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. Get a real customer and real revenue. It doesn’t prove your business model of pricing, distribution, and support. Without revenue, your investors are largely limited to friends, family and fools.

Intellectual Property 222

Intellectual Property Sweat Equity CTO Hire Fractional CTO 222

Both Sides of the Table

NOVEMBER 14, 2017

We realized that operating a business in distributed markets presented multi-city coordination efforts that we weren’t prepared for. were more distributed. An example of the systems companies build are pricing & revenue management tools to best help to optimize yield.

Operations 286

Operations New York City Technical Review Startup 286

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

Both Sides of the Table

MAY 19, 2010

Founded in November 2007 in New York City by Alexis Maybank and Kevin Ryan (co-founder of DoubleClick); CEO is Susan Lyne (ex-CEO Marta Stewart Living Omnimedia) Revenue estimates: $50mm in 2008; $170mm in 2009 (versus budget of $150mm); $450mm forecasted for 2010. Note that these are “gross” revenue numbers. OTHER DEALS: 1.

Partner 240

Partner New York City Cofounder Syndication 240

Gust

DECEMBER 6, 2011

This graphic shows that the distribution of funding is not uniform across the spectrum of rounds size in dollars. Milestones are accomplishments that demonstrate the viability of the business; hence, they increase the valuation of the company. So, generally, these three major sources of capital are complementary, not competitive.

Angel Investor 179

Angel Investor Venture Capital Valuation Software Engineering 179

Agile VC

JANUARY 13, 2016

A realignment of valuations by late stage investors? Potential for instant global distribution (mobile app stores, Facebook, etc). 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

VC Cafe

JUNE 10, 2022

According to new research by Pitchbook , the trickle down effect has already started in seed and series A startups with round sizes and valuations shrinking in size compared to 2021. But recently those round sizes and valuations have tumbled to about $10 million and $50 million, respectively, he said.

Valuation 151

Valuation Marketing Israel Venture Capital 151

YoungUpstarts

JUNE 29, 2020

So, what are the in demand products during this time of pandemic that both budding and seasoned entrepreneurs may want to consider manufacturing or distributing? estimates in their recent report that medical products will have a very high global market valuation, crossing 30 billion US dollars by 2026. These are some of those: 1.

Demand 173

Demand Product Artificial Inteligence Software Review 173

SoCal CTO

OCTOBER 5, 2010

5 great viral marketing campaigns (and what small businesses can learn from them!) - crowdSPRING Blog , September 13, 2010 At crowdSPRING we talk a great deal about how we can leverage our limited marketing resources to drive traffic and revenues and build strong community. Except they won’t be called Product Managers. That crazy chicken.

Technology 191

Technology Product San Francisco CTO Hire 191

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

Both Sides of the Table

MARCH 1, 2016

LPs have been feeling great about venture capital due to holding valuable paper positions in companies like Uber, Lyft, Airbnb, Dropbox, all of which they feel confident will drive large cash distributions in the future. LPs See The Over-Valuations and Don’t Like It. The Biggest Area of Concern is Late Stage Investments.

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

Both Sides of the Table

DECEMBER 5, 2010

AOL was controlled by one company and the Internet was distributed. billion in annual subscription revenues not including advertising or eCommerce). They controlled distribution to the masses. MySpace would liked to have owned YouTube but didn’t have the public stock valuation to purchase them at the price that Google did.

Social Network 318

Social Network Networking Internet Technical Review 318

Lightspeed Venture Partners

OCTOBER 7, 2012

He had been at it for 6 months and had no sales or distribution lined up yet. They won a design award at a trade show, but have no revenue and no orders. They are seeking $40k for a 33% stake and want investors who can provide introductions for distribution and licensing on their behalf. The last company was a bit of a puzzler.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

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

Lightspeed Venture Partners

OCTOBER 29, 2012

The company sought to raise $125,000 for 25% of the comapny, implying a $375,000 pre money valuation. Unsurprisingly, all the sharks passed, based on market size and valuation expectations. The company was started six weeks ago, had no sales and no retail distribution yet.

Pre-Money Valuation 97

Pre-Money Valuation Offshore Valuation Cofounder 97

VC Cafe

OCTOBER 16, 2024

Sierra AI , founded by Bret Taylor (former co-CEO of Salesforce, CTO of Facebook and current chairman of OpenAI) is currently raising hundreds of millions of dollars at $4 billion valuation, just a year or so from launch after unlocking AI voice agents for companies. Another component of this technical challenge is accuracy.

Vertical 170

Vertical Generative AI B2C CTO Hire 170

VC Cafe

JANUARY 27, 2021

As teams become increasingly distributed, video communication is important for both internal alignment and external business development. 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.

Vertical 148

Vertical Video Technical Review Europe 148

Up and Running

MAY 15, 2019

These products will be distributed to remote yet extremely viable areas, where the market is appreciative of readily-available, good-quality brew. With this money, they plan to expand its distribution to selected metro areas within the state of Oregon. Managing your own distribution is ideal. Martin Cove Brewing Company.

Oregon 24

Oregon Jordan Software Review Distribution 24

Gust

OCTOBER 16, 2012

This summer I conducted our third annual survey of the pre-money valuation of pre-revenue companies recently funded by angel groups in North America. Access to our 2010 and 2011 surveys can be found at 2011 Valuation Survey of North American Angel Investor Groups. Pre-revenue life Science, biotech and medical device deals.

Angel Groups 169

Angel Groups Valuation Pre-Money Valuation North Dakota 169

YoungUpstarts

NOVEMBER 20, 2019

You may be able to generate revenue, but VCs want exponential growth. The market for our product was global, and we had unique advantages in terms of our product and how we distributed it to customers. Have a reasonable attitude about your early-stage valuation, and don’t get too hung up on it. Be ready when it counts.

