Steve Blank

MARCH 16, 2016

Luckily in the last quarter of the 20 th century a new source of money called risk capital emerged. Risk capital takes equity (stock ownership) in your company instead of debt (loans) in exchange for cash. At its core Venture Capital is nothing more than a small portion of the Private Equity financial asset class.

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Venture Capital 120

VC Cafe

JANUARY 24, 2021

billion gamers worldwide will help the global games market generate revenues of $189.3 billion in revenue last year. Gamestop stock becomes more valuable than Google :-) Just kidding. We’re excited about the Metaverse at Remagine Ventures and the potential it has to bring people together. Fortnite alone made $1.8

Technical Review 207

Technical Review Audio Forecast Social Media 207

Both Sides of the Table

JULY 16, 2010

The VC industry grew dramatically as a result of the Internet bubble - Before the Internet bubble the people who invested in VC funds (called LPs or Limited Partners) put about $50 billion into the industry and by 2001 this had grown precipitously to around $250 billion. What accelerated this was the collapse of the public stock markets.

LP 311

LP Technical Review Early Stage Silicon Valley 311

Startup Professionals Musings

OCTOBER 7, 2022

On the other hand, venture capital organizations typically look for needs that exceed $2 million. Angel investors will perk up if you have a prototype or a few real customers, while venture capitalists will likely choose to wait until you have achieved several million in revenue or customer count.

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

YoungUpstarts

JULY 16, 2020

If you want your business to grow faster by taking on investors and raising venture capital, you might want to switch your business entity from an LLC to a C Corporation. The C Corporation is often the best choice for companies that want to take on capital from investors or sell shares of stock.

LLC 255

LLC Bankruptcy Venture Capital Stock 255

Both Sides of the Table

APRIL 14, 2010

If you want to raise venture capital more easily the advice could be quite practical and counter-intuitive. Many companies that are raising B or C venture capital rounds right now raised their initial money in 2005-2008. Liquidation preference is the amount of money that an investor gets paid before the common stock (e.g.

Venture Capital 289

Venture Capital Liquidation Preference Common Stock Pre-Money Valuation 289

David Teten

AUGUST 7, 2019

The second strategy is Value Investing , a strategy which “seeks to maximize returns by finding stocks that are undervalued by the market…Investors assess a stock’s intrinsic value…and compare that value with the stock price. LTV / CAC, revenue growth, etc.) A tiny number of winners drive VC returns.

Venture Capital 60

Venture Capital Valuation Stock NDA 60

Startup Professionals Musings

JANUARY 4, 2020

On the other hand, venture capital organizations typically look for needs that exceed $2 million. Angel investors will perk up if you have a prototype or a few real customers, while venture capitalists will likely choose to wait until you have achieved several million in revenue or customer count.

Startup 337

Startup Preferred Stock Exit Strategy Equity 337

Both Sides of the Table

JUNE 17, 2017

It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. Revenue When I look at an income statement I start by focusing on the revenue line. You need to understand the “quality” of the revenue.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Berkonomics

AUGUST 3, 2023

It’s an option, even though an expensive one. “ Strategic partner” investors: If you can find a strategic partner willing to invest in your enterprise, consider it a blessing. It is most often a win-win for both you and the strategic partner. Professional angels: This is the arena where I work and play.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Steve Blank

FEBRUARY 10, 2016

If you’re a venture capitalist … you have limited partners that give you money to invest on their behalf, and you’re responsible for giving them outsize returns. As an entrepreneur, you’re always fighting that external war whether that’s with partners or with investors. Nayeem : (Nods.)

Silicon Valley 120

Silicon Valley Ohio Columbus Entrepreneur 120

Both Sides of the Table

OCTOBER 17, 2019

Just as I was getting the swing of things the world shifted beneath my feet and the stock market went into a free fall and venture capital all but shut down for nearly a year. I mentioned that we sold our position in Kyriba for > $1 billion but when we invested it had virtually no revenue. Over the past 2.5

IP 223

IP Intellectual Property IRR Cofounder 223

www.inc.com

SEPTEMBER 24, 2011

Why Arizona Bay started taking stock from its customers instead of cash. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. Venture Capital Firms. During the first Internet boom, companies that provided services to tech start-ups were all too happy to work for stock. Will Work for Equity.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Steve Blank

JULY 15, 2010

If you take funding from a venture capital firm or angel investor and want to build a large, enduring company (rather than sell it to the highest bidder), this isn’t the decade to do it. The collapse of the IPO market and dysfunctional math in the venture capital community has stacked the odds against you. Here’s why.

