Startup Professionals Musings

OCTOBER 18, 2023

In addition, current investors want to see every startup go public or be acquired, as an exit event, so they can get their due return for that investment which has been tied up for the last few years. 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

Up and Running

MARCH 14, 2018

Your revenue or business model. Show what you’re projecting in revenue (per product) over the next three to five years. Your exit strategy. If you’re seeking large sums of investment capital (over $1M), most investors will want to know what your exit strategy is. How will you make money ?

Hockey Stick 164

Hockey Stick Exit Strategy Technical Review Angel Investor 164

Startup Professionals Musings

JANUARY 9, 2021

In addition, current investors want to see every startup go public or be acquired, as an exit event, so they can get their due return for that investment which has been tied up for the last few years. 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

Startup Professionals Musings

APRIL 27, 2016

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. This alternative is often paired with a personal no-exit strategy. You can kick-off your next startup.

Equity 120

Equity Exit Strategy Private Equity Startup 120

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.” ” – Tim Berry. A word to the wise from the wise.

Small Business 154

Small Business Exit Strategy Cofounder Angel Investor 154

Startup Professionals Musings

JUNE 2, 2013

This requires a visible focus on the company’s revenue model, the costs to get there, and cash on hand. Exit strategy. What’s most realistic these days is an exit via sale to an existing major company for which you solve a meaningful problem. No exit strategy means no return to investors. Funding risk.

Angel Investor 269

Angel Investor Cram Down Intellectual Property Venture Capital 269

ReadWriteStart

OCTOBER 2, 2021

And even though an LLC is legally required to report its revenues, profits, and losses, it does not have to pay corporate income taxes on profits. Even if you have a long-term exit strategy, keeping your business as an LLC protects your interest as a founder for as long as you wish.

Technical Review 158

Technical Review LLC IPO Stock 158

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. Your friends and family are really the only answer until you have a significant revenue stream. Identify the right people in the right venture firms.

Venture Capital 252

Venture Capital IPO Elevator Pitch Initial Public Offering 252

Growthink Blog

DECEMBER 27, 2017

Detail all revenue streams. Be sure to include all revenue streams. Depending on the type of business, these may include sales of products/services, referral revenues, advertising sales, licensing/royalty fees, and/or data sales. Provide a clear exit strategy. Be consistent with your pro-forma statements.

Venture Capital 129

Venture Capital Business Plan Technical Review Private Placement 129

Startup Professionals Musings

JULY 5, 2023

Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). This normally means more than 30 employees, and more than $1 million in revenue. It won’t work, it costs time and money, and hurts your credibility when you need them later.

Incubator 305

Incubator Startup Exit Strategy Institutional Investors 305

Startup Professionals Musings

OCTOBER 8, 2023

Make sure these cover your business model and exit strategy, so the angels see how both of you will make a reasonable return. To be fundable, fifth year revenue projections need to be in the $20-$100 million range. Opportunity sizing and financial projections must be credible.

Accredited Investor 265

Accredited Investor Venture Capital Syndication Syndicate 265

Up and Running

JANUARY 2, 2013

Your Revenue Model : Investors tend to care about this slide the most. Your Financial Projections : Show what you’re projecting in revenue (per product) over the next three to five years. Ideally, you have check marks across the top for every category, and your competitors lack in key areas to show your competitive advantage.

Hockey Stick 164

Hockey Stick Exit Strategy Technical Review Due Diligence 164

Startup Professionals Musings

OCTOBER 14, 2016

Premium ventures need real traction, such as 100 million users, 10 million in revenue, or brand recognition around the world. Additional defensibility elements that unicorn investors look for include speed of implementation, rate of revenue and user growth, and exceptional team strength and leadership.

Intellectual Property 120

Intellectual Property Valuation Merger Exit Strategy 120

Startup Professionals Musings

SEPTEMBER 28, 2015

Common failures I see along these lines include: solutions that are "nice to have" but don't address painful problems; a business model that lacks a means for bringing in revenue; and a founder who has turned a blind eye toward his or her competitors. Validated pricing and a sufficient revenue stream.

Exit Strategy 120

Exit Strategy Technical Review Distribution Viral 120

Startup Professionals Musings

MARCH 10, 2023

External investors expect a documented business plan, with clear targets on funding needed, use of funds, revenue projections, return potential, and exit strategy. Even if you are not requesting outside funding, I would expect a clear process for sourcing and managing the investment you plan to apply.

Exit Strategy 288

Exit Strategy Metrics Operations Cost 288

Startup Professionals Musings

OCTOBER 12, 2020

Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). This normally means more than 30 employees, and more than $1 million in revenue. It won’t work, it costs time and money, and hurts your credibility when you need them later.

Incubator 429

Incubator Startup Exit Strategy Institutional Investors 429

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. Target market: Who is your ideal buyer? Be specific. Competition: Who else offers similar services?

