Remove Business Model Remove Revenue Remove Stock
article thumbnail

Why Uber is The Revenge of the Founders

Steve Blank

— Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed: IPOs/M&A without a profit (or at times revenue) have become the norm. Typically, this caliber of bankers wouldn’t talk to you unless your company had five profitable quarters of increasing revenue. Board Control.

Founder 281
article thumbnail

It’s Morning in Venture Capital

Both Sides of the Table

There are obvious reasons the industry has had less-than-desirable returns, including: massive over-funding of the sector, huge increases in inexperienced venture capitalists that took a decade to peter out, and the massive correction in the value of the public stock markets that closed many exit opportunities for half a decade.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Can You Trust Any vc's Under 40?

Steve Blank

Posted on September 14, 2009 by steveblank Over the last 30 years Wall Street’s appetite for technology stocks have changed radically – swinging between unbridled enthusiasm to believing they’re all toxic. Your firm worked with an investment banking firm that underwrote and offered stock (typically on the NASDAQ exchange) to the public.

article thumbnail

Is the Lean Startup Dead?

Steve Blank

Tech IPO prices exploded and subsequent trading prices rose to dizzying heights as the stock prices became disconnected from the traditional metrics of revenue and profits. Startups wrote business plans, generated expansive 5-year forecasts and executed (hired, spent and built) to the plan.

Lean 335
article thumbnail

Why a Company Can’t “Be More Like a Startup”

Steve Blank

Initially, a startup has no business model and no market share to defend. Its employees and investors don’t depend on an existing revenue stream. If they select a business model that targets industry incumbents, they don’t have to worry about upsetting existing customers, partners or distribution channels.

Startup 306
article thumbnail

10 Key Business Plan Elements Not In A Product Spec

Startup Professionals Musings

The most common business entity used for startups is a Limited Liability Corporation (LLC), which is the cheapest and simplest to manage. If your goal is a large national corporation with more than 100 investors, and multiple classes of stock, you might prefer a C-Corp or S-Corp. Quantify the market opportunity in business terms.

article thumbnail

10 Manageable Risks That An Entrepreneur Should Take

Startup Professionals Musings

Implement a modern real business model. Even non-profits need revenue to cover their costs, and continue to provide services. Great team members may take more time to find, and cost you stock options, but a qualified and highly motivated team that stretches your budget is a good calculated risk.