Berkonomics

NOVEMBER 7, 2024

To grow your business to a size that will be attractive to a VC or angel making an investment now, you’ve got to show that the business will be large enough at the time of the investor’s liquidity event (cashing out) to make the investment attractive at all.

Hockey Stick 62

Hockey Stick Liquidity Event Valuation Balance Sheet 62

Berkonomics

JUNE 26, 2014

Angel investors, particularly those in organized angel groups, are typically former entrepreneurs who have had successful liquidity events in their pasts, or executives of companies who’ve retired with the funds from their stock options. The result of these surveys over time is universally the same.

Liquidity Event 76

Liquidity Event Technical Review Due Diligence Angel Groups 76

Startup Professionals Musings

JANUARY 15, 2021

When an entrepreneur first incorporates a business, they may find themselves the proud owner of 10 million shares of common stock, commonly called founder’s shares. Startup owners need to assume a three to five year wait for a liquidity event, such as acquisition or going public, before they can cash out. In the U.S.,

Vesting 298

Vesting Dilution Stock Founder Vesting 298

The Next Web

OCTOBER 7, 2013

What you need to consider: - x : percent ownership upon a liquidity event. Again this is somewhat simplified as the liquidity event (sale or IPO) may come as cash, stock, or a combination of the two. Entrepreneur Insider Analysis and Opinion How-To''s' It doesn’t matter how high your offer is if your startup fails.

Engineer 129

Engineer Dilution Option Pool Vesting 129

Startup Professionals Musings

DECEMBER 14, 2014

Most entrepreneurs struggle with many startup Founders dilemmas in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. Not facing these dilemmas squarely and honestly is one of the biggest pitfalls facing every entrepreneur. Marty Zwilling.

Hockey Stick 268

Hockey Stick Cofounder Entrepreneur Liquidity Event 268

Startup Professionals Musings

AUGUST 19, 2017

Most entrepreneurs struggle with many startup founders dilemmas in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. Not facing these dilemmas squarely and honestly is one of the biggest pitfalls facing every entrepreneur. Marty Zwilling.

Hockey Stick 144

Hockey Stick Cofounder Entrepreneur Liquidity Event 144

Berkonomics

JANUARY 7, 2021

Think of startups and early stage businesses whose entrepreneurs you know. One: The entrepreneur. First, there is the entrepreneur , the visionary, and force behind the venture from start to finish. So, co-management is the second group to share in the bounty upon a liquidity event. Two: Co-management.

Liquidity Event 96

Liquidity Event Pre-Money Valuation Cofounder Initial Public Offering 96

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

FEBRUARY 6, 2015

Investing in entrepreneurs and startups is a fun but different world from investing in conventional stocks, bonds, and commodities. Fund an entrepreneur you know and trust. Most entrepreneurs start asking for money from this tier, when they have very little more than an idea. business entrepreneurs investing startups'

Accredited Investor 120

Accredited Investor Liquidity Event SEC Entrepreneur 120

Steve Blank

JULY 15, 2010

The Golden Age for Entrepreneurs and VC’s. The two decades from 1979 when pension funds fueled the expansion of venture capital to 2000 when the dot-com bubble burst were the Golden Age for entrepreneurs and venture capital firms. Number of Venture Backed Liquidity Events 1991-2000. What Does it Mean to an Entrepreneur?

Venture Capital 306

Venture Capital IPO Liquidity Event Entrepreneur 306

Berkonomics

AUGUST 17, 2023

A personal story as an investor … [Email readers, continue here…] My very first investment as a professional angel was in a small startup where the entrepreneur’s vision fueled my imagination in the audio market niche where I had run a business in an earlier life. Trust works both ways.

Liquidity Event 118

Liquidity Event Stock Options Stock Audio 118

Startup Professionals Musings

AUGUST 10, 2019

Most entrepreneurs struggle with many startup founders quandaries in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. Not facing these dilemmas squarely and honestly is one of the biggest pitfalls facing every entrepreneur. Marty Zwilling.

Hockey Stick 243

Hockey Stick Cofounder Liquidity Event Startup 243

Startup Professionals Musings

SEPTEMBER 16, 2017

Investing in entrepreneurs and startups is a fun but different world from investing in conventional stocks, bonds, and commodities. Fund an entrepreneur you know and trust. Most entrepreneurs start asking for money from this tier, when they have very little more than an idea. Think long-term.

