The Startup Magazine

AUGUST 11, 2023

The following is a condensed explanation of seed funding: Seed money is a form of early-stage financing that new businesses receive from investors in exchange for a share of ownership in the company. The term “seed financing” refers to the stage of funding that comes from first equity.

Seed Stage 125

Seed Stage Technical Review Early Stage Due Diligence 125

Startup Professionals Musings

AUGUST 18, 2023

Some argue the only way to start is to drop everything and jump in with both feet, while others recommend an overlapped approach to the lifestyle, including not quitting your day job until you have revenue and a proven business model. McGinnis, a well-known venture capitalist and private equity investor.

Private Equity 255

Private Equity Salary Cofounder Equity 255

The Startup Magazine

SEPTEMBER 10, 2020

Main Street Capital is a publicly traded private equity firm that offers equity and debt financing to lower middle-market companies with a revenue between $10 million and $150 million. It also offers debt financing to middle-market companies making anywhere from $150 million to $1.5 Main Street Capital.

Dividend 89

Dividend Stock Finance Private Equity 89

Startup Professionals Musings

MAY 30, 2022

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. Very few startups are cash-rich enough to self-finance aggressive second-stage growth. Of course, not every entrepreneur wants to tackle this challenge. There is no free lunch.

Mezzanine 368

Mezzanine Private Equity Bandwidth Metrics 368

Startup Professionals Musings

NOVEMBER 30, 2020

Some argue the only way to start is to drop everything and jump in with both feet, while others recommend an overlapped approach to the lifestyle, including not quitting your day job until you have revenue and a proven business model. McGinnis, a well-known venture capitalist and private equity investor.

Entrepreneur 321

Entrepreneur Private Equity Startup Salary 321

Steve Blank

APRIL 26, 2022

For existing investors, sometimes it was a “pay-to-play” i.e. if you don’t participate in the new financing you lose. A down round is when a company raises money at valuation that is lower than the company’s valuation in its prior financing round. Other times it was simply a take-it-or-leave-it, here are the new terms.

Cram Down 417

Cram Down Founder Venture Capital Recapitalization 417

Steve Blank

MARCH 31, 2014

Companies horde cash and squeeze the most revenue and margin from the money they use. In spite of this, private equity funds have used the rallying cry of efficiency to hijack corporate strategy and loot the profits that historically would have been reinvested into research and development and new products.

Private Equity 330

Private Equity Metrics China Intellectual Property 330

David Teten

AUGUST 20, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching Revenue-Based Investing and other new approaches to VC. The question I’m asking myself: should a new VC fund use Revenue-Based Investing, traditional equity VC, or possibly both (likely from two separate pools of capital)?

Revenue 60

Revenue SBIC Cofounder Venture Capital 60

The Startup Magazine

SEPTEMBER 23, 2021

The $130 million Series D investment round was co-led by New York-based global private equity and venture capital firm Insight Partners and Hanaco Venture Capital. The investment round also featured participation from existing investors Goldman Sachs Asset Management, Clal Tech, Harel Insurance and Finance, and Greycroft.

Private Equity 142

Private Equity Developer Venture Capital Merger 142

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

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. For mature businesses, there are Private Equity or PE firms. ?

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Startup Professionals Musings

SEPTEMBER 1, 2019

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. Very few startups are cash-rich enough to self-finance aggressive second-stage growth. Of course, not every entrepreneur wants to tackle this challenge. There is no free lunch.

Mezzanine 244

Mezzanine Private Equity Startup Bandwidth 244

Both Sides of the Table

JULY 16, 2010

So even within the “alternative class&# our LPs are looking at other asset investment choices such as distressed buyout funds, private equity or hedge funds. So angel and seed stage investors’ returns will be dependent on good times continuing or on the ability of their portfolio companies to get financed.

