

North America 120

North America Seed Stage Early Stage Lead Investor 120

Both Sides of the Table

JULY 23, 2014

Just 3 years ago there was talk of institutional investors “not being able to write small enough checks.” Unprecedented revenue growth + companies staying private longer =. ” The new narrative is “will my seed funds be able to fund the prorata of their winners?”

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

YoungUpstarts

SEPTEMBER 23, 2020

If you’re scared to invest directly in gold, as some people and institutional investors are prone to do, then you can use a gold ETF. You would want to invest some of your small business revenue anyway, and since gold has always been a great inflation hedge, it seems the natural choice.

Institutional Investors 241

Institutional Investors Government Salary Stock 241

Startup Professionals Musings

DECEMBER 28, 2018

Once you have some traction, you can approach venture capital organizations , with funding amounts of $1-10 million for the real rollout, often referred to as the “A-round,” or first institutional funding. This normally means more than 30 employees, and more than $1 million in revenue. Growth and exit stage.

Incubator 236

Incubator Exit Strategy Institutional Investors Angel Investor 236

This is going to be BIG.

OCTOBER 12, 2020

One just got a seed term sheet for twice the valuation I put in at in the pre-seed and the other is doing $200k/month in revenue. Meanwhile, I’ve got another company out of the five I invested in out of this new fund also approaching $200k/month in revenue and I just want to go back to investing. Honestly, I hate fundraising.

LP 136

LP Technical Review Software Review Valuation 136

Gust

JANUARY 31, 2013

Nevertheless, selective disclosure could be said to unfairly benefit analysts and institutional investors at the expense of other stockholders, particularly individual investors, who lack access to the same information.

SEC 158

SEC Prospectus United States Technical Review 158

Startup Professionals Musings

MAY 4, 2014

Unless you are bootstrapping everything, you need to have a clear plan on what networking and documents are required to get to friends and family, Angel investors, and institutional investors. Billing and revenue collection. Manage human resources. It all has to be written down and maintained.

Startup 268

Startup Institutional Investors Angel Investor Bootstrapping 268

Startup Professionals Musings

MARCH 9, 2018

Tie payments to your product or service revenue. With “cash flow” obligations, investors receive a percentage of your operating cash flow (if any) until they have been repaid in full, or have achieved a specified percentage return on their investment. Try to avoid obligations with fixed repayment schedules.

Cram Down 148

Cram Down Angel Investor Equity Dividend 148

Startup Professionals Musings

OCTOBER 10, 2014

Tie payments to your product or service revenue. With “cash flow” obligations, investors receive a percentage of your operating cash flow (if any) until they have been repaid in full, or have achieved a specified percentage return on their investment. Try to avoid obligations with fixed repayment schedules.

Founder 254

Founder Cram Down Angel Investor Equity 254

Startup Professionals Musings

JANUARY 31, 2013

Unless you are bootstrapping everything, you need to have a clear plan on what networking and documents are required to get to friends and family, Angel investors, and institutional investors. Billing and revenue collection. Manage human resources. It all has to be written down and maintained.

Institutional Investors 230

Institutional Investors Angel Investor Bootstrapping Database 230

Both Sides of the Table

JANUARY 19, 2015

Along with Greycroft, I was the first institutional investor in Maker Studios (sold to Disney for nearly $1 billion) and am still the largest investor in Mitu Network , the largest online video producer of Latino content. It just happens to be large, dominant and willing to share revenue with you.

SEM 150

SEM Los Angeles Silicon Valley Acquisition 150

Up and Running

SEPTEMBER 26, 2016

Venture debt provides a very cost-effective way to receive capital from a big financial institution if you have liquidity or existing financial backing from a well-known investor. Venture debt is a no-brainer if you have liquidity or backing from an institutional investor. The downsides of venture debt?

Covenant 60

Covenant Institutional Investors Balance Sheet Warrant 60

Startup Professionals Musings

JUNE 15, 2013

Once you have some traction, you can approach venture capital organizations , with funding amounts of $1-10 million for the real rollout, often referred to as the “A-round,” or first institutional funding. This normally means more then 30 employees, and more then $1 million in revenue. Growth and exit stage.

