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One Million by One Million is a global initiative that aims to nurture a million entrepreneurs reach a million dollars each in annual revenue and beyond by 2020, thereby creating a trillion dollars in global GDP and ten million jobs. 1M/1M Program has a bold mission. This is where numerous ventures fail.
Much of the VC blogosphere commentary about startups covers venture and angelfinancing with advice focused on company founders. Yet the company hasn’t figured out product-market fit yet, hasn’t figured out its customer proposition, doesn’t have revenue… it doesn’t have traction.
So pervasive has this thinking become that on several occasions startup companies with profitable & fast growing services businesses have come to me wanting to show me the product businesses they created internally to see whether they would be financeable or whether they might be able to create “spin outs&# that could be financed.
The findings come from the initial results of a survey of 7,502 small privately-held businesses with revenues of less than US$5 million dollars by the Pepperdine Private Capital Markets Project with the cooperation of Dun & Bradstreet Credibility Corp. were successful.
Earlier, of course, we covered AngelList at length , also a crowd sourcing venture in the angelfinancing space, and this week, we have covered SecondMarket , which is powering Facebook's private market capital raising. When two out of four pitches in a session are from the same category, it most certainly makes me take notice.
Jimmy already has about 65 customers and about a million dollars in annual revenue. The company is profitable and has so far raised only $400,000 in friends and family and angelfinancing. The top two competitors are both venture funded to the tune of $5 million each, and have about the same or lower customer traction.
Put everything else on your "wish list" to buy with revenues from sales or additional financing. For most of my readers, the main concern will be preparing your business for angelfinancing until the time is right for venture capital.
Since then, the company changed its name to Archipelago Learning, went public and did $55 million in revenue last year. Mitra points out that the free rent may have been worth up to $20,000 in angelfinancing? One of their grandmothers had a condo in Fort Lauderdale, Fla., Families: Nurture Entrepreneurs – Forbes.com.
But of course, the model had us requiring only $10M equity to breakeven and to achieve $185M in revenues in 2008 (the magic Year 5 in all business plans). Staged financing gives investors options in deciding whether and when to invest more and gives entrepreneurs options in how much to raise and when to think about exiting.
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