Startup Professionals Musings

JULY 22, 2020

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. For investors, this is the idea stage , where you may have a great idea, but no plan, product, or customers, and probably no success record in this business domain.

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

Startup Professionals Musings

MAY 30, 2022

Early-stage entrepreneurs rightly keep their focus on creating an innovative product or service. By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. Switch your attention from product development to sales. There is no free lunch.

Mezzanine 368

Mezzanine Private Equity Bandwidth Metrics 368

The Startup Magazine

FEBRUARY 21, 2024

Are there new revenue streams you can tap into? We recently worked with a retailer who was struggling due to operational inefficiencies, an overly broad and outdated product line, and a burdensome debt structure. The goal is to transform dormant or underutilized assets into active capital that supports your business.

Technical Review 135

Technical Review Due Diligence Bankruptcy Intellectual Property 135

Steve Blank

MARCH 16, 2016

But startups require money upfront for product development and later to scale. Founders can now access the largest pool of risk capital that ever existed –in the form of Private Equity (Angel Investors, family offices , Venture Capitalists (VC’s) and Hedge Funds.). If so, how is the revenue measured? ——-.

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Venture Capital 120

The Startup Magazine

AUGUST 11, 2023

It is necessary to cover the early stages of product development, thorough market research, and other processes during the initial step. The criteria change after a company reaches the growth stage when it is deemed to have attained product market fit. Seed capital is a component of the initial investments made in young businesses.

Seed Stage 128

Seed Stage Technical Review Early Stage Due Diligence 128

Steve Blank

MARCH 31, 2014

Companies horde cash and squeeze the most revenue and margin from the money they use. In spite of this, private equity funds have used the rallying cry of efficiency to hijack corporate strategy and loot the profits that historically would have been reinvested into research and development and new products.

Private Equity 326

Private Equity Metrics China Intellectual Property 326

ReadWriteStart

JUNE 1, 2020

You must have a prototype or a minimum viable product (MVP). 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. To fund the sudden spike in production, funds will be required for additional inventory and wages.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

The Startup Magazine

SEPTEMBER 23, 2021

The $130 million Series D investment round was co-led by New York-based global private equity and venture capital firm Insight Partners and Hanaco Venture Capital. The company’s most popular products include Facetune 2, Facetune Video and Videoleap. The company is projected to grow by a further 40% in the upcoming year. .

Private Equity 145

Private Equity Developer Venture Capital Merger 145

Steve Blank

MARCH 17, 2020

The ripple and feedback effect of all of these closures will have a major impact on our economy, as each industry that gets impacted puts people out of work, and those laid off workers don’t buy products and services. Next, take a look at your actual revenue each month – not forecast, but real revenue coming in each month.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

Steve Blank

APRIL 26, 2022

Startups that can’t find product/market fit and/or generate sufficient revenue and/or lacked patient capital are scrambling for dollars – and the bottom feeders are happy to help. Venture capital, like most private equity, is an unregulated financial asset class – anything goes. Why do VCs Do This?

Cram Down 408

Cram Down Founder Venture Capital Recapitalization 408

Lightspeed Venture Partners

AUGUST 17, 2014

CEO and co-founder Vincent Yang, a mathematician by training, had built a system while he was at Summit Partners, a private equity firm, to comb the Web looking for investment opportunities. Enterprises that use EverString gain a fundamental edge over their competition in building revenue and market share.

B2B 96

B2B Revenue Private Equity Artificial Inteligence 96

Berkonomics

AUGUST 3, 2023

Certainly, bootstrapping is a preferred method of funding growth if it does not hold back the speed of growth or hobble the quality of product or service to the extent that better-funded competitors can overtake the business. Venture, private equity and more: Here we lump a large number of investor classes into one.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

YoungUpstarts

JUNE 6, 2013

If you have a deal that is related to bringing in sales and you do want to have a perpetual compensation you can use some version of a Lehman Formula that incentives the person upfront as they are bringing in revenue for you, then caps it off on an ongoing basis. Balance the risks to your reputation. Due Diligence.