Incubator 256

Incubator Entrepreneur Exit Strategy Institutional Investors 256

Startup Professionals Musings

SEPTEMBER 7, 2011

Unless you are bootstrapping everything, you need to have a clear plan on what networking and documents are required to get to friends and family, angel investors, and institutional investors. Billing and revenue collection. Manage human resources. It all has to be written down and maintained.

Startup 255

Startup Institutional Investors Angel Investor Bootstrapping 255

Startup Professionals Musings

NOVEMBER 27, 2016

Once you have some traction, you can approach venture capital organizations , with funding amounts of $1-10 million for the real rollout, often referred to as the “A-round,” or first institutional funding. This normally means more than 30 employees, and more than $1 million in revenue. Growth and exit stage.

Incubator 120

Incubator Startup Exit Strategy Institutional Investors 120

Berkonomics

AUGUST 3, 2023

At the conclusion of the acceleration period, the company participates in a “demo day” in which institutional investors are invited to review the company in a live pitch session. Several are well-known and professional investors pay special attention to their graduates.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

David Teten

SEPTEMBER 5, 2014

I’ve written on the expert network industry a fair amount in the past: see How to Earn More Consulting Revenue from Expert Networks and How Executives Can Work with Private Equity and Venture Capital Portfolio Companies.

New York 114

New York Technical Review Networking Advisory Board 114

Steve Blank

JUNE 15, 2011

Long before others, they saw that these applications could have hundreds of millions of users with “off the chart&# revenue and profits. The awareness phase is where other later-stage investors start to notice the momentum, bringing additional money in and pushing prices higher. The higher the price, the more investments pour in.

Silicon Valley 327

Silicon Valley Stealth Valuation Mississippi 327

Startup Professionals Musings

MAY 16, 2012

Once you have some traction, you can approach venture capital organizations , with funding amounts of $1-10 million for the real rollout, often referred to as the “A-round,” or first institutional funding. This normally means more then 30 employees, and more then $1 million in revenue. Growth and exit stage.

Incubator 237

Incubator Startup Exit Strategy Institutional Investors 237

The Next Web

SEPTEMBER 13, 2013

The final piece of my four-part guide to expanding a business into Asia is tailored more towards local startups and a big issue that affects many of them: raising funding from investors. Asia has far fewer VC firms and institutional investors, each of which invests a far smaller amount of capital.

Asia 132

Asia Silicon Valley India Term Sheet 132

Startup Professionals Musings

AUGUST 1, 2010

Unless you are bootstrapping everything, you need to have a clear plan on what networking and documents are required to get to friends and family, angel investors, and institutional investors. Billing and revenue collection. Manage human resources. It all has to be written down and maintained.

Startup 239

Startup Institutional Investors Angel Investor Bootstrapping 239

Startup Professionals Musings

NOVEMBER 11, 2015

Tie payments to your product or service revenue. With “cash flow” obligations, investors receive a percentage of your operating cash flow (if any) until they have been repaid in full, or have achieved a specified percentage return on their investment. Try to avoid obligations with fixed repayment schedules.

Cram Down 120

Cram Down Angel Investor Equity Dividend 120

Rob Go

SEPTEMBER 4, 2018

In two cases, these businesses were doing significant early revenue ($500K/month+), so could be considered “post-seed”, although both of these companies had not raised significant institutional capital before we led their rounds. Of the last 15 investments we’ve made, we’ve been the lead or co-lead investor over 80% of the time. .

North America 36

North America Seed Stage Early Stage Lead Investor 36

Startup Professionals Musings

JANUARY 13, 2011

Once you have some traction, you can approach venture capital organizations , with funding amounts of $1-10 million for the real rollout, often referred to as the “A-round,” or first institutional funding. This normally means more then 30 employees, and more then $1 million in revenue. Growth and exit stage.

