article thumbnail

What Founders Need to Know: You Were Funded for a Liquidity Event – Start Looking

Steve Blank

While you might be interested in building a company that changes the world, regardless of how long it takes, your investors are interested in funding a company that changes the world so they can have a liquidity event within the life of their fund ~7-10 years. (A You’ve been funded to get to a liquidity event.

article thumbnail

How Do You Want to Spend Your Next 4 Years of Your Life?

Steve Blank

Or is it something that can grow to a size that will result in an acquisition or some liquidity event? Founders don’t do startups because they’re searching for a huge financial windfall. Is it a small business that hits $4 million in revenue in four years and $8 million in ten years? See 4:36 in the video below).

Cofounder 325
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How to Scale a Venture Capital (or Private Equity) Fund

David Teten

Among the sites we have found most helpful with practical guides for founders: Biztree , First Search , Foundersuite , Goodwin Founders Workbench , Guides.co , Inc.com , and StartupRocket. . . – Templatize the entrepreneurial process , by providing checklists, standardized agreements and other reusable code.

article thumbnail

Intel Disrupted: Why large companies find it difficult to innovate, and what they can do about it

Steve Blank

Capital is returned to these investors through liquidity events (originally public offerings, but today mostly acquisitions). And it also requires understanding the differences between executing the existing business model, extending the business model and searching for and disrupting the business model. Lessons Learned.

article thumbnail

The New Deal – A Founding CEOs Value is Non Linear

Steve Blank

Most founding CEO’s don’t know that they’re cannon fodder in the search for a business model. Where’s My Liquidity Event. This new deal would keep everyone focused on the search for the model. They also know that most founding CEO’s don’t scale past the early stage. That’s the source of the trouble.

Vesting 251
article thumbnail

7 Founding Sins Seed-Stage Startups Should Avoid

View from Seed

Great ideas search for a great entrepreneur; great entrepreneurs don’t search for a great idea. Jet-set lifestyles are perhaps appropriate after the liquidity event, but founders and executives must avoid them at all costs before that, as employees treat resources with the same respect (or lack thereof) as their leadership.

article thumbnail

How much of my business do I have to give to an investor?

Berkonomics

If there is no record of revenues, see the “The Berkus Method” available with any search query for valuing the business before revenues. Email readers, continue here…] Most VC’s look for a 10x opportunity – that is – a ten times increase in the valuation from investment to liquidity event.