VC Cafe

OCTOBER 31, 2022

Mature startups with proven business models and the potential to reach the public markets within a few years will be the safest place to park any new venture capital that comes into the ecosystem. Tiger, Softbank and other crossover funds are slowing down significantly and valuations overall are down significantly.

Founder 174

Founder Technical Review Down Round Liquidation Preference 174

Steve Blank

MARCH 31, 2014

Look at the valuations of companies like Tesla, Illumina, and Twitter. The first will be commodity businesses that are valued for their ability to execute their current business model. The second class will be firms with a demonstrated ability to continually innovate and reinvent their business models.

Private Equity 330

Private Equity Metrics China Intellectual Property 330

Startup Professionals Musings

DECEMBER 11, 2022

Non-credible funding request or unreasonable valuation. Investors are looking to buy a chunk of the business, not the product. They need to know how much money you need, and what portion of the current business you are willing to offer for the investment. Future unproven projections don’t set today’s valuation.

Due Diligence 271

Due Diligence Intellectual Property Entrepreneur Preferred Stock 271

A Smart Bear: Startups and Marketing for Geeks

AUGUST 18, 2015

They have everything: money, brand, momentum, existing customers, press, product teams, distribution channels, expertise, market insight, analysts, sales offices, product features, and, by definition, a working business model. A big, profitable company seems like the hardest thing for a small company to compete against.

Technical Review 120

Technical Review Valuation Flash Revenue 120

Startup Professionals Musings

SEPTEMBER 20, 2017

A nonprofit organization is generally defined as an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Some nonprofit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Angel Investor 132

Angel Investor Equity Technical Review Exit Strategy 132

VC Cafe

JANUARY 27, 2021

As teams become increasingly distributed, video communication is important for both internal alignment and external business development. Next47 and American Insight Partners VC, demonstrates growing trust in its current and future business model. Their latest round of 138 millions dollars, led by Viola Growth ?-Next47

Vertical 148

Vertical Video Technical Review Europe 148

Startup Professionals Musings

OCTOBER 13, 2013

A non-profit organization is generally defined as an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Equity 207

Equity Angel Investor Technical Review Exit Strategy 207

Startup Professionals Musings

SEPTEMBER 30, 2013

It doesn’t prove your business model of pricing, distribution, and support. Intellectual property is a large element of most early-stage company valuations, and this value determines what percent of the company an investor will expect to get for his money. Get a real customer and real revenue.

Intellectual Property 281

Intellectual Property Entrepreneur Sweat Equity CTO Hire 281

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Professionals Musings

SEPTEMBER 15, 2012

A non-profit organization is generally defined as an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Angel Investor 218

Angel Investor Technical Review Exit Strategy Equity 218

Agile VC

JANUARY 13, 2016

Was this simply a shift in sentiment among the tech & business media? A realignment of valuations by late stage investors? Potential for instant global distribution (mobile app stores, Facebook, etc). But growth dried up (due to competitive pressures, changes in business model, etc) and today Zynga has a market cap of $2.2B

Technical Review 157

Technical Review .Net Revenue Software Review 157

Startup Professionals Musings

MARCH 14, 2020

Non-credible funding request or unreasonable valuation. Investors are looking to buy a chunk of the business, not the product. They need to know how much money you need, and what portion of the current business you are willing to offer for the investment. Future unproven projections don’t set today’s valuation.

Due Diligence 308

Due Diligence Intellectual Property Preferred Stock Startup 308

ReadWriteStart

JULY 17, 2023

Furlenco’s innovative business model has disrupted the traditional furniture industry in India. For Furlenco, the acquisition will provide access to Sheela Foam’s extensive distribution network and marketing expertise. For Furlenco, it provides access to Sheela Foam’s extensive distribution network and marketing expertise.

