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. Old co-workers or new friends with complementary skills usually make the best partners. The Founder’s title and role dilemma.

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. Old co-workers or new friends with complementary skills usually make the best partners. The founder’s title and role dilemma.

Hockey Stick 144

Hockey Stick Cofounder Entrepreneur Liquidity Event 144

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. Here’s why. Source: NVCA.).

Venture Capital 306

Venture Capital IPO Liquidity Event Entrepreneur 306

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. Old co-workers or new friends with complementary skills usually make the best partners. The founder’s title and role dilemma.

Hockey Stick 243

Hockey Stick Cofounder Liquidity Event Startup 243

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

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. Who are the partners? How do the fund and the partners make money?

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

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

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

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. Old co-workers or new friends with complementary skills usually make the best partners. The Founder’s title and role dilemma.

Founder 245

Founder Hockey Stick Cofounder Liquidity Event 245

Startup Professionals Musings

DECEMBER 11, 2015

As an angel investor, I hear many entrepreneurs making negative comments about competitors or asserting they don’t have any competitors. Investors need a liquidity event to get their money out. Highlight opportunities for 'coopetition' and strategic partners. Remember that investors invest in people more than the idea.

Intellectual Property 120

Intellectual Property Liquidity Event Exit Strategy Angel Investor 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

Women Entrepreneurs Can

NOVEMBER 19, 2022

Investors receive a healthy return on investment when the company reaches a liquidity event. Xfund, Patrick Chung is a managing general partner in a venture capital firm that supports lateral thinkers. The entrepreneur needs to have a functioning business model and a working product to get seed funding.

Venture Capital 52

Venture Capital Early Stage Liquidity Event SEC 52

Pascal's View

DECEMBER 17, 2012

Denis Dougherty of Intersouth Partners was recently interviewed by Brian Gormley of The Wall Street Journal on the decade-long liquidity crisis that continues to plague the venture capital industry.

Acquisition 38

Acquisition Merger Covenant Liquidity Event 38

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. Who are the partners? How do the fund and the partners make money?

Venture Capital 227

Venture Capital IRR Liquidity Event Business Model 227

Startup Professionals Musings

AUGUST 13, 2012

Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” It always amazes me how an entrepreneur can define his market opportunity so broadly, and then assess his competition so narrowly in the next breath. Marketing, sales, and partners. Exit strategy.

Business Plan 283

Business Plan Sweat Equity Exit Strategy Intellectual Property 283

Gust

AUGUST 10, 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. Image via pixabay.com. Build a path to 10x return.

Liquidity Event 176

Liquidity Event Equity Venture Capital Merger 176

Startup Professionals Musings

FEBRUARY 13, 2016

Entrepreneurs who are looking to attract investors need to develop and pitch a plan -- preferably written -- that answers every potential investor question about your startup before it is asked. If you don’t plan a liquidity event, you won’t find many investors interested. What are your specific marketing and sales plans?

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Startup Professionals Musings

MAY 13, 2011

Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” It always amazes me how an entrepreneur can define his market opportunity so broadly, and then assess his competition so narrowly in the next breath. Marketing, sales, and partners. Exit strategy.

Business Plan 290

Business Plan Sweat Equity Exit Strategy Intellectual Property 290

Seeing Both Sides

SEPTEMBER 15, 2015

Decades ago, the thesis of Yossi Vardi , a prolific technology entrepreneur who has invested in 75 Israeli startups, was that Israeli entrepreneurs should seek quick exit opportunities through global corporations interested in buying a window into Israeli talent and technology. We think so. Today, this thesis is less relevant.

Israel 20

Israel Cofounder Technical Review United States 20

Berkonomics

JUNE 8, 2017

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 106

Private Equity Valuation Cap Table Accredited Investor 106

Pascal's View

MARCH 12, 2010

The VC fund may have one managing partner that sets the tone and controls the entire firm, or it may have a collegial distribution of governance among several senior partners. An important question to ask is, do the partners evaluate themselves and each other on an annual basis or at all? Share and Enjoy:

Government 28

Government Portfolio Technical Review Due Diligence 28

Gust

AUGUST 5, 2012

Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” It always amazes me how an entrepreneur can define his market opportunity so broadly, and then assess his competition so narrowly in the next breath. Marketing, sales, and partners. Exit strategy.

