Both Sides of the Table

MAY 28, 2018

There are many things a VC is looking for in reviewing your business plan but beyond things the like the quality of revenue, margins, OPEX and CAPEX there’s a really simple rule I call, “Cash In, Cash Out, Milestones Achieved.” Every VC wants to fund a deal that seems to have too much demand.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

Both Sides of the Table

JULY 6, 2016

In France in some ways it was worse because if you failed as a startup founder you shouldered personal liabilities that don’t exist in the US under our bankruptcy laws. You also ran the risk that if you hired employees quickly and then demand wasn’t as strong as expected it was incredibility hard to fire people.

South Korea 261

South Korea Silicon Valley Los Angeles Japan 261

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Flexible VC 101: Equity Meets Revenue Share. Flexible VC: Revenue -based. Gross Revenues (generally 2-8%).

Cofounder 78

Cofounder Technical Review Equity Dividend 78

The Startup Magazine

MAY 9, 2024

Despite securing massive funding, WeWork spiraled into bankruptcy after a debt-driven expansion, exacerbated by a pandemic-induced decline in office space demand. Their net revenue retention (NRR) soared to 150%, a testament to their product’s value to existing customers.

Burn Rate 88

Burn Rate Bankruptcy Startup Metrics 88

YoungUpstarts

MARCH 11, 2020

As a landlord, your main goal is to maintain your rental properties at tip-top conditions and grow your revenue. According to Statista, the rental vacancy rates in the country declined to slightly more than 26% in 2017 from around 40% in 2009, showing a growing demand for rental homes. Challenges faced by do-it-yourself landlords.

Bankruptcy 165

Bankruptcy United States Software Revenue 165

Mike Michalowicz

APRIL 15, 2013

You fix your bottom line by increasing revenue or cutting costs or both. You can’t guarantee that you will increase revenue by next month, but you can guarantee that your rent will be due. Many costs are static and recurring, meaning they happen every month for the same amount regardless of your revenue.

Cost 151

Cost Bankruptcy Revenue Software Review 151

Steve Blank

MARCH 8, 2017

When I took the job of VP of Marketing in a company emerging from bankruptcy, excuses seemed to be our main product. In addition to customer discovery, creating end user demand, and product strategy, Marketing also serves as a service organization to sales. So we created The No Excuses Culture. — No Excuses as a Core Value.

Bankruptcy 407

Bankruptcy Sales Channel Restful 407

Lightspeed Venture Partners

OCTOBER 29, 2012

Shelton came under intense questioning about how she justified her valuation given no proof of demand. But during that time she had been an alcoholic, and in seeking to break away from that life, she had walked away from the company, causing her to declare personal bankruptcy. Now sober, she wants to take another run at the same idea.

Pre-Money Valuation 97

Pre-Money Valuation Offshore Valuation Cofounder 97

YoungUpstarts

JULY 22, 2015

Run of the mill startups accept seasonal drag without a plan while the ones that eventually grow significantly larger do not accept profit swings or revenue losses as part of their company’s reality. Here’s how to change your business model in order to mitigate or leverage seasonal demand: Level out revenues. Keep Buzz Alive.

Startup 100

Startup Bankruptcy Campaign Demand 100

YoungUpstarts

JUNE 10, 2018

For customers, this means better, high quality products and services and producers responding quicker to feedback and demands from consumers. Many companies are already using these tools especially Social Media Marketing to stay engaged with their customers and be quicker in responding to market demands. Conclusion. Industry 4.0

Agile 100

Agile Analytics Cloud Bankruptcy 100

David Teten

DECEMBER 3, 2019

Tim Friedman, Founder, PE Stack , said, “If I could offer one piece of advice to today’s managers, it would be to take the time to understand the demands of the modern institutional LP. Pacer is useful to search prior litigation, bankruptcies, etc. Lighter Capital, a Revenue Based Investing VC, offers a Cost of Capital Calculator.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

ReadWriteStart

APRIL 30, 2020

Recent history is littered with failed startups that went from inhabiting posh, palatial offices to bankruptcy proceedings seemingly overnight. That money would be better spent on creating products and services that drive revenue, however. Hoarding Cash and Making Unreasonable Demands. It’s easy to understand why.

Burn Rate 107

Burn Rate Management Startup Early Stage 107

Transformify

AUGUST 5, 2021

With the current changes in the market today, businesses are more focused on the ways to meet the demands of their customers, irrespective of the new way of working of their remote employees and hybrid workforce. The never-ending cycle of lockdowns and reopenings makes it impossible to forecast revenue streams and retain full-time employees.