Technical Review 140

Technical Review Due Diligence Early Stage Differentiation 140

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

VC Cafe

SEPTEMBER 13, 2024

With attractive valuations and immense growth potential, the Israeli tech ecosystem remains resilient—no matter the circumstances. Well done Ari Recht and team Odigos on your $13M seed extension to automate distributed data tracing in order to make it easier to detect performance issues in complex data systems using open source technologies!

Israel 78

Israel Generative AI Open Source Security 78

crowdSPRING Blog

NOVEMBER 30, 2012

… Checking In on Foursquare’s Valuation – [link]. How PRWeb Helps Distribute Crap Into Google & News Sites – [link]. Red All Over: Newspaper Revenues Fall In Q3 – [link]. Just got acquired? 10 adjustments to make when working for a Big Co. – [link]. Want to create a new habit?

Social Media 100

Social Media Small Business Central African Republic Design 100

Up and Running

JUNE 14, 2017

Then, about two weeks before launch, I distributed a survey to those 256 partners. But when I ran the numbers, the revenue from just the first three months from the 150 who were interested in premium would cover the investment and more. It wasn’t a scalable solution, but it was a start. 60 percent of respondents chose premium!

Technical Review 96

Technical Review Distribution Redemption Demand 96

Steve Blank

MARCH 18, 2011

The signals are loud and clear : seed and late stage valuations are getting frothy and wacky, and hiring talent in Silicon Valley is the toughest it has been since the dot.com bubble. VC’s worked with entrepreneurs to build profitable and scalable businesses, with increasing revenue and consistent profitability – quarter after quarter.

Internet 335

Internet IPO Silicon Valley Agile 335

Startup Professionals Musings

MARCH 14, 2020

Getting investors to trust you with their money is always a challenge, and it’s even more difficult in the early stages, where you don’t have a significant revenue stream, a few customers, or maybe even a product yet. Non-credible funding request or unreasonable valuation. Future unproven projections don’t set today’s valuation.

Due Diligence 308

Due Diligence Intellectual Property Preferred Stock Startup 308

ConversionXL

OCTOBER 22, 2018

To get marketing a seat at the table and prove that it can drive revenue and pipeline, we’ve become borderline obsessed with numbers. To reframe marketing as an investment rather than a cost center, we must connect all the dots to revenue—but it’s hard to do without the right tools and models to get started. form fills).

B2B 131

B2B Marketing Analytics Campaign 131

Both Sides of the Table

DECEMBER 9, 2013

Deal with company admin: 409a valuations, approve stock options, vote on key measures (15%). In my nearly 15 years of attending board meetings I can tell you that the distribution of time actually spent on these activities while you’re in person is more like: 1. should we cut staff early since our revenue isn’t growing?

Advisory Board 337

Advisory Board Valuation Stock Options Seed Money 337

Startup Professionals Musings

DECEMBER 11, 2022

Getting investors to trust you with their money is always a challenge, and it’s even more difficult in the early stages, where you don’t have a significant revenue stream, a few customers, or maybe even a product yet. Non-credible funding request or unreasonable valuation. Future unproven projections don’t set today’s valuation.

Due Diligence 271

Due Diligence Intellectual Property Entrepreneur Preferred Stock 271

thebarefootvc

DECEMBER 16, 2011

Discovery, in contrast to search, took center stage as Pinterest displayed hockey stick growth (and raised VC money near a $200M valuation in late 2011). The viral nature of social media no doubt aided this growth, as did improvements in the online shopping experience. What’s Next in 2012….

Technical Review 110

Technical Review India Mobile Hockey Stick 110

David Teten

DECEMBER 3, 2019

Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores. Lighter Capital, a Revenue Based Investing VC, offers a Cost of Capital Calculator.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

ConversionXL

FEBRUARY 15, 2018

Even though they may represent a much lower lifetime value for a brand, they can represent a significant chunk of revenue over a year. The most common example of distribution and information based scarcity used in luxury is one most brands should implement without exception: the “limited quantities available” message.

eCommerce 125

eCommerce Conversion Sales Los Angeles 125

ReadWriteStart

JANUARY 28, 2022

This article will assist you in gaining a fundamental understanding of equity valuation, kinds of equity, and other related topics. The market regards equity as an ownership “share” in a corporation’s income revenue stream. They need to ensure that the shares are distributed productively. Equity for Investors.

Valuation 108

Valuation Equity Warrant Common Stock 108

Austin Startup

OCTOBER 15, 2017

What seems to be the best way to create customers and revenue may result in a business model that is out of vogue with the investment world and shortchanges you on enterprise valuation. A good example is the marketing technology sector. You don’t normally get to dictate the decision as to how your customers want to buy.

Technical Review 48

Technical Review Software Review Nevada Silicon Valley 48

ConversionXL

JULY 16, 2021

By collating key information in a framework, you’ll reduce internal feedback loops, improve collaboration, and empower consistency—which can increase revenue by 33%. . Make sure to update and re-distribute them as needed. Your messaging strategy guidelines are a playbook for how your marketing team should create materials.

Audience 127

Audience Framework Differentiation Software Review 127

Startup Professionals Musings

OCTOBER 12, 2010

That’s because a company’s value is a composite of all of the quantitative and qualitative factors that comprise a company: revenues, expenses, risks, growth prospects, quality of the management team, competitive advantages, strength of the intellectual property, and so forth. In business, one important measure is the value of the company.

Intellectual Property 223

Intellectual Property .Net Valuation Distribution 223

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