Why are the majority of angel investors focused on opportunities with large TAM?

Gust

Because of the economic realities of angel investing, not greed. The hard and unforgiving facts are that the majority of all angel-backed ventures fail completely, losing all the money of all the investors.

The Right Way To Do A Software ROI Analysis

Feld Thoughts

We are fortunate in that we’ve got a bunch of amazing sales execs in our portfolio, including several CEOs like Howard Diamond of MobileDay and Matthew Bellows of Yesware who have long histories selling and building sales organizations.

Trending Sources

10 Rules of Thumb for Startup Investment Valuation

Gust

Many entrepreneurs stumble at this point, losing the deal or most of their ownership, by having no answer, saying “make me an offer,” or quoting an exorbitant number. This time I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points.

Entrepreneurs must learn to face this very difficult decision

Taffy Williams

Running a business is a strong part of an entrepreneur’s life and they develop a never give up attitude. The problem is that there are times when it is necessary to pull-the-plug and close the business down. The result may impact price of materials or lead to a degrading product line.

The Board Before the Board

This is going to be BIG.

Board members can provide useful feedback, help to focus the founding team, and provide a network of contacts. . Unfortunately, many companies don''t get financing--because they don''t get any of the above. Sometimes, the founders lack focus to the point where they don''t even get to the point of company formation. They get caught in a sea of too many problems, too many opportunities, without a good idea of what to do first to coalese their ideas into a single vision. .

Starting a Company? 8 Free Online Classes You Can't Miss

Inc Startups

How to Build a Startup Steve Blank, author of The Startup Owner’s Manual and The Four Steps to the Epiphany, teaches this nine-lesson class. “We used to think of startup as a smaller version of a large company,” says Blank on Udacity’s website.

Are You Gambling With Your Financial Future?

Inc Startups

But a wise gambler knows it is impossible to beat the house over a long period of time, and they will cash in while they are ahead. As it turns out, predicting the future of even the most successful business through today’s stellar performance is not foolproof.

The Five Clocks Startups Live By

startupengineering

In physics, time moves in one direction. The times of our lives are marked by cycles, but also beginnings and endings. Lots of people believe that god exists outside of time. But for startups, there are five different clocks: Leaking time. Investors give startups time in the form of a runway. Startups usually need several new rounds of investment before they can actually take off and fly on their own. Weaponized time.

Agile 15

What Courses Of Study Are Good For Would Be Entrepreneurs?

YoungUpstarts

The question of whether or not you need to get a degree in order to become an entrepreneur is highly debatable, however there is no doubt that there are a number of courses which you can take to improve your business knowledge and help you to run your company better.

Here's Your Biggest, Most Expensive, Blind Spot

Inc Startups

Entrepreneurs master a wide variety of skills -- and ignore this one, crucial thing. The answer might surprise you: Most true entrepreneurs are complete financial illiterates, for the most beautiful of reasons. For us, money isn''t the goal.

Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. There is an inherent value that any company has.

Constructing Pricing Strategy For Subscription Products

ConversionXL

It’s also one of the most difficult Ps of marketing for folks to wrap their heads around. It can be one of the more technical aspects of marketing. First Thing’s First: How Do You Determine Value and Price? Sure, these phone sells cost time and money.

Why Rand should take some money off the table

A Smart Bear: Startups and Marketing for Geeks

SEOmoz founder and figurehead Rand Fishkin wrote a typically transparent, thoughtful blog post about his struggle of whether to raise a Series B. But in the end, in a spirit of directness and with the greatest respect, I say: Dear Rand, Take some money off the table.

Entrepreneur Tools: The Returns Analysis

Secret Formula

I got an outstanding piece of advice in my first job: “Always see the world from the other person’s point of view.”. The bad news is that I wasted a lot of time pitching to firms that I should have known weren’t a good fit in advance, because the returns math couldn’t work for them.

Website Valuation Methods

Blogtrepreneur | Entrepreneur Blog

In a past life, he was a trader at an investment bank, but nowadays he spends most of his time in coffee shops browsing reddit whilst he should be working. The following is a guest post from George, who writes about the process of website investing at Wired Investors. Website Valuation: How to determine Website Value. Perhaps you’re not sure how to go about determining your website’s value? Fair Value Multiple. How might you value that business?

