Startup Professionals Musings

AUGUST 31, 2012

Don’t expect them to believe your $100M revenue projection, if you are still waiting for the first revenue dollar. A great business often starts with one person, but it doesn’t end there. Get a real customer and real revenue. It doesn’t prove your business model of pricing, distribution, and support.

Intellectual Property 260

Intellectual Property Sweat Equity CTO Hire Fractional CTO 260

Startup Professionals Musings

JUNE 17, 2011

Don’t expect them to believe your $100M revenue projection, if you are still waiting for the first revenue dollar. A great business often starts with one person, but it doesn’t end there. Get a real customer and real revenue. It doesn’t prove your business model of pricing, distribution, and support.

Intellectual Property 253

Intellectual Property Sweat Equity CTO Hire Fractional CTO 253

Startup Professionals Musings

JANUARY 7, 2013

The market and venture capitalists are looking for business, but with a continuing focus on proven business models. Your friends and family are really the only answer until you have a significant revenue stream. Follow with a killer executive summary, investor presentation, and financial model.

Venture Capital 252

Venture Capital IPO Elevator Pitch Initial Public Offering 252

VC Cafe

FEBRUARY 27, 2024

especially if the startup already has a product and revenue? Everyone moved to earlier stage – part of the decline in late stage investing is the ‘baggage’ of companies that previously raised money at inflated valuations that they would struggle to justify in today’s market.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

Startup Professionals Musings

MAY 22, 2010

Don’t expect them to believe your $100M revenue projection, if you are still waiting for the first revenue dollar. A great business often starts with one person, but it doesn’t end there. Get a real customer and real revenue. It doesn’t prove your business model of pricing, distribution, and support.

Intellectual Property 222

Intellectual Property Sweat Equity CTO Hire Fractional CTO 222

Startup Professionals Musings

JUNE 26, 2013

It’s higher risk, but higher return, to pick the big winners early, before Angels have set unreasonable valuations and restrictive terms. More sources of funding for early-stage startups may drive up valuations on these deals, which will lower the returns for the Angels and super-Angels willing to do these deals.

Angel Investor 231

Angel Investor Entrepreneur Early Stage Silicon Valley 231

Steve Blank

SEPTEMBER 14, 2009

Five Quarters of Profitability During the 1980’s and through the mid 1990’s startups going public had to do something that most companies today never heard of – they had to show a track record of increasing revenue and consistent profitability. There was now a public market for companies with no revenue, no profit and big claims.

Silicon Valley 237

Silicon Valley IPO Technical Review Venture Capital 237

Startup Professionals Musings

SEPTEMBER 9, 2010

It’s higher risk, but higher return, to pick the big winners early, before angels have set unreasonable valuations and restrictive terms. More sources of funding for early-stage startups may drive up valuations on these deals, which will lower the returns for the angels and super-angels willing to do these deals.

Technical Review 215

Technical Review Early Stage Venture Capital Startup 215

Both Sides of the Table

MARCH 1, 2011

Of course, monetization of search became one of the best business models in the history of business. After AltaVista, Mike spent a year doing business development for USA Networks ( now IAC – Interactive Corp ). Part 2/3 of Interview: Mike Joins Quigo as CEO, Sells it to Aol for $340 Million [ Minutes: 13 – 30 ].

Semantic 302

Semantic Acquisition Valuation Angel Investor 302

Startup Professionals Musings

JUNE 21, 2020

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $1 trillion. A business only achieved critical mass by becoming cash-flow positive. Both have worked.

Revenue 434

Revenue Valuation Viral Retention 434

Startup Professionals Musings

NOVEMBER 4, 2011

It should answer every question an investor or associate might ask, including current valuation, funding needed, and exit strategy. Finalize your financial model. Like the business plan, a financial model is required as much for your own use as to impress angel investors. This is called “validating the business model.”

