YoungUpstarts

JULY 10, 2017

There has been a lot of chatter regarding changes in revenue recognition criteria lately, but the effects it will have on the evaluation of companies planning an exit is just beginning to emerge. Specifically, the new standard will follow a five step model for revenue recognition: Identify the contract (the deal that has been reached).

Revenue 124

Revenue Technical Review Software Review Due Diligence 124

Startup Professionals Musings

JUNE 21, 2020

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $1 trillion. Long-term stability requires revenue growth and profit. Both have worked. Traditionally, it was simple.

Revenue 434

Revenue Valuation Viral Retention 434

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. What exactly is the seed funding?

Seed Stage 123

Seed Stage Technical Review Early Stage Due Diligence 123

Both Sides of the Table

MAY 28, 2018

There are many things a VC is looking for in reviewing your business plan but beyond things the like the quality of revenue, margins, OPEX and CAPEX there’s a really simple rule I call, “Cash In, Cash Out, Milestones Achieved.” Every VC knows that the amount you raise is often a proxy for your valuation.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

David Teten

AUGUST 20, 2019

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. Realistic projections.

Revenue 60

Revenue Cofounder Founder Venture Capital 60

Both Sides of the Table

JUNE 28, 2018

Until recently it was headquartered 2 blocks from our offices in Santa Monica so we literally saw it emerge under our feet and we proudly invested in the last 3 rounds of financing. How could Bird really be worth the reported $2 billion valuation that I read about in this press? Forget the valuation?—?I

San Francisco 256

San Francisco Valuation Technical Review Los Angeles 256

YoungUpstarts

JUNE 26, 2020

If you are building a startup, you’ll find no shortage of people who are willing to give you advice, particularly when it comes to raising financing. To do that you have to show how your market is big enough (a multi-billion dollar market) to support that kind of valuation. Myth #3: Take the Highest Valuation You Can Get.

Finance 205

Finance Silicon Valley Valuation Startup 205

A Smart Bear: Startups and Marketing for Geeks

MARCH 21, 2017

Revenue multiples, profit multiples, premium over the previous financing — these are metrics used by sellers to help determine a minimum acceptable price. Even for startups, it takes years for a new product to become good enough to demand many millions of dollars in revenue.). Yet mobile advertising revenues were paltry.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

Both Sides of the Table

JULY 23, 2014

We are in a bubble (with so many private $1bn+ valuations). pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. The “big boom” in startup financing started around March 2009?—?more Where are we today? .” more than 5 years ago?—?and and hasn’t abated.

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

ReadWriteStart

JANUARY 28, 2022

This article will assist you in gaining a fundamental understanding of equity valuation, kinds of equity, and other related topics. The market regards equity as an ownership “share” in a corporation’s income revenue stream. Importance of equity valuation. Select an appropriate valuation method.

Valuation 108

Valuation Equity Warrant Common Stock 108

Growthink Blog

MAY 20, 2011

So, Mike tells me he wants to raise a first round of venture capital based on a $100 million valuation. Getting a $100 Million valuation is impossible for a startup. In fact, getting above a $10 Million valuation is also virtually impossible unless you have at least some traction (e.g., Maybe you have $1 million in revenues.

Venture Capital 109

Venture Capital Valuation NDA Non-disclosure Agreement 109

View from Seed

SEPTEMBER 13, 2018

Effective) post-money valuation. A company with $250K monthly recurring revenue which took 4 years and $5.5M A company with $250K monthly recurring revenue which took 4 years and $5.5M How much time has elapsed since company founding. How much total capital has been put into the company since founding. 100K in MRR was cited).

Seed Stage 136

Seed Stage Post-Money Valuation Valuation Startup 136

ReadWriteStart

OCTOBER 7, 2010

As a thumb rule, try to get enough validation so that you can get to at least a $2 million pre-money valuation before raising equity capital. That is debt financing that converts into equity at the Series A valuation once the price for that is set. (I Sub-$2 million pre-money, it is better to bootstrap.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

Startup Professionals Musings

AUGUST 10, 2014

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Both have worked.Google reached $1 billion in revenue within five years of incorporation, and now has a market capitalization of over $400 billion. Long-term stability requires revenue growth and profit.

Revenue 246

Revenue Entrepreneur Valuation Viral 246

Both Sides of the Table

FEBRUARY 8, 2016

The startup industry may be “resetting,” which doesn’t mean a “crash” but rather just a resetting of valuations, timescales, winners/losers, capital sources and the relative emphasis of growth rates vs. burn rates. The terrible consequence is that some great companies struggle to get financed. Start early.

Burn Rate 150

Burn Rate Cap Table Valuation Balance Sheet 150

Both Sides of the Table

SEPTEMBER 22, 2012

After all, growth equals high valuations and loads of venture capital! Instant growth = huge valuation from follow-on investors = big VC mark-up on our quarterly reports = LP interest. In revenue terms our first two years of sales were $2.1 Startups will continue to be aggressive in spamming us in our Facebook timeline.

Silicon Valley 390

Silicon Valley Venture Capital Startup Technical Review 390

Startup Professionals Musings

NOVEMBER 26, 2012

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

Steve Blank

OCTOBER 24, 2017

— Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed: IPOs/M&A without a profit (or at times revenue) have become the norm. Typically, this caliber of bankers wouldn’t talk to you unless your company had five profitable quarters of increasing revenue.

