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They already have several customers including some telcos, and are at about $350,000 in revenues. I call it drip-financing. Most entrepreneurs have no choice but to avail of this sort of financing along with the mentoring and the contacts that could come with it (doesn't always come along, though). Kir Devries.
Well, 1M/1M is focused on helping businesses generate $1M in annual revenue, whatever be the nature of the business. But our goal is to make sure that these businesses are sustainable, have customers, revenues, and profits. million financing round for. My recommendation to Hardika is to study the FDBI project.
Meanwhile, financing the company will be quite challenging, and I advised Satya to manufacture parts based only on signed contracts and advances against orders, to avoid getting into an inventory-rich, working capital-poor situation. These resellers buy devices from the U.S. From 2008 to 2010, Mitra was a columnist for Forbes. Discuss.
Zendesk is heavily financed by Benchmark and Charles River and has 10,000 customers. In fact, they generated $100k in revenues over the last year, since they first pitched at one of our roundtables. She has a master's degree in electrical engineering and computer science from the Massachusetts Institute of Technology.
First up was Brad Barrett presenting GrillGrate , a grill accessory with which Brad has built a year-to-date revenue of $400,000. I will work with him on his inventory financing strategy. She has a master's degree in electrical engineering and computer science from the Massachusetts Institute of Technology. GrillGrate.
That is debt financing that converts into equity at the Series A valuation once the price for that is set. (I Our discussion today was largely around her financing strategy, and one of the key milestones that I probed her on was: What does it take to get a validated customer? Sub-$2 million pre-money, it is better to bootstrap.
In How To Defend Your Dream Against All Odds , Alex and I explore the company's journey to $200 Million in revenue, while their VCs wrote them off. Zoho is already over $100 million in revenue and is seeing tremendous traction. So, please don't get discouraged; there are many paths to success. Statisco Economic Analytics. Discuss.
Siddhesh has already validated his business and is catering to home buyers, sellers, and brokers, generating revenues from advertising and sponsorships as well as brokerage revenue sharing. As I keep reiterating, 99% of the businesses that go out for financing get rejected. From 2008 to 2010, Mitra was a columnist for Forbes.
Sequoia has financed them. Its mission is to help a million entrepreneurs globally to reach $1 million in revenue and beyond, build $1 trillion in sustainable global GDP, and create 10 million jobs. She has a master's degree in electrical engineering and computer science from the Massachusetts Institute of Technology.
The discussion today was around Social Media financing and go-to-market strategy. Sramana Mitra is the founder of the One Million by One Million (1M/1M) initiative, an educational, business development and incubation program that aims to help one million entrepreneurs globally to reach $1 million in revenue and beyond. Discuss.
For a more elaborate explanation of the deal, please read my blog post 1M/1M: Alternative Financing For Startups Using A Sales Channel Partner. I have discussed at length why revenue sharing channel deals may serve as perfectly fine alternatives to raising equity (or even complements) because of their non-dilutive nature. Discuss.
If failure is defined as failing to see the projected return on investment—say, a specific revenue growth rate or date to break even on cash flow—then more than 95% of start-ups fail, based on Mr. Ghoshs research. Finance, Banking, Loans, etc. Massachusetts. Massachusetts. start-ups fail, he says. California.
Massachusetts needs money. These days, every state is looking for ways to scrape out more revenue for failing budgets and costly infrastructure projects. So, the Massachusetts “Tech Tax” was born. And, for once, the Massachusetts legislature listened. Tech Tax Hurt Massachusetts Innovation.
Earlier, of course, we covered AngelList at length , also a crowd sourcing venture in the angel financing space, and this week, we have covered SecondMarket , which is powering Facebook's private market capital raising. She has a master's degree in electrical engineering and computer science from the Massachusetts Institute of Technology.
You then become dependent on outside financing, and that is a slippery slope. It is much better to grow organically with revenue. In 1M/1M premium, we do invest in certain companies on a revenue sharing basis and create channel partnerships with one or more of our partners. Cortese Design Bags. Photo by Gisela Giardano.
billion to work across 731 financing deals with US startups, a 50% increase over Q1 2009. To me, this indicates that venture capitalists (VCs) are looking for business, but they are clearly moving away from early-stage (pre-revenue) deals. Massachusetts and NY states also have high numbers. First of all, investors put $5.9
All this, could, potentially, be done without external financing. And along the way, if necessary and appropriate, she can raise financing with a vastly more validated business. At this point, financing discussions are premature and are likely not to yield success. If possible, of course.
An ad-supported network, the company has achieved over $1 million in revenue and is profitable. It is currently evaluating options and strategies for growth and the possibility of additional financing. I like the idea, but to go from idea to financing, there is a long road for Adarsh to travel still. Discuss.
However, how do you get to critical mass, and how do you finance the period during which this business runs on red ink? How much time do you budget for red ink financing? Whichever direction you go, please do not assume that some VC is going to finance you during this phase. How long can you go without a salary? Discuss.
The site has 11 million page views a month, and Jeu expects 2011 revenues to be about $250k. Jeu is trying to figure out his financing options, and the majority of the discussion today was around target market, product roadmap, and monetization models, which are the factors that would drive investment strategy. Discuss.
This curriculum is based on the various questions entrepreneurs have asked me over these 64 sessions, spanning financing, positioning, customer acquisition, marketing, sales, channel, and various other early stage, startup-related issues. John already has a couple of customers, and needs about 50 customers to get to $1M in annual revenue.
As a result, the expectation is that you have to figure out a way to get to some level of momentum on your own (by bootstrapping) or with small doses of angel money - "drip financing" so to speak. Such OEM deals may cost him 50% of his product revenue, but would be the fastest way to reach a large number of customers, nonetheless.
