Startup Professionals Musings

APRIL 25, 2016

If you expect an equity investment from reputable investors for your new startup, you need to know the boundaries that often limit their interest. In the jargon of investors, certain businesses may be viable but not fundable. Poorly written or missing business plan. Revenue and profit projections are not credible.

Intellectual Property 120

Intellectual Property Accredited Investor Angel Investor Reputation 120

Up and Running

AUGUST 28, 2018

Financial summary: Explain your business model, startup costs, revenues, and liabilities to the company. First, your business plan laid out the opportunity at hand. Now is the time to lay out what you’ll do to attract patients and set up a viable business model with healthy financials. Be specific.

Business Plan 72

Business Plan Technical Review Exit Strategy Oregon 72

ReadWriteStart

MARCH 3, 2021

Growing a business is always challenging, but it’s often the hardest in the earliest stages of development. You’ll be operating with limited resources, limited knowledge, and quite possibly, a business model poised to change in the immediate future. Limited brand equity. Because people already know it.

Early Stage 125

Early Stage PPC Retention Churn Rate 125

Steve Blank

MAY 20, 2010

It was the Internet bubble and after almost three years our startup had found a business model and we were scaling revenue and headcount fast. Big Name CEO. Our second round of funding was from a firm and VC whose names were household words.

Founder 284

Founder Cofounder Salary Naming 284

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 23, 2012

Outspoken investor Paul Kedrosky characterizes Color’s reputation: “It’s become a punch line. After I sold Smart Bear, that division has increased revenue and profit every year, for five years, even through the 2008/2009 economic disaster. The launch, by the way, was a failure. And it’s now bankrupt.)

IPO 240

IPO Flash Bootstrapping Private Equity 240

Both Sides of the Table

SEPTEMBER 12, 2010

Many of the growth equity firms have had outbound dialing programs for years. Growth equity firms typically target profitable businesses that are often not technical in nature. Perhaps outbound dialing / emailing programs worked well for growth equity firms in their core business. They’re flattered.

Programming 294

Programming Entrepreneur Private Equity Equity 294

Business Plan Blog

NOVEMBER 7, 2013

During the early stages of a business, the founding team should discuss the startup’s funding strategy. Based on cost and revenue predictions, long-term funding needs can be projected. SaaS business models are unprofitable for the first 12-24 months of a given customer’s life.

Startup 77

Startup Early Stage Finance Equity 77

ConversionXL

JUNE 2, 2022

In this article, you’ll learn how to define your ABM strategy so you can target the right accounts and increase your revenue. Think of it as a filter that helps you find the highest chance of return on investment, revenue potential, and profitability. Cloud-based data warehouse Snowflake had an ambitious goal to triple its revenue.

Customer 98

Customer Marketing Channel Acquisition 98

Growthink Blog

MAY 23, 2011

An entrepreneur starts a company in classic " bootstrap " fashion - with a combination of sweat equity and their own financial resources. The angel then introduces the entrepreneur to his or her wealthy friends and business connections who, based on the good reputation of the referring angel, also invest.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

Reid Hoffman

JANUARY 26, 2021

For example, a classic example of the conflicting interests of management and investors, which an independent board member can help mediate, is the approval of equity grants to management and employees. Founders should receive additional equity grants, but not to the extent that an incoming CEO or executive would. But get real.

Startup 36

Startup Equity Early Stage Green 36

Tim Keane

OCTOBER 8, 2012

At this point, RTMS had one customer paying them what amounted to all of their annual revenue - plus or minus $500,000 I think.   This whole thing was funded with a home equity line of credit and resulted in a substantial loss for the year of 1989.  It preserved their reputation.  It preserved their reputation.

Wisconsin 68

Wisconsin Entrepreneur Illinois Startup 68

This is going to be BIG.

JANUARY 22, 2018

Just because you have revenues and someone else doesn't doesn't mean We could have a whole conversation as to why certain groups are pitching or why they or not, and ways to increase the attempts to get funding--but I think what gets lost too often is the fact that getting funding is really difficult for everyone. Overly simplistic?

Founder 97

Founder Conversion Naming Term Sheet 97

Scalable Startup

NOVEMBER 19, 2012

You still need an amazing idea , business model, some focus from a developer (critical!). Pay those you ask to help you – money, equity, trade services, something meaningful. Never ask for something for nothing, you’ll get what you pay for and a bad reputation fast. Better yet, pay it forward.

Silicon Valley 24

Silicon Valley Equity Reputation Business Model 24

techcrunch.com

OCTOBER 23, 2010

This resulted in a recapitilization of the equity away from 33% each (in my favor) and then the ultimate dismissal of one of the co-founders prior to the A-round. Take the top 10 largest tech innovators (take your pick of largest by revenue or largest by idea) of the last 20 years in Silicon Valley. How many were started by MBAs?

Technical Review 84

Technical Review Cofounder Technical Cofounder Software Review 84

David Teten

JUNE 7, 2011

Until recently, most Internet innovation has centered around improvements — big improvements, but incremental ones nonetheless — to existing business models and familiar social structures: Amazon is the ultimate retail destination, Zipcar the ubiquitous rental-car agency; Meetup is a sewing circle on steroids.

Darfur 122

Darfur Sudan Cofounder United Kingdom 122

Entrepreneurs-Journey.com by Yaro Starak

JANUARY 21, 2011

Paid off properties also have equity that you can tap into when in need. Despite revenues down a good chunk recently due to weak consumption, the business has been a profitable endeavor overall and currently running well with very minimal involvement from me, thanks to a great management team.

Internet 77

Internet Technical Review Stock Due Diligence 77

sivers.org

JUNE 25, 2010

They may ask you to continue working and paying through the website, to boost their reputation there, or they may want to just go direct. The programmer will probably not understand your business model, and therefore cant help you point out anything that doesnt make sense in the requirements. Either way is fine. Insightful.

CTO Hire 84

CTO Hire Hiring Software Review Technical Review 84

David Teten

NOVEMBER 23, 2020

In an article you wrote for Techcrunch in 2019 about Revenue Based Investing you mentioned that “ traditional equity VC is biased structurally against some women and underrepresented founders”. Another example of a structural solution is the “ alternative VC ” or “ Revenue-Based Investing ” structure that Versatile VC frequently uses.

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60