Liquidity Event 184

Liquidity Event SEC Accredited Investor Angel Investor 184

Berkonomics

OCTOBER 24, 2013

Next week, we begin again with new insights from startup through liquidity event, including guest postings by some of the nation’s best known angel investors and entrepreneurs. I followed many of these stated retirees, and very few if any retiring entrepreneurs stay that way for long. Amazon Kindle Edition: [link].

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Liquidity Event Entrepreneur Stock Options Angel Investor 70

Gust

DECEMBER 1, 2011

When meeting with early stage entrepreneurs for the first time, after reviewing a demo or hearing their pitch, I often ask them to articulate what they’re most focused on building. I don’t fault entrepreneurs for relegating startup legal work to the bottom of their daily triage list; founders are spread incredibly thin.

IP 114

IP Intellectual Property Equity Liquidity Event 114

Startup Professionals Musings

AUGUST 29, 2018

Yet crowdfunding is no panacea for hungry entrepreneurs and startups. Crowdfunding may look easy, via popular sites like Kickstarter and Indiegogo, but their cost in time, effort, and money by entrepreneurs is daunting. Payoff after a liquidity event is difficult and unpredictable.

Equity 180

Equity Due Diligence Angel Groups Liquidity Event 180

Startup Professionals Musings

NOVEMBER 1, 2013

Investing in entrepreneurs and startups is a fun but different world from investing in conventional stocks, bonds, and commodities. Fund an entrepreneur you know and trust. Most entrepreneurs start asking for money from this tier, when they have very little more than an idea. Think long-term. Marty Zwilling.

Accredited Investor 219

Accredited Investor Liquidity Event SEC Stock 219

Startup Professionals Musings

JULY 27, 2018

I’m still amazed at how many technical entrepreneurs don’t have a business pitch, and offer me their product pitch or product spec instead. Solo entrepreneurs have a hard time finding an investor. Discussion of likely liquidity events and exit strategy. Intellectual property and sustainable competitive advantage.

Product 145

Product Intellectual Property Liquidity Event Valuation 145

Startup Professionals Musings

SEPTEMBER 24, 2012

Reuters TV Interview by Rhonda Schaffler Investing in entrepreneurs and startups is a fun but different world from investing in conventional stocks, bonds, and commodities. Fund an entrepreneur you know and trust. Most entrepreneurs start asking for money from this tier, when they have very little more than an idea.

Portfolio 228

Portfolio Accredited Investor Liquidity Event SEC 228

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Berkonomics

APRIL 20, 2023

We have years of real data to call upon: data that impacts both investors and entrepreneurs. years before a liquidity event (positive or negative.) Entrepreneurs will always start new enterprises. Restaurant startups would not top my list. Data does not lie. How about the early-stage investors?

SBA 62

SBA Angel Investor Early Stage Liquidity Event 62

Berkonomics

FEBRUARY 20, 2020

More than ever, the banks and lenders today require personal guarantees from entrepreneurs, and even from CEO’s of angel or some VC funded businesses. Starting and running a small or growing business can be a challenge to the most confident and optimistic entrepreneur. A novel reward for the entrepreneur from the board.

Warrant 62

Warrant Liquidity Event Stock Finance 62

Startup Professionals Musings

JUNE 6, 2016

The challenge for these entrepreneurs is to know when to exit, and how to do it smoothly in a win-win fashion for themselves and the business. Some entrepreneurs are leaders, others are good managers and still more are happy to be the do-ers. The best entrepreneurs enjoy the challenges of the journey, more than the destination.

Liquidity Event 120

Liquidity Event Startup Angel Investor Entrepreneur 120

Up and Running

SEPTEMBER 19, 2017

Background: Adam Carlson is a serial entrepreneur who has successfully raised private capital at three different technology startups. Private equity investments are an important part of many startup business’s plans for accelerating growth or providing founders with a liquidity event. Consequently, he passed. Conclusion.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Startup Professionals Musings

JULY 19, 2013

Most entrepreneurs struggle with many startup Founders dilemmas in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. Not facing these dilemmas squarely and honestly is one of the biggest pitfalls facing every entrepreneur. Marty Zwilling.

