The Startup Magazine

FEBRUARY 21, 2024

We engage intimately with businesses and their assets, understanding their operations, aspirations, and the hurdles they face. As an investor, these experiences have honed my ability to see beyond spreadsheets and valuations, to the core of what makes businesses thrive: the people, the vision, and the relentless pursuit of excellence.

Technical Review 133

Technical Review Due Diligence Bankruptcy Intellectual Property 133

YoungUpstarts

NOVEMBER 19, 2020

They want to see that a business is operating on all six cylinders. Processes refers to operating procedures and employee handbooks. EBITDA is the most important profitability metric to consider as many valuations are based on a multiple of this metric. At Seiler Tucker, we call these cylinders the ST 6 P’s®.

Exit Strategy 246

Exit Strategy Intellectual Property Valuation Metrics 246

Austin Startup

APRIL 25, 2017

Revenue needs to grow 20x, and margins must expand dramatically. I won’t dive into cost structure in this blog post, but let’s think through how Snap could grow revenue 20x. I won’t dive into cost structure in this blog post, but let’s think through how Snap could grow revenue 20x. How can one justify a $20B valuation for Snap?

Valuation 48

Valuation Technical Review Forecast Social Network 48

Both Sides of the Table

SEPTEMBER 28, 2014

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. But those of us with longer memories remember that the revenue line can move south very quickly when the market overall turns south. Gross burn is the total amount of money you are spending per month.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Startup Professionals Musings

SEPTEMBER 29, 2018

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. Waiting until you have something to sell before bringing on a sales and operations staff. Social media is not rocket science.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

Steve Blank

JUNE 27, 2017

Its employees and investors don’t depend on an existing revenue stream. Uber – current valuation >$70 billion – knew the day they started that their ridesharing service violated the law in most jurisdictions. Airbnb – current valuation $31 billion – allows people to rent out their homes, rooms or apartments to visitors.

Startup 275

Startup New York City Valuation Distribution 275

ReadWriteStart

JUNE 1, 2020

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. Reasons for funding. ? Scale up your operations. Now you may want to scale up your operations or expand your presence. Incubators and Accelerators.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Steve Blank

SEPTEMBER 5, 2018

Tech IPO prices exploded and subsequent trading prices rose to dizzying heights as the stock prices became disconnected from the traditional metrics of revenue and profits. Lean was designed to inform the founders’ vision while they operated frugally at speed. Some have labeled this period as irrational exuberance. The result?

Lean 335

Lean Burn Rate Startup IPO 335

Startup Professionals Musings

OCTOBER 5, 2014

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. Waiting until you have something to sell before bringing on a sales and operations staff. Social media is not rocket science.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

Berkonomics

JANUARY 3, 2013

Most every business can take advantage of continuing, recurring revenues from its customer base. Sometimes, products are designed to make all of their profit upon the recurring revenues from supplies or support. Usually that amount exceeds 50% of total revenues, and is often much more.

Revenue 79

Revenue Software Review Vertical Valuation 79

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. billion revenue in 2021 for Epic Games and was played by 83.3

IP 206

IP Cofounder Valuation Acquisition 206

YoungUpstarts

JANUARY 10, 2018

How do you find the balance between not too small to prove itself but not too big to have an off-putting valuation? Few buyers will get excited about a company currently operating at a loss. Minimizing losses in the year before you begin shopping around for buyers will increase profit and help you get that higher valuation.

Valuation 145

Valuation Technical Review Exit Strategy Metrics 145

Steve Blank

APRIL 23, 2014

buy out an entire company for its revenue and profits. VCs like acquisitions as much as IPOs because the acquiring companies often can rationalize paying large multiples over the current valuation of the startup. However, these nosebleed valuations make it even more important in getting the acquired company integrated correctly.

Acquisition 332

Acquisition Intellectual Property Silicon Valley Startup 332

Startup Professionals Musings

AUGUST 25, 2018

Those that do it right also have the unprecedented opportunity to join the elite ranks of 250 unicorns (relatively new companies with a current valuation of over $1 billion). These days you can create a C-corp or LLC online quickly at a low cost, to serve you well in signing partners, intellectual property, investors, and revenue.

Technical Cofounder 184

Technical Cofounder Intellectual Property Silicon Valley LLC 184

Startup Professionals Musings

FEBRUARY 21, 2012

Pay people with equity or future revenue. Another one to avoid cash burn for software development is a contract for percent of future revenue. For example, a web-based startup should be able to operate for a year if they raise $500,000 from the founders or angels. Great strategy. Do it yourself and barter for services.

Burn Rate 232

Burn Rate Startup Salary Equity 232

Startup Professionals Musings

OCTOBER 18, 2023

New startup founders keep all the operating metrics they need in their head. Even if you don’t have a formal board of directors, it pays to have trusted advisors who will give you regular unbiased feedback on your team strengths and weaknesses, financial and operating ratio norms, and an external view of current company valuation issues.

Exit Strategy 248

Exit Strategy Valuation Acquisition Metrics 248

Both Sides of the Table

SEPTEMBER 22, 2012

The constraint between good ideas and growth operates in both directions. 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. In revenue terms our first two years of sales were $2.1

Silicon Valley 390

Silicon Valley Venture Capital Startup Technical Review 390

Startup Professionals Musings

SEPTEMBER 14, 2016

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. Waiting until you have something to sell before bringing on a sales and operations staff. Social media is not rocket science.

Burn Rate 120

Burn Rate Hockey Stick Startup Salary 120

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

ReadWriteStart

JULY 15, 2020

New talk of capital efficiency is gratifying, but there was another lesson from pre-COVID-19 valuation struggles. Venture capitalists and early-stage investors have told all of us, founders are critical to a startup’s valuation. The action includes training in the full range of customer service skills that bring in revenue.