Technical Review 164

Technical Review Securities and Exchange Commission Non-disclosure Agreement Due Diligence 164

Startup Professionals Musings

SEPTEMBER 1, 2019

Early-stage entrepreneurs rightly keep their focus on creating an innovative product or service. By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. Switch your attention from product development to sales. There is no free lunch.

Mezzanine 244

Mezzanine Private Equity Startup Bandwidth 244

Startup Professionals Musings

AUGUST 19, 2018

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. For investors, this is the idea stage , where you may have a great idea, but no plan, product, or customers, and probably no success record in this business domain.

Angel Investor 184

Angel Investor Intellectual Property Investment Bankers Private Equity 184

YoungUpstarts

MARCH 7, 2017

Unfortunately, a number of them had an early exit from the business scene due to ineffective business plans and/or unsustained revenue for their investment. Initially, you get funded by entrepreneur founders who want to develop a product, service, or solution which they think the market needs and demands. Private Equity Firms.

Private Equity 159

Private Equity Startup Incubator Social Network 159

The Startup Magazine

SEPTEMBER 10, 2020

Established in 1986, most of its production comes from the U.S., Main Street Capital is a publicly traded private equity firm that offers equity and debt financing to lower middle-market companies with a revenue between $10 million and $150 million. though it has international properties, too. Main Street Capital.

Dividend 89

Dividend Stock Finance Private Equity 89

David Teten

JANUARY 21, 2021

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78

Equity Revenue Cofounder Colorado 78

Version One Ventures

JANUARY 12, 2021

Combining the investment capital of a private equity firm and the deep operational experience of a startup accelerator, Cap Hill can lead brands to new levels o f growth online. . They worked together at Zulily, one of the original e-commerce success stories. . Commerce today is very different than it was just a decade ago.

Private Equity 87

Private Equity Seattle Equity Acquisition 87

Both Sides of the Table

SEPTEMBER 29, 2009

Huge downturns have a real impact on the revenue line of start-ups and therefore the pressure on valuations. This came in part due to the huge influx of money into VC but also because hedge funds and private equity shops with no VC experience wanted part of the action. I argued for literally a year to slash burn.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

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. . The 11 Steps of Investing in Private Companies. In the private equity universe, most Partners have primary training as deal-makers, not as managers. 1) Manage the firm .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Startup Professionals Musings

JULY 4, 2014

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. For investors, this is the idea stage , where you may have a great idea, but no plan, product, or customers, and probably no success record in this business domain.

Angel Investor 232

Angel Investor Intellectual Property Investment Bankers Private Equity 232

ConversionXL

DECEMBER 7, 2017

That summer a private equity fund acquired the assets of the company. The merch team brought back several key products. That latter term is used to describe an initial offer that generates enough revenue to offset the cost of acquiring a customer. They rarely returned product. They brought me in as CMO.

Bankruptcy 106

Bankruptcy Marketing Campaign Intellectual Property 106

Berkonomics

FEBRUARY 9, 2023

The most striking example was the one hundred million–dollar purchase of one of my companies by a New York private equity investor using only five million of its cash. Using this technique with a supplier And how about a product purchase where you cannot come to a successfully negotiated price with your supplier?

Naming 62

Naming Warrant Private Equity Valuation 62

Rob Go

DECEMBER 28, 2011

61M in Q3 revenue, up 28% YoY. Wayfair: This is somewhere between an exit and and a growth round, but the largest independent ecommerce company focused on the huge home/furniture category raised a $165M round from a group of growth, private equity, and venture investors. Tripadvisor: An amazing entrepreneurial story. market cap.

Technical Review 54

Technical Review Boston Software Review IPO 54

YoungUpstarts

AUGUST 13, 2019

Immediate needs like selling a product, providing a service, keeping customers and employees happy, or managing payroll and expenses are top of mind. This allowed him to keep seeing patients while he worked to reopen as soon as possible and lessen the loss of patients and revenue.

