ReadWriteStart

OCTOBER 7, 2010

As a thumb rule, try to get enough validation so that you can get to at least a $2 million pre-money valuation before raising equity capital. That is debt financing that converts into equity at the Series A valuation once the price for that is set. (I Sub-$2 million pre-money, it is better to bootstrap.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

YoungUpstarts

JUNE 16, 2020

Business valuation is defined as a way to determine the overall economic value of a company , and is a necessary component of a sound business plan and strategy. Any of these situations will demand a valuation to determine current and future projected value. . Three Methods of Valuation. Life happens to all of us.

Valuation 162

Valuation CPA Software Review Revenue 162

Both Sides of the Table

JUNE 5, 2011

2: As expected at least one person accused me of writing this post because I want to see lower valuations. As the risks below get eliminated the higher the valuation investors are prepared to pay. So rounds tend to be “range bound&# where the top end of the valuation spectrum often being done in boom markets (i.e.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Steve Blank

SEPTEMBER 5, 2018

What matters to investors now is to drive startup valuations into unicorn territory (valued at $1 billion or more) via rapid growth – usually users, revenue, engagements but almost never profits. And if the company does go public, the valuations are at least 10x of the last bubble. The Lean Startup isn’t dead.

Lean 335

Lean Burn Rate Startup IPO 335

Steve Blank

JULY 11, 2017

If they leave at least they’ll have ‘name of our company’ on their resume.”. Before the rapid rise of Unicorns, (startups with a valuation over a billion dollars), when boards were still in control, they “encouraged” the hiring of “adult supervision” of the founders after they found product/market fit. Adult Supervision.

Part-Time VPE 308

Part-Time VPE Liquidity Event Stock Engineer 308

Startup Professionals Musings

SEPTEMBER 6, 2010

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” This time I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points. Assign real value to intellectual property.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Gust

NOVEMBER 18, 2012

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” This time I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points. Assign real value to intellectual property.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Both Sides of the Table

SEPTEMBER 10, 2021

I’m over-paying for every check I write into the VC ecosystem and valuations are being pushed up to absurd levels and many of these valuations and companies won’t hold in the long term. On the one hand, you’re over paying for every investment and valuations aren’t rational. just to name a few!

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

VC Cafe

AUGUST 2, 2022

billion valuation) to invest in the Metaverse and build the future of digital entertainment Epic owns Fortnite, one of the most popular multiplayer games, enabling users to interact with each other online in an immersive way to play, socialise, attend to virtual concerts. In April 2022, the company announced it has raised $2 billion (at $31.5

IP 206

IP Cofounder Valuation Acquisition 206

Both Sides of the Table

SEPTEMBER 22, 2012

After all, growth equals high valuations and loads of venture capital! Instant growth = huge valuation from follow-on investors = big VC mark-up on our quarterly reports = LP interest. Startups will continue to be aggressive in spamming us in our Facebook timeline. And headlines. And approbation. Grow or die. Or your life.

Silicon Valley 390

Silicon Valley Venture Capital Startup Technical Review 390

Startup Professionals Musings

APRIL 17, 2023

It never hurts to start networking personally with all levels of investors early, but sending out teasers and business plans to every name you can find on the Internet is a waste of your time and theirs. Tune your investor pitch and funding expectations accordingly.

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

Both Sides of the Table

MARCH 1, 2016

In just over a decade, new firms like USV, Foundry, Spark, True Ventures, First Round, Greycroft (I might add Upfront) have made names for themselves from a non-traditional Silicon Valley stance. LPs See The Over-Valuations and Don’t Like It. All isn’t completely rosy in the LP views of the venture industry.

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

ConversionXL

AUGUST 11, 2021

But it’s not as simple as reaching out to a company you want to collaborate with and putting their name on your website in exchange for cash. If your audience isn’t interested in a sponsor’s product or service, then putting their name to your offer won’t deliver the ROI they’re looking for, ruining any chance of a long-term partnership.

Audience 139

Audience Social Media Email Ruby 139

YoungUpstarts

OCTOBER 28, 2015

“And if you have a valuation cap; a higher cap is always better than a lower cap.” The primary terms for these types of transactions are the valuation cap and the conversion discount. If a domain name is critical to a brand and the domain is not empty, the best course may be to find a new name.