Business Plan 182

Business Plan Sweat Equity Exit Strategy Intellectual Property 182

The Next Web

MARCH 2, 2014

This will have a significant impact on the amount business owners could realize on the sale or other liquidity event for the company. In addition, beyond financial control, many investors will require some input into the operation of your business and even the right to approve certain significant transactions and events.

Liquidity Event 139

Liquidity Event Equity Finance Stock Options 139

Berkonomics

SEPTEMBER 27, 2018

I’ve been offered $15 million for my company and my partner is suing me for all I am worth. And yes, his partner had a valid suit, having been locked out of the web-design business and denied access to decisions and accounting information. Our entrepreneur balked at the boldness of that statement. What can I do?”.

Pre-Money Valuation 48

Pre-Money Valuation Sales Liquidity Event Valuation 48

Startup Professionals Musings

APRIL 22, 2010

Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” It always amazes me how an entrepreneur can define his market opportunity so broadly, and then assess his competition so narrowly in the next breath. Marketing, sales, and partners. Exit strategy.

Business Plan 186

Business Plan Exit Strategy Sweat Equity Intellectual Property 186

Board Effect

MAY 10, 2019

There’s the owner—maybe a partner or two—but unless employees are offered equity from the get-go, there’s typically not a whole lot of dilution. Most entrepreneurs enter into investor negotiations with an assessment of what their business is worth, the percentage of ownership they’re willing offer, and the amount they’re seeking in return.

Cap Table 40

Cap Table Liquidation Preference Dilution Liquidity Event 40

David Teten

AUGUST 21, 2019

These entrepreneurs want to maintain two major options: 1) To raise VC later (or not), and/or. But you also can’t run the company forever, since investors need a liquidity event. So you’re stuck selling mid-term, which is frequently sub-optimal for the entrepreneur. “. RBI investors usually don’t take equity.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Berkonomics

SEPTEMBER 17, 2011

I’ve been offered $15 million for my company and my partner is suing me for all I am worth. And yes, the partner had a valid suit, having been locked out of the business and denied access to decisions and accounting information. What can I do?” I promised to come see him at his office the very next week.

Liquidity Event 59

Liquidity Event Pre-Money Valuation Sales Valuation 59

Gust

NOVEMBER 4, 2011

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. Redpoint was understandably disappointed that it didn’t get the chance to see its MySpace investment through to an IPO or later liquidity event at a higher multiple.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Rob Go

JULY 17, 2014

As former operators and product-oriented entrepreneurs, Dave, Lee, and I tend to think of our firm as a startup company and our approach to investing as our product. We’ve often explained to entrepreneurs that the second fund of a venture firm is very much like the series A for an early stage company. Zillow ), Hyperpublic ( acq.

Seed Stage 69

Seed Stage Early Stage Due Diligence Liquidity Event 69

entrepreMusings

NOVEMBER 7, 2010

My new music writing partner and I now have 5 prototype songs done. This past week, I had the chance to participate in two really neat entrepreneurial related events in Austin. One was the Entrepreneur’s Foundation of Central Texas (EF) annual fundraising Texas Hold ‘Em poker night event.

Intellectual Property 43

Intellectual Property Incubator Liquidity Event Texas 43

abovethecrowd.com

APRIL 20, 2016

All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. Entrepreneurs/Founders/CEOs. By the first quarter of 2016, the late-stage financing market had changed materially.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Startup Company Lawyer

MARCH 14, 2010

My general opinion is that anything that makes the financing process faster and easier or otherwise educates entrepreneurs is a good thing. (A Founders Institute Plain Preferred Term Sheet (by WSGR – disclaimer, I represent the Founders Institute and was involved in drafting this document).

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Berkonomics

JANUARY 20, 2010

Some businesses require very little capital and the founder is able to 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 69

Private Equity Valuation Cap Table Accredited Investor 69

David Teten

MARCH 14, 2018

My Partners at HOF Capital are younger than I am, which means that we have a half-century horizon for the franchise we are building. – Build out low-cost force multipliers such as scouts , Advisors, Entrepreneurs in Residence, Venture Partners, and so on. So we think about scaling a lot.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

www.vccafe.com

MARCH 11, 2013

A group of Seedcamp entrepreneurs started a startup tools wiki for that purpose, and we thought it would be well suited here. List of Angel/SuperAngel Investors for entrepreneurs. Mark Suster GRP Partners Advice. Philippe Botteri, Bessemer Venture Partners. Walker Law: Tips for Entrepreneurs. VC Experts.

Software Review 53

Software Review Technical Review Israel Startup 53