Business Model, Liquidity Event and Revenue

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

Steve Blank

MARCH 16, 2016

While you might be interested in building a company that changes the world, regardless of how long it takes, your investors are interested in funding a company that changes the world so they can have a liquidity event within the life of their fund ~7-10 years. (A You’ve been funded to get to a liquidity event.

Liquidity Event

Liquidity Event Founder Liquidation Preference Private Equity

Early-stage Regional Venture Funds–part 2 of 3 of Bigger in Bend

Steve Blank

JANUARY 22, 2014

Few entrepreneurs find this scalable and repeatable business model because it’s not easy. Startups still need capital to scale once they find good product-market fit and a repeatable-scalable business model.). This is true whether the company is concept stage or ramping revenue. The Bend Experience.

Early Stage

Early Stage Silicon Valley Oregon Technical Review

Fund Raising is a Means Not an End

Steve Blank

JUNE 11, 2013

When you take money from investors their business model becomes yours. Sigh… What I should have been hearing is the search for the business model, specifically the progress on product/market fit, but I hear the fund raising story first at least 90% of the time. What are revenue strategy and pricing tactics?

Venture Capital

Venture Capital IRR Liquidity Event Business Model

How to Fund Your Startup Without Losing Control

Up and Running

SEPTEMBER 19, 2017

That is to say, they’d want to be able to control costs and revenues at a high level. Because for a private equity firm, investing in a company at an early stage is as much about assessing the riskiness and likelihood of success of the individual founders as opposed to the viability of the company’s business model. Conclusion.

Private Equity

Private Equity Pre-Money Valuation Equity Startup

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

David Teten

AUGUST 21, 2019

Or should they look to one of the new wave of Revenue-Based Investors? Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. For more background, see Revenue-Based Investing: A New Option for Founders who Care About Control. But should they? Aligned incentives.

Revenue

Revenue Liquidation Preference Equity Cofounder

Intel Disrupted: Why large companies find it difficult to innovate, and what they can do about it

Steve Blank

JUNE 23, 2016

These resulting business models made them look incredibly profitable. They knew how to execute the current business model. Intel under their last two CEOs delivered more revenue and profit than any ever before. Horizon 1 – execute their existing business model(s). Lessons Learned.

Architecture

Architecture IRR Balance Sheet Liquidity Event

Fund Raising is a Means Not an End

Steve Blank

JUNE 11, 2013

When you take money from investors their business model becomes yours. Sigh… What I should have been hearing is the search for the business model, specifically the progress on product/market fit, but I hear the fund raising story first at least 90% of the time. What are revenue strategy and pricing tactics?

Venture Capital

Venture Capital IRR Liquidity Event Business Model

Why Pitching Your Product Is Not Enough For Investors

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. Potential investors love to see gross margins in the fifty percent range or greater, with recurring revenue through subscriptions, follow-on sales, or services.

Product

Product Intellectual Property Liquidity Event Valuation

The New Deal – A Founding CEOs Value is Non Linear

Steve Blank

JULY 19, 2010

And that they’ll emerge from this fog of war with a scalable business model. Most founding CEO’s don’t know that they’re cannon fodder in the search for a business model. Where’s My Liquidity Event. It’s About Finding the Business Model. The New Founding CEO Vesting Model.

Vesting

Vesting Liquidity Event Founder Vesting Venture Capital

8 Ways An Investor Pitch Differs From A Product Pitch

Startup Professionals Musings

AUGUST 7, 2015

How the solution and business model work to fund the business. Every customer understands that your solution has to generate more revenue than cost, but you should not put that data in a customer pitch. Investors will impatiently expect a winning business model, customer segment definitions and volume projections.

Product

Product Intellectual Property Liquidity Event Burn Rate

Welcome to the Lost Decade (for Entrepreneurs, IPO’s and VC’s)

Steve Blank

JULY 15, 2010

Most of the startups they invested in either died by running out of money before they found a scalable business model or ended up in the “land of the living dead” by never growing (failing to Pivot.). Until 1995 startups going public typically had a track record of revenue and profits. Startup lifecycle in an IPO Market.

Venture Capital

Venture Capital IPO Liquidity Event Entrepreneur

These 10 Key Elements Make a Business Plan Fundable

Startup Professionals Musings

AUGUST 13, 2012

Clearly define the customer, channel, and revenue model associated with this solution. Explain the business model. In this section, you need to be passionate about revenue, profit, and volume growth. Project both revenues and expense totals for next five years, and past three years, if relevant.