Business Plan 154

Business Plan Technical Review Forecast Software Review 154

YoungUpstarts

JANUARY 10, 2018

After all, your clientele is what brings in the revenue and sets up the expenses, so they remain one of the most important elements of your company. A more numerous customer base, of course, means higher revenues and a bigger market presence, but it also says there’s less room within the market for the company to expand.

Valuation 145

Valuation Technical Review Exit Strategy Metrics 145

Startup Professionals Musings

OCTOBER 7, 2022

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. How much do you really need for the next 12 to 18 months? Here is where projections of cost, pricing, volumes and cash flow are critical.

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

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

ReadWriteStart

OCTOBER 2, 2021

And even though an LLC is legally required to report its revenues, profits, and losses, it does not have to pay corporate income taxes on profits. Even if you have a long-term exit strategy, keeping your business as an LLC protects your interest as a founder for as long as you wish.

Technical Review 78

Technical Review LLC IPO Stock 78

Startup Professionals Musings

MARCH 13, 2020

In that context, I offer the following financial projection strategies, from my own experience: Forecast a business that has plenty of room to grow quickly. Find some credible opportunity statistics that can support your own revenue expectations of between $20 million and $100 million in the fifth year.

Liquidity Event 308

Liquidity Event Forecast Exit Strategy Bootstrapping 308

YoungUpstarts

JUNE 9, 2018

Between choosing location in new cities to creating an exit strategy after you attain success, penetrating a new market requires a strategic plan. Map Out an Exit Strategy. Finally, map out an exit strategy if your company does or does not become successful in the space.

Jacksonville 189

Jacksonville Due Diligence Exit Strategy Marketing 189

Startup Professionals Musings

JANUARY 27, 2021

Make sure these cover your business model and exit strategy, so the angels see how both of you will make a reasonable return. To be fundable, fifth year revenue projections need to be in the $20-$100 million range. Opportunity sizing and financial projections must be credible.

Search 317

Search Accredited Investor Angel Investor Venture Capital 317

Startup Professionals Musings

NOVEMBER 4, 2011

It should answer every question an investor or associate might ask, including current valuation, funding needed, and exit strategy. In most cases, a Microsoft Excel spreadsheet is adequate, with projection formulas for revenue, costs, and cash flow over the next five years. Finalize your financial model.

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

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

JUNE 7, 2020

External investors expect a documented business plan, with clear targets on funding needed, use of funds, revenue projections, return potential, and exit strategy. Even if you are not requesting outside funding, I would expect a clear process for sourcing and managing the investment you plan to apply.

Entrepreneur 328

Entrepreneur Exit Strategy Metrics Operations 328

Startup Professionals Musings

JANUARY 4, 2020

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. How much do you really need for the next 12 to 18 months? Here is where projections of cost, pricing, volumes and cash flow are critical.

Startup 337

Startup Preferred Stock Exit Strategy Equity 337

Reid Hoffman

JULY 23, 2020

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. prioritize speed over efficiency) when you believe you can build strategic value, even if there are many unknowns and uncertainties around the revenue model.

IPO 36

IPO Exit Strategy Acquisition Technical Review 36

ReadWriteStart

JUNE 1, 2020

The primary source of your funds should be your paying customers, i.e., your business should generate enough revenues and profits to fund the growth and expansion. These usually play a role in the very early stage of your business, primarily pre-revenue. Reasons for funding. ? Incubators and Accelerators. Government programs.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

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

Steve Blank

NOVEMBER 18, 2016

While these acquisitions have teams of great researchers, they rarely contribute actual revenue generating products (because most never reached that stage when they were acquired.) Exit Strategy. Exit Strategy was building the penultimate planning tool. I had all that in mind as we watched our teams present.

Artificial Inteligence 325

Artificial Inteligence Lean Exit Strategy Startup 325

Startup Professionals Musings

JANUARY 5, 2011

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). To some, an exit strategy sounds negative.

Exit Strategy 231

Exit Strategy Initial Public Offering Startup IPO 231

Startup Professionals Musings

SEPTEMBER 23, 2010

It should answer every question an investor or associate might ask, including current valuation, funding needed, and exit strategy. In most cases, a Microsoft Excel spreadsheet is adequate, with projection formulas for revenue, costs, and cash flow over the next five years. Finalize your financial model.

Angel Investor 224

Angel Investor Intellectual Property Technical Review Elevator Pitch 224

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

Up and Running

MAY 17, 2017

Plus, you’ll always be prepared in case an opportunity or desire to sell arises in the future—it’s a smart idea to have an exit strategy. A business that is growing in revenue and earnings and trending upward will be more desirable to a potential buyer than a business that is declining. million in sales revenue.

Acquisition 92

Acquisition Technical Review Revenue Exit Strategy 92

Startup Professionals Musings

DECEMBER 28, 2018

Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). This normally means more than 30 employees, and more than $1 million in revenue. It won’t work, it costs time and money, and hurts your credibility when you need them later.

Incubator 236

Incubator Exit Strategy Institutional Investors Angel Investor 236