Steve Blank

APRIL 1, 2020

Any place with a fixed cost that relies on foot traffic will come under pressure. Cut costs to stay alive for 24 months. Forecasted recovery date. Sales pipeline/forecast. Payroll costs/other variable costs. Others are cutting their valuations. How many months of cash do you have? External Assessment.

South Korea 334

South Korea Salary Business Model China 334

Steve Blank

SEPTEMBER 5, 2018

Startups wrote business plans, generated expansive 5-year forecasts and executed (hired, spent and built) to the plan. And if their initial guesses were wrong, they needed a process that would permit them to change early on in the product development process when the cost of changes was small – the famed “pivot”. The result?

Lean 335

Lean Burn Rate Startup IPO 335

Startup Professionals Musings

NOVEMBER 26, 2012

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

YoungUpstarts

OCTOBER 23, 2017

An early example occurred in 2010 when UBS Analyst Neil Currie accessed satellite imagery to monitor activity in Walmart parking lots, running the data thru a mathematical regression to translate it into customer activity for better earnings forecasts. Morgan Stanley predicts that Robo Advisors will manage $6.5

Technical Review 154

Technical Review Artificial Inteligence Software Review IPO 154

Berkonomics

NOVEMBER 7, 2024

If the business is not a startup, expect to supply income statements for the past several years as well, to emphasize trends in revenue and costs. Careful about “hockey stick” forecasts. VC rule of thumb Most VC’s look for a 10x opportunity – that is – ten times increase in the valuation from investment to liquidity event.

Hockey Stick 62

Hockey Stick Liquidity Event Valuation Balance Sheet 62

Startup Professionals Musings

SEPTEMBER 6, 2010

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Gust

NOVEMBER 18, 2012

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

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

ConversionXL

OCTOBER 2, 2018

Don’t expect a single paper to define, for all time and every business, the ideal pixel width for product images or sample size for accurate sales forecasts. Multiple ‘buy buttons’ in the brain: Forecasting chocolate sales at point-of-sale based on functional brain activation using fMRI”. Read the full study here (gated content).

Forecast 134

Forecast Guatemala Audio Green 134

Startup Professionals Musings

MARCH 13, 2020

In that context, I offer the following financial projection strategies, from my own experience: Forecast a business that has plenty of room to grow quickly. Even if you work harder than everyone else, you probably won’t stay ahead of rising costs and new competitors. > Back up your projections with a simple financial model.

Liquidity Event 308

Liquidity Event Forecast Exit Strategy Bootstrapping 308

David Teten

JANUARY 19, 2021

In all these cases, capital is provided to fuel forecasted growth without creating a commitment to a particular vision for future funding rounds, exit goals, and associated blitzscaling. Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. That said, nothing is cost-free.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Hunter Walker

JULY 18, 2022

The ‘valuation multiples’ reset also came with an increase in slope of the curve. But you need to remain great and investable while also managing your costs, extending your runway, tightening your operating plan, and so on. Do you understand your cost structure and can you manage to a forecastable growth rate.

Valuation 119

Valuation Cap Table Startup Later Stage 119

Up and Running

JULY 14, 2015

Any investor will put their valuation on your business based on a number of factors, including looking at important metrics for your business, patents, or assets. But raising too much money will cause the valuation to increase. Let’s say the valuation an investor puts on your business is $2 million.

Technical Review 60

Technical Review Valuation Due Diligence Finder 60

Cracking the Code

FEBRUARY 23, 2011

In comparison, the overall technology sector growth was projected at 9-10% in early 2010 and this forecast did not change significantly today. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. McKinsey highlight #1: the art of cost cutting or. Wednesday, February 23, 2011. My Investments.

Software Review 101

Software Review Technical Review Valuation Europe 101

The Startup Magazine

SEPTEMBER 6, 2024

Predictive analytics tools forecast claim outcomes, enabling proactive management strategies. Operational Optimization and Impact on Business Outcomes Claims management software drives efficiency and cost savings while enhancing customer satisfaction. This leads to significant cost savings and lower operational expenses.

Software 126

Software Management Analytics Artificial Inteligence 126

Up and Running

OCTOBER 3, 2018

Set a specific time each month to review it , comparing forecasts to actuals and revising as necessary. Financial Summary: Explain your business model, startup costs, revenues, and liabilities to the company. For instance, PARE relies on its house-flipping capabilities to buy property at lower costs and sell it at a higher price.

El Paso 61

El Paso Business Plan Technical Review Forecast 61

YoungUpstarts

MAY 17, 2019

The risk: You base your purchase price, valuation, loans, and cash forecast off historical financials, only to find out a few months into owning the business that the numbers were all wrong and you are losing cash. Use the cash forecast in the report to secure better terms on your business loan or lock the owner into seller financing.

Due Diligence 185

Due Diligence Forecast Deal Structure Valuation 185

David Teten

AUGUST 6, 2015

So often I speak with companies that have charged ahead building an ultra-complex daily or weekly model with thousands of assumptions and complex dashboard outputs, when their potential investors simply want a high-level 24 month forecast with 12 months of reconciling historical data.”. HOW TO MAKE YOUR CELLS READABLE.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

Startup Professionals Musings

SEPTEMBER 30, 2011

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

The Startup Magazine

FEBRUARY 8, 2024

billion by 2027, according to forecasts. With so many platforms available, it is necessary to carefully evaluate each option according to various factors like scalability, user friendliness, integration capabilities, support services, and cost effectiveness. billion in 2022 to $43.6

Forecast 134

Forecast Analytics Framework Employee 134

Duct Tape Marketing

JUNE 20, 2023

And the model we had in mind, there's a book called Valuation, which our, our firm has had an updated every year for the past 20 years or more. If only we could do amazing, you know, supply chain forecasting, right? So it's actually, I think this is the first book that we've ever put the words McKinsey Guide on. And into the app.

