Startup Professionals Musings

JUNE 2, 2013

The single most important ingredient of success is not the idea, but having a team in place that has impeccable integrity, can iterate the product quickly, pivot the business model as necessary, and keep costs down in the process. This requires a visible focus on the company’s revenue model, the costs to get there, and cash on hand.

Angel Investor 269

Angel Investor Cram Down Intellectual Property Venture Capital 269

Startup Professionals Musings

FEBRUARY 25, 2023

Even still, in the context of all three points, I recommend that you evaluate the most common exit alternatives and considerations, and integrate the right one into your startup strategy and plan: M&A - merger or acquisition by another company. Most experts don’t recommend this approach as your default strategy anymore.

Exit Strategy 264

Exit Strategy Private Equity Equity Technical Review 264

Startup Professionals Musings

DECEMBER 8, 2019

Thus I’m getting more questions on new mechanisms, like crowd funding, or going public through the side door as a reverse merger. The cost of the shell, plus the cost of navigating the process, can add up to a half-million dollars, depending on the shell company, according to LawCast , a law firm based in West Palm Beach, Florida.

Merger 303

Merger OTC IPO Due Diligence 303

Up and Running

JULY 22, 2014

It’s a table that lists all of your revenue streams and all of your expenses—typically for a three-month period—and lists at the very bottom the total amount of net profit or loss. A typical profit and loss statement should include: your revenue (also called sales), followed by. how you make money.

Balance Sheet 148

Balance Sheet Forecast Equity .Net 148

VC Cafe

JULY 13, 2022

With today’s news on the merger between Unity and Ironsource (valuing the latter at $4.4 billion in revenue in 2021, 5% of global industry revenues in 2021 ($175 billion) ? billion in revenue in 2021. billion), Israel is incredibly well positioned to be a leader in gaming tech and infrastructure. Proud to take part!

Technical Review 158

Technical Review Israel Early Stage Merger 158

Startup Professionals Musings

MAY 3, 2014

Thus I’m getting more questions on new mechanisms, like crowd funding, and an old one long out of favor, the so-called “reverse merger.” It better be an established company, with millions of dollars in annual revenue and profits, following generally accepted accounting, reporting, and audit procedures.

Merger 246

Merger OTC IPO Stock 246

ReadWriteStart

JUNE 1, 2020

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. It is going to cost a lot of money just to get the initial batch of products to test the market and would definitely require external funding. Incubators and Accelerators.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

JANUARY 13, 2018

Thus I’m getting more questions on new mechanisms, like crowd funding, or going public through the side door as a reverse merger. It better be an established company, with millions of dollars in annual revenue and profits, following generally accepted accounting, reporting, and audit procedures. Yet reverse mergers are not all bad.

Merger 198

Merger OTC IPO Due Diligence 198

YoungUpstarts

JUNE 6, 2013

Obviously you need to clearly understand your situation and your cost benefit analysis so that you can go into the deal with a solid understanding of what is a huge success for yourself. Being wholly owned has the same effect, but it does obviously require a merger or an acquisition to occur. Understand your deal limitations.

Technical Review 164

Technical Review Securities and Exchange Commission Non-disclosure Agreement Due Diligence 164

VC Cafe

JULY 21, 2022

The merger of Unity and Ironsource (a $4.4 NPD reported on Friday that consumers spent 10% less in the first six months of 2022 than they did during the same time period last year, with game industry revenue down to $26.3 While mobile game revenue was down 6.6% Gaming M&A in H1 2022. Blockchain gaming is growing.

Forecast 190

Forecast IP Mobile Acquisition 190

Startup Professionals Musings

APRIL 27, 2016

Even still, in the context of all three points, I recommend that you evaluate the most common exit alternatives and considerations, and integrate the right one into your startup strategy and plan: M&A - merger or acquisition by another company. Most experts don’t recommend this approach as your default strategy anymore.

Equity 120

Equity Exit Strategy Private Equity Startup 120

Both Sides of the Table

DECEMBER 5, 2010

billion in annual subscription revenues not including advertising or eCommerce). This is an awesome trend and will further lower the cost of startup development. In April of 2000 there were fears that the AOL / Time Warner merger would create a monopoly on the Internet. A bit laughable in 2010, just 12 years later.