Founder 245

Founder Hockey Stick Cofounder Liquidity Event 245

Berkonomics

FEBRUARY 3, 2022

First, the implied promise: Taking money from professional investors such as angels or VCs usually requires that you agree to seek an exit for those investors in your plan, often targeting five to seven years as the ideal period for growth before a liquidity event. What if you later decide to just keep control? (You

Liquidity Event 62

Liquidity Event Preferred Stock Dividend Equity 62

Berkonomics

JUNE 12, 2014

First, there is the entrepreneur , the visionary, and force behind the venture from start to finish. Few entrepreneurs can do it alone, with subordinate hired help and no expert management to share the burdens, skill sets and efforts involved in growing the enterprise. Email readers, continue here.]

Liquidity Event 85

Liquidity Event Pre-Money Valuation Cofounder Initial Public Offering 85

Startup Professionals Musings

AUGUST 17, 2014

Most entrepreneurs struggle with financial projections, not wanting to commit to numbers they can’t deliver, and having no clue what investors might consider reasonable. Most entrepreneurs, with no experience, believe that they can make good money with lower margins than competitors. Gross margins greater than 50%. Marty Zwilling.

Liquidity Event 249

Liquidity Event Equity Venture Capital Merger 249

Steve Blank

JUNE 11, 2013

For many entrepreneurs “raising money” has replaced “building a sustainable business” as their goal. Entrepreneurs need to think about 1) when to raise money, 2) why to raise money and 3) who to take money from, 4) the consequences of raising money. How much do they need to own at a liquidity event?

Venture Capital 335

Venture Capital IRR Liquidity Event Business Model 335

Steve Blank

JULY 2, 2009

Entrepreneur-in-Residence After SuperMac I had been approached by one of our venture investors to be an entrepreneur in residence (EIR), a Silicon Valley phrase which says one thing but means another. I offered to introduce him to the firm whose Entrepreneur-in-Residence offer I had just accepted.

Silicon Valley 120

Silicon Valley Technical Review RSS Software Review 120

Startup Professionals Musings

MAY 28, 2013

Most entrepreneurs struggle with financial projections, not wanting to commit to numbers they can’t deliver, and having no clue what investors might consider reasonable. Most entrepreneurs, with no experience, believe that they can make good money with lower margins than competitors. Gross margins greater than 50%. Marty Zwilling.

Liquidity Event 243

Liquidity Event Startup Equity Venture Capital 243

Berkonomics

OCTOBER 28, 2021

The biggest mistake many corporate marketers, entrepreneurs and even investors make in the initial stages of planning – overstating the size of the (SOM) serviceable obtainable market. Yet, there are wonderful cases where entrepreneurs created and grew vast enterprises in new markets which could not be measured when their journey began.

Liquidity Event 62

Liquidity Event .Net Differentiation Entrepreneur 62

Startup Professionals Musings

MAY 18, 2015

When an entrepreneur first incorporates his or her business, he or she may find him or herself the proud owner of 10 million shares of common stock, commonly called founder’s shares. Startup owners need to assume a three to five year wait for a liquidity event, such as acquisition or going public, before they can cash out.

Stock 120

Stock Vesting Common Stock Founder Vesting 120

Berkonomics

SEPTEMBER 20, 2018

Most entrepreneurs and certainly all investors would like to see “a positive liquidity event” (a good sale of the business) someday. Not only will group focus upon the possibility of a liquidity event, it will begin to focus upon a number of possible buyers. So, that’s the reason for this insight.

Liquidity Event 48

Liquidity Event Intellectual Property Naming Acquisition 48

Berkonomics

NOVEMBER 15, 2018

Looking back over an entrepreneur’s journey. As I look back over more than fifty years as an entrepreneur, I can think of the financial focus of my three entrepreneurial businesses as a prime driver in my life during the early stage of each. But, for this short moment…. The rewards of angel investing.

Liquidity Event 48

Liquidity Event Early Stage Government Leadership 48

View from Seed

MAY 19, 2015

Below, I’ve compiled what I’ve learned to be the seven “Founding Sins” – common mistakes which often divert entrepreneurs off the path towards success. Great ideas search for a great entrepreneur; great entrepreneurs don’t search for a great idea. Inauthenticity. It’s a full-time life. And then some. Taciturnity.

Seed Stage 120

Seed Stage Liquidity Event Cofounder Startup 120

Startup Professionals Musings

AUGUST 7, 2015

When pitching to investors, entrepreneurs always seem to start with a customer pitch, then add a slide or two about the business. Investors are business experts, while the entrepreneur is more likely the product expert. The entrepreneur needs to show a strategy for such an event, and a projected value and return to the investor.

Product 120

Product Intellectual Property Liquidity Event Burn Rate 120