Up and Running

FEBRUARY 17, 2016

In this two-part guide to starting a brewery, we’re going to talk with brewers who’ve been there-done-that, and we’ll get insights from experts in supporting industries such as insurance and finance, as well as discuss regulatory issues. In part two, we’ll discuss finances, insurance, and regulations for breweries. Relationships.

Oregon 60

Oregon Jordan SBA Cofounder 60

Gust

SEPTEMBER 17, 2014

It’s like we need a finance 101 course for entrepreneurs. There were no metrics. Him: On metrics. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round. I really just want to champion Finance 101 to entrepreneurs. Your A round? Objectively.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

David Teten

JANUARY 13, 2015

Next, I would push ‘anti-pattern’ entrepreneurs to remove the convenient (and often true) excuses for not warranting investment. Prove more through metrics. I truly believe in the meritocracy of Silicon Valley – when you have solid metrics. Don recommends: Don’t just do startups “for us”.

Venture Capital 60

Venture Capital Advisory Board Greece Cofounder 60

ReadWriteStart

FEBRUARY 24, 2011

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. His firm invests in four. That's a 0.21% hit rate.

Incubator 116

Incubator Silicon Valley Idaho Entrepreneur 116

View from Seed

JUNE 16, 2015

Here are some top-line metrics that I think are worth shooting for: For marketplace businesses: $5M-$10M in annual GMV run rate. In terms of other metrics, some ideas: At least 6 months of cohort data that shows solid retention over time and signals a strong LTV relative to CAC. For SaaS: At least $100K in MRR.

Boston 120

Boston Syndication Syndicate eCommerce 120

BeyondVC

JUNE 11, 2007

In the last six months, we have augmented some of our existing venture financing with venture debt as the market has become quite competitive which means pricing and terms are getting more attractive for all of us. The trick for entrepreneurs is to look at bringing on debt concurrent or soon after your close of equity financing.

Intellectual Property 60

Intellectual Property Covenant Warrant Equity 60

BeyondVC

JUNE 11, 2007

In the last six months, we have augmented some of our existing venture financing with venture debt as the market has become quite competitive which means pricing and terms are getting more attractive for all of us. The trick for entrepreneurs is to look at bringing on debt concurrent or soon after your close of equity financing.

Intellectual Property 60

Intellectual Property Covenant Warrant Equity 60

Austin Startup

AUGUST 30, 2018

So while the number of dollars pouring into Austin may be increasing, that metric is only favorable to businesses that warrant those sized-rounds. Of these rounds, nearly every one was classified as a Series B or later-stage round, with the exception of a few debt and equity financing rounds.

Austin 48

Austin San Francisco Early Stage Later Stage 48

ithacaVC

APRIL 5, 2011

It also lists out option holders and warrant holders. So, again, with convertible debt, you delay the valuation decision altogether until the next equity round is raised (and hopefully by then the company is more mature leading to better metrics for valuation). A real institutional investor wants to invest $XX,000 in his company.

Common Stock 45

Common Stock Stock Cap Table Preferred Stock 45

Rob Go

JUNE 1, 2016

We’ve been in a period of unnatural financings, both in terms of valuation and the amount of capital that has gone into companies relatively early in their life. One metric I see mentioned from time to time is the idea of a follow-on hit rate. I used to think that this was an important metric, but I’m not really sure any more.

Term Sheet 28

Term Sheet Portfolio Valuation Warrant 28

Up and Running

OCTOBER 29, 2015

While some entrepreneurs think it’s unnecessary to write a business plan—especially if outside financing is not needed—I highly disagree. Staying current and keeping fresh are all part of the “soft” metrics of planning for the exit, but are still important when it comes to not leaving money on the table.

Business Plan 60

Business Plan Due Diligence Intellectual Property Valuation 60