Convertible Security 100

Convertible Security IP Technical Review Software Review 100

Austin Startup

MARCH 22, 2021

In fact, many are now household names?—?just In recent years we’ve seen mega-rounds of investment and sky-high valuations. billion Series D round giving the company a valuation of about $14 billion!* This includes the cost of a domain name, a logo, some development work. Marketplaces are big business!

Software Review 100

Software Review San Francisco Valuation Stock 100

ReadWriteStart

JULY 2, 2022

Conforming with Torchbankz, the dropshipping industry is expected to reach a market valuation of $557.9 All you have to do is partner with wholesalers and manufacturers to sell their products under your brand name. billion before 2025.

Cost 140

Cost Software Review Technical Review Cloud 140

Both Sides of the Table

APRIL 15, 2010

Finally, I HATE the name. Golden rule of branding for me: 1) name your company or product your URL and 2) don’t paint yourself into a corner. &# Tweet&# = corner. My bet: within 18 months they will change the name and go multi-stream. Sounds like somebody didn’t do their homework on this name. uh, hello!

Venture Capital 271

Venture Capital Affiliate Valuation San Francisco 271

The Startup Magazine

AUGUST 29, 2019

Bank provides two types of finances, namely, working capital and funding. However, funding involves the usual process of sharing the valuation details and business plan along with the project reports, which then determines the sanctioning of the loan.

Startup 95

Startup Government Valuation Technical Review 95

The Equity Kicker

AUGUST 5, 2014

Our portfolio company Lost My Name found when they pitched their magical children’s book to the Dragons whilst I was away on holiday last week. It worked out well for Lost My Name who walked away with a £100,000 investment from Piers Linney at the highest valuation ever seen on the show, but that might not have happened.

Naming 129

Naming Portfolio Valuation Analytics 129

Both Sides of the Table

JULY 29, 2010

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. The best thing to get is a “right sized&# valuation. A: It’s not best.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

Startup Professionals Musings

FEBRUARY 21, 2012

Do you really need that full-time assistant, regular bookkeeper, and big-name attorney? That will position the startup to raise a venture round at a favorable valuation. Another one to avoid cash burn for software development is a contract for percent of future revenue. Do it yourself and barter for services.

Burn Rate 232

Burn Rate Startup Salary Equity 232

Start Up Blog

DECEMBER 30, 2013

Anonymity is the new black: You may remember in the early commercial web era – post 1993, we all had alias names and emails before we felt comfortable enough to convert to our actual human self on line. Tech valuations & bubblenomics: Crazy company valuations continue to astound. It seems now that anonymity is back.

Technical Review 100

Technical Review Valuation Software Review Social Media 100

Startup Professionals Musings

MARCH 16, 2016

This term is currently applied to recent startups who profess a current valuation which exceeds $1 billion. Frothy startup valuations. Ron Conway , of SV Angels, and Reid Hoffman , LinkedIn's founder, are names often mentioned in this category. Prime examples include Uber, Airbnb and Snapchat. Could your startup be the next one?

Software Review 120

Software Review Sweat Equity Accredited Investor Angel Investor 120

VC Cafe

JANUARY 27, 2021

Now synonymous with video-conferencing, the company-name-turned-verb stock peaked in October 2020, a market interpretation of how the Zoom Boom has defined the daily lives of many millions throughout the COVID-19 outbreak. 2020 was a good year for Zoom. Another virtual events platform, Hopin , has hit a 2.1

Vertical 148

Vertical Video Technical Review Europe 148

Startup Professionals Musings

JULY 22, 2020

It never hurts to start networking personally with all levels of investors early, but sending out teasers and business plans to every name you can find on the Internet is a waste of your time and theirs. Tune your investor pitch and funding expectations accordingly.

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

Startup Professionals Musings

JANUARY 28, 2011

Do you really need that full-time assistant, regular bookkeeper, and big-name attorney? That will position the startup to raise a venture round at a favorable valuation. Another one to avoid cash burn for software development is a contract for percent of future revenue. Do it yourself and barter for services.