Jimmy already has about 65 customers and about a million dollars in annual revenue. The company is profitable and has so far raised only $400,000 in friends and family and angel financing. She has a master's degree in electrical engineering and computer science from the Massachusetts Institute of Technology.
That means that less than 1% of the entrepreneurs who apply succeed in getting financed. I have a fundamental observation to make here that seems to be lost in the noisy universe of entrepreneurs' obsession with fund-raising: Most companies should not raise external financing. A sustainable business = (customer + revenue + profits).
At today's roundtable we had some intensive discussions around market sizing and its impact on financing. These are areas that may be gaps in the portfolio of large companies, and are perfect for M&A deals in three to five years after building enough validation and $10-$20 million in revenue.
Benson's business needs $500,000 to get off the ground, buy a machine, and meet the operating expenses, and he primarily came to discuss his financing options. My assessment is that this is not a traditional venture financing type deal. Qualitas Technologies.
Adam needs a crash course on financing and should go digest the 1M/1M curriculum module on that topic ASAP. She has a master's degree in electrical engineering and computer science from the Massachusetts Institute of Technology. That's like selling your prized assets for nothing in a flea market. Photo by ilco. Discuss.
It is, however, too early for financing. Sramana Mitra is the founder of the One Million by One Million (1M/1M) initiative, an educational, business development and incubation program that aims to help one million entrepreneurs globally to reach $1 million in revenue and beyond. From 2008 to 2010, Mitra was a columnist for Forbes.
Manoj is experiencing a long sales cycle of close to 12 months, but he has already created a sustainable company that has revenues and profits. He is exploring outside financing, but my concern is that unless the growth rate accelerates, this particular business may not fit the venture model. Discuss.
Nonetheless, in the last couple of years, the flow of first-time entrepreneurs who come out with the misconception that Entrepreneurship = Financing has not abated. Folks, please understand a simple point: Business schools, when they teach you entrepreneurship, teach you about financing. Discuss.
It is squarely in his critical path, blocking all sorts of financing options, and unfortunately, he cannot really make progress with this venture without some external financing. She has a master's degree in electrical engineering and computer science from the Massachusetts Institute of Technology. Photo by ilco.
Also, the business is primarily on CD-ROMs right now, but the good news is that the CD-ROM product is selling and generating revenue. The good news, again, is that this business is generating revenues. This is also a business that has substantial revenue, which is wonderful. From 2008 to 2010, Mitra was a columnist for Forbes.
I advised him to get a couple of banks to finance the development of his solution as service projects, with the understanding that he will build a product out of them. She has a master's degree in electrical engineering and computer science from the Massachusetts Institute of Technology. Israeli flag photo by Ron Almog. Discuss.
I recently wrote an article on this topic, calling all EDA entrepreneurs to build $5 million to $10 million to $20 million cash businesses that are self-financed, bootstrapped, and built organically. She has a master's degree in electrical engineering and computer science from the Massachusetts Institute of Technology.
I can say this with confidence based on my first hand experience mentoring a number of serious and promising Indian product entrepreneurs in the 1M/1M program, one of which, Freshdesk, has just raised financing from Accel Partners. She is a Silicon Valley entrepreneur and strategy consultant. Roundtable photo by Jim Linwood. Discuss.
He is looking to raise money now, but I must say, his financing strategy made me cringe. Its mission is to help a million entrepreneurs globally to reach $1 million in revenue and beyond, build $1 trillion in sustainable global GDP, and create 10 million jobs. We have to work on that! Financial Consulting Service.
To answer these questions, we built a database of 112 Israeli companies founded between 1996 and 2013 that have met or exceeded $20 million in revenue. headquarters, in Massachusetts, to immerse the team in the American market. “At They spend more time on strategy, go-to-market, business development, and financing.
These are areas that may be gaps in the portfolio of large companies, and are perfect for M&A deals in three to five years after building enough validation and $10-$20 million in revenue. So, please note the TAM Analysis is a vitally important aspect of building any financing strategy.
These are areas that may be gaps in the portfolio of large companies, and are perfect for M&A deals in three to five years after building enough validation and $10-$20 million in revenue. So, please note the TAM Analysis is a vitally important aspect of building any financing strategy.
Yesterday, I analyzed the Massachusetts IPO ecosystem. Estimated 2010 Revenue. Everyday Health almost did, but then pulled out and raised a private round of financing instead. Today, I look at NY. . Estimated Market Value (mn). TheLadders.com. Gilt Groupe. Everyday Health. FreshDirect. Vibrant Media. The best is yet to come.
M&A and Finance. Social media audiences have effectively become another universe of prospects to tap, which means measurement and tracking is essential to yielding from these visitors both direct and indirect revenue. Finance/Accounting. Massachusetts. Massachusetts. Assn/Non-Profit. B2B: Business Media.
In this article he opines: "I would have loved to have seen the stimulus package include a government-funded venture capital bank to help finance all the start-ups that are clearly not starting up today — in the clean-energy space they’re dying like flies — because of a lack of liquidity from traditional lending sources.".
The challenges of bootstrapping a venture that is dependent on ad-revenue is, however, also quite significant. You have to finance the period of traffic building that is pretty much red-ink financing. The company has been generating revenues for the past three years and is profitable. could be your companion. Discuss.
Sramana Mitra is the founder of the One Million by One Million (1M/1M) initiative, an educational, business development and incubation program that aims to help one million entrepreneurs globally to reach $1 million in revenue and beyond. This, of course, doesn't mean that we discourage entrepreneurs from seeking financing.
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