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

David Teten

AUGUST 19, 2019

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. Our wheelhouse is bootstrapped (or lightly capitalized) SMB SaaS.

Revenue 60

Revenue Technical Review Software Review Equity 60

Startup Professionals Musings

JULY 14, 2014

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. It always reduces risk to plan your business first. Set expectations accordingly.

Entrepreneur 283

Entrepreneur Intellectual Property Technical Review Incubator 283

Startup Professionals Musings

JULY 1, 2017

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. It always reduces risk to plan your business first. Set expectations accordingly.

Product Development 177

Product Development Cost Developer Product 177

YoungUpstarts

AUGUST 24, 2017

Subscription business models have been around for a pretty long time, but thanks to modern technology, this model has evolved from milk or newspapers delivery to a versatile eCommerce experience. As a starting entrepreneur, you might wonder: why on earth would I want to start a subscription (box) business? Conclusion.

Churn Rate 149

Churn Rate eCommerce Business Model Bootstrapping 149

A Smart Bear: Startups and Marketing for Geeks

NOVEMBER 5, 2014

Consider the consequences of these monthly pricing possibilities: $0/mo means your goal is to maximize growth (trust and usage) instead of revenue. Your product is designed with natural tripwires to trigger other pricing ( Freemium model ), or not (business model left as an exercise to your future self). Think: GoDaddy).

Bootstrapping 294

Bootstrapping Technical Review B2C Sales Cycle 294

Startup Professionals Musings

FEBRUARY 19, 2013

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. It always reduces risk to plan your business first. Set expectations accordingly.

Intellectual Property 309

Intellectual Property Technical Review Venture Capital Startup 309

Startup Professionals Musings

JANUARY 12, 2018

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. It always reduces risk to plan your business first. Solicit funds from friends and family.

Intellectual Property 134

Intellectual Property Technical Review Startup Incubator 134

David Teten

AUGUST 19, 2019

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. So what is Revenue Based Investing?

Revenue 60

Revenue Term Sheet Founder Technical Review 60

Startup Professionals Musings

JANUARY 22, 2021

How do you convince investors that your business model will really work, before you have a revenue stream that exceeds your expenses? Even if you are bootstrapping your business, and you are the only investor, you should be asking yourself the same question. Plan for a real revenue model.

Business Model 414

Business Model Angel Investor Bootstrapping Revenue 414

ReadWriteStart

JUNE 1, 2020

Funding might be a need in some cases — but it’s not an absolute necessity. ? The business should be self-sustainable. 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. Bootstrapping.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

YoungUpstarts

DECEMBER 2, 2019

In fact, remote work is on the rise – especially in the form of virtual assistants – and it’s one of the primary reasons why more small businesses are opting to outsource work. Inefficiencies can often cost businesses between 20-30% of their annual revenue. is the single biggest outsourcing country globally.

Technical Review 147

Technical Review Due Diligence Technical Support Bootstrapping 147

Startup Professionals Musings

JULY 8, 2015

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. It always reduces risk to plan your business first. Solicit funds from friends and family.

Entrepreneur 120

Entrepreneur Intellectual Property Technical Review Incubator 120

Startup Professionals Musings

DECEMBER 15, 2014

Based on the Startup Environment Index from the Kauffman Foundation and LegalZoom a while back, personal money, or bootstrapping, continues to be the primary startup funding source. At least wait until later, when you ready to scale, and have some “leverage” based on a proven business model, some real customers, and real revenue.

Bootstrapping 276

Bootstrapping Entrepreneur Startup Burn Rate 276

Startup Professionals Musings

APRIL 17, 2023

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. At this point, most Angel investors and a few early-stage VCs will be happy to talk, assuming you have the business model validated, and a large opportunity.

Angel Investor 313

Angel Investor Intellectual Property Investment Bankers Private Equity 313

Gust

APRIL 27, 2014

Write down the key elements of your business plan very early, and keep it current as things evolve. This will include the first version of many critical processes that can be split out later, including market opportunity, requirements, product definition, business model, sales process, and organization. Funding process.

Startup 187

Startup Institutional Investors Angel Investor Bootstrapping 187

Startup Professionals Musings

APRIL 20, 2015

How do you convince investors that your business model will really work, before you have a revenue stream that exceeds your expenses? Even if you are bootstrapping your business, and you are the only investor, you should be asking yourself the same question. Plan for a real revenue model.

Business Model 120

Business Model Angel Investor Startup Bootstrapping 120

The Startup Magazine

MARCH 29, 2024

Designing Your Business Model Crafting a business model is like building a blueprint for your venture. Revenue streams are another critical component of your business model. Revenue streams are another critical component of your business model.

Intellectual Property 126

Intellectual Property Angel Investor Business Model Bootstrapping 126

Startup Professionals Musings

SEPTEMBER 4, 2022

That means coming up with revenue and expense assumptions that balance your natural optimism and determine how much cash the business will really need. Then take your revenue projections and cut them in half. Are you going to bootstrap, or borrow from personal assets? Don’t formalize the business until you get revenue.

Early Stage 307

Early Stage Bootstrapping Revenue Framework 307

A Smart Bear: Startups and Marketing for Geeks

JANUARY 13, 2015

Often your best estimate of any metric or market behavior or business model component is at best accurate within a power of ten, for example “expected conversion rate between 0.5% and 5%” or “cost to acquire a customer between $50 and $500″ or “average monthly revenue per customer between $20 and $200.”

