Life Beyond Code

SEPTEMBER 27, 2011

Thus, I have come to the conclusion that if I could help a million entrepreneurs globally reach $1 million in revenue (and beyond), that would be the foundation of a robust, distributed, and sustainable economic value creation that would add up to a trillion dollars in global GDP. a distributed, democratic model of capitalism.

Programming 116

Programming Silicon Valley Bootstrapping Technical Review 116

Hunter Walker

JANUARY 2, 2017

This keeps them aligned with their investors since a $250m exit with modest venture financing raised can be wonderful for all parties, but the same transaction can look awful if your last round was $60m on $300m pre! Next Level: Buying Customers/Revenue/Distribution. See Mint and Periscope as examples.

Technical Review 131

Technical Review Cap Table Acquisition Startup 131

Startup Professionals Musings

OCTOBER 9, 2021

A popular myth these days is that finishing college only dilutes your entrepreneurial instincts, and the best of the best, including Bill Gates, Steve Jobs and Mark Zuckerberg, dropped out early to hasten their success. I agree with Robert E. Practical business courses are better than an advanced degree or MBA.

Entrepreneur 373

Entrepreneur Chad Incubator Dilution 373

Tim Keane

JANUARY 12, 2010

For angel groups, the distinction between groups and VCs on this issue is dwindling, especially as angel groups do bigger rounds of financing.   Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors.   First , dividends.   Why is this fair? .

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Professionals Musings

NOVEMBER 15, 2014

A popular myth these days is that finishing college only dilutes your entrepreneurial instincts, and the best of the best, including Bill Gates, Steve Jobs and Mark Zuckerberg, dropped out early to hasten their success. I agree with Robert E. Practical business courses are better than an advanced degree or MBA.

Chad 279

Chad Incubator Dilution LLC 279

www.inc.com

SEPTEMBER 24, 2011

Finance | Tuesdays. Financing a Small Business. Financing A Small Business. Personal Finance. Before Roving Software could receive its first round of financing from professional investors, in early 1999, he had to put all the stock arrangements in writing. Start-up | Mondays. Technology | Thursdays. Franchises.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

YoungUpstarts

OCTOBER 10, 2014

Loan financing and equity investment are two common methods of funding a new business start-up, assuming you do not have the capital on your own. Debt financing is the better choice when you prefer to retain control of your operation, and you do not mind the tradeoff of greater risk for higher earning potential. You retain the profit.

Equity 176

Equity Limited Liability Company Vietnam Finance 176

Startup Professionals Musings

OCTOBER 28, 2018

A popular myth these days is that finishing college only dilutes your entrepreneurial instincts, and the best of the best, including Bill Gates, Steve Jobs and Mark Zuckerberg, dropped out early to hasten their success. I agree with Robert E. Practical business courses are better than an advanced degree or MBA.

Chad 242

Chad Incubator Startup Dilution 242

View from Seed

JULY 15, 2020

Many of these companies are probably valued at their last financing round, which probably occurred in a very frothy funding environment. Other companies are great businesses, but are effectively encountering a dilution event. Unevenly distributed, but broadly optimistic. But that remains to be seen.

Portfolio 215

Portfolio IRR Dilution Distribution 215

David Teten

JANUARY 19, 2021

Flexible VC creates early liquidity which can be either reinvested or distributed to LPs. Part of the magic of revenue-based financing is how historical performance and strong, achievable financial projections are ultimately the backbone of how RBI/RBF investment decisions are made.” Early liquidity.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

The Equity Kicker

MAY 14, 2012

Twice in the last week I found myself coaching founders on how to build a financing plan around value creation milestones so I thought I would share what I said here. signing distribution deals. demonstrating that signed distribution deals are working. achieving first revenues. achieving first international sales.

Finance 118

Finance Valuation Venture Capital Dilution 118

www.instigatorblog.com

OCTOBER 23, 2010

The more that those first employees feel like founders in terms of their ownership, emotional attachment, responsibility and overall understanding of the startup process (including financing , running day-to-day activities, etc.) 1% is even less after you factor in dilution. 1% is even less after you factor in dilution.

Equity 41

Equity Employee Startup Vesting 41

The Startup Magazine

JULY 1, 2022

The three main components of a company are production or service, marketing and sales, and finance. Finance is how you manage your finances, including budgeting, accounting, and bookkeeping. Financing Your Startup. The most common types of financing are debt financing, equity financing, and venture capital.

Technology 148

Technology Venture Capital Startup Finance 148

Startup Professionals Musings

OCTOBER 15, 2016

A popular myth these days is that finishing college only dilutes your entrepreneurial instincts, and the best of the best, including Bill Gates, Steve Jobs and Mark Zuckerberg, dropped out early to hasten their success. I agree with Robert E. Practical business courses are better than an advanced degree or MBA.

Entrepreneur 120

Entrepreneur Chad Incubator Dilution 120

View from Seed

JUNE 30, 2015

A few weeks ago, Manu Kumar wrote an excellent post detailing the current state of the seed financing landscape. Or maybe you are just a bit off on your product, or else you needed more experimentation to get to the right strategy for distribution. Over time, the frenzy around momentum and growth stage financing will calm down.

