Both Sides of the Table

JUNE 22, 2011

Responses ranged from, “hey, they’re in a HUGE market&# to “it is an amazing company and their technology rocks.&# It’s like people arguing that there’s a beautiful beach house in 2006 that represents great long-term value due to scarcity of similar property. Or worse yet they may never get financed.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Steve Blank

OCTOBER 24, 2017

A version of this article is in the Harvard Business Review. Technology cycles have become a treadmill, and for startups to survive they need to be on a continuous innovation cycle. 20th Century Tech Liquidity = Initial Public Offering. Technology Cycles Measured in Years. This seems to be occurring more and more.

Founder 281

Founder Technical Review CTO Hire IPO 281

Both Sides of the Table

JUNE 5, 2011

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. As the risks below get eliminated the higher the valuation investors are prepared to pay.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Startup Professionals Musings

JUNE 11, 2022

In the US, a nonprofit is technically any company who qualifies as tax exempt through IRS Section 501(c). Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. Examples include charitable organizations, trade unions, and public arts organizations. Government grants.

Angel Investor 327

Angel Investor Equity Technical Review Exit Strategy 327

Both Sides of the Table

JUNE 30, 2016

How much you raise determines valuation I know it sounds crazy but at the earliest stages of a company your valuation often is determined by how much money you raise. A $15–20 million valuation sounds better than an $8 million valuation, doesn’t it? But people never do. Justin is right. But it’s actually not that silly.

Pre-Money Valuation 292

Pre-Money Valuation Valuation Early Stage Startup 292

Both Sides of the Table

MARCH 21, 2013

In the Ad Tech world PS revenue often means providing “media services” as a value-add to using your product. The closest analogy I have for a PS person is a “sales engineer” who is normally a technical staff member who assists in sales campaigns. rollout support. integration with other systems. configuration.

Software Review 321

Software Review Software IP Technical Review 321

Both Sides of the Table

FEBRUARY 12, 2019

why the hell has seed financing declined so much in the past 3 years?? The reality is that as a result of two major trends the costs of starting a technology startup went down massively. So What Impact Did the Drop in Tech Founding Costs Have on VC? Well, both of those things happened but they were lagging indicators.

Venture Capital 328

Venture Capital Technical Review Seed Stage IPO 328

VC Cafe

FEBRUARY 27, 2024

While the answers are somewhat semantic, the pre-seed funding round is making a comeback in 2024 startup financing. Lower valuations and follow on valuation sensitivity – fundraising is a recurring event in the life of a startup. Pre-seed tends to be about developing an MVP and generating early traction.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

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 There is nothing viral!

San Francisco 256

San Francisco Valuation Los Angeles Technical Review 256

Both Sides of the Table

NOVEMBER 14, 2017

Nearly every successful tech startup I’ve observed over the past 20 years has gone through a similar growth pattern: Innovate, systematize then scale operations. We have well financed competitors whom despite competing with we respect deeply and when you see your competition launching in many markets it’s tempting to follow suit.

Operations 286

Operations New York City Technical Review Startup 286

Steve Blank

NOVEMBER 5, 2009

Unfortunately in early stage startups the drive for financing hijacks the corporate DNA and becomes the raison d’etre of the company. Reply Week 2 – Customer Discovery & Listening « Iain’s Chips & Tech , on November 6, 2009 at 9:44 am Said: [.] Raising Money Using Customer Development « Steve Blank [.]

Customer Development 270

Customer Development Developer Customer Silicon Valley 270

Both Sides of the Table

JULY 29, 2010

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. The best thing to get is a “right sized&# valuation. A: It’s not best.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

Both Sides of the Table

OCTOBER 12, 2014

Prorata rights are one of the most important rights of a private market technology investors and yet are seldom fully understood. In the old days there weren’t many fights about whether angels would take their prorata rights in financing rounds. Because tech companies are getting bigger more quickly than at any time in history.

Technical Review 336

Technical Review Later Stage Early Stage LP 336

YoungUpstarts

JULY 10, 2017

A change in revenue recognition means a change in the due diligence process, specifically accounting diligence, modeling, quality of earnings and cost of integration. Effects on valuation. Understanding these changes is critical for companies looking to successfully navigate the landscape of M&A in the future.

Technical Review 124

Technical Review Revenue Software Review Due Diligence 124

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 147

Seed Stage Technical Review Early Stage Due Diligence 147

Both Sides of the Table

MAY 4, 2013

I tapped my friends at big tech companies (Salesforce, Google, Oracle). And they have access to some of the most talented technology entrepreneurs so this is a worthy goal for them. I have always advised startup companies against letting valuations get massively ahead of market norms. I spent time on college campuses.

Deal Flow 347

Deal Flow Early Stage Investment Bankers Technical Review 347

Both Sides of the Table

MAY 4, 2013

I tapped my friends at big tech companies (Salesforce, Google, Oracle). And they have access to some of the most talented technology entrepreneurs so this is a worthy goal for them. I have enough investments that people can diligence to tell you that I’ve been fair on price. I spent time on college campuses. I hustled.

Early Stage 361

Early Stage Deal Flow Investment Bankers Technical Review 361

Steve Blank

SEPTEMBER 14, 2009

Posted on September 14, 2009 by steveblank Over the last 30 years Wall Street’s appetite for technology stocks have changed radically – swinging between unbridled enthusiasm to believing they’re all toxic. Tech acquisitions went crazy at the same time the IPO market did. 3) invest in and take equity stakes in exchange for capital.

Silicon Valley 237

Silicon Valley IPO Technical Review Venture Capital 237

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 if this costs more than 2 years of in-house assembly, it’s still worth it, due to accelerating revenue growth due to up-sales and market-differentiation.