LP 311

LP Technical Review Early Stage Silicon Valley 311

YoungUpstarts

SEPTEMBER 23, 2019

For tax and finance professionals, managing spikes in demand – and making sure that seasonal business cash flow remains stable – is a year-round exercise. In the accounting business, your revenue chart basically looks like a hockey stick,” says Ernie Mayhorn, owner of Capital Tax Solutions in Carson City, Nev.,

Hockey Stick 113

Hockey Stick Small Business Private Equity Denver 113

Rob Go

DECEMBER 28, 2011

And that’s true pretty much across the board – from exits, late stage financings, scaling companies, and seed activity. 61M in Q3 revenue, up 28% YoY. The company is expected to do around $500M in revenue in 2011 and has seen 50%+ growth YoY the past two years. Tripadvisor: An amazing entrepreneurial story.

Technical Review 54

Technical Review Boston Software Review IPO 54

Both Sides of the Table

SEPTEMBER 29, 2009

Huge downturns have a real impact on the revenue line of start-ups and therefore the pressure on valuations. This came in part due to the huge influx of money into VC but also because hedge funds and private equity shops with no VC experience wanted part of the action. I argued for literally a year to slash burn.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

Berkonomics

FEBRUARY 9, 2023

The most striking example was the one hundred million–dollar purchase of one of my companies by a New York private equity investor using only five million of its cash. But I learned it again and again in my various business lives. Here’s a striking example. Ask for extended terms well beyond sixty or ninety days.

Naming 62

Naming Warrant Private Equity Valuation 62

Austin Startup

NOVEMBER 6, 2017

C-Corp largely because (i) VCs have historically favored C-Corps for nuanced tax and other reasons, and (ii) virtually all of the standardized legal infrastructure around startup finance and equity compensation assumes a C-Corp. However, times are changing. But not all VCs think that way. It requires real financial, tax, legal, etc.

Delaware 48

Delaware LLC Startup Silicon Valley 48

David Teten

SEPTEMBER 5, 2014

Like many established finance & media companies, GLG knows that the tech startup sector is a growing part of the economy. For example, if you’re an early stage company dealing with complex regulation (think Uber in transportation, Oscar in healthcare, LendingClub in finance), we have people who can help.

New York 114

New York Technical Review Networking Advisory Board 114

www.inc.com

SEPTEMBER 24, 2011

Finance | Tuesdays. Financing a Small Business. Financing A Small Business. Personal Finance. Will Work for Equity. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. Theres a huge opportunity cost in not taking equity," he says. Start-up | Mondays. Technology | Thursdays.

Arizona 40

Arizona Equity Iowa Venture Capital 40

Startup Professionals Musings

SEPTEMBER 13, 2017

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. Very few startups are cash-rich enough to self-finance aggressive second-stage growth. Of course, not every entrepreneur wants to tackle this challenge. There is no free lunch.

Mezzanine 141

Mezzanine Private Equity Startup Bandwidth 141

Growthink Blog

APRIL 3, 2012

For example, having a financial model that shows you are going to grow from $0 to $100 million in revenues in 3 years is generally going to be frowned upon. But you should also avoid other grand claims and bolster your credibility wherever possible. Since achieving such a feat is extremely rare. This video explains more. read more.

Private Equity 97

Private Equity Venture Capital Equity Forecast 97

Startup Professionals Musings

NOVEMBER 3, 2013

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. Very few startups are cash-rich enough to self-finance aggressive second-stage growth. Of course, not every entrepreneur wants to tackle this challenge. There is no free lunch.

Mezzanine 240

Mezzanine Private Equity Bandwidth Metrics 240

David Teten

MARCH 14, 2018

Sophisticated VC and private equity funds have a wide array of options for leveraging outside operating executives. Another example is Correlation Ventures ($300M+ AUM), a VC firm which co-invests in financings with at least one other new outside VC. – Provide hands-on operational support for portfolio companies.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

Hearpreneur

JUNE 19, 2018

As a successful young entrepreneur (he’s only 30! ), Harrison Rogers is Founder and CEO of HJR Global, a private equity company that has increased at least 200% every year for the past 4 years. Give yourself the time necessary to analyze and decide if the increased revenue is worth the increased costs.