Social Network 318

Social Network Networking Internet Technical Review 318

Startup Professionals Musings

SEPTEMBER 14, 2022

Thus I’m getting more questions on new mechanisms, like crowd funding, or going public through the side door as a reverse merger. It better be an established company, with millions of dollars in annual revenue and profits, following generally accepted accounting, reporting, and audit procedures. Yet reverse mergers are not all bad.

Merger 261

Merger OTC IPO Due Diligence 261

abovethecrowd.com

FEBRUARY 27, 2019

Unfortunately, either information asymmetry or physical distances and the resulting distribution costs can both cut against the economic advantages that would otherwise arise for all. In November of this year, the company announced that it had achieved “substantially” more than $1B in revenue in the third quarter.

Internet 88

Internet Matching Vertical Hosting 88

Mike Michalowicz

SEPTEMBER 19, 2018

By focusing on reducing human touches and automating the sales and recruitment process, Angelichio and the Judge Group are able to minimize the cost associated with hiring additional internal staff while meeting their market demand in record time! The truth is economies change, revenues change, and sometimes things just happen.

CPA 76

CPA Software Review LLC Technical Review 76

Startup Professionals Musings

DECEMBER 21, 2013

Startups are usually so focused on selling more of their branded product or service to their own customer base (organic growth) that they don’t consider the more indirect methods (non-organic growth) of increasing revenue and market share. Even mergers and acquisitions (M&A) came quickly. Fresh customer base. Economies of scale.

Merger 243

Merger Acquisition Startup Bandwidth 243

Both Sides of the Table

FEBRUARY 13, 2011

We will invest pre-revenue and even pre-product if we have discovered the right team in the right kind of market. You had a very interesting perspective on the AOL/Time Warner merger. With this strategic position, and their prescient understanding of where the industry was going, it is hard to argue with the concept of the merger.

Cofounder 277

Cofounder Merger Founder Venture Capital 277

Up and Running

AUGUST 6, 2019

You’ve launched your new restaurant and you’re starting to see customers, but running a restaurant is serious business, especially because your financial livelihood is most likely tied up in startup costs. . The high cost of marketing, salaries, appliances, ambiance, and so on will dry up incoming revenue instantly.

Technical Review 86

Technical Review SBA Merger Customer 86

Duct Tape Marketing

FEBRUARY 10, 2022

So a lot of times we'll help, 'em understand they wanna buy controllership work, which is just the, you know, the full on financial cash movement of all of their revenue through all of their systems. They do get more complicated as you get larger, but really, uh, revenue recognition is a phrase. A lot of them are trying to maintain.

CPA 95

CPA Technical Review Revenue Forecast 95

Startup Professionals Musings

MAY 28, 2022

In addition, you need to focus on the unique value you bring, and maintaining the gap between what customers are willing to pay versus your best cost. Smart companies use acquisitions to enhance momentum and accelerate revenue growth. In many cases, the return is not worth the cost.

Intellectual Property 322

Intellectual Property Acquisition Non-Compete Merger 322

Startup Professionals Musings

NOVEMBER 3, 2014

Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. Every outside hire increases your cost and risk. As soon as you bring in investors, they force you to plan for an exit (merger or sale) in three to five years.

Bootstrapping 278

Bootstrapping Startup Merger Salary 278

Startup Professionals Musings

JULY 26, 2010

Startups are usually so focused on selling more of their branded product or service to their own customer base (organic growth) that they don’t consider the more indirect methods (non-organic growth) of increasing revenue and market share. Even mergers and acquisitions (M&A) came early. Fresh customer base. Economies of scale.

Acquisition 214

Acquisition Merger Startup Bandwidth 214

Startup Professionals Musings

MAY 13, 2011

Explain in terms your mother could understand, and quantify the “cost-of-pain” in dollars or time. Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Industry & market sizing. Explain the business model.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Startup Professionals Musings

AUGUST 17, 2014

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. Aggressive revenue projections and growth rate. Gross margins greater than 50%. Show red ink to match your funding request.

Liquidity Event 249

Liquidity Event Equity Venture Capital Merger 249

Startup Professionals Musings

AUGUST 13, 2012

Explain in terms your mother could understand, and quantify the “cost-of-pain” in dollars or time. Clearly define the customer, channel, and revenue model associated with this solution. In this section, you need to be passionate about revenue, profit, and volume growth. Industry & market sizing. Explain the business model.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Startup Professionals Musings

MAY 28, 2013

Projecting the financials should be the last step of your business plan preparation, since it assumes you already know the opportunity size, customer buying habits, pricing, costs, and competition. Aggressive revenue projections and growth rate. Gross margins greater than 50%. Show red ink to match your funding request.