Balance Sheet 242

Balance Sheet Vertical Acquisition Revenue 242

Startup Professionals Musings

JULY 3, 2011

In the US, a non-profit is technically any company who qualifies as tax exempt through IRS Section 501(c). Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. Examples include charitable organizations, trade unions, and public arts organizations. Government grants.

Angel Investor 238

Angel Investor Technical Review Exit Strategy Equity 238

Startup Professionals Musings

SEPTEMBER 8, 2019

In the US, a nonprofit is technically any company who qualifies as tax exempt through IRS Section 501(c). Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. Examples include charitable organizations, trade unions, and public arts organizations. Government grants.

Equity 235

Equity Angel Investor Technical Review Exit Strategy 235

Both Sides of the Table

AUGUST 12, 2010

In the technology world there are a few websites that most startups track to keep up with the latest financings, acquisitions, product announcements and gossip: BusinessInsider, TechCrunch, Mashable, GigaOm, etc. Specifically we talked about Slide having gotten a $550 million valuation before being sold to Google for $182 million.

Seed Stage 232

Seed Stage Valuation Private Equity Venture Capital 232

Startup Professionals Musings

SEPTEMBER 15, 2012

In the US, a non-profit is technically any company who qualifies as tax exempt through IRS Section 501(c). Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. Examples include charitable organizations, trade unions, and public arts organizations. Government grants.

Angel Investor 218

Angel Investor Technical Review Exit Strategy Equity 218

Growthink Blog

MAY 20, 2011

I received an email last week from an entrepreneur (let's call him Mike) Now to begin, I was pretty impressed with Mike since he used a nice technique to get his email in my inbox (due to the volume of emails I receive, they are screened by others before they get to me). Getting a $100 Million valuation is impossible for a startup.

Venture Capital 109

Venture Capital Valuation NDA Non-disclosure Agreement 109

ReadWriteStart

OCTOBER 7, 2010

At today's roundtable we had some interesting companies and a lot of fundraising discussions, and I will review them shortly. 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. Bottom line, early stage equity is very, very expensive.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

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. Let me check my plan.”

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

Both Sides of the Table

SEPTEMBER 29, 2009

They should heed the age old advice that raising slightly more money while you can is always better than trying to optimize future valuations. Should VC’s really be impacted by public market valuations when the money that they’re investing today should be for returns in 7-10 years? Short answer – yes.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

Up and Running

DECEMBER 16, 2021

In order to avoid formal valuation report costs, shareholders utilize benchmarks of the industry and rules of thumb to estimate the ballpark values of their interests. This article will cover all about the rule of thumb business valuation approaches, when to use them, and their pros and cons. Rules of thumb and business valuation.

Valuation 86

Valuation .Net Metrics Balance Sheet 86

David Teten

DECEMBER 3, 2019

When I met my now-wife, I realized that any technology that can find me a spouse is a killer app. I’d argue that the same type of technologies that have revolutionized dating can revolutionize our industry. . I walk through below how progressive investors are using technology and analytics throughout all of their operations.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Startup Professionals Musings

OCTOBER 13, 2013

In the US, a non-profit is technically any company who qualifies as tax exempt through IRS Section 501(c). Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. Examples include charitable organizations, trade unions, and public arts organizations. Government grants.

Equity 207

Equity Angel Investor Technical Review Exit Strategy 207

Both Sides of the Table

APRIL 18, 2019

The valuations were too high! This is only true when: 1) there is funding available to finance short-term losses and 2) when there is a lucrative positive unit-economics business when you become the winner. Turns Out There Are Competitive Moats There were some tech meme’s out there last year that scooter companies had no moats.

South America 250

South America Global New York City Software Review 250

Genuine VC

JULY 19, 2010

Of course CapEx has been transformed into OpEx via changes in the tech infrastructure layer (open source, virtualization & cloud computing, offshoring, etc.). All of these above changes aren’t just due to market inefficiencies (like the supply side), but are truly marked changed that are intensifying. That’s no secret.

Seed Stage 175

Seed Stage Technical Review Dilution Offshore 175

The Startup Magazine

JANUARY 14, 2020

With advances in technology, green buildings can also be built at fairly competitive prices. Higher asset valuation – growing awareness about the environment; the social impact of buildings and the need to meet sustainability credentials is increasingly making real estate investors and occupiers turn to green buildings.

Green 171

Green California Government Valuation 171

YoungUpstarts

OCTOBER 23, 2017

This combinatorial model works because it’s diversified, can best withstand bear markets, benefits from technological synergies, and it’s the mix of products and services clients value. To dig deeper, let’s first review the influence of technology on the core components. However each component will change dramatically.

Technical Review 154

Technical Review Artificial Inteligence Software Review IPO 154

VC Adventure

JUNE 14, 2022

Indeed, many firms even institutionalize the practice of providing help to portfolio companies through extensive platforms that may include PR, talent, marketing, technical, and other help (sometimes offered for free, sometimes offered ads a pay-for-service, but often at below-market rates for those services).

Technical Review 150

Technical Review Due Diligence Portfolio Venture Capital 150

This is going to be BIG.

OCTOBER 7, 2013

Some financing rounds seem to go really fast. Great, so now that everyone has met you, you need to do due diligence, right? Great, you get your due diligence back and you either make a decision right then and there or you wait to the following Monday partner meeting. Venture Capital & Technology'

Technical Review 145

Technical Review Due Diligence Venture Capital Valuation 145

Hearpreneur

JANUARY 22, 2023

We've also seen extensive use of technology and increased remote working. As a result, businesses in this field should leverage technology to provide interactive, easy-to-understand educational content that can help customers make health-related decisions and maintain healthy habits. Thanks to Erik Pham, Health Canal ! #2-

Artificial Inteligence 126

Artificial Inteligence Technical Review Entrepreneur Social Media 126