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Venture Capital IPO Liquidity Event Entrepreneur 299

VC Cafe

SEPTEMBER 16, 2021

I’ve also shared my insights with Techcrunch, in “ 5 creator economy VCs see startup opportunities in monetization, discovery and much more “ As venture capital investors, one question we think about a lot at Remagine Ventures is “where are the opportunities for startups in the Creator Economy?”

Startup 207

Startup Social Media Venture Capital Audio 207

Both Sides of the Table

JUNE 22, 2011

Ah, but today’s Internet companies have real revenue! But when it’s all over and they define the era of this mini run up in stock prices I suspect they’ll include 2011 in the “over valued&# category. It’s what I love about entrepreneurship and about venture capital. and profits! That may be.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

crowdSPRING Blog

NOVEMBER 7, 2014

10 Psychological Triggers To Boost Revenues – crowdspring.co/1rXsiql. Startup Equity and Stock Options: What’s It Worth to You? The Thin Skin of the Venture Capital Market - crowdspring.co/1xaoN3x. The @crowdSPRING community partners with US State Dept for Social Impact | Justmeans – crowdspring.co/1ux55RH.

Social Media 99

Social Media Small Business Design Media 99

Steve Blank

MARCH 31, 2014

As the venture capital business has come roaring back in the last 5 years, startups are awash in available capital. Companies horde cash and squeeze the most revenue and margin from the money they use. Instead of measuring success in dollars of profit, …firms focus on measuring capital efficiency.

Private Equity 326

Private Equity Metrics China Intellectual Property 326

YoungUpstarts

JUNE 26, 2020

Sangha was a graduate of University of Pennsylvania and his first venture capital investor turned out to be an alumni. When a VC’s website says they do “early stage” – to a VC that means a product has already been built and generating some revenue, while to an entrepreneur it means “just an idea.”. Who is in your tribe?

Finance 205

Finance Silicon Valley Valuation Startup 205

Both Sides of the Table

MARCH 21, 2010

Plus, we’re all allured by the false sense that our contract with BigCo is going to “make us&# because once they start using us it will spread like wildfire and the revenue will flow in. They negotiate a “master agreement&# to work with your company with some maybe minimum guarantees in terms of revenue.

Warrant 298

Warrant Dilution Startup Stock Options 298

This is going to be BIG.

FEBRUARY 26, 2010

Our revenues have increased every quarter for the past two years. Knewton's Online Marketing Director is the key partner to the VP, Online Marketing and is responsible for helping the team drive customer acquisition and revenue growth through SEM (paid search), SEO, Affiliate Marketing, and Email.

San Francisco 92

San Francisco CTO Hire Developer EC2 92

Growthink Blog

SEPTEMBER 13, 2017

To illustrate, let’s investigate two typical company scenarios: Company Scenario #1: A company lacking great financial traction - slow revenue growth, little profit - but one that competes in an industry attractive to strategic and financial buyers. And we will attract to us new relationships and partners to help us get there.

Harvest 48

Harvest IP Software Review Forecast 48

Reid Hoffman

MARCH 27, 2014

In January, activist investor Carl Icahn acquired around 2 percent of eBay’s stock. So, what conditions will best help PayPal continue to grow its user base, increase revenues, and bolster its profit margins on a consistent and ongoing basis? eBay CEO John Donahoe has lifted the company’s annual revenues from $8.54

Silicon Valley 57

Silicon Valley Software Review Stock Due Diligence 57

Cracking the Code

NOVEMBER 10, 2009

It is intriguing to see the M&A dynamics in the space, highlighting the interest of tech companies for recurring revenue streams - even SAP announced in their analyst call earlier this month that they were moving from perpertual licenses to five year term licences. The stock was very well received, jumping 25% on its first day of trading.

Software Review 48

Software Review Technical Review IPO Cloud 48

Cracking the Code

OCTOBER 9, 2009

This strong recovery has highlighted the resiliency of the recurring revenue model in a downturn as well as the stength of the shift to soaftware-as-a-service and cloud computing. In other words, how much of the decline in revenue growth is due to signing up fewer customer vs lower revenues from each new customer. Newer Post.

