Startup Professionals Musings

DECEMBER 15, 2014

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. Focusing on the burn rate and prioritizing every possible expense will keep overhead down, help you stay lean, and achieve a higher profit earlier.

Bootstrapping 276

Bootstrapping Entrepreneur Startup Burn Rate 276

Startup Professionals Musings

JUNE 28, 2013

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. Focusing on the burn rate and prioritizing every possible expense will keep overhead down, help you stay lean, and achieve a higher profit earlier.

Startup 264

Startup Burn Rate Bootstrapping Valuation 264

abovethecrowd.com

FEBRUARY 24, 2015

Historically, different financial institutions specialized in different stages, because the assessment of risk and opportunity was considered unique at each stage — for example, a seed investor was unlikely to do late-stage financing, and vice versa. If you want to know if the business model truly hunts, you must pay careful attention.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40

ReadWriteStart

JANUARY 27, 2011

And, oh by the way, we also really like the idea of the 1M/1M entrepreneurs building valuation and negotiating leverage through these business development efforts, instead of signing off large chunks of their company in form of equity early on. The business is already profitable with $2.9 million in revenue.

Dilution 114

Dilution Revenue Finance Entrepreneur 114

Up and Running

SEPTEMBER 17, 2014

After all, a sustainable business model requires repeat customers! I believe all entrepreneurs should know their business. This includes a general understanding of the finances. This is the rate at which a company uses up its capital to finance overhead before generating positive cash flow from operations.

Metrics 146

Metrics Burn Rate Entrepreneur Forecast 146

Professor VC

NOVEMBER 14, 2011

in fees is a hefty transaction fee considering company will still have legal and other fees on the financing. I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases. I also teach Entrepreneurial Finance at San Jose State.

SEC 54

SEC San Jose Angel Investor Accredited Investor 54

Gust

DECEMBER 7, 2014

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. Focusing on the burn rate and prioritizing every possible expense will keep overhead down, help you stay lean, and achieve a higher profit earlier.

Bootstrapping 191

Bootstrapping Entrepreneur Startup Burn Rate 191

philipsmith.typepad.com

SEPTEMBER 24, 2011

a year burn rate and your equity is worthless due to numerous recapitalizations and bridge loans from investors then either you don't get it or I'm stupid to do it. New Business Models. Tech Business Environment. The second example came along just this morning. Fundraising. Getting going. Globalization.

Silicon Valley 40

Silicon Valley Equity Technical Review Recapitalization 40

Professor VC

JANUARY 27, 2011

There are so many unknowns at this stage and the only known is that the business model is going to change at least once, or in the current most overused term in the Silicon Valley, there will be a "pivot". I also teach Entrepreneurial Finance at San Jose State. The written style is very prompt and the highly practical manners.

Technical Review 31

Technical Review Due Diligence Silicon Valley San Jose 31

Professor VC

APRIL 7, 2011

This will also serve as a good pointer for all the entrepreneurs who ask why I am not interested in their company led convertible note financing round. This can make it much more difficult to get any bank financing, new investment, and trade credit. In cases where it is truly a bridge financing (i.e. Steve Bennet. at 1:33 PM.

San Jose 36

San Jose Technical Review Angel Investor Valuation 36

Professor VC

SEPTEMBER 26, 2011

I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases. I also teach Entrepreneurial Finance at San Jose State. Can Entrepreneurship Be Taught? ► October. (1). Watch Out for the Red W(h)ine. ► September. (1).

Technical Review 38

Technical Review Early Stage San Jose Angel Investor 38

Professor VC

JANUARY 27, 2008

The spring semester of my Entrepreneurial Finance class starts tomorrow. We will also look at a variety of financing methods including venture capital, angel investing, licensing, franchising, roll-up, venture debt and my old favorite, bootstrapping. Labels: entrepreneur , entrepreneurial finance course , venture capital.

San Jose 28

San Jose Technical Review Angel Investor Venture Capital 28

Professor VC

MARCH 10, 2009

I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases. I also teach Entrepreneurial Finance at San Jose State. Can Entrepreneurship Be Taught? ► October. (1). Watch Out for the Red W(h)ine. ► September. (1).