Business Model 120

Business Model Affiliate Startup Bootstrapping 120

Startup Professionals Musings

JANUARY 4, 2016

Starting a new business on a limited budget without investor involvement is called bootstrapping, and it’s the only way to go if you don’t want to spend months on the investment pitch preparation and delivery circuit. Business terms are negotiable, but new entrepreneurs with plenty of cash don’t bother to ask.

Bootstrapping 120

Bootstrapping Social Media Equity eCommerce 120

YoungUpstarts

MAY 28, 2014

In other words, you have done wonders while “bootstrapping.” ” Getting some revenue from at least 3 clients (proving that there’s value to what you’re doing) would be fantastic, but other types of traction and validation would help too. Show Capital Efficiency. Kickstarter.

Security 200

Security Incubator Technical Review Bootstrapping 200

ReadWriteStart

JUNE 16, 2011

They charge $9, $29 and $59 per agent per month and I am eager to see bootstrapped, scrappy Freshdesk morph their pricing structure to aggressively compete with them. The company already has paying customers and a validated business model. Zendesk is heavily financed by Benchmark and Charles River and has 10,000 customers.

India 123

India Bootstrapping Non-Compete Entrepreneur 123

Startup Professionals Musings

OCTOBER 7, 2022

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. Be prepared to explain your business model. How much do you really need for the next 12 to 18 months?

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

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. At this point, most Angel investors and a few early-stage VCs will be happy to talk, assuming you have the business model validated, and a large opportunity.

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

Up and Running

MAY 15, 2018

Innovative products and business models are the foundations of a promising startup. Creating a scalable business model. Whether you are hoping to expand a small business with a loan or going for a round of venture capital, you will need a scalable business model. Determining how much money to ask for.

SBA 84

SBA Angel Investor Technical Review Startup 84

Gust

DECEMBER 7, 2014

Based on the Startup Environment Index from the Kauffman Foundation and LegalZoom a while back, personal money, or bootstrapping, continues to be the primary startup funding source. At least wait until later, when you ready to scale, and have some “leverage” based on a proven business model, some real customers, and real revenue.

Bootstrapping 191

Bootstrapping Entrepreneur Startup Burn Rate 191

Startup Professionals Musings

OCTOBER 19, 2015

Outside investors are most interested in scaling a proven business model, not research and development. Thus it’s a waste of time for most entrepreneurs to be looking for investors until they have a product and some customer revenue. Most founders bootstrap product development. Fabulous solutions require great technology.

Technical Review 120

Technical Review Intellectual Property Cofounder Bootstrapping 120

ReadWriteStart

JUNE 29, 2020

In other words, you must start bootstrapping an online startup , because the future of the global business world is online. The companies that have the greatest chance of surviving the global economic shutdown are the ones that have pivoted their business processes from the brick-and-mortar model to an online model.

Bootstrapping 85

Bootstrapping Global Startup Hungary 85

Startup Professionals Musings

NOVEMBER 30, 2019

That means coming up with revenue and expense assumptions that balance your natural optimism and determine how much cash the business will really need. Then take your revenue projections and cut them in half. Are you going to bootstrap, or borrow from personal assets? Don’t formalize the business until you get revenue.

Early Stage 317

Early Stage Bootstrapping Revenue Framework 317

Startup Professionals Musings

JANUARY 4, 2020

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. Be prepared to explain your business model. How much do you really need for the next 12 to 18 months?

Startup 337

Startup Preferred Stock Exit Strategy Equity 337

The Next Web

SEPTEMBER 22, 2013

Bootstrapping can be fun, you get to iterate quickly, turn on dimes, invent new features on the fly. Dribbble is what I like to call a “boot up,” or “organic startup” – a company that lives and breathes on revenue. […] For us, getting cash flowing in sooner than later was critical to give us resources to respond to the site’s rapid growth.

Cofounder 164

Cofounder Founder Startup Bootstrapping 164

ReadWriteStart

SEPTEMBER 23, 2010

First up was Brad Barrett presenting GrillGrate , a grill accessory with which Brad has built a year-to-date revenue of $400,000. Her upcoming campaign of reaching out to 100,000 moms will be one of the first concerted efforts to actually test her business model. GrillGrate. She wants to sell these products on her site.

India 114

India Silicon Valley Incubator Bootstrapping 114

Spencer Fry

MAY 2, 2014

As a bootstrapped company, we cannot afford to have so much time between releases. Why Bootstrapping is Good and Bad. Why Bootstrapping is Good and Bad. Bootstrapping Uncover has been both good and bad. Where bootstrapping has helped us is that it has given us time to design, build and experiment. Never again.

Bootstrapping 57

Bootstrapping Revenue Product Development Forecast 57

Austin Startup

FEBRUARY 13, 2019

Bootstrap if you can, for as long as you can As a startup you’ll likely fail. Not necessarily the entire business, but at some point, something will fail and you’ll either learn from it and grow or it will be the beginning of the end. At this point, we had already developed the first phase of the platform by bootstrapping.

Strategic Investors 49

Strategic Investors Austin Angel Investor Bootstrapping 49

Tim Keane

MARCH 9, 2011

Can you bootstrap your way to positive cash flow?   If the answer is relatively soon, then bootstrapping is a very serious consideration.    Even if it isn’t soon, early bootstrapping can reduce risk and increase chances for success, resulting in more aligned interests for entrepreneurs and investors.

Finance 83

Finance Bootstrapping Startup Equity 83

ReadWriteStart

SEPTEMBER 10, 2010

They already have several customers including some telcos, and are at about $350,000 in revenues. And EVEN if you ARE an experienced entrepreneur, all but just a few VCs still want to see customer validation, business model validation and traction, before they will invest. Because customer financing equals revenue, not equity.

Cloud 115

Cloud Silicon Valley Incubator Finance 115