Burn Rate 231

Burn Rate Startup Salary Equity 231

Berkonomics

JANUARY 26, 2017

In the investment world, if we are unable to come to terms over the valuation of a company, we sometimes add penny warrants to sweeten the deal, allowing the investors to own a larger stake in the company at any time merely by exercising the warrants. You name the price; I’ll name the terms. It’s an easy rule to remember.

Naming 48

Naming Warrant Private Equity Valuation 48

YoungUpstarts

JUNE 17, 2015

Privacy issues that come to light in the course of the due diligence process for an acquisition can also threaten their valuation. Many startups have learned that being young and small does not keep them off the radar screens of privacy regulators, and they can be vulnerable to costly investigations. Say what you do.

Software Review 100

Software Review Technical Review Due Diligence Startup 100

Startup Professionals Musings

SEPTEMBER 30, 2013

File a provisional patent, register a trademark, and reserve your company domain names. Intellectual property is a large element of most early-stage company valuations, and this value determines what percent of the company an investor will expect to get for his money.

Intellectual Property 281

Intellectual Property Entrepreneur Sweat Equity CTO Hire 281

Both Sides of the Table

OCTOBER 11, 2009

But if you approach them with a very fair valuation and ask for a small check (say $10k, which should be nothing to someone in this position) I believe you’ll have a reasonable shot at it provided that you actually have an interesting company. At a $2 million valuation this is 0.5% of the company – about right.

Advisory Board 306

Advisory Board Startup Equity Valuation 306

Startup Professionals Musings

NOVEMBER 4, 2011

Get your Internet domain name and website. Reserve the company name on social networks to protect it. It should answer every question an investor or associate might ask, including current valuation, funding needed, and exit strategy. Finalize your financial model.

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

Startup Professionals Musings

NOVEMBER 13, 2021

Until I read the classic book “ The Business of Sharing, ” by Alex Stephany, who founded JustPark (current valuation estimated at £80M), I too had no idea of the scope of opportunities, and the 300 or more players already out there.

Cuba 316

Cuba Venture Capital Community Valuation 316

Startup Professionals Musings

MARCH 11, 2016

The business plan should address all key questions, including valuation, funding needed, use of funds and exit strategy. In addition, your company and social media names are key intellectual property. Formalize the business structure before asking for funding. Build a relationship with one or more investors before asking for money.

Angel Investor 120

Angel Investor Intellectual Property Accredited Investor Angel Groups 120

The Next Web

SEPTEMBER 16, 2012

The name of the game now is quality content which keeps viewers watching past the golden 1-minute mark. Valuations Aren’t Going Away. Facebook’s IPO was a tell-tale sign that startup valuations are very unpredictable and susceptible to major changes. YouTube has been putting more influence on user engagement.

API 157

API Social Media Mobile Valuation 157

Hunter Walker

SEPTEMBER 15, 2023

Semil asserts, Seed-stage valuations have generally been left-unchanged, and I could argue even they’ve gone up since the beginning of 2022. Valuations for the Top Decile of Seed Startups Have Fallen Less YoY While the Second Decile Have Been Hit Harder. Why are the Top 10% less impacted?

Cap Table 93

Cap Table Valuation Salary Seed Stage 93

ithacaVC

OCTOBER 16, 2012

I hosted a guest lecturer today named Doug Rowan at Johnson (for those of you not in the Cornell ecosystem, “Johnson” is how the marketing department likes us to refer to Cornell’s business school). Doug’s lecture was on startup company valuations. Period, the end. Yeah, it is that simple.

Valuation 58

Valuation Pre-Money Valuation Startup Equity 58

Duct Tape Marketing

FEBRUARY 3, 2022

Questions I ask Amanda Dixon: [1:14] What’s the story behind your company name? [1:57] John Jantsch (01:14): So I have to start with the name. Amanda Dixon (01:33): Know what, there is not a story, but I need to make one up because everyone asks the story is we needed a name and a domain. So Amanda, welcome to the show.

Entrepreneur 79

Entrepreneur Technical Review Cofounder Valuation 79