Walking Away From Liquidity

Seeing Both Sides

At a (pre-blizzard) conference I attended today run by Gridley & Co, this theme was reinforced, with rosy predictions of an M&A boom. Two of my companies have just gone through this process. Does it appear that the major proof points are still ahead of the company?

Are MBAs Necessary for Start-ups or VC?

Both Sides of the Table

This is part of my ongoing series called “ Start-up Lessons.&#. Almost all of the finalists were MBAs (Stanford x2, Wharton, Harvard x2, MIT, UCLA). Many of my best friends have MBAs. My family had the very first edition of the IBM XT computer with a 10 MB hard drive.

NPV 32

Tonight We're Going To Party Like It's 1999

Launching Tech Ventures

Instead, Ill share some data on the performance of Internet startups launched during in the late-1990s boom. The firms had an aggregate market value of $99 billion at the end of 2001, and they had raised $85 billion of capital.

Lean 18

Tonight We're Going to Party Like It's 1999

Platforms and Networks

Instead, I''ll share some data on the performance of Internet startups launched during in the late-1990s boom. The firms had an aggregate market value of $99 billion at the end of 2001, and they had raised $85 billion of capital.

Business Model Analysis, Part 3: Switching Costs

Platforms and Networks

This post is part of a series on business model analysis for entrepreneurs. The first post in the series presents a comprehensive list of issues entrepreneurs should consider when designing a business model. Others delve into specific issues; this one provides an overview of switching costs. For example, when consumers switch from a Windows PC to a Macintosh computer, they must buy and install Mac-compatible application software and invest time in mastering a new interface.

Free Stuff! Just fill out this brief survey…

Ask the Angels

Why is it that so many marketers apparently can’t calculate the time value of money? If you want them to fill out a six-minute survey, that’s $50 of their time. If not, why would you expect any significant number of people to take that survey? As Abraham Lincoln said, “You can fool some of the people all of the time, and all of the people some of the time, but you can’t fool all the people all the time”.

Ten Components of Startup Valuation For Investors

Startup Professionals Musings

Many entrepreneurs stumble at this point, losing the deal or most of their ownership, by having no answer, playing coy, or quoting an exorbitant number. This time I’ll use a hypothetical health-care web site company named NewCo as an example to illustrate the points.

The “Leo the Late Bloomer” of Business Models

Non-Linear Growth

Being the dutiful father, Leo’s father continued to watch Leo for “signs of blooming” Seeing none, he asked Leo’s mother: Are you sure Leo is a bloomer? Leo’s father eventually gave up and stopped watching Leo for signs of blooming. But regardless of the outcome, as a category, recurring-revenue businesses are late bloomers. In the period you sold the back-up system, you record $1,000 of revenue and $400 of gross profit on the income statement.

More Thoughts on MBA’s and Startups

Leveraging Ideas

I wanted to add my own thoughts since I have an MBA and know the startup space from both the perspective of a potential employee and as a CEO making hiring decisions. I believe we’re referring to a specific type of MBA and specific type of startup: the MBAs we’re discussing are non-technical and the startup is early-stage (i.e. In the earliest stages of internet startups there isn’t much room for more than 1 or 2 people who are non-technical (read: coding skills).

Lean Startup Tradeoffs

Launching Tech Ventures

It is through this process that the entrepreneur identifies which aspects of the product vision are incommensurate with the wants and needs of the customer. Closing the communication gap with the customer is critical to the success of a venture. Therefore, there seems to be an inherent tension between getting the product “right” and getting the product out the door and into the hands of customer. First, the degree of exposure should be considered.

A Hedge or Bet? A Matter of Definition

Inc Startups

JP Morgans recent multi-billion trading loss reminds us that matters of risk entail a healthy dose of consideration. Also, there is the tricky issue of whether increases in risk are compensated by higher expected return.

Scaling Up: When Do Unit Economics Matter?

Launching Tech Ventures

by Varun Gupta Valuations of three of the most spoken about technology companies that are arguably still only scaling up: Facebook at $65 billion (General Atlantic got in today for 0.1% What really are these companies being valued on? What Type of Lean Entrepreneur are You?