Business Plan

Business Plan Sweat Equity Exit Strategy Intellectual Property

10 Answers That Make Your Startup Plan Investable

Startup Professionals Musings

FEBRUARY 13, 2016

How does your business model make money? Good causes such as feeding the world’s hungry may help your marketing but may not sustain a business. The business model has to clearly define who is your customer, market penetration expected, how much customers pay versus total costs and the investment required to sustain cash flow.

Sweat Equity

Sweat Equity Advisory Board Liquidity Event Startup

New Rules for the New Internet Bubble

Steve Blank

MARCH 18, 2011

VC’s worked with entrepreneurs to build profitable and scalable businesses, with increasing revenue and consistent profitability – quarter after quarter. The reward for doing so was a liquidity event via an Initial Public Offering. For VC’s and entrepreneurs the gold rush to liquidity was on. The New Exits.

Internet

Internet IPO Silicon Valley Agile

Investors Expect Ten Essentials in a Business Plan

Startup Professionals Musings

MAY 13, 2011

Clearly define the customer, channel, and revenue model associated with this solution. Explain the business model. In this section, you need to be passionate about revenue, profit, and volume growth. Project both revenues and expense totals for next five years, and past three years, if relevant.

Business Plan

Business Plan Sweat Equity Exit Strategy Intellectual Property

In 15 Years From Now Half of US Universities May Be in Bankruptcy. My Surprise Discussion with @ClayChristensen

Both Sides of the Table

MARCH 3, 2013

But while universities are developing online content they are not fundamentally disrupting leaning because the method of delivery is not a new business model. VC can’t don’t invest in these kinds of companies because they can’t get out (no liquidity event). ” No royalty paid until there is revenue.

Bankruptcy

Bankruptcy Offshore Liquidation Preference Balance Sheet

Rocket Science 2: Drinking the Kool-Aid

Steve Blank

JULY 2, 2009

Ps: my limited perspective comes with self recognition of a lack of hands on experience always enjoy it when I stop in to read here Steve Reply Aamir , on July 2, 2009 at 10:18 am Said: Awesome post Steve… but isn’t drawing the business model for a gaming company going to be easy? Make game, market, sell, profit?

Silicon Valley

Silicon Valley Technical Review RSS Software Review

These 10 Key Elements Make a Business Plan Fundable

Gust

AUGUST 5, 2012

Clearly define the customer, channel, and revenue model associated with this solution. Explain the business model. In this section, you need to be passionate about revenue, profit, and volume growth. Project both revenues and expense totals for next five years, and past three years, if relevant.

Business Plan

Business Plan Sweat Equity Exit Strategy Intellectual Property

Ten Tips for an Investment-Grade Business Plan

Startup Professionals Musings

APRIL 22, 2010

Clearly define the customer, channel, and revenue model associated with this solution. Explain the business model. In this section, you need to be passionate about revenue, profit, and volume growth. Project both revenues and expense totals for next five years, and past three years, if relevant.

Business Plan

Business Plan Exit Strategy Sweat Equity Intellectual Property

Flippers vs Keepers–At times earnings don’t matter

Berkonomics

AUGUST 27, 2015

They financed their companies, to the extent possible, in a manner minimizing the cost of capital, planning for organic growth in the number of customers served and in associated revenues. As the business owners had a longer-term perspective, decisions were made with greater deliberation and with a more conservative recognition of risk.

Intellectual Property

Intellectual Property Balance Sheet Stock Options Valuation

StartUpRoar

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

Early-stage Regional Venture Funds–part 2 of 3 of Bigger in Bend

Trending Sources

Fund Raising is a Means Not an End

How to Fund Your Startup Without Losing Control

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

Intel Disrupted: Why large companies find it difficult to innovate, and what they can do about it

Fund Raising is a Means Not an End

Why Pitching Your Product Is Not Enough For Investors

The New Deal – A Founding CEOs Value is Non Linear

8 Ways An Investor Pitch Differs From A Product Pitch

Welcome to the Lost Decade (for Entrepreneurs, IPO’s and VC’s)

These 10 Key Elements Make a Business Plan Fundable

10 Answers That Make Your Startup Plan Investable

New Rules for the New Internet Bubble

Investors Expect Ten Essentials in a Business Plan

In 15 Years From Now Half of US Universities May Be in Bankruptcy. My Surprise Discussion with @ClayChristensen

Rocket Science 2: Drinking the Kool-Aid

These 10 Key Elements Make a Business Plan Fundable

Ten Tips for an Investment-Grade Business Plan

Flippers vs Keepers–At times earnings don’t matter

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