Startup Professionals Musings

OCTOBER 18, 2023

Once an entrepreneur, always an entrepreneur. Although many won’t admit it, true entrepreneurs can’t wait to exit their current startup, and build a new and better one with their next great idea. For these reasons, I always look for an overt exit strategy in every startup I might consider for an angel investment.

Exit Strategy 248

Exit Strategy Valuation Acquisition Metrics 248

Startup Professionals Musings

FEBRUARY 19, 2012

Entrepreneurs love the art of the start. Assuming your startup takes off, you will probably find that the fun is gone by the time you reach 50 employees, or a few million in revenue. So here are the most common exit strategies and considerations these days for planning purposes: Merger & Acquisition (M&A).

Exit Strategy 241

Exit Strategy Initial Public Offering IPO Startup 241

Startup Professionals Musings

JANUARY 9, 2021

Once an entrepreneur, always an entrepreneur. Although many won’t admit it, true entrepreneurs can’t wait to exit their current startup, and build a new and better one with their next great idea. For these reasons, I always look for an overt exit strategy in every startup I might consider for an angel investment.

Exit Strategy 434

Exit Strategy Valuation Acquisition Metrics 434

Up and Running

MARCH 14, 2018

I’ve seen too many entrepreneurs think, “Oh, I know my business inside and out—pitching will be a breeze!” I’ve seen many entrepreneurs crash and burn when delivering their investor pitch—and ramble on and on. Your revenue or business model. Show what you’re projecting in revenue (per product) over the next three to five years.

Hockey Stick 164

Hockey Stick Exit Strategy Technical Review Angel Investor 164

Startup Professionals Musings

APRIL 27, 2016

The last thing a new entrepreneur wants to think about for a new startup is how it will end. Yet one of the first things a potential equity investor asks about is your exit strategy. Here are three important reasons for the question: Good investment paybacks normally require an exit event.

Equity 120

Equity Exit Strategy Private Equity Startup 120

Startup Professionals Musings

JUNE 7, 2020

I recognize that entrepreneurs tend to substitute vision and passion for formal processes, but using no discipline or process in building something new is a sure way to spend money, rather than see any return and build a self-sustaining business. Managing to specific goals, priorities, and a plan. Team building status and plan.

Entrepreneur 328

Entrepreneur Exit Strategy Metrics Operations 328

Startup Professionals Musings

JUNE 2, 2013

How do you as an entrepreneur with a new idea get to be one of those choices? That means there are far more entrepreneurs looking for money than there are investors, and entrepreneur entitlement is not a realistic expectation. 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

Up and Running

AUGUST 18, 2014

Difference #3 – planning for the ‘end’ or the exit strategy. “Startups looking for angel investors or venture capital (VC) absolutely need an exit strategy because investors require it. The exit is what gives them a return.” Ever heard of the serial entrepreneur? ” – Tim Berry.

Small Business 154

Small Business Exit Strategy Cofounder Angel Investor 154

Startup Professionals Musings

JULY 5, 2023

Some entrepreneurs start polling venture capitalists for that multi-million-dollar investment before they even have a business plan. Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy).

Incubator 305

Incubator Startup Exit Strategy Institutional Investors 305

Startup Professionals Musings

JANUARY 7, 2013

Based on the final report for 2012 from Thomson Reuters and the National Venture Capital Association (NVCA), it may appear that IPOs are back as a viable startup exit strategy. Sure, there will always some seed funding (10% of overall deal flow), but you can bet that this money goes to entrepreneurs who have been there before and won.

Venture Capital 252

Venture Capital IPO Elevator Pitch Initial Public Offering 252

Startup Professionals Musings

OCTOBER 8, 2023

Most entrepreneurs have found by now one or more of the many popular crowdfunding sites , and have the name and contact information for at least one of the big venture capital firms. Each has met legal securities minimums for net worth and professionalism, to reduce the risk to entrepreneurs. Most share expertise as well as money.

Accredited Investor 265

Accredited Investor Venture Capital Syndicate Syndication 265

Startup Professionals Musings

MARCH 10, 2023

I recognize that entrepreneurs tend to substitute vision and passion for formal processes, but using no discipline or process in building something new is a sure way to spend money, rather than see any return and build a self-sustaining business. Managing to specific goals, priorities, and a plan. Team building status and plan.