Seed Stage 120

Seed Stage Syndicate Syndication Dilution 120

Startup Lessons Learned

JUNE 19, 2019

Previously, on the venture side you wanted to invest as early as possible, because the first round of financing got you to a product, and then you'd get beta-type customers, and then you'd raise a second round at a much higher price, and the business could immediately take off from there. It's literally impossible. That sounds ideal.

Silicon Valley 159

Silicon Valley Lean Venture Capital Pre-Money Valuation 159

ReadWriteStart

APRIL 4, 2023

Bridget Reed, Co-founder and VP of Content, The Word Counter Yes, but Look for Restrictions Crowdfunding is an efficient and cost-effective way to raise money to finance the development of a startup. It can serve as a centralized hub for distributing all of your most important information. Forgoing one is like throwing away money.

Startup 141

Startup Campaign Cofounder Venture Capital 141

Austin Startup

MARCH 23, 2017

Digital ink has been spilled across the interwebs these past two weeks on the issues with different types of venture financings. Priced equity financings make sense as they provide clarity around valuation and ownership dilution, while creating alignment between the investors and founders.

Dilution 54

Dilution Equity Warrant Distribution 54

This is going to be BIG.

MARCH 3, 2019

Dilution becomes the enemy—and you tell your investors that you don’t want to own a smaller and smaller percent of your “best” companies. It’s just a model of the share price of a company going up and to the right smoothly until it exits for $300mm, and the outcomes for the shares purchased in each round of financing.

Portfolio 110

Portfolio Burn Rate LP Distribution 110

Scott Edward Walker

JUNE 9, 2011

The investor would thus be entitled to the first $10 million pursuant to its liquidation preference, and the remaining $90 million would be distributed ratably to the common stockholders.

Term Sheet 60

Term Sheet Conversion Rights Venture Capital Liquidation Preference 60

Up and Running

APRIL 24, 2018

Health care ethics are the moral principles and values that allow you to make the right choice while promoting, distributing, and operating your product to healthcare organizations or patients directly. Along with the laws and regulations, you also have a few ethical responsibilities. Secure timely funding.

SBIR 73

SBIR Startup Artificial Inteligence Intellectual Property 73

Professor VC

DECEMBER 8, 2015

Not surprisingly, the merger was highly dilutive, particularly to Confinity/PayPal shareholders. Luckily, Google was one of the 150 and did ultimately return the fund assuming the LP was smart enough to hold the stock after distribution. Like CPF, Kilowatt also provides solar financing services to consumers.

Merger 28

Merger LP IPO Redemption 28

Austin Startup

MARCH 7, 2021

In 2019 and 2020, we saw hundreds of millions of dollars in non-dilutive funding go to Texas startups, most of which had never worked with the government before. In short, the first wave of internet companies were widely distributed and brought people online (AOL in Virginia, Microsoft in Albuquerque and Seattle, Dell in Austin, etc.)

Texas 90

Texas San Antonio Houston Dallas 90

Professor VC

JUNE 20, 2011

Financing, that is.I One truth of start-up financing is that it generally takes twice as long and twice as much money to accomplish your milestones. The business model (OEM through broadband and home security companies for mass distribution) if not specific product functionality has remained largely the same. ProfessorVC.

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

Up and Running

DECEMBER 9, 2014

Bates: Good morning and welcome to our CEO panel, “How to Fine-Tune Your Small Business Finances From Funding to Growth” which I think is the direction that we would all like to be going. I’m here with some really phenomenal CEOs who are going to talk to us today about small business finances from funding to growth.

Small Business 95

Small Business Finance Forecast Metrics 95

Genuine VC

JULY 19, 2010

But leveraged distribution via platforms (organic/paid search, social networks, mobile devices) and self-service monetization (ad networks, app stores, payments) is what has truly empowered startups to become real scalable businesses on very small amounts of initial capital.

Seed Stage 175

Seed Stage Technical Review Dilution Offshore 175

Austin Startup

MARCH 26, 2019

These strategies can be useful in increasing initial conversions from your ads and website traffic, but offering large discounts too early in the life of the company will lower your gross margins and CAC, both of which will affect your unit economics and future financing conversations. These add up very quickly.

Technical Review 49

Technical Review Software Review China Acquisition 49

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. By the first quarter of 2016, the late-stage financing market had changed materially. Investors were becoming nervous and were no longer willing to underwrite new Unicorn-level financings at the drop of a hat. It will also minimize future dilution.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

maplebutter.com

JANUARY 8, 2013

If you believe in it – then finance whatever you can yourself. 2) Co-Founders are the largest form of dilution (if you’re raising) 3) Everything around LeanStartup / Customer Development 4) Understand the micro economics of your business early. Co-founders are the highest form of dilution to a business. Other sources of capital.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

Austin Startup

AUGUST 1, 2017

TL;DR: In a market that has historically idolized huge, splashy financings and exits, an increasing number of entrepreneurs are realizing that everyone else’s definition of success — particularly among certain large VCs — isn’t necessarily aligned with their own. And large checks require very large exits to achieve good returns.

Liquidation Preference 48

Liquidation Preference Common Stock Valuation Silicon Valley 48