Los Angeles 138

Los Angeles Private Equity Small Business Equity 138

Growthink Blog

APRIL 3, 2012

For example, having a financial model that shows you are going to grow from $0 to $100 million in revenues in 3 years is generally going to be frowned upon. Even if you don't have a product or service that's ready for customers, there are things you can do. Since achieving such a feat is extremely rare.

Private Equity 97

Private Equity Venture Capital Equity Forecast 97

Startup Professionals Musings

AUGUST 13, 2016

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. For investors, this is the idea stage , where you may have a great idea, but no plan, product, or customers, and probably no success record in this business domain.

Matching 120

Matching Angel Investor Intellectual Property Investment Bankers 120

Both Sides of the Table

JULY 16, 2010

So even within the “alternative class&# our LPs are looking at other asset investment choices such as distressed buyout funds, private equity or hedge funds. Revenue must come from a primary source (as opposed to advertising or other third party sources). VC will shrink. Oh yes it will. Price MUST be in a certain range.

LP 311

LP Technical Review Early Stage Silicon Valley 311

YoungUpstarts

MARCH 24, 2020

If a company produces components that are deployed in this sort of machinery manufacture, they might consider stabilizing, or ramping up production rather than pulling back. was particularly robust, and they’d ultimately have to pay a premium for many raw materials needed to produce their products.

Private Equity 127

Private Equity Vertical Forecast Equity 127

Startup Professionals Musings

SEPTEMBER 13, 2017

Early-stage entrepreneurs rightly keep their focus on creating an innovative product or service. By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. Switch your attention from product development to sales. There is no free lunch.

Mezzanine 141

Mezzanine Private Equity Startup Bandwidth 141

Startup Professionals Musings

FEBRUARY 25, 2023

Investors know that the fun of a startup turns into managing production processes, sales processes, and personnel in a few years. Find a private equity firm or friendly individual. Investors hesitate to invest under these conditions. Most entrepreneurs like the startup role, but not the big-company role.

Exit Strategy 264

Exit Strategy Private Equity Equity Technical Review 264

Startup Professionals Musings

NOVEMBER 3, 2013

Early-stage entrepreneurs rightly keep their focus on creating an innovative product or service. By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. Switch your attention from product development to sales. There is no free lunch.

Mezzanine 240

Mezzanine Private Equity Bandwidth Metrics 240

David Teten

SEPTEMBER 5, 2014

I’ve written on the expert network industry a fair amount in the past: see How to Earn More Consulting Revenue from Expert Networks and How Executives Can Work with Private Equity and Venture Capital Portfolio Companies. GLG Share is really a membership more than a product, and we want to serve our members however we can.

New York 114

New York Technical Review Networking Advisory Board 114

This is going to be BIG.

MARCH 16, 2020

Everyone who follows me knows the love I have for Ample Hills, their product and their wonderful and hardworking amployees. They were capacity constrained from a production standpoint, but it seemed like a good problem to have. Prime locations were beating down their door for expansion.

Bankruptcy 95

Bankruptcy Private Equity Seed Stage Dilution 95

Hearpreneur

JUNE 19, 2018

As a successful young entrepreneur (he’s only 30! ), Harrison Rogers is Founder and CEO of HJR Global, a private equity company that has increased at least 200% every year for the past 4 years. Tell us about your products and services. 5000 two years in a row as one of the fastest growing private companies in America.

Private Equity 68

Private Equity Entrepreneur Global America 68

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 23, 2012

After I sold Smart Bear, that division has increased revenue and profit every year, for five years, even through the 2008/2009 economic disaster. After all, before the house of cards inevitably tumbles, private equity investors get a tidy return. .’” And the same thing happened after we sold IT WatchDogs in 2005.

IPO 240

IPO Flash Bootstrapping Private Equity 240