Intellectual Property 59

Intellectual Property Technical Review Software Review Bankruptcy 59

Both Sides of the Table

FEBRUARY 14, 2016

The Laws of Supply & Demand. The most basic chart of microeconomics is a supply & demand curve. Demand represents a buyer and supply a seller. Some products are “inelastic” meaning when prices go up demand doesn’t fall much (think cigarettes, alcohol or even illicit drugs). goes into a startup.

Valuation 150

Valuation Down Round Startup Later Stage 150

Ben's Blog

APRIL 1, 2011

If the sales team made unreasonable demands on the product organization, then that was my fault. At Loudcloud, when the dot com bubble burst and subsequently sent most of our customers into bankruptcy, it crippled our business and devastated our balance sheet. Revenue at Ning is soaring and team morale is high.

Management 78

Management Cap Table Balance Sheet Bankruptcy 78

Women Entrepreneurs Can

SEPTEMBER 15, 2019

Whether you need new seats, tables, various types of equipment, space renovations, advertising, or an entirely new location to keep up with the growing demands of your business, getting a loan to help cover the expenses makes total sense. Do your homework by doing a revenue forecast. You Are Considering Expansion.

Due Diligence 40

Due Diligence Forecast Finance Bankruptcy 40

Cracking the Code

OCTOBER 10, 2008

Only after reaching $1M in CMRR should you consider hiring European sales and services execs behind customer demand. Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. Great list!

Software Review 48

Software Review North America Europe Metrics 48

YoungUpstarts

MAY 21, 2012

All businesses begin with a specific idea in mind, and although some stick to exactly what they started with, it’s much more common to find that a business has grown and evolved over time to keep up with changes in supply, demand, and even resource availability.

Mississippi 209

Mississippi San Francisco Minnesota Bankruptcy 209

Feld Thoughts

JULY 31, 2013

Today, Zayo has eclipsed $1.1Bin revenue and $600M in EBITDA, leading to an estimated Enterprise Value in the vicinity of $6B. Two years prior, ICG was a public company preparing for its second bankruptcy. The balance between supply and demand of bandwidth was rapidly improving. I didn’t. We paid them $8.7M

Bandwidth 147

Bandwidth Colorado Startup IRR 147

Gust

OCTOBER 12, 2011

Thus, it’s in everyone’s best interest to see the startup raise more capital rather than declaring default and demanding repayment. The company is unable to raise more financing and becomes insolvent (whether or not it formally files for bankruptcy). Same, except at the option of the noteholders (per the term sheet example above).

Finance 107

Finance Term Sheet Pre-Money Valuation Early Stage 107

Transformify

MARCH 20, 2020

It is highly likely that thousands of small businesses will go bankrupt as few can afford to pay rent and salaries while generating no revenue at all. As many budget airlines are close to bankruptcy, it is likely that there will be fewer routes serviced and claiming much higher prices than before the coronavirus outbreak.

Italy 92

Italy South Korea Bulgaria Los Angeles 92

Steve Blank

OCTOBER 1, 2009

Sloan put in place GM’s management accounting system (borrowed from DuPont) that for the first time allowed the company to: 1) produce an annual operating forecast that compared each division’s forecast (revenue, costs, capital requirements and return on investment) with the company’s financial goals. auto market with 60% of the U.S.

Silicon Valley 182

Silicon Valley United States RSS Customer Development 182

Occam's Razor

APRIL 23, 2012

Revenue vs. Economic Value. That is a reflection of a deep obsession on Revenue. When your KPI is revenue, you are focused on trying to get as many single-session conversions as possible. Economic Value is the sum of Revenue plus the Business Value created by the macro- plus micro-conversions on your website.

Metrics 154

Metrics Analytics Search Channel 154

VC Cafe

APRIL 17, 2020

Some business schools have had students make demands for refunds while others have announced that they may not reopen until Jan 2021. Live entertainment shows – HQ Trivia is back from bankruptcy with an unnamed buyer and regular programming is set to return soon. In conclusion.

Taiwan 149

Taiwan Non-Compete Vietnam Bankruptcy 149

YoungUpstarts

AUGUST 24, 2020

However, if significantly less revenue is being earned in the business, paying the rent on an active lease demands that small-business owners negotiate. Hiding from the Internal Revenue Service. Some small business owners would rather pretend their landlord doesn’t exist than pick up the phone and look to renegotiate terms.

Small Business 191

Small Business Technical Review Southern California SBA 191