Exit Strategy 288

Exit Strategy Metrics Operations Cost 288

Startup Professionals Musings

SEPTEMBER 28, 2015

Too many entrepreneurs look for that one magic bullet -- an exciting new technology, perhaps, or their own determination to make the world a better place -- to override any shortcomings in their startup model. Validated pricing and a sufficient revenue stream. This will lead to investor-return calculations and exit strategies.

Exit Strategy 120

Exit Strategy Technical Review Distribution Viral 120

Startup Professionals Musings

OCTOBER 7, 2022

One of the big questions that every entrepreneur struggles with is how much funding they should request from investors in the first round. Angel investors will perk up if you have a prototype or a few real customers, while venture capitalists will likely choose to wait until you have achieved several million in revenue or customer count.

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

Startup Professionals Musings

OCTOBER 14, 2016

What every entrepreneur is asking me these days, is “How do I get to be a unicorn?” Yet there are a common set of driving factors that every entrepreneur should know, including the following: Extraordinary marketplace traction. Credible yet flexible exit strategy. These are popularly called “unicorns.”

Intellectual Property 120

Intellectual Property Valuation Merger Exit Strategy 120

Startup Professionals Musings

OCTOBER 12, 2020

Some entrepreneurs start polling venture capitalists for that multi-million dollar investment before they even have a business plan. Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy).

Incubator 429

Incubator Startup Exit Strategy Institutional Investors 429

YoungUpstarts

JANUARY 10, 2018

by Ryan Gould, Vice President of Strategy and Marketing Services at Elevation Marketing. As an entrepreneur, when you started your business, you most likely had dreams of rocket-speed growth and a multi-million dollar exit to a huge conglomerate, like Google or Facebook or Amazon. Profile Your Customer Base. Wrapping Up.

Valuation 145

Valuation Technical Review Exit Strategy Metrics 145

Up and Running

JANUARY 2, 2013

I’ve seen too many entrepreneurs think, “oh, I know my business inside and out – pitching will be a breeze!” I’ve also seen many entrepreneurs crash and burn when delivering their investor pitch – and ramble on and on. Your Revenue Model : Investors tend to care about this slide the most.

Hockey Stick 164

Hockey Stick Exit Strategy Technical Review Due Diligence 164

Startup Professionals Musings

JANUARY 27, 2021

Most entrepreneurs have found by now one or more of the many popular crowdfunding sites , and have the name and contact information for at least one of the big venture capital firms. Each has met legal securities minimums for net worth and professionalism, to reduce the risk to entrepreneurs. Most share expertise as well as money.

Search 317

Search Accredited Investor Angel Investor Venture Capital 317

Up and Running

SEPTEMBER 19, 2018

Financial Summary: Explain your business model, startup costs, revenues, and liabilities to the company. Your funding ask and exit strategy, if applicable. Exit strategy : Needed if you’re seeking investment. There are a multitude of websites designed to help connect cannabis entrepreneurs with investors.

Business Plan 154

Business Plan Technical Review Forecast Software Review 154

Startup Professionals Musings

MARCH 13, 2020

For example, every investor I know can tell you about meeting a passionate entrepreneur who is pitching a great technology innovation, but has not done the financial homework on making it a good business. Thus the investor can’t visualize any return on investment (ROI), so the entrepreneur gets no money, and a good opportunity is lost to all.

Liquidity Event 308

Liquidity Event Forecast Exit Strategy Bootstrapping 308

Startup Professionals Musings

NOVEMBER 4, 2011

A conundrum for many frustrated entrepreneurs is that they need money from investors to design and build a prototype product, yet most angel investors expect to see at least a prototype before they invest. Every entrepreneur needs a professional business plan for their own use, whether they intend to seek investor funding or not.

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

Startup Professionals Musings

JANUARY 4, 2020

One of the big questions that every entrepreneur struggles with is how much funding they should request from investors in the first round. Angel investors will perk up if you have a prototype or a few real customers, while venture capitalists will likely choose to wait until you have achieved several million in revenue or customer count.

Startup 337

Startup Preferred Stock Exit Strategy Equity 337

YoungUpstarts

SEPTEMBER 19, 2018

Or look for another revenue generating angle. Also, find a mentor who has done something similar and discovered an exit strategy for their business. ” Secondly, if you can’t answer the first question consistently then you should quickly look for another market or opportunity.

South America 113

South America Software Review Thailand Vietnam 113

Up and Running

MAY 4, 2015

Tips from entrepreneurs who successfully pitched their businesses for funding. The winning entrepreneur offers some important advice: avoid unrealistic financial projections (you’ll look like an amateur), and always copy edit your pitch deck. Describe your revenue model. State your exit strategy.