Founder 281

Founder Technical Review CTO Hire IPO 281

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

SoCal CTO

SEPTEMBER 27, 2011

If the company's valuation is $2 million, $90k is 4.5%. Of course, to be able to use this kind of formula, you will need to be able to determine how much impact the person will have and figure out a valuation. I've talked about this topic before in How Investors Think About Valuation of Pre-Revenue Startups.

Early Stage 391

Early Stage Equity CTO Hire Sweat Equity 391

The Startup Magazine

AUGUST 29, 2019

Bank provides two types of finances, namely, working capital and funding. The working capital loan is required to run a complete cycle of revenue-generating operations. It is, in fact, one of the easiest and quickest ways of obtaining finance for a new business. Crowdfunding.

Startup 95

Startup Government Valuation Technical Review 95

Both Sides of the Table

APRIL 18, 2019

The valuations were too high! The company started the year with no revenue and at it’s peak had a run rate well in excessive of $100 million / year. We’re at a new watermark because there are now global assets deployed and as the sun peeks out so to do the riders and the revenue. We are now in Act IV. they were highly visible.

South America 250

South America Global New York City Software Review 250

Tim Keane

MARCH 9, 2011

How should I finance my new venture? It’s a deceptively simple question:  what is the optimal way to finance a new startup? Misaligned interests that lead to poor financing choices are often very problematic for first time entrepreneurs in young companies.  « Leaving a Trail | Main. | five years.).

Finance 83

Finance Bootstrapping Startup Equity 83

VC Adventure

AUGUST 31, 2017

So no surprise that when River Cities Capital released an overview of SaaS operating and valuation benchmarks, I hung on every juicy detail. The valuation metrics show this clearly. Companies in the study that scored 40% of greater had TTM revenue multiples of 6.4x There are a ton of private SaaS financings. on average.

IPO 113

IPO Vertical Balance Sheet Valuation 113

Both Sides of the Table

MARCH 21, 2013

I think it’s important for enterprise startups to layer in professional services into your revenue stream. deliver profitable revenue that while on gross margins of 50% vs. software at 85-95% it is still profits to help you cover fixed costs. Control Size of PS Revenue Relative to Software Business. rollout support.

Software Review 321

Software Review Software IP Technical Review 321

Startup Professionals Musings

JUNE 26, 2016

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $400B. Long-term stability requires revenue growth and profit. Both have worked. Traditionally, it was simple.

Revenue 145

Revenue Valuation Startup Viral 145

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Of the Inc. 5000 companies, only 6.5% raised from angels.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Both Sides of the Table

JUNE 5, 2011

2: As expected at least one person accused me of writing this post because I want to see lower valuations. As the risks below get eliminated the higher the valuation investors are prepared to pay. So rounds tend to be “range bound&# where the top end of the valuation spectrum often being done in boom markets (i.e.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Both Sides of the Table

JUNE 22, 2011

Ah, but today’s Internet companies have real revenue! In addition to FOMO it is partly driven by massive increase in valuations for earlier-stage companies who raised money at bit seed prices but who still have product risk. And for some that means that despite waiting they may see worse valuations in the future than now.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Steve Blank

APRIL 1, 2020

Your revenue plans are no longer valid. What’s your monthly cash burn at your new low revenue level? The CEO should dial through as many of the largest existing customers to get a firsthand understanding of the magnitude of any revenue shortfall. Others are cutting their valuations. How many months of cash do you have?

South Korea 335

South Korea Salary Business Model China 335

Hearpreneur

JANUARY 22, 2023

In recent years, eCommerce companies have begun to increase revenue by selling products directly via social media networks. 13- Sustainability and ethical investing Photo Credit: Zach Larsen I'm really excited to see how technology will continue to shape the personal finance space in 2023. Every year, social media coverage expands.

Artificial Inteligence 126

Artificial Inteligence Technical Review Entrepreneur Social Media 126

YoungUpstarts

MAY 14, 2018

Think of financing an acquisition as an exercise with two parts that work in concert: 1) structuring a desired deal with a suitable target and 2) obtaining the funding. Valuation is almost always a priority issue for everyone involved but keep in mind that the structure and terms of the transaction are just as important.

Acquisition 124

Acquisition Finance Raleigh Mezzanine 124

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Both Sides of the Table

APRIL 26, 2016

The key to being able to run a business that isn’t yet profitable (on operating margin) is availability of capital to finance losses and preferably at a cost that isn’t too punitive to the founders and employees. In SaaS (or any recurring revenue business) this is also a very difficult task.

Metrics 150

Metrics Cost Acquisition Startup 150

Steve Blank

APRIL 26, 2022

At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. For existing investors, sometimes it was a “pay-to-play” i.e. if you don’t participate in the new financing you lose. This article previously appeared in TechCrunch.

Cram Down 418

Cram Down Founder Venture Capital Recapitalization 418

YoungUpstarts

FEBRUARY 1, 2020

You are sure to be happy when your business reaches a Series B financing round because it usually means your company has a higher valuation. These are: Revenue Recognition issues. Share-based Compensation. Accounting for Income Taxes. Revenue Recognition. by Bryce Welker, founder of Crush The CPA Exam.

CPA 165

CPA Stock Options Valuation Stock 165

The Startup Magazine

JULY 17, 2022

Any businesses that are obligated to pay taxes in Germany according to the terms of the Income Tax Act and the Corporation Tax Act, insofar as they create revenue in conformance with Section 2 Paragraph 1 Sentence 1 Number 1 to 3 of the Income Tax Act, are eligible to make a claim. Phase 2: Tax authority assessment of the research allowance.

Developer 132

Developer Germany Software Development Software Developers 132