Private Equity 87

Private Equity Entrepreneur Global America 87

YoungUpstarts

MAY 29, 2019

As Kabbage customers explain, managing seasonal impact on revenue requires preparation – and if possible, alternate ways to bring money in the door. To bring in more revenue year-round, Jason recently launched three new delivery-only businesses, selling meat dishes, burgers and grain bowls.

Georgia 113

Georgia New Jersey Private Equity Atlanta 113

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

ReadWriteStart

APRIL 1, 2020

Such businesses will likely emerge as leaders that will help prepare for the “next big issue” due to their flash-in-the-pan revenues and quick notoriety. And, if a founder is seeking investor financing , the probability of investor funding is significantly lower and investors become much more pitch-picky.

Startup 120

Startup SEO Private Equity Venture Capital 120

VC Cafe

NOVEMBER 3, 2010

Shamir Optical reported revenues of $142 million in 2009, generated mainly in Europe and the United States, and has about 1,400 employees. In 2008, the company, which employs about 30,000 worldwide, reported revenues of $28.8 In 2009 it boasted revenue of $4.49 KOREA’S POSCO SIGNS AGREEMENT SEEKING ISRAELI R&D.

Israel 80

Israel Bandwidth Framework Forecast 80

David Teten

NOVEMBER 14, 2019

I wrote recently about Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? Since then, I’ve talked with a number of other firms, and greatly expanded my database: Who are the major Revenue-Based (RBI) Investing VCs? Revenue-based investing VC. Venture debt.

SBIC 60

SBIC SBA Cap Table Database 60

Startup Professionals Musings

APRIL 15, 2016

Some argue the only way to start is to drop everything and jump in with both feet, while others recommend an overlapped approach to the lifestyle, including not quitting your day job until you have revenue and a proven business model. McGinnis, a well-known venture capitalist and private equity investor.

Entrepreneur 120

Entrepreneur Private Equity Salary Cofounder 120

This is going to be BIG.

MARCH 16, 2020

Some key existings who didn’t want to see their prior money get lost wouldn’t budge on a dilutive financing, despite the fact that they knew where we were headed. If you are a turnaround, bankruptcy or private equity investor and have questions about the sale process, you can e-mail me at charlie@brooklynbridge.vc.

Bankruptcy 102

Bankruptcy Private Equity Seed Stage Dilution 102

YoungUpstarts

SEPTEMBER 12, 2011

The findings come from the initial results of a survey of 7,502 small privately-held businesses with revenues of less than US$5 million dollars by the Pepperdine Private Capital Markets Project with the cooperation of Dun & Bradstreet Credibility Corp. were successful.

Small Business 145

Small Business Hiring Private Equity Angel Financing 145

Startup Lessons Learned

JULY 15, 2020

That's why the Corona Initiative is a Public Benefit Corporation--a for-profit company dedicated to the public good that aims to fund its research with its revenues. He worked as an engineer and then went into finance for many years and then was recruited to be president of a biotech company, diagnostics company.

Technical Review 68

Technical Review Software Review Finance San Francisco 68

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 23, 2012

After I sold Smart Bear, that division has increased revenue and profit every year, for five years, even through the 2008/2009 economic disaster. After all, before the house of cards inevitably tumbles, private equity investors get a tidy return. And the same thing happened after we sold IT WatchDogs in 2005.

IPO 240

IPO Flash Bootstrapping Private Equity 240

Startup Professionals Musings

FEBRUARY 4, 2015

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. Very few startups are cash-rich enough to self-finance aggressive second-stage growth. Of course, not every entrepreneur wants to tackle this challenge. There is no free lunch.

Mezzanine 120

Mezzanine Private Equity Startup Bandwidth 120

YoungUpstarts

OCTOBER 18, 2017

If the entire business isn’t caught up on digital transformation, it makes it difficult (impossible, even) for finance leaders to engage in strategic leadership and optimize revenue opportunities by driving ROI from tech investments. The responsibilities of finance have changed over time and leaders must adjust accordingly.

Technical Review 124

Technical Review Finance Software Review Due Diligence 124