David Teten
JANUARY 19, 2021
More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Flexible VC: Revenue -based. Of the Inc.
Gust
NOVEMBER 1, 2011
We recently started a series of posts on establishing the pre-money valuation of pre-revenue startup companies for purposes of investment by seed and startup investors. It is one of the useful methods for establishing the pre-money valuation of pre-revenue startup ventures. OK…let’s split the difference.
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Steve Blank
MARCH 4, 2014
A consequence of using these corporate finance metrics like RONA and IRR is that it ‘s a lot easier to get these numbers to look great by 1) outsourcing everything, 2) getting assets off the balance sheet and 3) only investing in things that pay off fast. What Does this Mean?
Both Sides of the Table
OCTOBER 17, 2019
Invoca is now doing 10s of millions in recurring revenue and is growing > 75% year-over-year but it took the first 3 years to really build out the technology and acquire our initial enterprise clients. I mentioned that we sold our position in Kyriba for > $1 billion but when we invested it had virtually no revenue.
Both Sides of the Table
MAY 19, 2018
A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. For starters you have to realize that fund-raising is a sales process. A brochure is an easy out for you in the sales process without being rude. It felt like heresy.
Hippoland
NOVEMBER 13, 2016
Companies that exit are valued at whatever the sale is. If a company sells for stock or partial-stock, then it’s more complicated, depending on whether the acquirer is a public company or a private company, and we don’t need to dive into that in this post. But what if a company is growing revenues but hasn’t raised a round in a while?
Tim Keane
JANUARY 12, 2010
It also assumes the entire value of the investment is captured for investors at a sale of the company in the time specified in the term-sheet. If you look at the spreadsheet, you will see that the “Required Rate of Return” is expressed as an IRR. Internal Rates of Return naturally compound, so a 50% IRR is 7.59
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