India 104

India Acquisition Merger Curation 104

View from Seed

AUGUST 17, 2021

90% of the airtime around ownership and valuations is focused on what happens when the first check is written. Effective post money is the effective valuation of an investor’s dollars at any one time. Also, being too dogmatic isn’t very fun J. What matters is effective post-money at exit. We think about this a lot too.

IRR 205

IRR Dilution Founder Portfolio 205

ReadWriteStart

JANUARY 13, 2024

Startups in the cybersecurity sector are facing a daunting market environment , contending with decreased valuations and increasing pressure to sell while competing for vital funding and collaborations.

Down Round 154

Down Round Marketing Artificial Inteligence Startup 154

Startup Professionals Musings

JULY 3, 2011

A non-profit organization is generally defined as an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Angel Investor 238

Angel Investor Technical Review Exit Strategy Equity 238

Startup Professionals Musings

AUGUST 31, 2012

It doesn’t prove your business model of pricing, distribution, and support. Intellectual property is a large element of most early-stage company valuations, and this value determines what percent of the company an investor will expect to get for his money. Get a real customer and real revenue.

Intellectual Property 260

Intellectual Property Sweat Equity CTO Hire Fractional CTO 260

Startup Professionals Musings

FEBRUARY 15, 2015

A non-profit organization is generally defined as an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Angel Investor 120

Angel Investor Equity Technical Review Exit Strategy 120

View from Seed

AUGUST 17, 2021

90% of the airtime around ownership and valuations is focused on what happens when the first check is written. Effective post money is the effective valuation of an investor’s dollars at any one time. Also, being too dogmatic isn’t very fun J. What matters is effective post-money at exit. We think about this a lot too.

IRR 156

IRR Dilution Founder Portfolio 156

Startup Professionals Musings

JUNE 17, 2011

It doesn’t prove your business model of pricing, distribution, and support. Intellectual property is a large element of most early-stage company valuations, and this value determines what percent of the company an investor will expect to get for his money. Get a real customer and real revenue.

Intellectual Property 253

Intellectual Property Sweat Equity CTO Hire Fractional CTO 253

View from Seed

AUGUST 17, 2021

90% of the airtime around ownership and valuations is focused on what happens when the first check is written. Effective post money is the effective valuation of an investor’s dollars at any one time. Also, being too dogmatic isn’t very fun J. What matters is effective post-money at exit. We think about this a lot too.

IRR 136

IRR Dilution Founder Portfolio 136

The Next Web

DECEMBER 30, 2012

How to identify and engage the first customers for your product, and how to gather, evaluate and use their feedback to make your product, marketing and business model far stronger. Social media marketing for startups : How to use social to launch, position your messaging and get distribution.

Artificial Inteligence 156

Artificial Inteligence Founder Private Equity Ruby 156

Lightspeed Venture Partners

OCTOBER 7, 2012

He had been at it for 6 months and had no sales or distribution lined up yet. The two founders invested $40k in the business, and plan to license it rather than manufacture it because manufacturing seems too hard. That’s why most entrepreneurs do not make a specific ask on valuation, but wait to hear offers from investors.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

Reid Hoffman

JULY 27, 2021

I was still unprepared; I had no idea that I also needed to learn about go-to-market strategy and distribution. What business schools can provide is an opportunity to learn a set of skills that can be helpful on the entrepreneurial journey. Or maybe valuation depends on growth rates or operating margins.

Silicon Valley 69

Silicon Valley Venture Capital Balance Sheet Cofounder 69

Reid Hoffman

JULY 27, 2021

I was still unprepared; I had no idea that I also needed to learn about go-to-market strategy and distribution. What business schools can provide is an opportunity to learn a set of skills that can be helpful on the entrepreneurial journey. Or maybe valuation depends on growth rates or operating margins.

Silicon Valley 69

Silicon Valley Venture Capital Balance Sheet Cofounder 69

Startup Professionals Musings

MAY 22, 2010

It doesn’t prove your business model of pricing, distribution, and support. Intellectual property is a large element of most early-stage company valuations, and this value determines what percent of the company an investor will expect to get for his money. Get a real customer and real revenue.