Bootstrapping 28

Bootstrapping San Jose Silicon Valley Angel Investor 28

Professor VC

APRIL 1, 2010

One comment made by Jason was that angels tend to be less sensitive than VCs on valuation and can potentially make it difficult to get a venture financing done at acceptable valuation. Labels: Angel Investors , fundraising , term sheets , venture capital , venture financing. I also teach Entrepreneurial Finance at San Jose State.

Term Sheet 32

Term Sheet Angel Investor San Jose Venture Capital 32

Professor VC

APRIL 11, 2008

Not to worry, I was busy working on closing the Series B financing for iControl Networks. I started working with the founders of iControl at the concept stage, prior to the first $100K of angel financing. Labels: CFO , home security , M and A , venture capital , venture financing. Steve Bennet. at 10:22 AM. Newer Post.

San Jose 28

San Jose Angel Investor Venture Capital Balance Sheet 28

YoungUpstarts

JANUARY 9, 2017

by Tina Hay, founder and CEO of Napkin Finance. One of the most important factors in becoming a successful entrepreneur is managing finances. This will also prepare your business for filing taxes. Estimate your monthly “burn rate.” Define Your Business Model. Determine Operating Expenses.

Burn Rate 100

Burn Rate B2C Finance Later Stage 100

Professor VC

NOVEMBER 19, 2009

The business environment is much more complex today, and the hopeful entrepreneur need to understand more of the environment in which they will operate. I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases. ► October. (1).

San Jose 43

San Jose Silicon Valley Las Vegas Venture Capital 43

ReadWriteStart

JULY 9, 2023

Business Models and Pricing Know your business model prior to launching a startup. Investors won’t consider your company as desirable if you don’t show them your business model or if they see that the chosen model may not be the best fit. A good founder is always a good communicator.

Intellectual Property 122

Intellectual Property Startup Burn Rate Metrics 122

VC Cafe

JUNE 6, 2024

Benchmark: Serena Capital advises B2B SaaS startups to target a gross margin of 80% or higher to demonstrate the scalability and profitability of their business model. Burn Rate Definition: Burn rate is the rate at which a startup is spending its capital to finance operations before generating positive cash flow.

B2B 97

B2B Burn Rate Generative AI Retention 97

Professor VC

NOVEMBER 13, 2008

This got me thinking about the business model that Mike Keiser has built at the resort and a lecture began to form in my head. cant wait to go back, which is clearly goal #1 in the list of critical success factors if anyone is still following the business model tangent. Labels: Bandon Dunes , business models , golf.

Oregon 28

Oregon San Jose Angel Investor Silicon Valley 28

Professor VC

DECEMBER 18, 2008

Many entrepreneurial programs feature a business plan competition, which is a great exercise. At SJSU, we also have a business plan competition in the spring, which ideally allows the students to build a viable business model around their NIF projects. I also teach Entrepreneurial Finance at San Jose State.

Silicon Valley 28

Silicon Valley San Jose Technical Review Angel Investor 28

Professor VC

MAY 29, 2008

I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases. I also teach Entrepreneurial Finance at San Jose State. Can Entrepreneurship Be Taught? ► October. (1). Watch Out for the Red W(h)ine. ► September. (1).

Angel Investor 28

Angel Investor Angel Groups Accredited Investor San Jose 28

Professor VC

JULY 31, 2008

I actually enjoy the process of pulling together a selection of materials to create a complete course on Entrepreneurial Finance. I assembled textbook chapters, Harvard Business Review articles, cases, and notes to pull together my own textbook. This whole process got me thinking about the textbook business model.

San Jose 28

San Jose Software Review Angel Investor Silicon Valley 28

Professor VC

FEBRUARY 26, 2008

As I mentioned in the previous post, Jeff Fluhr (founder of StubHub) recently stopped by my Entrepreneurial Finance class to share his 4 Lessons of Entrepreneurship with the students. His gut told him the opportunity might not be there in a year and he dropped out of business school to launch the venture. ► October. (1).

Technical Review 28

Technical Review San Jose Angel Investor Silicon Valley 28

Professor VC

FEBRUARY 12, 2008

However, I was glad to see they were able to raise financing and launch the service. Steve, I was pleasantly surprised to find your blog when researching startup financing. I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases.

