Both Sides of the Table

DECEMBER 11, 2022

We had nascent revenues, ridiculous cost structures and unrealistic valuations. I was in it for the love of working with entrepreneurs on business problems and marveling at technology they had built. In stead of growing revenue and holding down costs and building great company cultures the market chased valuation validation.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

Steve Blank

MARCH 16, 2016

But for the last 40 years, it has provided the financial fuel for a revolution in Life Sciences and Information Technology and has helped to change the world. For the first few years, your VCs want you to keep your head down, build the product, find product/market fit and ship to get to some inflection point (revenue, users, etc.).

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Private Equity 120

David Teten

AUGUST 21, 2019

Or should they look to one of the new wave of Revenue-Based Investors? Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. For more background, see Revenue-Based Investing: A New Option for Founders who Care About Control. But should they?

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Both Sides of the Table

MARCH 1, 2016

We All Know That Dollars into Venture Have Gone Up … As a starting point, we know that the dollars into venture have steadily rebounded to pre great-recession levels, with just under $30 billion committed to US technology venture capital in 2015. …But LPs Have Been Putting Out More Money Than They Are Getting Back.

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

Tim Keane

JANUARY 12, 2010

3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model. Second a liquidation preference and a participation. This is why a bottom up approach is more credible.   First , dividends.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Both Sides of the Table

NOVEMBER 4, 2009

BTW, this ignores liquidation preferences which actually mean you’ll earn less. So when the Stanford MBA, the ex senior technology developer or the former Chief Revenue Officer of a company is calling me and asking my advice on their next gig you can see why I start with “are you ready to earn or to learn?&#.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

Both Sides of the Table

SEPTEMBER 28, 2013

Have the breakthrough technology. The don’t understand VC liquidation preferences or multiple return expectations. Sure, our revenue is growing, but is that enough to raise an internal round? There are merger discussions, board debates, product miscues, revenue misses and a litany of delicate topics.

Startup 417

Startup Dilution San Diego Stock Options 417