Intellectual Property 222

Intellectual Property Sweat Equity CTO Hire Fractional CTO 222

Austin Startup

OCTOBER 15, 2017

What seems to be the best way to create customers and revenue may result in a business model that is out of vogue with the investment world and shortchanges you on enterprise valuation. He forgot a major highlight of the business model, and the damage was done. A good example is the marketing technology sector.

Technical Review 48

Technical Review Software Review Nevada Silicon Valley 48

Startup Professionals Musings

JUNE 6, 2010

A non-profit organization is generally defined as an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Angel Investor 143

Angel Investor Technical Review Exit Strategy Equity 143

Both Sides of the Table

FEBRUARY 6, 2019

Valuations are out of control” is the mantra of others. Others believe that new business models are emerging that could replace venture capital all together. Companies are raising billions of dollars in the private markets and the valuations are enormous PRIOR to the IPO. We’re in a new tech bubble!” some have pronounced.

Venture Capital 292

Venture Capital IPO Mezzanine Early Stage 292

David Teten

JANUARY 19, 2021

Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Equity VC is a “get rich slow” business. Flexible VC creates early liquidity which can be either reinvested or distributed to LPs. Typical business stage. An already proven business model and its already valuable assets.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

David Teten

DECEMBER 3, 2019

Technographics vendors such as Builtwith , Datanyze , HG Data , Stackshare, and Stacklist help CEOs identify the right tech platform on which to build their business; they’re also helpful for investors to due diligence a company’s tech stack choices. Modano standardizes Excel models to improve comparability and reduce error rates.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Up and Running

OCTOBER 13, 2014

Either way, he says, these smaller firms gain major clients that fund further growth and drive their valuations higher. The Bottom Line for Small Businesses. Coley Brown, of VisionMine, said that open innovation helps some smaller companies get acquired, while others have their technology licensed by the larger firms they work with.

Intellectual Property 106

Intellectual Property Philadelphia Small Business California 106

Startup Professionals Musings

JULY 27, 2018

This implies high odds of a scalable business, simply needing an investment to lead to success. Business model showing costs, pricing, and margins. These are not meant to be an accuracy test, but a check on your commitment level, understanding of business norms, and an assessment of company valuation over time.

Product 145

Product Intellectual Property Liquidity Event Valuation 145

Startup Lessons Learned

SEPTEMBER 22, 2008

Lessons Learned by Eric Ries Monday, September 22, 2008 The three drivers of growth for your business model. The AARRR model (hence pirates, get it?) He also has a discussion of how your choice of business model determines which of these metric areas you want to focus on. Choose one.

San Francisco 167

San Francisco CPA SEM CTO Hire 167

VC Cafe

SEPTEMBER 16, 2021

Note that most of the density in these landscapes is around ‘business model’ – ad revenue, marketplaces, memberships, affiliate. They will be copied in time, but venture capitalists are betting they can grow category winners so fundraising rounds are compressed in a short period of time at growing valuations.

Startup 207

Startup Social Media Venture Capital Audio 207

www.paulgraham.com

OCTOBER 23, 2010

August 2010 Two years ago I wrote about what I called " a huge, unexploitedopportunity in startup funding :" the growing disconnect betweenVCs, whose current business model requires them to invest largeamounts, and a large class of startups that need less than theyused to. Butthere may not have to be just one valuation.

Startup 93

Startup Valuation Non-Compete Deal Flow 93

crowdSPRING Blog

NOVEMBER 30, 2012

Start With a Business Model, Not a Business Plan | WSJ – [link]. The danger of waiting to long to find a business model? … Checking In on Foursquare’s Valuation – [link]. How PRWeb Helps Distribute Crap Into Google & News Sites – [link]. Just got acquired?

Social Media 100

Social Media Small Business Central African Republic Design 100