Liquidity Event 243

Liquidity Event Startup Equity Venture Capital 243

Startup Professionals Musings

NOVEMBER 17, 2012

Startups are usually so focused on selling more of their branded product or service to their own customer base (organic growth) that they don’t consider the more indirect methods (non-organic growth) of increasing revenue and market share. Even mergers and acquisitions (M&A) came early. Fresh customer base. Economies of scale.

Entrepreneur 249

Entrepreneur Merger Bandwidth Acquisition 249

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. With Netscape’s IPO , there was suddenly a public market for companies with limited revenue and no profit. 1970 – 1995: The Golden Age. Thus began the 5-year dot-com bubble.

Internet 335

Internet IPO Silicon Valley Agile 335

Startup Professionals Musings

APRIL 23, 2013

Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. Every outside hire increases your cost and risk. As soon as you bring in investors, they force you to plan for an exit (merger or sale) in three to five years.

Equity 241

Equity Bootstrapping Startup Merger 241

Startup Professionals Musings

SEPTEMBER 26, 2010

Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. Every outside hire increases your cost and risk. As soon as you bring in investors, they force you to plan for an exit (merger or sale) in three to five years.

Bootstrapping 240

Bootstrapping Merger Salary .Net 240

Startup Professionals Musings

AUGUST 27, 2012

Explain in analogies your mother could understand, and quantify the “cost-of-pain” in dollars or time. In this section, you need to be passionate about recurring revenue, profit margin, and volume growth. Project both revenues and expense totals for next five years, and past three years. Solution product & technology.

Elevator Pitch 247

Elevator Pitch Exit Strategy Burn Rate Merger 247

Startup Professionals Musings

SEPTEMBER 15, 2011

Startups are usually so focused on selling more of their branded product or service to their own customer base (organic growth) that they don’t consider the more indirect methods (non-organic growth) of increasing revenue and market share. Even mergers and acquisitions (M&A) came early. Fresh customer base. Economies of scale.

Startup 232

Startup Merger Bandwidth Acquisition 232

Startup Professionals Musings

MAY 19, 2010

Explain in analogies your mother could understand, and quantify the “cost-of-pain” in dollars or time. In this section, you need to be passionate about recurring revenue, profit margin, and volume growth. Project both revenues and expense totals for next five years, and past three years. Solution product & technology.

Elevator Pitch 235

Elevator Pitch Exit Strategy Burn Rate Merger 235

Startup Professionals Musings

JUNE 10, 2011

Explain in analogies your mother could understand, and quantify the “cost-of-pain” in dollars or time. In this section, you need to be passionate about recurring revenue, profit margin, and volume growth. Project both revenues and expense totals for next five years, and past three years. Solution product & technology.

Elevator Pitch 234

Elevator Pitch Exit Strategy Burn Rate Merger 234

Startup Professionals Musings

FEBRUARY 5, 2012

At this stage, your startup better be selling a commercial offering, have price and cost validated, with significant customer sales and a real revenue stream. This normally means more then 30 employees, and more then $1 million in revenue. Lesser amounts remain in the angel realm. Growth stage. Exit stage.

Investment Bankers 241

Investment Bankers Venture Capital Startup Initial Public Offering 241

Startup Professionals Musings

OCTOBER 13, 2010

At this stage, your startup better be selling a commercial offering, have price and cost validated, with significant customer sales and a real revenue stream. This normally means more then 30 employees, and more then $1 million in revenue. Lesser amounts remain in the angel realm. Growth stage. Exit stage.

Investment Bankers 231

Investment Bankers Venture Capital Startup Initial Public Offering 231

Startup Professionals Musings

NOVEMBER 2, 2018

They are looking for solutions that will reduce their costs by 20%, or double productivity, or cut traffic accidents by a third. Constituents look for a long-term strategy of continuing return, normally including an initial public offering (IPO) or merger/acquisition, to on-going value or option to cash out.

Intellectual Property 48

Intellectual Property Initial Public Offering Merger Acquisition 48