Software Review 48

Software Review Technical Review Cloud Europe 48

Austin Startup

DECEMBER 17, 2017

I recall that MSA’s stock increased 5X or thereabouts after our deal, which by no means implies that Peachtree deserved sole credit for all that. Hurricane Irma had a major negative revenue impact on one whose fall book of business was mostly in Florida. I got the message.

Silicon Valley 48

Silicon Valley Atlanta Software Review Early Stage 48

Steve Blank

JUNE 15, 2010

And some larger funds that specialize in later stage deals may have a partner or two who likes to invest at this stage. For a founder there’s nothing worse than searching for a business model day after day and then sitting in a board meeting with a VC who asks about some detail of year 5 of your revenue plan.

Founder 231

Founder Vesting Later Stage Early Stage 231

Both Sides of the Table

NOVEMBER 4, 2009

OK, you would own 0.25% of the stock. If you never raise another round of venture capital (a big if) and if your company is sold for the normal venture exit ($50 million on average for 200 or so annually that get sold) then what is your stake? Stock vests for 4 years. They raised $5 million in their B round.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

Berkonomics

JUNE 8, 2017

Strategic partner” investors: If you can find a strategic partner willing to invest in your enterprise, consider it a blessing. It is most often a win-win for both you and the strategic partner. Venture, private equity and more: Here we lump a large number investor classes into one.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Startup Professionals Musings

MARCH 7, 2015

On the other hand, venture capital organizations typically look for needs that exceed $2 million. Angel investors will perk up if you have a prototype or a few real customers, while venture capitalists will likely choose to wait until you have achieved several million in revenue or customer count.

Preferred Stock 120

Preferred Stock Exit Strategy Equity Angel Investor 120

www.readwriteweb.com

MARCH 7, 2011

Bryce Roberts , a partner at O?Reilly Reilly Tech Ventures, was so concerned about the network that he deleted his AngelList account. Since most companies have little to no revenue, who else has already invested in the deal is heavily weighted to prove value. To my surprise, VC? Follow McCann on Twitter @Mccannatron.

Technical Review 50

Technical Review Due Diligence Startup Angel Investor 50

Growthink Blog

DECEMBER 13, 2017

When widely-held assets like stocks and real estate (and now Bitcoin!) So much of our business day is spent on revenue and costs - i.e. generating the most possible sales at the least possible cost to pay the rent, meet payroll, and keep the lights on, etc. NativeAds (digital advertising) closed on a $4M venture financing.

Marketing 59

Marketing Malaysia Indonesia Private Equity 59

Scalable Startup

AUGUST 9, 2018

If you’ve already soft launched, have a product available, are telling the world about your awesome company but don’t have revenue/user growth, you’re probably in the red zone. As we prepare for our first funding we are assembling a value chain from partners and vendors to clients. In between those times it’s pretty tough.

Technical Cofounder 20

Technical Cofounder Silicon Valley Early Stage Cofounder 20

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . But, most of use raise capital and source deals the same way people looked for dates 20 years ago: by networking at conferences (or bars). . But in business, you want a lot of partners.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

infochachkie.com

SEPTEMBER 24, 2011

For instance, if a consultant proposes to help you with public relations, pay them a commission equivalent to the greater of a flat fee per story placed or a percentage of revenue generated from the PR coverage. The final straw came when I asked the latest 25-year old a simple ‘yes / no’ question related to stock options.

Equity 40

Equity Silicon Valley Cofounder Technical Review 40

abovethecrowd.com

JULY 10, 2014

As a result, most models are used as a rough guide to see if you are “in the ball park,” or to see if a particular stock is either wildly under-valued or over-valued. What Professor Damodaran thinks, or what anyone who is not a buyer or seller of stocks thinks, is fairly immaterial. So here is the objective of this post.

San Francisco 111

San Francisco San Jose Marketing Technical Review 111

Both Sides of the Table

APRIL 27, 2010

My company had raised venture capital in April 2001 but we were told that there may never be any more coming. I learned how to retain employees when stock options were no longer a real currency. and we ultimately sold when we hit $14 million and had more than $30 million in backlog revenue. million, then $5.9m, $7.7m

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285