San Jose 31

San Jose Technical Review Venture Capital Angel Investor 31

ReadWriteStart

JUNE 13, 2011

Reinventing the board meeting may offer venture-backed startups a more efficient, productive way to direct and measure their search for a profitable business model. Yet boards of large companies exist to monitor efficient strategy and execution of a known business model. What's Wrong With a Board Meeting?

Silicon Valley 117

Silicon Valley Balance Sheet Metrics Early Stage 117

Professor VC

JANUARY 17, 2008

While currently free to angel groups, their business model revolves around aggregating the angel investment data. He then went on to say that this type of financing was good for the entrepreneur (vs taking VC money) because they got to keep more of the company. I also teach Entrepreneurial Finance at San Jose State.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Professor VC

JUNE 6, 2008

I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases. I also teach Entrepreneurial Finance at San Jose State. Can Entrepreneurship Be Taught? ► October. (1). Watch Out for the Red W(h)ine. ► September. (1).

San Jose 28

San Jose Technical Review Norway Angel Investor 28

Professor VC

JULY 22, 2009

The burn rates of my portfolio companies is certainly top of mind right now, but thats not what this post is about. Since Im not a fan of any of those genres, I have been looking forward to the release of his latest work, Burn Rate. I also teach Entrepreneurial Finance at San Jose State. ProfessorVC. Steve Bennet.

Burn Rate 28

Burn Rate Silicon Valley San Jose Angel Investor 28

Professor VC

SEPTEMBER 16, 2008

I am not sure how this relates to venture finance or entrepreneurship, but Im sure Ill find some connection along the way. I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases. ProfessorVC. The last blogger in Silicon Valley.

San Jose 28

San Jose Technical Review Angel Investor Silicon Valley 28

Early Growth Financial Services

MARCH 26, 2013

If you haven’t yet found a viable business model that will allow you to acquire customers at a lower cost than the lifetime value of that customer, you simply are not ready to scale. But you can ready your company by focusing on your finances first. Your burn rate … Continue reading →

Burn Rate 53

Burn Rate Startup Business Model Finance 53

Both Sides of the Table

FEBRUARY 14, 2016

Huge funding increases lead to massive wage inflation, rent inflation and thus higher burn rates. Why Financing in Falling Markets is So Damn Difficult. Just as with the late 90s there is no new “business model” that defies the laws of gravity. And so it goes. Back to my non-VC example.

Valuation 150

Valuation Down Round Startup Later Stage 150

Professor VC

AUGUST 26, 2011

To that last one, there is certainly some truth as the standard time vs. revenue chart in most business plans looks like this: Im not teaching Entrepreneurial Finance this semester for the first time since Fall 2007. Is the model consistent with the business plan? Does the business model make sense?

Silicon Valley 35

Silicon Valley San Jose Hockey Stick Venture Capital 35

Professor VC

JUNE 20, 2011

Financing, that is.I Now that iControl has raised over $100M, this got me thinking back to our original business plan. One truth of start-up financing is that it generally takes twice as long and twice as much money to accomplish your milestones. I took a look back at our original financial model we presented to VCs in 2004.

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

Professor VC

OCTOBER 20, 2009

I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases. I also teach Entrepreneurial Finance at San Jose State. Can Entrepreneurship Be Taught? ▼ October. (1). Watch Out for the Red W(h)ine. ► September. (1).

Angel Investor 35

Angel Investor Due Diligence San Jose Silicon Valley 35

Professor VC

JANUARY 17, 2008

I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases. I also teach Entrepreneurial Finance at San Jose State. Can Entrepreneurship Be Taught? ► October. (1). Watch Out for the Red W(h)ine. ► September. (1).

Silicon Valley 31

Silicon Valley San Jose Angel Investor Venture Capital 31

Professor VC

SEPTEMBER 26, 2008

How passionate are the entrepreneurs about their business? Does the business model pass the smell test? I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases. I also teach Entrepreneurial Finance at San Jose State.

Angel Groups 28

Angel Groups San Jose Early Stage Angel Investor 28