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What Founders Need to Know: You Were Funded for a Liquidity Event – Start Looking

Steve Blank

But for the last 40 years, it has provided the financial fuel for a revolution in Life Sciences and Information Technology and has helped to change the world. VC’s raise money from their investors (limited partners like pension funds) and then spread their risk by investing in a number of startups (called a portfolio). The Bad News.

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Working for Equity Instead of Cash

genylabs.typepad.com

Small Business Labs, from Emergent Research , covers the key social, technology and business trends impacting small business. EMERGENT RESEARCH is focused on better understanding the small business sector of the US and global economy. where your stock sits in the liquidity preference stack.

Equity 40
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Should you raise traditional VC or Revenue-Based Investing VC?

David Teten

Focus on lower-risk business models; no requirement for a ‘swing for the fences’ model. Borchers points out: “Only 50% of our investment activity involves technology-based businesses. But this is the same for a VC round with a liquidation preference. Paypal) or expensive technical R&D (e.g.,

Revenue 60
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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

Through connections, or through a chance meeting at a networking or social event, an angel investor hears the entrepreneur's story, likes them and their technology, and on the spot, writes a check to provide the company with its first outside financing. There are a lot of dark, hard days. For most companies, it is simply a non-starter.

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Investors Beware: Today’s $100M+ Late-stage Private Rounds Are Very Different from an IPO

abovethecrowd.com

Every successful technology company raises money throughout its lifecycle, perhaps starting with a seed investment and progressing through Series A, B, C, late-stage investments, and, for the most successful companies, an IPO. These large, high-priced private financings are the defining characteristic of this particular technology cycle.

IPO 40
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What Most People Don’t Understand About How Startup Companies are Valued

Both Sides of the Table

There is much discussion online and also in small, private groups, about why the price of technology companies – public and private – are falling. Many experienced partners are funds have 7-10 boards and most of these will need more capital. This is how VCs feel. So when prices go down their first reaction is, “S**t.

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How I Pitched My Business and Raised $2.3 Million in VC Funding

Up and Running

My partner and I sold the company in 2012, right when mainstream companies at both the SMB and enterprise level were starting to adopt cloud-based SaaS solutions. At the same time, I was starting to realize that both the elegance of cloud-based software and the business models it enabled were what really got me excited.