Technical Review 78

Technical Review Silicon Valley Generative AI Arizona 78

www.entrepreneur.com

SEPTEMBER 22, 2011

Franchises Franchises Home Franchise 500 Home-Based Low Cost Top New Fast Growing Top Global Biz Opportunities Franchises for Sale Franchises A Bright Forecast for a Solar Panel Installation Franchise. Sweat equity is just one component of early-stage valuation. How to Estimate Startup Costs. Online Business. This Month.

Sweat Equity 55

Sweat Equity Equity Fractional CTO CTO 55

YoungUpstarts

FEBRUARY 14, 2017

Managing your cash position when forecasted sales aren’t being achieved is tough, and if you are spending more than you are generating and cash piles are dwindling, now is the time to address your financial position. Your Pivot is likely to cost money and time. It now has a multi-billion dollar valuation.

Technical Review 157

Technical Review Architecture Revenue Channel 157

Cracking the Code

MARCH 12, 2010

So, here is the first edition, including the recent Q4 2009 earnings and the updated 2010 forecast. If we consider that 2009 was probably the worst year in the past 5 years, forecasting the same growth for 2010 is not very encouraging. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation.

Software Review 63

Software Review Technical Review Cloud Europe 63

Startup Professionals Musings

FEBRUARY 13, 2016

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. Justify funding requirements, use of funds and specify a current valuation estimate. What are your forecasts for revenue, expenses and cash flow?

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

abovethecrowd.com

JULY 10, 2014

Financial models, especially valuation models, are interesting in that they can be particularly precise. While it may seem like a tough question to answer, I would argue that most practitioners of valuation analysis would state “not very high.” It is not my aim to specifically convince anyone that Uber is worth any specific valuation.

San Francisco 111

San Francisco San Jose Marketing Technical Review 111

Both Sides of the Table

MARCH 30, 2016

If you want to see what was on my mind – I started foreshadowing change publicly in October 2015 with a forecast of what I expected in 2016 VC funding markets at a presentation I gave at the annual Cendana VC/LP conference hosted by Michael Kim. SaaS valuations had completely reverted to the mean and were now trading at 4.2x

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

Startup Professionals Musings

AUGUST 8, 2016

By profit, I simply mean offering a product or service to customers for a price that exceeds the total costs associated with the solution, thus providing some basis for recovering sunk costs and generating a return for stakeholders. Customers typically won’t switch to a new vendor for less than a twenty percent cost advantage.

Intellectual Property 120

Intellectual Property Entrepreneur Elevator Pitch Exit Strategy 120

Berkonomics

MARCH 21, 2019

If the business is not a startup, expect to supply income statements for the past several years as well, to emphasize trends in revenue and costs. Careful about “hockey stick” forecasts. Here’s a valuation example for you based on amount to be raised. It is a fact that very few businesses reach the $40,000,000 valuation hurdle.

Hockey Stick 63

Hockey Stick Liquidity Event Valuation Balance Sheet 63

Tim Keane

MARCH 9, 2011

How to prepare a sales forecast for a business plan » March 09, 2011. The overarching idea, of course, is to reduce the cost of capital while maintaining appropriate flexibility for the venture.  2]   Aligning interests in structure: cost and risk. Startups and angels: Along the way to success. five years.).

Finance 83

Finance Bootstrapping Startup Equity 83

David Teten

SEPTEMBER 23, 2017

Sources like Crunchbase , Angel List , and Seed Invest even give this data away for free or very low cost. Satisfying LP demands and streamlining the valuation process are primary drivers in those clients’ adoption of Ipreo’s portfolio monitoring and valuation solutions, iLEVEL, iVAL, and Qval. .

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Hunter Walker

NOVEMBER 30, 2022

Opportunity Cost of GP’s Time. Opportunity Cost of Follow-on Capital. Opportunity Cost of Non-Investment in Competitors. Relationship Cost of SPVs/Direct Co-Investment and LP Credibility. It was only 4% of the fund” could be true but you might have been carrying it at a current valuation of 100x that.

Vertical 48

Vertical LP Syndicate Syndication 48

Startup Professionals Musings

AUGUST 7, 2015

Every customer understands that your solution has to generate more revenue than cost, but you should not put that data in a customer pitch. This allows them to calculate burn rates, break-even points and forecast the company valuation over time. How the solution and business model work to fund the business.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120

Startup Professionals Musings

AUGUST 13, 2012

Explain in terms your mother could understand, and quantify the “cost-of-pain” in dollars or time. Include a current valuation estimate. The most credible sizing approach is to do your financial model first with the volume, cost, and pricing parameters you want. Financial forecast and metrics.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Both Sides of the Table

FEBRUARY 14, 2016

Valuing any company can be difficult because it requires a degree of forecasting future growth & competition and ultimately the profits of the organization. I have been talking about my concerns about valuations for the past couple of years because, well, they’ve been rising very rapidly the past two years! Mostly, no.

Valuation 150

Valuation Down Round Startup Later Stage 150

David Teten

AUGUST 7, 2019

than comparable companies in the same sector that raised at a higher valuation. But if they’re so competent, aren’t they going to negotiate up the valuation to take advantage of their known status, up to the highest possible point? THEREFORE: we don’t need to be valuation-sensitive. LTV / CAC, revenue growth, etc.)

Venture Capital 60

Venture Capital Valuation Stock NDA 60

www.currentlyobsessed.com

MAY 28, 2010

Valuation is an important aspect of VC deal terms, and a major determinant of your ultimate outcome. I unexpectedly found that it was more helpful to think about the company valuation as an output variable in the fund-raising equation. The net effect was more money raised, higher valuation and the same percentage of equity sold.

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42