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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

Term-sheets and Valuations: Thinking about Negotiations. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react.

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How would you break down the process of raising an angel round of investment in 5-10 steps?

Gust

You should know EVERYTHING about your business, product, customers and competition. You should know every metric regarding customer acquisition, conversion and retention. You should have a crystal clear understanding of your business model and your financials. Your goal in all this is to try to find a lead investor.

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7 lessons we learned from the bankruptcy of Whatser

The Next Web

The metrics that matter the most are returning customers (user retention), turnover per customer and viral growth (k-factor). Make sure you check and understand the term sheet and overall deal. The terms should allow you to drive in order to arrive at the first destination safely. Raising money takes time.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

This structure allows for alignment on the front end, and real-time flexibility for performance metrics,” says Samira Salman , a family office investor and advisor. . Flexible VCs have created structures based on other company performance metrics than revenues, such as profits or founder salaries. Typical business stage.

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Revenue-Based Investing: A New Option for Founders who Care About Control

David Teten

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. The traditional NVCA term sheet works well for founders who are comfortable substituting VC capital for revenues, running typically at a loss for many years. All term sheets are a negotiation.

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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

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. Similarly, Corsis uses benchmarking data to understand technology spend patterns.

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Bottom Up Market Sizing - Startups and angels: Along the way to.

Tim Keane

« Term-sheets and Valuations: Thinking about Negotiations | Main. |   By this time we anticipate competitive pressure and we will use leads acquired per day and time from conversions to sales as an early warning metric. John Mullins: Getting to Plan B: Breaking Through to a Better Business Model.

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