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

Agile VC

JANUARY 13, 2016

Was this simply a shift in sentiment among the tech & business media? A realignment of valuations by late stage investors? It used to take 5-10 years for a great startup to go from $0 to $75-100M+ in annual revenue. Revenue is revenue, right? What happened? The beginning of a tech downturn?

Technical Review 157

Technical Review .Net Revenue Software Review 157

The Startup Magazine

AUGUST 11, 2023

Analysts perform a valuation of the company in question before the beginning of any round of funding. The management of a company, its established track record, the size of the market, and the level of risk all play a role in determining a company’s valuation. What is the Evaluation of the Funding?

Seed Stage 148

Seed Stage Technical Review Early Stage Due Diligence 148

ReadWriteStart

JUNE 1, 2020

Funding might be a need in some cases — but it’s not an absolute necessity. ? The business should be self-sustainable. The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. Incubators and Accelerators.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Steve Blank

MAY 9, 2017

Continuous innovation requires the imagination and courage to challenge the initial hypotheses of your current business model (channel, cost, customers, products, supply chain, etc.) Their need to get into high-profile deals has driven late-stage valuations into unicorn territory. The founders.

Restful 249

Restful Silicon Valley San Jose Puerto Rico 249

Startup Professionals Musings

SEPTEMBER 23, 2010

It should answer every question an investor or associate might ask, including current valuation, funding needed, and exit strategy. Finalize your financial model. Like the business plan, a financial model is required as much for your own use as to impress angel investors. This is called “validating the business model.”

Angel Investor 224

Angel Investor Intellectual Property Technical Review Elevator Pitch 224

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

SoCal CTO

FEBRUARY 2, 2011

Because of this, I've always tried to stay up-to-speed on how early-stage investors look at valuation of companies. Think about how you can prove your business model with an MVP. Bill Payne is an expert on how early-stage investors should look at valuation. What are they really looking for? is a requirement. Not sure why.

Valuation 198

Valuation Revenue Pre-Money Valuation Early Stage 198

David Teten

AUGUST 20, 2019

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. ” .

Revenue 60

Revenue Cofounder Founder Venture Capital 60

The Startup Magazine

FEBRUARY 21, 2024

As an investor, these experiences have honed my ability to see beyond spreadsheets and valuations, to the core of what makes businesses thrive: the people, the vision, and the relentless pursuit of excellence. It is also the time to take a hard look at your business model. Are there new revenue streams you can tap into?

Technical Review 158

Technical Review Due Diligence Bankruptcy Intellectual Property 158

Startup Professionals Musings

AUGUST 10, 2014

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Both have worked.Google reached $1 billion in revenue within five years of incorporation, and now has a market capitalization of over $400 billion. A business only achieved critical mass by becoming cash-flow positive.

Revenue 246

Revenue Entrepreneur Valuation Viral 246

Steve Blank

MARCH 17, 2020

But next the question is, ‘What happens to my business?”. The questions every startup or small business CEO needs to ask now are: What’s my Burn Rate and Runway? What does your new business model look like? Next, take a look at your actual revenue each month – not forecast, but real revenue coming in each month.

Burn Rate 436

Burn Rate Startup Valuation Sales Cycle 436

ReadWriteStart

SEPTEMBER 10, 2010

They already have several customers including some telcos, and are at about $350,000 in revenues. And EVEN if you ARE an experienced entrepreneur, all but just a few VCs still want to see customer validation, business model validation and traction, before they will invest. Because customer financing equals revenue, not equity.

Cloud 115

Cloud Silicon Valley Incubator Bootstrapping 115

Lightspeed Venture Partners

OCTOBER 7, 2012

The two founders invested $40k in the business, and plan to license it rather than manufacture it because manufacturing seems too hard. They won a design award at a trade show, but have no revenue and no orders. That’s why most entrepreneurs do not make a specific ask on valuation, but wait to hear offers from investors.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

Up and Running

SEPTEMBER 19, 2017

That’s because obtaining a pre-money valuation for a concept level technology company in excess of $1 million is difficult, particularly for a startup founder without a proven track record. By contrast, obtaining a pre-money valuation of $5 million for a business with a new viable product and even very minimal sales is somewhat reasonable.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

crowdSPRING Blog

APRIL 8, 2012

Entrepreneurs, by definition, take an idea or a concept and strive to make that idea into a operating business. To do this, we spend a great deal of time laying the groundwork: researching, modeling, testing, and (finally) executing to turn all of that work into a revenue-generating enterprise.

