Startup Professionals Musings

NOVEMBER 11, 2015

Tie payments to your product or service revenue. With “cash flow” obligations, investors receive a percentage of your operating cash flow (if any) until they have been repaid in full, or have achieved a specified percentage return on their investment. Try to avoid obligations with fixed repayment schedules.

Cram Down 120

Cram Down Angel Investor Equity Dividend 120

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

Both Sides of the Table

MAY 23, 2012

Yes, it’s true that FOMO (fear of missing out) is driving some irrational behavior and valuations amongst uber competitive deals and well-financed VCs. Try charging customers for your product when you have 12 competitors giving the product away free finances by $20 million of VC. The Exit Problem.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

Growthink Blog

MAY 10, 2012

Mezzanine Financing Most companies that raise equity capital and are eventually acquired or go public receive multiple rounds of financing first. No right or wrong answer here, but if this is your vision then it's important to consider when negotiating deal terms on earlier stage financing rounds. Seed Funding 3.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

ithacaVC

JANUARY 14, 2014

And the Series A investors then owned 4/9s of Company X. The Series A round was taken by $2mm of institutional investors and $2mm of angel investors. It has just started to generate revenue. It expects revenue of $1.7 For example, in this hypo, Company X expects to do $1.7mm of revenue in the coming year.

Pre-Money Valuation 58

Pre-Money Valuation Post-Money Valuation Valuation Term Sheet 58

Rob Go

JANUARY 7, 2013

Actually, growth equity firms I find are best at this, because they have very specific financial criteria that they look for, such as ranges for revenue, ebitda, growth, etc. But we behave pretty much exactly the same way in those companies as we do when we are the lead and only institutional investor. Stage: Pre Product: 12.

Portfolio 49

Portfolio Seed Stage Cofounder B2B 49

David Teten

DECEMBER 3, 2019

Sabena Quan-Hin, Marketing Manager at Flow Capital , wrote, “There are two crucial aspects of marketing that investors often overlook: automation and analytics. Automation allows you to spend less time on tedious tasks and will help boost productivity, especially within a small marketing team. Deer Isle Group has built the D.I.G.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Up and Running

DECEMBER 9, 2014

Bates: Good morning and welcome to our CEO panel, “How to Fine-Tune Your Small Business Finances From Funding to Growth” which I think is the direction that we would all like to be going. I’m here with some really phenomenal CEOs who are going to talk to us today about small business finances from funding to growth.

Small Business 95

Small Business Finance Forecast Metrics 95

abovethecrowd.com

JUNE 2, 2021

On March 26, SoFi announced that “it will be offering its members (at least those with $3K in their account) the ability to invest in IPOs for companies going public, an investment opportunity that has traditionally been reserved for large institutional investors or ultra-high-net-worth individuals.” NPS would soar.

IPO 82

IPO Customer Matching Silicon Valley 82