Technical Review 60

Technical Review Entrepreneur Software Review Houston 60

Startup Professionals Musings

SEPTEMBER 23, 2010

A conundrum for many frustrated entrepreneurs is that they need money from investors to design and build a prototype product, yet most angel investors expect to see at least a prototype before they invest. Every entrepreneur needs a professional business plan for their own use, whether they intend to seek investor funding or not.

Angel Investor 224

Angel Investor Intellectual Property Technical Review Elevator Pitch 224

Startup Professionals Musings

JUNE 15, 2013

Some entrepreneurs start polling venture capitalists for that multi-million dollar investment before they even have a business plan. Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). Marty Zwilling.

Incubator 256

Incubator Entrepreneur Exit Strategy Institutional Investors 256

Reid Hoffman

JULY 23, 2020

Recently, my fellow Greylock investor Saam Motamedi and I examined the question of how the Covid-19 pandemic has affected venture investing, and what entrepreneurs should do in response. This week, I’d like to turn to the question of how current market conditions affect the approach entrepreneurs should take towards their exit strategy.

IPO 36

IPO Exit Strategy Acquisition Technical Review 36

Berkonomics

JUNE 22, 2023

Can this business grow to above $20MM to $50MM in annual revenues? Is there an exit strategy for the investor(s) over time? Building a great business to create wealth for the entrepreneur at exit, means thinking of the exit strategies from the beginning.

Exit Strategy 114

Exit Strategy Technology Revenue Conversion 114

Up and Running

AUGUST 28, 2018

Financial summary: Explain your business model, startup costs, revenues, and liabilities to the company. Your funding ask and exit strategy, if applicable. Exit strategy : You only need this if you’re seeking outside investment. Do they self-pay or use insurance? Be specific. Team: Who is on your management team?

Business Plan 72

Business Plan Technical Review Exit Strategy Oregon 72

Startup Professionals Musings

SEPTEMBER 5, 2016

In my experience as an advisor to aspiring entrepreneurs, I often encounter the myth that an initial startup requires investors. The media tends to highlight experienced entrepreneurs who succeed with early new venture funding, like Uber’s Garrett Camp , but fail to point out the more common bootstrapping successes.

Bootstrapping 120

Bootstrapping Entrepreneur Startup Exit Strategy 120

Startup Professionals Musings

AUGUST 8, 2016

As a startup advisor and investor, I find that more and more entrepreneurs avoid using the term “profit” in pitching their new venture. Thus I was pleased and a bit surprised to see a new book, “ The Purpose Is Profit ,” by Ed “Skip” McLaughlin, an entrepreneur who has both succeeded and failed in starting multiple businesses.

Intellectual Property 120

Intellectual Property Entrepreneur Elevator Pitch Exit Strategy 120

Startup Professionals Musings

JANUARY 5, 2011

Entrepreneurs love the art of the start. Assuming your startup takes off, you will probably find that the fun is gone by the time you reach 50 employees, or a few million in revenue. So here are the most common exit strategies and considerations these days for planning purposes: Merger & Acquisition (M&A).

Exit Strategy 231

Exit Strategy Initial Public Offering Startup IPO 231

Berkonomics

MAY 9, 2024

Can this business grow to above $20MM to $50MM in annual revenues? Is there an exit strategy for the investor(s) over time? Building a great business to create wealth for the entrepreneur at exit, means thinking of the exit strategies from the beginning.

Exit Strategy 62

Exit Strategy Technology Revenue Conversion 62

Steve Blank

SEPTEMBER 14, 2009

One of the biggest mistakes entrepreneurs make is misunderstanding the role of venture capital investors. There’s lots of lore, emotion, and misconceptions of what VC’s do or don’t do for entrepreneurs. While there was an occasional bad apple, the public markets rewarded companies with revenue growth and sustainable profits.

Silicon Valley 236

Silicon Valley IPO Technical Review Venture Capital 236

Startup Professionals Musings

DECEMBER 28, 2018

Some entrepreneurs start polling venture capitalists for that multi-million dollar investment before they even have a business plan. Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy).

Incubator 236

Incubator Exit Strategy Institutional Investors Angel Investor 236

Up and Running

MAY 15, 2018

As an entrepreneur, you will face several challenges while seeking the funds, in part because you’ll have to convince others that your idea is a solid investment. Your business model must show the potential to increase the revenue with minimal expenditure in the coming months or years. Creating a scalable business model. Credit cards.

SBA 84

SBA Angel Investor Technical Review Startup 84