Software Review 112

Software Review Entrepreneur Incubator Valuation 112

YoungUpstarts

MARCH 14, 2016

Once the most heavily funded startup in New York City, according to then-CEO Jason Goldberg, Fab blew through $200 million of its $336 million in VC cash without settling on a business model. Before a quiet acquisition by PCH Innovations for just $15 million, Fab had raised 11 rounds of VC funding at a $900 million valuation.

Venture Capital 100

Venture Capital Securities and Exchange Commission New York City Cofounder 100

Steve Blank

MAY 19, 2015

I had lunch last week with Tom, the CEO of a startup that was quickly becoming a large company – last year’s revenue was $40M, this year likely to be $80M maybe even $100 million in ad revenue. to drive traffic to their site, which they then turned into ad revenue.

Technical Review 120

Technical Review Salary Early Stage Software Review 120

Startup Professionals Musings

OCTOBER 19, 2015

Outside investors are most interested in scaling a proven business model, not research and development. Thus it’s a waste of time for most entrepreneurs to be looking for investors until they have a product and some customer revenue. Intellectual property is a business issue, not a technical issue.

Technical Review 120

Technical Review Intellectual Property Cofounder Bootstrapping 120

VC Cafe

JANUARY 27, 2021

But within two weeks its Israeli founders managed to pivot their product into the virtual events world and have concluded 2020 with 100% growth and tens of millions of dollars in revenue. Next47 and American Insight Partners VC, demonstrates growing trust in its current and future business model.

Vertical 148

Vertical Video Technical Review Europe 148

Startup Professionals Musings

APRIL 24, 2011

Your friends and family are really the only answer until you have a significant revenue stream. Here are some key action items that will give you some priority: Create an investment-grade business plan. Be ready with a killer executive summary , investor presentation , and financial model. Line up a winning team.

Venture Capital 233

Venture Capital Revenue Elevator Pitch Silicon Valley 233

crowdSPRING Blog

MAY 4, 2011

Must read article for all startup entrepreneurs about valuation – [link]. Interesting perspective by @msuster on product vs. service startup business models – [link]. Negotiation Tips For Small Businesses, Entrepreneurs and Freelancers – [link]. agency revenues – [link]. Traditional?

Social Media 92

Social Media Small Business Design Media 92

ReadWriteStart

MARCH 24, 2011

Additional work in figuring out the precise go-to-market consumer, academic institution, or enterprise - each is a different business), and consequent business model and pricing model will help enhance the company's valuation.

Illinois 114

Illinois Entrepreneur Silicon Valley Chicago 114

YoungUpstarts

FEBRUARY 14, 2017

Your revenues are declining or you don’t have any revenue at all! Revenues don’t appear overnight; even the greatest success stories had to work hard to start getting traction and growth. Yet if revenues start to decline, or after a few months customers are still leaving you for other solutions, then you may have an issue.

Technical Review 157

Technical Review Architecture Revenue Channel 157

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Flexible VC: Revenue -based. Of the Inc.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

crowdSPRING Blog

NOVEMBER 30, 2012

Start With a Business Model, Not a Business Plan | WSJ – [link]. The danger of waiting to long to find a business model? … Checking In on Foursquare’s Valuation – [link]. Red All Over: Newspaper Revenues Fall In Q3 – [link]. Just got acquired? – [link].

Social Media 100

Social Media Small Business Central African Republic Design 100

Startup Professionals Musings

JULY 22, 2020

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. At this point, most Angel investors and a few early-stage VCs will be happy to talk, assuming you have the business model validated, and a large opportunity.

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370