Incubator 230

Incubator Startup Exit Strategy Institutional Investors 230

Steve Blank

JUNE 17, 2011

They helped build these struggling ventures into the Facebooks’, Twitters’, and Zyngas’ before anyone else appreciated these companies could have hundreds of millions of users with off-the-chart revenue and profits. Really smart money recognizes it’s a bubble and bets against it.)

Investment Bankers 310

Investment Bankers Stock Valuation Venture Capital 310

The Startup Magazine

FEBRUARY 6, 2020

The buyers (or lessees) in these transactions are pension funds, insurance companies, or private equity representing other institutions. Investors seek returns of ~10-15% that are predictable, secure, uncorrelated to other asset classes, and inflation adjusted. Capital Solutions.

Private Equity 129

Private Equity New York City Chicago Investment Bankers 129

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 21, 2011

This is the key, because Q — what an institutional investor would accept — is a well-understood system. So what kind of return does an angel investor need to make on their $84,000? So if that’s the same as P, we’re done.

Equity 276

Equity Salary Hiring Institutional Investors 276

View from Seed

MARCH 26, 2015

Much digital ink has been spilled about what dollar amount constitutes a pre-seed and how that might affect a startup’s ability to go raise a “normal” seed round from institutional investors. A good heuristic is that you want a potential new investor to think, “Wow!

Seed Capital 120

Seed Capital Institutional Investors Venture Capital Partner 120

David Teten

SEPTEMBER 23, 2017

Sector funds lend themselves well to doing this because it’s easier to quantify the characteristics which drive value on a sector basis, e.g., if you focus on SaaS companies you can identify annual change of >10% in recurring revenues as an indicator of future stability of revenues.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Women Entrepreneurs Can

JUNE 11, 2021

Stock markets are a common platform where individual and institutional investors come together to buy and sell shares. Enthusiastic asset use – The ratio of revenue earned for each dollar of each asset the company owns. For the people, it becomes a mode to earn income. Nowadays, these exchanges exist as an electronic market.

Stock 52

Stock Securities and Exchange Commission Portfolio Dividend 52

Both Sides of the Table

MAY 23, 2012

In an over-funding environment companies are encouraged to eschew revenues in a land grab to acquire eyeballs, clicks, page views or whatever other vanity metrics give VCs the false comfort that they’re sitting on a gold mine. IPO markets had burned an entire cycle of retail stock investors and many institutional investors to boot.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

ithacaVC

JANUARY 14, 2014

And the Series A investors then owned 4/9s of Company X. The Series A round was taken by $2mm of institutional investors and $2mm of angel investors. It has just started to generate revenue. It expects revenue of $1.7 For example, in this hypo, Company X expects to do $1.7mm of revenue in the coming year.

Pre-Money Valuation 58

Pre-Money Valuation Post-Money Valuation Valuation Term Sheet 58

David Teten

APRIL 7, 2017

This is the debut of an annual series of summits focused on sovereign wealth funds, institutional investors, family offices, venture capitalists, and entrepreneurs interested in technology-driven entrepreneurship and with ties to the Middle East and North Africa (MENA) region.

New York 60

New York Africa Cofounder Egypt 60

Berkonomics

JUNE 8, 2017

At the conclusion of the acceleration period, the company participates in a “demo day” in which institutional investors are invited to review the company in a live pitch session. Several are well-known and professional investors pay special attention to their graduates.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

VC Cafe

APRIL 8, 2010

The acquisition is a bitter-sweet end to the story of Veoh, which has raised $70 million since getting funded in 2005 from institutional investors (Goldman Sachs, Intel Capital, Shelter Capital and Spark Capital among others) and big media companies such as ABC, CBS and Warner Brothers.

Bankruptcy 74

Bankruptcy Early Stage Merger Institutional Investors 74

ithacaVC

AUGUST 10, 2011

Perhaps the company has a bit of revenue, but certainly it is not profitable. If the company has no institutional investors, then I think fully appropriate for the founders to concede to the request (which is inevitable) and give the personal guaranty.

Founder 69

Founder SBA Silicon Valley Vesting 69