Valuation 91

Valuation South Carolina San Jose Balance Sheet 91

VC Adventure

AUGUST 31, 2017

So no surprise that when River Cities Capital released an overview of SaaS operating and valuation benchmarks, I hung on every juicy detail. They took the 92 public SaaS companies and analyzed their key operating metrics. The valuation metrics show this clearly. The methodology here was great. on average.

IPO 113

IPO Vertical Balance Sheet Valuation 113

Startup Professionals Musings

JANUARY 28, 2011

Pay people with equity or future revenue. Another one to avoid cash burn for software development is a contract for percent of future revenue. For example, a web-based startup should be able to operate for a year if they raise $500,000 from the founders or angels. Great strategy. Do it yourself and barter for services.

Burn Rate 231

Burn Rate Startup Salary Equity 231

Startup Professionals Musings

FEBRUARY 15, 2023

Most new teams are geographically dispersed these days anyway, so paying rent for an office should be differed to later stages when revenue is plentiful. Operate small, but show a big-company image. Favor profitability over revenue and user growth. You will be in good company with the many legends who used this approach.

Equity 349

Equity Hockey Stick Bootstrapping Sweat Equity 349

Both Sides of the Table

APRIL 18, 2019

The valuations were too high! The company started the year with no revenue and at it’s peak had a run rate well in excessive of $100 million / year. We’re at a new watermark because there are now global assets deployed and as the sun peeks out so to do the riders and the revenue. We are now in Act IV. they were highly visible.

South America 250

South America Global New York City Software Review 250

Startup Professionals Musings

DECEMBER 1, 2017

Every business needs to develop a revenue model even before a product. The alternatives range from giving the product away for free (revenue from ads), to pricing based on costs, to charging what the market will bear (premium pricing). Revenue is a percentage of every transaction. Facebook spent $150 million getting started.

Revenue 166

Revenue Affiliate Advertising Retention 166

The Startup Magazine

AUGUST 29, 2019

The working capital loan is required to run a complete cycle of revenue-generating operations. 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. As per requirements, one can apply for the same.

Startup 96

Startup Government Valuation Technical Review 96

Startup Professionals Musings

JANUARY 9, 2021

New startup founders keep all the operating metrics they need in their head. Even if you don’t have a formal board of directors, it pays to have trusted advisors who will give you regular unbiased feedback on your team strengths and weaknesses, financial and operating ratio norms, and an external view of current company valuation issues.

Exit Strategy 434

Exit Strategy Valuation Acquisition Metrics 434

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. Of the Inc. 5000 companies, only 6.5% raised from angels.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Steve Blank

MARCH 17, 2020

Here are a few thoughts about operating in uncertainty in a pandemic. Next, take a look at your actual revenue each month – not forecast, but real revenue coming in each month. Subtract your monthly gross burn rate from your monthly revenue to get your net burn rate. And what’s in my lifeboat?”. Laying off people?

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

The Startup Magazine

JULY 17, 2022

Relief from income taxes for companies that are operating at a loss. If the calculated research allowance surpasses the revenue or corporation tax, the excess amount will be returned as a refund of the income or corporate tax. Submit a credit request for open tax years that occur before 2020.

Developer 135

Developer Germany Software Developers Software Development 135

Startup Professionals Musings

JANUARY 7, 2013

Your friends and family are really the only answer until you have a significant revenue stream. Both operating executives and top advisors count. Use friends, family, and angels, if possible, to get a product, revenue, and customers first before the VC connection. Timing is critical.

Venture Capital 252

Venture Capital IPO Elevator Pitch Initial Public Offering 252

Both Sides of the Table

FEBRUARY 15, 2016

There is much talk these days that startup valuations have decreased and may continue to do so and that the amount of time it takes to fund raise may take longer. The earlier the round, the less capital you need and the more reasonable your valuation the less time that is needed generally to raise capital.

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

Hearpreneur

JANUARY 22, 2023

#4- Investments in digitalization will grow Photo Credit: Sean Stevens Even though small businesses have come a long way in adopting digitalization and tech solutions, 57% of small business owners say they still need to update their IT infrastructure to make their operations run more smoothly. Every year, social media coverage expands.

Artificial Inteligence 124

Artificial Inteligence Technical Review Entrepreneur Social Media 124

Agile VC

APRIL 17, 2011

How They Make Money: Majority of Kayak’s revenue actually comes from advertising on their site (55%), not lead generation or referral fees to travel suppliers as you might think (more on this below). Financial Snapshot: 2010 Revenue: $170 million. Revenue growth: 51% YoY (2010), 1% YoY (2009), 131% YoY (2008).

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Startup Professionals Musings

MAY 18, 2020

Most new teams are geographically dispersed these days anyway, so paying rent for an office should be differed to later stages when revenue is plentiful. Operate small, but show a big-company image. Favor profitability over revenue and user growth. You will be in good company with the many legends who used this approach.

Hockey Stick 423

Hockey Stick Bootstrapping Sweat Equity Intellectual Property 423

YoungUpstarts

OCTOBER 23, 2017

The combination of services and infrastructure traditionally housed under one roof – underwriting, research, sales & trading, supported by large back office operations, and monitored by compliance systems – will remain at the sector’s core. At least for investment banks the answer is not so clear cut.

Technical Review 154

Technical Review Artificial Inteligence Software Review IPO 154

Startup Professionals Musings

AUGUST 5, 2023

Friends and family are key at the idea and early development stages, when you have minimal business valuation. Angel investors typically provide early-stage rollout funding, while venture capital firms won’t be interested until you have real traction and revenue during scaling.

Angel Investor 246

Angel Investor Stealth Bootstrapping Early Stage 246